Populous is a new platform on the blockchain that will auction off invoices for companies that are having cash flow problems.

Companies large and small have long been selling their invoices when a quick infusion of cash is needed. So, this idea is nothing new.

What is new is that Populous is using the blockchain to do it with some major advantages over using a traditional invoice financing company.

How To Buy PPT

So you’re interested in buying PPT? Currently, there is no way to buy PPT directly with fiat, so the best way to buy PPT is to first purchase Ethereum, transfer it to your chosen trading platform and change it to PPT. We’ll show you how.

1. Firstly you will need to visit Binance and create your account.

2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.

3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.

4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.

Buy Ethereum

To buy Ethereum, we’re going to use an exchange called CEX.io. Here you will be taken to the purchase page, where you can buy your Ethereum.

1. First change the Buy option from BTC to ETH for USD and then choose your amount.

2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.

Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.

3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.

4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.

Your Binance account will now be credited with Ethereum.

Purchasing PPT

1. Now you’re back on your Binance account click the Exchange section and choose Basic. This is the Binance trading platform.

2. On the trading platform, select the ETH section and use the search function to search for PPT/ETH and confirm.

3. On the PPT/ETH trading section you can now choose how much PPT you want to buy with your Ether. Once you have chosen your amount, press Buy PPT and place your order.

Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of PPT.

How does Populous work?

If your business is registered you can sell an invoice that has not matured yet by posting it on the Populous website. A smart contract is made and the invoice is posted for 24 hours with a minimum sales goal set.

At the end of the 24 hour period, the auction is over. It either sold because it reached the minimum goal and went to the highest bidder, or it didn’t reach the threshold but a purchase agreement was made with one of the bidders, or it didn’t sell at all. If it doesn’t sell, it can be reposted for hopefully better luck.

As a buyer of an invoice, you’ll need to buy Pokens, as that is the coin used across the platform.

Once a bid is made, the Pokens are held in a sort of escrow while the auction is ongoing. The tokens are sent over to the seller if the auction is successful or returned to the bidder if the invoice doesn’t sell or it sold to another bidder.

It’s all pretty straightforward and the only thing that would be a tip off that it all happens on the blockchain is the use of the tokens.

The fact that it is on the blockchain, though has some big advantages.

For one it is anonymous. The smart contract will record the transaction, but the buyers information doesn’t need to be public at this point. A business doesn’t need to tip off a competitor that they are having cash flow issues or reveal any other sensitive information.

Also, it is secure. There is no central server that can be hacked and exploited.

The biggest benefit, however, is how inexpensive it is when compared to a traditional invoice financing institution. The fees for using a traditional institution can put many of these loans out of reach of small businesses.

Another advantage is that the tokens can increase in value which can make it even more profitable. In addition to the Pokens, which are pegged at a 1:1 ratio to the US dollar, is the Populous Platform Token, aka PPT. Once the invoice is paid, the buyer receives the Pokens back as well as the initial PPT that bought the Pokens. If there was an increase in the value of the PPT, then that is also kept by the buyer.

In the fast paced competitive business world, any edge that can be used for an advantage is always welcome. The benefits to using the blockchain for auctioning invoices can be just the thing that helps any business make through some tough times or to grow quickly.

 

 

Leave a Comment