XINFIN - UNDERSTANDING THE DYNAMICS OF A DECENTRALIZED GLOBAL TRADE PLATFORM

TRADE
Global or international trade, is simply a display of the power of financial transactions to import or export goods and services across international boundaries. A basic concept underlying global trade is the concept of comparative advantage in commercial activities and has material impact on economic conditions and standards of living of human beings. This comparative advantage results from human evolution, inventions,geographic conditions, political conditions and natural resources in that region.
With vast recognition, Global trade can also enable larger economic scale. Sector wise, electricity and roads remain the two most important sectors, together they account for more than two-thirds of global investment needs. The World Health Organization reports that more than one (1) Billion people live without electricity, 2.3 Billion people still do not have access to basic sanitation facilities and 844 Million people lack even a basic drinking-water service.
Hence by 2025, half of the world’s population will be living in water-stressed areas.

FINANCE
To boost such massive infrastructure growth, financial institutions and banks are supposed to pump money in the ecosystem which is known as trade finance. Micro, small and medium MSME contribution in the development of world economy has been significant, both in terms of contribution to GDP and creation of employment opportunities.

INEFFICIENCIES IN TRADE AND FINANCE
• Nature of infrastructure investments
Due to large up-front investments coupled with longer cycles to realize uncertainties linked to government policies and regulations, Infrastructure projects often face funding challenges.

• Limitations of traditional providers.
Traditional financial providers such as banks face capacity challenges constrained by balance sheets and regulatory requirements (AML, KYC, sanctions, Basel etc.), insufficient levels of collateral, complex procedures to avail financing creating entry barriers specially for MSMEs.

• Lack of a truly global financial Marketplace.
Finance still remains vastly regionalized and centralized, in spite of globalisation of finance and several providers on the market.

• Cross-border latencies.
Cross-border settlements remain biggest challenge for merchants or beneficiaries from acquiring global business opportunities. The cumbersome cross-border payment infrastructure and processes not only introduce time latency thus delaying trade and payment confirmations, but also drive up the financing costs due to several intermediaries involved. A simple cross-border payment still takes 3-5 days.

• Legacy issues.
Trade and finance globally suffers from multiple web of legacy systems and huge delays due to the cumbersome processes involved in traditional means such as letter of credit and associated documentation and procedures to be maintained by all the participating entities including the supplier, buyer, their respective banks etc.

Simply, Blockchain technology gives room for means of establishing a public, circulated database or set of records or set of transactions that are cryptographically secured and unchanged in nature.
‘XinFin’ has taken this blockchain technology even further by developing a truly hybrid blockchain ‘XDC01 protocol’ with complete interoperability with public blockchain networks.

ADVANTAGES OF BLOCKCHAIN OVER TRADITIONAL SYSTEM

• Digitized ledger
Blockchain provides for storing digital records of all kinds of transactions, documents and contracts, since its mainly a distributed database.

• Decentralisation & Dis-intermediation
There are no central or single points of failure in the blockchain system because there is no centeral ownership of the blockchain.

• Immutability & Auditability
Blockchain is secured by advanced cryptography and any change to the blockchain of records requires some form of consensus from the entire network thereby making the records or transactions very secure and immutable in nature.

• Efficiency improvement
Most of the complex processes that are involved in trade and finance today can be re-engineered and automated using smart contracts over blockchain, thereby building efficiency in the system.

BLOCKCHAIN APPLICATIONS IN TRADE CONTRACTS
• Digital contracts.
Blockchain based smart contracts can help execute all kinds of traditional trades and finance contracts.

• Facilitating cross-border transaction.
Blockchain provides infrastructure to facilitate cross-border and domestic transactions where different entities around the world can connect with each other using digital tokens and smart contracts thus removing all geographical barriers and limitations of currencies etc.

• Real-time payments and settlement.
Blockchain efficiencies mean that transactions are executed with very high throughput and there is no post-trade settlement and recovery processes.

• Asset Digitisation
Apart from the digital token itself that underlies the trade and finance smart contracts, the asset or goods or services itself can be digitally represented on the blockchain and monitored or tracked in real-time using Internet of Things (IoT).
Benefits for the participants.

BENEFITS FOR BENEFICIARIES
• Lower Cost of Capital.
• Access to Global pool of funds.
• Access to credible suppliers and financiers.
• Participant incentives.

BENEFITS FOR SUPPLIERS
• Expand market for Goods and services.
• Improved Trade and cost efficiencies
• Participant Incentives.

BENEFITS FOR FINANCIERS
• Find global investment opportunities.
• Real-time Payment and Settlement.
• Real-time Investment tracking.
• Participant Incentives for Lowering Cost of Capital.
• Hedge against the Forex volatility.

CONCLUSION
The major aim of XinFin is to bridge that gap wherein the investors can bid for different infrastructure projects and finance them in a smoother way.
XinFin aims to solve real-world problems both using tokenized and non-tokenized solutions and become the preferred choice of enterprise ready Blockchain.

Ticker: XDCE
Platform: Ethereum
Token Supply: 15 billion XDCE
Token Standard: ERC-20
Token Type: Utility
Country: Singapore

FOR MORE UPDATES AND INFORMATION ON XINFIN, PLEASE CHECK OUT THE FOLLOWING LINKS
Website: https://xinfin.org
Telegram: https://t.me/xinfin
Medium: https://medium.com/xinfin
Twitter: https://twitter.com/XinFin_Official
LinkedIn: https://www.linkedin.com/company/xinfin/
Youtube: https://www.youtube.com/channel/UCQaL6FixEQ80RJC0B2egX6g
Github: https://github.com/xinfinorg

Author: Nsiman
Eth address: 0x1714ea3Cce6E6B8680eeaB0EB03e51b6C4E2797e