The solution: blockchain
Blockchain is a relatively new technology which is set to revolutionize the way we do almost everything. Although it has become popularly associated with bitcoin, it has a much wider range of applications.
What is blockchain?
To explain, as a distributed database, a blockchain maintains a continuously growing list of records, called blocks, which are secured from tampering and revision. Each block contains a timestamp and a link to a previous block. Blockchains are inherently resistant to data modification — once recorded, the data in a block cannot be amended retroactively. A blockchain database is managed autonomously through a peer-to-peer network and a distributed timestamping server. Blockchains serve as open, distributed ledgers that can record transactions between two parties efficiently and in a verifiable and permanent way. Decentralized consensus can therefore be achieved with a blockchain. This makes blockchains suitable for many purposes, including the invoice financing process.
Hive Project uses blockchain technology to link all payments made to tokenized invoices. Using tokenisation as a form of cryptography, which gives only those with the required permissions the ability to access information, ensures that transparency and 100% consensus is constantly maintained. Everything on Hive Project’s blockchain system is denominated in XBT and backed on a one-to-one basis in order to eliminate any volatility or fluctuations.
Why use blockchain?
There are several benefits to using blockchain for invoice financing:
· Trust and accountability
· Improved funding access to SMEs
· Compliance with government regulations
· Compliance with internal rules and processes.
· Significant savings in terms of costs and time
· Elimination of documentation fraud
· Mitigating risk and improving standards.
· All values are transferred completely accurately and securely.
· Smart contracts ensure that matters proceed flawlessly once terms and conditions are agreed.
The beauty of the concept is that the transparency involved does not depend on the integrity of the counter party. This high level of integrity is actually inherent and fundamental to the blockchain technology used. The Hive Project Platform lets businesses connect, encrypt and upload received and issued encrypted invoices, which can then be traded or used to build a transparent financial track record.
It is clear now that seismic changes are afoot in the financial industry. Critical advances in technology now mean that the world is transitioning to a new economy, where the benefits are abundant. So, why Hive Project?
It is simple:
We want to help SMEs get liquidity by leveraging blockchain technology and giving them financing options previously available only to big companies.
Interested? More infos available on our website: https://www.hive-project.net/