XinFin is set to launch an institutional financial marketplace. The XinFin Foundation is a non-profit organisation which liaises with governments to enable low cost Infrastructure financing with improved financing for global infra projects.
The XinFin platform, using native Xchange Infinite Development Contract (XDC) cryptotokens, will offer cryptocurrency benefits through integration of smart contracts between buyers, sellers and financiers. It will also facilitate instant cross-border payments and settlements using XDC.
Alex Mathbeck, of XinFin explained the attraction of smart contracts for real-world applications as: “We have interest from hospitals looking to acquire machinery, low-income countries who want to build their tourism spots, counties seeking efficient farming equipment, new techniques and cheaper ways to build rural roads and transport, and farming institutions that want training and e-learning programs or alternative ways to hedge weather risks. Our team of over 30 financiers worldwide is working on mapping smart contracts to real-world contracts and laying the groundwork for all stakeholders to get the projects underway.”
As a part of its development roadmap for its platform, XinFin has announced the upcoming XDC Pre-ICO token sale where all interested parties can purchase some of the XDC tokens.
Through its institutional financing marketplace, XinFin will introduce blockchain technology to real-world applications involving various institutions, projects, and transactions. Its platform addresses issues between industries, financier rating systems, and real-time settlement mechanisms.
The underlying blockchain uses proof-of-stake mining, though a large portion of XDC has been pre-mined. The mining will be available to credible institutions worldwide. The architecture is derived from the Ethereum open source platform. XinFin will release open APIs; these will exploit XDC to enable a global settlement and payment mechanism for:
- reward points
- trading of unutilized inventories.
In order to fit the evolving needs of differing business models, the XinFin team has incorporated several changes to the Ethereum open source architecture. These changes have produced a development of a blockchain infrastructure suitable for a private distributed network of participants which can have a global reach.
Benefits of a blockchain marketplace
The XinFin team believes there are specific benefits when adopting blockchain technology:
- instant cross-border settlement mechanism (handled through its native token XDC)
- the mapping of smart contracts to real world contracts
- incentivisation, via XDC, of financiers to fund projects with low buyer and seller rating
- the building of an equity exchange around XDC to facilitate projects to raise capital
XinFin argues that global supply chain financing today is dependent on the ratings of sellers and buyers. There is no way to execute promising pilot projects based only on project viability with low, or non-existent, buyer and seller ratings. In addition, the lack of global real-time settlement and financing mechanisms makes it hard for both project creators and financiers to implement and fund the potential high-risk projects respectively.
The XinFin platform incentivises the financiers by giving smart-exchange facility over XDC for equity investments and risk-hedging through the underlying inflation proof XDC token. XinFin’s target is to bridge the global $5 trillion infrastructure financing gap that has created a huge disparity between the rich and the poor. Currently, traditional fiat currency financing mechanisms allow projects with high rated buyers and suppliers to leverage their ratings multiple times. However, it totally ignores viable projects with a low or non-existent buyer and seller ratings.
What’s it mean?
The latency time of public blockchains — like bitcoin, Ethereum and other crypto currencies – makes it difficult to build real-time payments. The XinFin architecture, running on a private distributed network, will take only 5 seconds to complete a transaction.
If XinFin delivers such speed, and if the published APIs are adopted, XinFin will offer a new way to raise and exchange funds.