Trace Network launches to offer enterprises DeFi-based financing options

Although the technology space has unlocked multiple milestones, the industrial system lags due to a host of key challenges. These include, but are not limited to, disconnected data in their business network, which comprises buyers, suppliers, and financial institutions. As a result, the sector is plagued with prolonged, burdensome, and costly procedures.

Trying to address these challenges, the decentralized finance (DeFi) sector offers a feasible extension to the current channels of working capital and trade financing. However, businesses have to be interconnected to ensure the seamless movement of transactions on-chain before they can tap into the potential of the DeFi space.

To achieve this, such a system would require a protocol that enables on-chain proof of transactions. Such a protocol would offer referential information while obtaining liquidity from the DeFi ecosystem.

Aiming to solve this riddle, Trace Network went live as an enterprise-grade NFT based decentralized finance protocol. This protocol leverages the abilities of composable smart contracts, DeFi-powered permissionless financing options, NFT-based distinctive merchandise identification solutions.

By tapping into this synergy, Trace Network seeks to unlock the multi-billion-dollar potential of businesses, which is currently locked in fragmented merchandise inventory, costly trade financing and banking options, and perpetual inefficiencies in daily transactions.

Striving to find solutions for enterprise problems

The motivation behind Trace Network’s efforts is the problems that enterprises face. These include counterfeit products, which sabotage a brand’s reputation, the absence of real-time stock status across supply chains, complex data integration mechanisms, pre-shipment financing, post-shipment financing, and delayed inter and intra enterprise trade settlement. Apart from this, Trace Network looks to address the problem of cumbersome, time-consuming, and expensive financing options in businesses.

By merging the blockchain, NTF, and DeFi spaces, Trace Network is out to addresses each of the aforementioned challenges. 

By leveraging an NFT-based on-chain merchandise identity management, the project believes it can help brands create unique digital identities for all their products. By using NFTs that are generated on ERC 721/1155 standards, companies would be able to the ownership of products as they traverse multiple decentralized applications (dApps). The NFTs would act like unique barcodes, replacing the current barcode system. The best part is that these NFTs will be globally unique and will not adhere to the different organization standards.

Apart from creating distinctive product identities, NFT will also play a key role in tracing the movement of goods in real-time. Through monitoring the movement of products between addresses, the NFT will offer an unprecedented level of traceability. Additionally, the NFTs would simplify the stocking by showing the overall stock status of all products in the distribution network.

Moreover, Trace Network intends to let brands use NFTs to incentivize their customers. They can be in the form of gift cards, discount coupons, and loyalty cards, among other forms. In so doing, the project will help brands get increased loyalty and long-standing relationships with their communities. Trace Network also seeks to enable the instant swap of NFTs among community members to ensure brand engagement.

Through DeFi, Trace Network sets out to address challenges in trade financing by making the borrowing process simple and fast. Apart from this, the project would also ensure companies get low interest rates. However, businesses would have to provide either invoices or inventory stocks as collateral against the loans they take.

Trace Network also intends to offer a white label algorithmic stablecoin, which companies can hold in their treasuries to settle invoices. Companies using crypto assets to settle invoices without the actual movement of funds from banks will be able to mint these coins. By leveraging them, the companies will be in a position to easily control the volatility of crypto assets, seeing as the coin would be pegged 1:1 to the US dollar.

Leveraging a layer 2 blockchain solution

The Trace Network platform will run on a layer 2 blockchain solution to ensure high transaction speeds, extremely low gas fees, enterprise-grade stability, and high security. The platform will comprise an NFT marketplace dubbed BLING. Per Trace Network, BLING is the 1st Limited Edition Luxury and Lifestyle Products NFT Marketplace in the world. The marketplace would play the roles of enabling the minting of NFTs for real-world assets and the auctioning of NFTs. Apart from this, BLING would serve as a channel for customers to claim physical products once they win NFTs.

Trace Network will also feature a Software Development Kit (SDK), which can be used to customize marketplaces to ensure the seamless exchange of value. The SDK modules will be compatible with third-party applications for easy integration. With a promise to regularly update its SDK, Trace Network believes that its design will meet the expanding demand for increasing use cases and dApps in the industry.

The protocol will also comprise a trade payment, finance, and settlement solution. With the trade finance market exceeding $15 trillion, Trace Network intends to use the blockchain to increase its efficiency while reducing costs and opening new revenue opportunities. By tapping the blockchain, Trace Network offers multiple benefits, including real-time review of financial documents, transparent and quick factoring of invoices, elimination of intermediaries, and risk mitigation. Apart from this, the platform offers decentralized contract execution, proof of ownership, automated settlement, and reduced transaction fees. 

A reliable design

The Trace Network protocol is designed to be interoperable, programmable, immutable, network agnostic, and secure. As such, the network will allow other DeFi protocols and applications to run on it while ensuring the safety of assets and data stored on it. This also means that the protocol will be able to interact and launch on any EVM-compatible network. By leveraging a Proof of Business consensus mechanism, the protocol will let participants interact and validate transactions based on submitted and recorded financial documents.

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