If you have been keen on what takes place in the cryptocurrency world, then you might have come across the Populous platform. The word populous was coined to represent the people of a particular country, state, or community.
In essence, Populous refers to an innovative platform that enables people of a given community, state, or country to unite as a single body and fund commercial enterprises in need of urgent cash. This article exposes how Populous works. Read on to find out.
How Populous Works
The main objective of Populous is to provide a suitable environment for invoicing and trade funding. To help our readers understand this concept, I will illustrate with an example. Think of Tony as a start-up entrepreneur in the UK. Each time the business owner sells a product or service to a customer, he has to raise an invoice. The invoice is an official business document from the seller to the buyer, asking for a payment within a set period.
To ensure that he meets his sales targets every time, Tony may have to issue several invoices to numerous customers. However, some of his payment terms might turn out negative, which might imply a period of business downtime with completely no cash flow. In that moment, how would Tony pay his workers, suppliers, and even meet his recurrent expenses during the slack period?
Usually, the businessperson would apply for a loan from a reliable financial institution. But, even after the loan application, Tony would have to endure the delays in processing, often associated with such lenders. This is where Populous comes in to offer a credible solution to the problem. Populous allows its members to contribute as little as one hundred dollars to loan Tony. This happens almost immediately, saving the business owner from delays and rigorous verification processes.
Any Part Of The World
Interestingly, investors on Populous can come from any part of the world. The platform utilizes a peer-to-peer (P2P) initiative in which buyers strive to outbid fellow buyers for invoices. In the end, the highest bidder gets the principal amount and the interest accrued for the invoice bought. More importantly, Populous operates on the blockchain technology to accomplish its objectives by engaging invoice sellers and lenders directly without involving third parties such as banks and other financial lenders. In the end, the process is more cost-effective without any fees involved.
Technically, Populous operates on an invoice-factoring trading platform with an XBRL data that allows smart contracts. Besides, the platform utilizes the Altman Z-scores to evaluate the level of risk associated with each particular borrower, company, or customer. Overall, the level of risk associated with manual errors or invoice duplication is reduced. This enables the company to process micropayments between startups and mid-size businesses. Since the platform is ubiquitous, investors can operate from any part of the world. For more information about the technical details of Populous, you can read their whitepaper.
The major benefits derived from Populous platform depend on the financial opportunities it provides to small and mid-size enterprises. Traditionally, such opportunities are only available to mainstream businesses. With high lending fees and collateral requirements, many banks and traditional lenders lock out small and midsize businesses from their services. On the Populous platform, there are no intermediaries, and this makes the financial arena suitable for everyone.
Additionally, since the invoices are sold to the highest bidder, the borrowers are able to get funding immediately instead of waiting for 45 or 60 days. For startups with slim profit margins, the advanced payment can make a big difference in their operations. Together with the global network of the blockchain technology, the marketplace is vibrant and diversified, separate from the situation in the traditional lending marketplace.
Populous is a brainchild of Stephen Williams, a British expert analyst of finance and big data. Williams had a keen interest in the eXtensible Business Reporting Language (XBRL), which focused on improving the way businesses could file their annual financial reports. Initially, Williams constructed a special tool that extracted lists of cash-strapped businesses with rich assets. He sold the information to financial institutions using the traditional door-to-door mechanism. With the emergence of the blockchain technology, Williams seized the opportunity and found a way of constructing a timely financial marketplace using the XBRL data on the accessible Ethereum blockchain.
The Populous Team
The CEO and founder of Populous is Stephen Williams. The CTO and Chief Smart Contract Developer is Zvezdomir Zlatinov. Finally, yet importantly, economist Jonathan Millar handles the Specialist Invoice Risk Financing docket. The three professionals work together with other young developers on the platform to make it what it is. You can see detailed information of each professional here:
Populous utilizes ‘Pokens’ as its in-platform, custom currency. Pokens are pegged one-to-one with the national currency involved in the business deal. For instance, 20 US dollars will be pegged at 20 pokens. Pokens are available for purchase at the following exchanges:
- Ether Delta
- Crypto Dao
Additionally, investors can deposit the funds directly on the platform. Pokens can be exchanged with other forms of cryptocurrency such as Bitcoin or Ethereum. Upon withdrawal, recipients can exchange their Pokens for any government currency. This makes it a convenient medium of exchange that people can use everywhere across the world.
By the end of 2017, Populous estimates its trade-factoring market to go beyond 4.4 trillion dollars, which is the current figure for the traditional global market factoring. In addition, Populous aims to disrupt this market as it aims to expand and include new players on the platform. As it seeks to accomplish this objective, Populous has a great task ahead of demonstrating its ability to provide higher returns for its investors.
All the same, once they are able to manage this, the scope for fiscal and geographical growth is quite huge for Populous. With investors from across the world, the platform is headed for great opportunities.
Uulala ICO (UULA Token): Financial Solution For Unbanked Population?
What Is Uulala? Uulala is a minority-owned corporation in the US whose major shareholders are first or second generation Latinos. The...
DIW Token ICO: Secure Decentralized Digital Identification Wallet?
What Is DIW? DIW I a new system that is designed to be a safe and secure place to store...
QLink QLC: Mobile Telecom Blockchain Communication Token?
Cryptocurrency is a method of transacting universally-accepted currency, and its popularity is quickly growing. Most people see this currency as...
Ethfinex Nectar Token NEC ICO: Crypto Asset Trading Financing?
What Is Ethfinex? With the bitcoin blockchain slowly saturating, Ethereum is now being viewed as the new home for crypto innovation....
Cryptectum: Swiss Real Estate Blockchain Crowdfund Investing?
What Is Cryptectum? Cryptectum is a new company based on blockchain technology that has been highly refined to work with...
LoopX LPX ICO: Advanced Loop-Algorithm Trading Software?
LoopX claims to be the most advanced loop trading software to date. Find out how it works today in our...
CryptF CPTF ICO: Blue-Chip Stocks & Bonds Backed Cryptocurrency?
What Is CryptF? The company CryptF is a new simply designed mechanism that a person can use to invest into...
Adverx AVX ICO: Real Time Bidder Advertising Platform?
Adverx is a supposedly legitimate cryptocurrency platform that is in the first round of its ICO or initial coin offering....
Viola Ai- AI Driven Relationship Dating Marketplace VIOLA ICO?
VIOLA AI is the world’s first AI-driven marketplace that focuses on dating, courtship, and marriage. Operating on the Ethereum blockchain,...
Mavro: Bitcoin Network Marketing MLM Crypto Lending Coin?
Although the cryptocurrency market didn’t simply appear overnight, to call it an uphill trend would be an understatement. It is...
Cryptocurrency10 months ago
Cryptocurrency MasterClass by James Altucher – Trade & Invest?
Blockchain9 months ago
USI Tech Coin – New Bitcoin MLM Cryptocurrency ICO Tokens?
Blockchain7 months ago
Skycoin – Bitcoin Alternative For Better Consensus Blockchain?
Blockchain10 months ago
Streamr Review – DATA ICO P2P Streaming Data Blockchain Coin Tokens?
Blockchain10 months ago
WePower Network Review – Green Energy Trading Blockchain Platform?
Blockchain5 months ago
CryptF CPTF ICO: Blue-Chip Stocks & Bonds Backed Cryptocurrency?
Blockchain8 months ago
Aston – ATC ICO Decentralized Document Authentication Platform?
How To Make Money6 months ago
Crypto Capital: Stansberry Churchouse Secret Bitcoin Investing?