Trust around business and money is a lot like relationships. Have it and things can work fantastically…while without it everything will almost inevitably come crashing down into a fiery pile.
Why is that? You may think it’s pretty straightforward…and you’d be right.
Trust is necessary for all things business and money related. Afterall, would you put your hard-earned dollars into a company’s stock if you didn’t trust in the stock exchange platform to work?
No. You wouldn’t.
That is why InventoryClub is helping to revolutionize the Commonwealth marketplace by changing the entire way financial trust happens. Our aim is to provide Commonwealth e-commerce merchants with a critical necessity for conducting their business – access to inventory – through your financial backing.
And don’t worry, there’s definitely something in it for you. Financial returns.
In order to do this, we are developing a platform that’ll allow you to safely and securely pursue a rather unique opportunity for both short and long term financial returns.
The process is simple and straightforward – we connect you with pre-qualified merchants needing access to inventory, and you are able to finance that inventory in exchange for profitable returns.
As an InventoryClub member, you buy proposals from the merchants, giving them the necessary inventory they need.
Now you may be thinking, “That sounds really good, but how can it possibly be safe and secure for me to financially back someone I have never even met? Can I trust our agreement will be enforced? How can I be sure I’ll receive my returns?” Etc.
Enter cryptocurrency and the Blockchain.
In most situations, you would expect a platform like ours to use conventional methods of money transfer, such as banks and services like PayPal. However, we’ve opted to create our own cryptocurrency called VNT (more on this in an upcoming article).
There are several reasons to use cryptocurrency for proposal purchases rather than conventional currencies, such as faster and cheaper transactions.
However, one of the main ones is that it is based on the Blockchain technology, which helps to secure and increase the transparency of transactions, creating trust between all parties involved.
Trust and transparency are vital when it comes to relationships between you and the merchants, which is why we’ve adopted the use of Blockchain technology. Our platform records all transactions on the Blockchain making it very easy to confirm the current state of any agreement between you and a merchant.
What Is Blockchain
To understand how Blockchain helps you, we need to first comprehend what it is. Basically, Blockchain is a universal database. Unlike other databases that have a central server location, Blockchain is distributed across a network of computers all over the world.
The database stores a wide range of information, for example, currency information, banking details, credit card details, and so on.
This information is shared selectively with other users on the network, allowing for the exchange of digital assets. In the case of the InventoryClub, Blockchain allows you to buy inventory proposals from merchants.
How It Builds Trust And Transparency
Here are seven ways Blockchain technology builds the trust you need to fund the Commonwealth marketplace and see exciting, profitable returns.
Blockchain Entries Can’t Be Altered
One of the reasons why Blockchain is considered to be one of the most transparent platforms for exchanging digital assets is because its records cannot be deleted or altered once they have been made. And since the database stores a record of all transactions, you can easily audit the transactions that involve you.
The Blockchain can be used to store a wide variety of information such as agreements, the movement of money, digital assets secure data, and sales. It also stores digital representations of physical assets. For example, in this case the physical assets would be your inventory.
Blockchain allows you to buy proposals from merchants, enter into a smart contract called an Inventory Finance Agreement (IFA) and track the progress of merchant sales.
All the parties involved are able to audit the transactions of the exchange. This helps to build trust between members and merchants, even when they do not know each other.
Eliminates Risk Of Single-Point Failure
Banks and many other financial service providers, such as PayPal, use a centralized database to process transactions. One of the main drawbacks of these centralized database is that they are prone to single point failure (i.e. the failure of the central database), which leads to a complete shutdown of the entire system.
However, with Blockchain, the database is distributed across many computer nodes. If one of the nodes fail, the system will continue to function.
You won’t have to worry about the system failing when you are using tokens to buy inventory proposals.
Inherently High Resistance To Hacking
Blockchain stores immutable records of all transactions as well as records of physical assets, which are all shared with computer nodes all over the world. It is impossible to delete or alter these records, effectively making Blockchain immune to hacking.
For example, let’s say a hacker was attempting to get into InventoryClub’s database and modify an inventory proposal you have bought.
Even if the hacker was somehow successful in altering one of the records, he or she would need to alter all the copies on the Blockchain database, which is impossible.
Your money and inventory proposal records are safe from any would-be hackers.
Faster Exchange Of Assets
Almost all conventional forms of exchanging assets are time-consuming, such as transfer of money through banks or other financial services.
For example, if you were to buy an inventory proposal from a merchant and paying through a bank, both you and the merchant must have an account with the same bank, or banks that support the exchange of funds between each other. When this becomes a cross-border transaction also increases significantly.
And, if you are using conventional means to buy inventory proposals, it’s going to take quite some time (possibly anywhere from a few days to a week or more) for the exchange to be completed.
However, with Blockchain, there are no third parties, and the transactions are processed instantly by the network. As a result, buying inventory proposals is an instant process.
Self-Governing Smart Contracts
Every exchange of asset involves a contract where there are rules – a process of implementation, and a verification process. This also applies when it comes to the exchange of assets through Blockchain.
Unlike conventional contracts (which involve written contracts that are implemented and need to be verified by third parties) Blockchain makes it possible to use self-governing smart contracts.
For example, when you purchase an inventory proposal, an Inventory Finance Agreement is created between you and the merchant, which is written into the Blockchain and will include:
- The terms and conditions
- The implementation process
- The verification process
When the transaction occurs, the Blockchain database will verify that it has been implemented as agreed upon and based on the terms and conditions and then auto approve it.
Since human elements aren’t required for the verification process, the process is very transparent, helping to foster trust between you and the merchant.
Eliminates The Need For Third-Party Administrators
Blockchain not only removes human elements during the verification stage of a transaction, it also eliminates the need for any third parties in all of the processes. These third parties include payment processing services, lawyers, and others.
Everything is processed and verified through the Blockchain.
The removal of these third parties helps to increase the security of the transactions – eliminating manipulation of the transaction.
And, with zero third parties involved, the exchange of assets is allowed to be fast, which helps to save a lot of time and make profits even faster.
Allows Users To Audit Ownership Of Assets
One of the main challenges of exchanging assets is the verification of ownership. For example, when you are buying an inventory proposal from a merchant, you must first verify that the merchant has the proposal and it belongs to him/her.
Likewise, the merchant also has to verify that you have the necessary tokens to buy the proposal.
In a conventional exchange, the process of verification would require the use of lawyers, banks, and other third parties. The problem with these third parties is that they can be fooled, miss something, be corrupted, or just simply take a long time.
Fortunately, thanks to Blockchain technology, the verification process is done by the database, which drastically reduces the risk of error, manipulation and time delay. On top of that, you are able to verify the merchant’s ownership of the inventory proposal using database records.
Marketplaces require transparency of transactions and trust between the parties involved in an exchange. In many marketplaces, it is not easy to create trust and transparency and the parties have to trust each other blindly (as well as other third parties), sometimes with disastrous results.
However, through the use of Blockchain technology, we are helping to ensure that all of your transactions are transparent – fostering trust between the you and the merchant.
Interested in learning more about how InventoryClub can help you take advantage of the tremendous financial opportunity that is happening right now in the Commonwealth? Check out our whitepaper.