Payblok: Taking the Kinks Out of Supply Chain Financing

Payblok: Taking the Kinks Out of Supply Chain Financing

Well, I ran into something you hardly ever see in the wild today. A token on the Ethereum network that is a true utility token from a company that is not doing an ICO. Yes, you read that right.

InstaSupply has already been in the supply chain business for 4 years, streamlining the paperwork between product suppliers and the product buyers. Their platform handles purchase ordering, approval workflows, budget control, delivery tracking, supplier management, product management, secure invoice storage, credit document storage, data collection, payment control, and accounting reconciliation. Currently over 2000 businesses use InstaSupply.

The one part of their system that wasn’t in place was payment processing. Payments were still handled manually by their clients. InstaSupply’s vision included payment processing in their system. And along came Ethereum and ERC-20 tokens. It was the perfect solution. So InstaSupply got to work on a token of their own, PayBlok.

B2B buyers and suppliers go through a payment cycle. The buyer creates and approves a purchase order. The supplier receives the order and ships the products. Then the buyer has a period of time to make the payment, like 30 days. And many buyers pay late, almost 50% in some countries. This slows down the whole process.

The PayBlok token and smart contract platform will add an Investor to this formula. The investor will be able to pay these not only on time but as soon as the buyer approves the shipment of products, taking advantage of discounts on early payment. Then when the buyer pays the bill at full price in 30 days, InstaSupply, the network and the investor share in the profits created by that discount.

The seller gets paid sooner and is able to use the money to reinvest in their company. The buyer gets access to credit, which he may not be able to get through a standard bank. It is harder for small, medium or new businesses to get loans. And the investors in the PayBlok system take these traditional banks out the equation. And anyone that has the money to stake and invest in the system can do so. The whole community in the PayBlok system benefits through it’s use. For a very detailed breakdown of how this works, read the PayBlock white paper. I have to tell you that I was so used to the fluffy, vague and abstract quality of most white papers, I was surprised by the details in this one.

InstaSupply definitely has their ducks in a row. They were a company waiting for someone to invent smart contracts that already had a business model. And the over 2000 customers they have prove that their model works. It is refreshing to see a blockchain project that doesn’t have a single hint of a cash grab.

So you see, InstaSupply did not need an ICO to raise money to create their technology. They will be selling their tokens to buyers, sellers and investors in their system. I only scratch the surface here. To learn more, visit PayBlok. And to get even more details, check out the [PayBlok white paper.

Disclaimer: Although this post reflects my true view of this technology, it was written as a cryptocurrency bounty. Bounty0x username: eristoddle

Stephan Miller

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Kansas City Software Engineer and Author

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