If you've been following the trends in the global financial sector, you may have realized that finance plays a significant role in boosting the fortunes of every company. The global financial crisis of 2009 that triggered recession caused the proliferation of Micro, Small, and Medium Enterprises (MSMEs). Although the industry had been booming before now, the financial crisis led to the surge of startups.
Despite the increasing the number of small-scale enterprises, it is still an arduous task for them to get funds to boost their operations.
Nevertheless, the Tokoin blockchain is here to reposition the industry using the blockchain. Read further to discover how the platform would boost the MSME industry for the better.
FOSTERING B2B & B2C INTERACTIONS
The overall aim of the Tokoin blockchain is to solve the problems that have been hindering the growth of the startup industry.
At the core of the solutions is the forging of a communicative interaction between businesses and consumers. The consumers in this instance are the Micro, Small, and Medium Enterprises (MSMEs). The platform creates a system whereby business can communicate with companies (B2B) and another system where businesses can interact with consumers/customers (B2C).
Transactions in this instance are facilitated through the Tokoin dApp. The Decentralized Application (dApp) by the Tokoin blockchain empowers small-scale enterprises to solicit and get funds from investors without hassles.
BUILDING REPUTATIONS AND CREDIT SCORE THROUGH DIGITAL BUSINESS IDENTITY
It's worth noting that one of the reasons behind the inability of enterprises to get loans is most times, caused by their failure to maintain a good credit score. It is saddening that many startups are embroidered in debts a few months after launching.
The same extends to their business profile, which tends to be in a state of quagmire following the limited information that reveals their activities.
The Tokoin blockchain solves this challenge by developing the Digital Business Identity framework. It is a system that records the day-to-day activities of enterprises participating in its ecosystem. The ID also helps to provide investors with relevant details about the standing of a company on the Tokoin blockchain. That, in extension, empowers the investors to decipher the reputation of the enterprise. That way, it becomes easier to verify the status of the target Micro, Small, and Medium Enterprises (MSMEs) before investing in it.
THE ROLE OF BLOCKCHAIN
Now, we’re looking at the function/role of blockchain in the ecosystem. Blockchain has a long-standing reputation as a distributed ledger that ensures transparency of transactions. It’s in light of this that Tokoin uses the network to facilitate transactions on the platform.
The blockchain technology helps to foster peer interactions between the investors and the MSME. Also, the network hosts the Tokoin dApp, which helps in facilitating the transmission of the Digital Identity approach that allows investors to discover the best business for funding.
THE TOKOIN PLATFORM
Aside from the blockchain architecture, the Tokoin blockchain also has a distinct ecosystem that doubles as the platform where all the participants converge. We'd highlight the participants and the roles each of them plays in the broader Tokoin ecosystem.
*The Buyers
Micro, Small, and Medium Enterprises (MSMEs) are the primary participants and beneficiaries in the platform. Their role is to provide the platform with relevant details that would help in boosting their chances of getting loans.
Their role as data providers leads to the provision of relevant information like transaction details and the Know-Your-Customer (KYC) information.
Afterwards, they would become buyers when other participants form a retail marketplace that provides the needed products for small-scale enterprises.
*Financial Intermediaries
The hitherto fragmented structure of funding Micro, Small, and Medium Enterprises (MSMEs) is now getting better as the Tokoin platform empowers them to get funds with ease. The financial intermediaries here are the investors, such as banks.
They take advantage of the Digital Business Identity framework to gain insights into the type of business facility the enterprise needs.
*Service Providers
In the Tokoin platform, the Service Providers offer additional financial business facilities to small-scale enterprises. The service providers come in the form of advertisers, consulting, and property agents. They help to monitor the operations of the enterprises by accessing their data to understand their needs.
The services provided via this medium include insurance, warehousing, loans, and logistics. They also help buyers/ Micro, Small, and Medium Enterprises (MSMEs) to make decisions based on their business needs.
*Sellers/Suppliers
The other participant in the platform is the suppliers. They come in the form of logistic partners, brands, and companies. They also double as the product sellers, who market their products and services to the Micro, Small, and Medium Enterprises (MSMEs).
The platform also empowers the suppliers to advertise their products on the platform after making payments for the same using the Tokoin token (TOKO).
TOKEN SALES INFORMATION
Ticker: TOKO
Token Standard: ERC-20
Token Supply: 2 billion TOKOs
Soft Cap: $8 million
Hard Cap: $25 million
MEET THE TEAM
CONCLUDING THOUGHTS
Small-scale enterprises are now set to witness a massive increase in accessing business facilities, such as loans. The Tokoin blockchain is the right place to be for every startup that finds it hard to raise funds in the traditional setting.
I don’t have any iota of doubt that the platform would actualize the different goals it has in place. In the coming months, we expect to see a massive adoption and increase in the fortunes of the Micro, Small, and Medium Enterprises (MSMEs) sector, courtesy of Tokoin.
USEFUL LINKS
Website: https://www.tokoin.io/
Twitter: https://twitter.com/TokoinOfficial
Facebook: https://www.facebook.com/TokoinOfficial
Author's Telegram ID: @Chomsy