Tokoin will accurately record MSME business transactions and then save them

Tokoin - The Internet does digitize the MSME business (micro, small and medium-sized businesses). There is no need to open many stores, they can sell their products or services without distance and time constraints. However, due to the lack of credit scores, small and medium-sized enterprises still have difficulty obtaining credit to increase their business scale.

These conditions encourage Tokoin to help MSME. As everyone knows, this sector is the backbone of the Indonesian economy. The sector accounts for 60.3% of GDP (gross domestic product) and 97% of the national workforce. Despite this, SMEs can still break away from the classic problem of increasing the scale of their business. It is estimated that 40% of small and medium-sized enterprises in developing countries have not yet entered financial institutions.

To overcome the above problems, Tokoin has established a platform to help SMEs accelerate their business.

“Through the blockchain technology in the digital ecosystem, SMEs can establish business reputation through digital identity (digital identity) as a business profit and record system in digital ledgers (digital ledgers),” said Tokoin CEO Reiner Rahardja Say.

With blockchain technology, Tokoin will accurately record MSME business transactions and then save them. All of these processes can be used later as credit scores.

“Because the blockchain trading activity becomes open and visible. If the transaction enters the Blokchain system, it can no longer be controversial, it can't be changed, there is no “lie” invoice or deception,” Reina said.

He further explained that so far, it has been difficult for SMEs to obtain credit from banks because of various things, such as unorganized (unaudited) openness, no legal entity, no company accounts, and no collateral. Using blockchains, you can overcome these various obstacles, especially in terms of recording transactions. Because all transactions on the blockchain are completely transparent, they can be controlled together.

“For the blockchain, there is no longer a term that indicates that banks no longer trust MSME accounting. Because everything is controlled in the blockchain. They (UMKM) have the confidence to apply for credit from banks that work with Tokoin,” Reiner continued.

On the other hand, the blockchain also helps banks and non-bank institutions that want to provide credit to banks. Banks will be more likely to conduct credit assessments so that the credit provided actually meets the target and avoids non-performing loans.

Tokoin's goal is SMEs, with turnover below Rp50 billion per year. Currently, Tokoin has established a strategic partnership with Ralali.com, which is said to be the largest B2B market in Indonesia with 300,000 users.

Reiner said that the cooperation with Ralali.com has indirectly increased his platform adoption rate. In addition to Ralali.com, Tokoin also works with Shuttle One from Singapore. Not only working in the Indonesian market, Tokoin is also working for children in this country , but also plans to expand into other emerging markets such as Pakistan, Bangladesh, Thailand and the Philippines.

Storage ecosystem

These are the users who participate in the Tokoin business activities. As a data provider, MSME sends its transaction data activity through Tokoin dApp. Tokoin processes and validates the data as a valuable asset. Partners can use Tokoin Token (SHOP) to get data.

SHOP TOKEN(SHOP)

- Token Name: SHOP

- ICO token type: ERC-20

- Total token supply: 2,000,000,000 stores

- Token sales: 700,000,000 SHOP (35% token supply)

- Hard hat: $25,000,000

- Soft hat: $8,000,000

Assign token

- ICO Contributors - 35%

- Industrial Fund - 40%

- Ministry of Finance - 10%

- Team and initial contributors - 10%

- Consultant - 5%

Use of funds

- Product Development - 50%

- Marketing and BD - 35%

- Operations - 10%

- Reserve - 5%

Problems with high financing barriers

After the financial crisis, banks were skeptical of lending to MSMEs. They adhere to the generally accepted stereotype that MSMEs do not have enough cash flows to make loan payments. Overall, financial affordability is still low in emerging markets, as 70% of MSMEs still do not have access to financing opportunities. This is often explained by the fact that, as relatively new or small enterprises, most MSMEs do not have proper legal documentation, collateral and / or a long-term credit history.

Difficulty in expansion

Most MSMEs do not produce enough to take advantage of economies of scale. They also have low order volumes, which means that they have little influence on suppliers and do not receive wholesale discounts. This leads to higher production and transaction costs compared to large enterprises, and unlike corporations in which entire departments are engaged in procurement and finance, MSMEs have fewer resources to find the best suppliers or appropriate financing. International expansion is also problematic.

Lack of business support

For MMZ, these problems mean that they feel trapped in the high cost cycle, minimal financial support, and fierce competition. At the heart of this cycle is a lack of trust on the part of institutions that would have to support the IHR in order to sustain and grow. Suppliers do not trust them, banks do not trust them, and, ultimately, customers do not trust them. What is missing is MSME’s ability to build a reputation that builds trust and opens up a wide range of growth-enhancing services.

Through the blockchain network, you can verify data related to business transactions in the ecosystem. TOKOIN uses the data recorded on the blockchain network as a valid indicator of business reputation. In other words, this reputation will be built on the customer’s buying behavior in trading activities, and this information will become an important part of the customer’s profile. With this approach, TOKOIN can transform an accurate data record into a valuable asset that the MSME can use as leverage to offset its missing lending requirements, such as a measure of reliability.

Digital Identification

Responding to the needs of an authoritative and real person, Tokoin uses the digital sector as an aid and privilege. With a digital business identifier, MSME can record and track its business processes in a digital ledger, while distributing the credit rating they create to other partners in the Tokoin ecosystem. This is the decentralized nature of the blockchain, where there is no central point of power that records data. The use of blockchain technology in a business process.

Digital Book

All transaction data from the MSME business transaction as a user will be stored in digital form and at the same time a computerized record called a digital ledger. Information from KYC to identify the initial business profile and more detailed information, such as cash flows, sales and revenues, and ordinary business purchases, is recorded as a valuable asset. This asset will also be compiled and processed, and it will be assigned a value in accordance with the depth of the information contained.

Service Provider

To help MSME, Tokoin is also supported by partners who provide financial and business

services, such as business loans and credit, insurance services, logistics, shipping and

warehousing. As a Tokoin user, MSME can choose business services based on their preferences as well as a development plan. For a service provider, this means that they can work closely with MSME, gaining access to their data and getting an overview of their potential customers.

Roadmap:

Q4 2018

TOKOIN Token for private sale and pre-sale TOKOIN Wallet development and distribution.

Q1 2019

Grand Launch TOKOIN

Q2 2019

Built-in blockchain advisor for

TOKOIN POC ecosystem launched in TestNet

Q3 2019

On-board storage partners for the TOKOIN ecosystem On-

board financial partners for the TOKOIN ecosystem

Expanding local operations to 10 first-tier cities in Indonesia