Current international trade practices have long been entrenched in the banking system status quo. A general indifference, and indeed resistance, to changing times and technology has permeated the methods of payment adopted in the B2B sphere. Only now, on the eve of new technologies threatening to shift their entire establishment, are global banks re-examining their footing. As these new technologies assert themselves outside of the banking system’s centralized control, might it already be too late?
Benefits of Blockchain Payment
Online payment methods have been around for some time now. The ubiquitous PayPal set the bar and numerous variations have since popped up around the world. However, in 2008 the world was introduced to Bitcoin and its associated blockchain technology, one that has been predicted to revolutionize the financial industry by way of decentralizing payments and making their records distributed and unchangeable.
What effect does this have on the B2B industry? Potentially, an enormous one.
The payment system currently in place for international trade relies on the banking system establishment. Whether payment is made online or offline, by PayPal or letter of credit, or even a credit card, these are all bottlenecked through the banks’ (or other equivalents’) processing network, incurring any associated fees these institutions deem appropriate.
Blockchain technology sidesteps this entire system through its decentralized nature. Instead of relying on the processing power of the banking centralized network, it instead uses the power of nodes, the assorted computing devices which make up the processing power of the blockchain. This process allows a blockchain to not only to operate independently, but also to establish its own policies independent of any banking system. In short, this means much lower fees on a very dependable system.
Of course, banks, late to the game though they are, recognize the potential of this technology and are not taking such a shake-up lying down. Many have already begun utilizing this in their own transfer operations. Some have invested in the technology and are hoarding Bitcoin and other noteworthy currencies. And others still are pushing hard for regulation.
That makes this a very interesting time as the two sides are pulling at the technology. What began as a digital currency wild west is now being roped in as governments worldwide examine the implications of the technology. Some have already ruled, others are waiting, and some national governments are even minting their own digital currencies using blockchain tech. But, the general push seems to be toward some form of regulation and standardization.
Features of TraDove’s B2B Blockchain for Payment
So what does any of this mean for the B2B world? Mostly, it means that businesses are looking for something reliable, particularly with considering the billions of dollars at stake in this industry. They want to know it’s trustworthy, stable, and safe. And herein lies what TraDove is bringing to the table with its B2B Blockchain Payment Network.
TraDove recognizes that companies, public or private, are not looking to take risks with their money. As both 2017 & 2018 have shown us, there is massive potential for gains in the big name currencies, but also massive potential for loss. It’s simply too volatile for the sake of doing business. To remedy this, TraDove is introducing its own currency-pegged token for an internal trading network. The entire B2B payment system is free to use, leaving the choice up to the buyers and sellers to buy in, trade, cash out for a simple, one-time trade, or keep the tokens in the system, and continue to use for future trades down the line.