Change the game by bringing your business to the international scale
Blockchain-based solutions are lowering the barriers for entry to global trade, enabling small businesses to inexpensively reach an international scale of operation. Now more than ever it’s easier for small businesses to engage new communities and to gain visibility globally.
Intermediaries are being replaced by platforms for managing risks at a lower cost — smart-contract escrow services and blockchain-based certification of goods authenticity are prime examples of it — resulting in much lower fees.
The widespread internet access has significantly changed the way that companies conduct businesses. There have been many waves of technological advancements that decreased the barrier of entry for smaller businesses. Currently, the latest wave is forming with the emergence of the first use cases of blockchain-based solutions.
One industry segment where blockchain-based services are about to move the needle is e-commerce. New applications and platform providers can significantly decrease the cost of doing business for companies and this can potentially open up doors for small and medium-sized companies from all around the world to join global trade and expand their trade activity internationally.
ModulTrade is doing exactly that. Its marketplace platform, MT Market is open for all users and easy to use to sell and buy goods, while security is provided by its underlying blockchain network. ModulTrade provides a cheaper alternative for cost-sensitive companies than the offerings of incumbent e-commerce players.
- for example, overall sales fees on the MT Market are about 1–4.5% vis-a-vis 8–20% of traditional marketplaces, which
- include escrow services via smart-contracts and with free payments in stable digital currency (A-EUR);
- makes it easier to cut middlemen and to engage the end buyers directly thanks to its high trust (escrow + proof of authenticity).
Smart contract based escrow is a win-win for buyers and sellers. When a deal is agreed on the MT Market platform, a new smart contract is being created on the blockchain network. The buyer sends the value of the goods that she is purchasing to this smart contract, that will store it until the delivery is completed. Upon receiving the ordered goods, the smart contract is notified about the successful delivery via the system of the logistics company. The smart contract immediately releases the value stored and it appears on the seller’s address. No long waiting time, no insecurity. Fully transparent and secure transactions.
In the same way, smart-contract platforms are also providing a more accessible alternative to classical trade finance instruments, thus addressing a $1.6 Tn global trade finance gap, hitting mainly SMEs, with 56% of their TF proposal rejected.
When digital asset-backed lending meets the blockchain platform, the result is a fast, secure transparent lending scheme. Loans are handled automatically by smart contracts that also store the digital collateral for the loan. That scheme results in no need for a credit check or other expensive and long paperwork for loans. The loan amount can appear in your wallet in seconds.
Blockchain-based solutions also provide small businesses with the opportunity of engaging new blockchain communities and inexpensively gaining global visibility by reaching new target markets globally. For example, in ModulTrade’s ecosystem:
- A business can gain visibility in multiple geographies to new potential customers with a high propensity to spend, experiment with innovation and with high technological skills, simply by opening a webshop on the MT Market, ModulTrade’s blockchain-based marketplace.
- A webshop can be set up in a very few clicks, for free or with a monthly premium subscription plan, and it enables a business to:
- Have its own online store 24/7 and multi-language
- Easily create its own marketing community
- Boost content reach and user engagement
- Establish connections with people, influencers, and many more globally
- Start selling authentic products even without a banking account
- With ModulTrade’s media and promo platform, a business can also educate end users and resellers to their product’s innovative features by sharing branded content.