What Was Populous World?

Founded in 2017, Populous World was a peer-to-peer (P2P) invoicing platform. It made use of blockchain's distributed ledger technology to provide a global trading platform for invoice finance. Populous developers wanted to reduce the need for third parties in invoice transactions. On the Populous platform, there were two primary types of transactors: invoice sellers and invoice buyers.

Understanding Populous World

Effectively, Populous aimed to reduce or eliminate the need for third parties in invoice transactions, such as the financial inst💛itutions who have traditionally been moderators in these types of deals.

On the Populous platform, there were two primary types of transactors: invoice sellers and invoice buyers. Invoice sellers could also be thought of as borrowers, while invoice buyers could be thought of as investors. Initially, an invoice seller offered an invoice with specified terms, which was then available through the Populous platform.꧃

An invoice buyer viewed the available invoices and determined w🧔hich one(s) they would like to invest in. The invoice buyer would 🅠bid for the listed invoice, setting an interest rate in the process. Next, the invoice seller would view and confirm the bid, and the invoice was sold. At this point, the invoice seller released the invoice and received funds equivalent to the bid. Once the invoice was settled at a later time, the invoice buyer received the payment.

The ultimate goal of the Populous network was to provide small and mid-sized enterprises (SMEs) with safe and reliable short-term financing. Populous wanted to help businesses secureꦏ cash flow quickly and efficiently by connecting invoice buyers directly to invoice sell🐭ers.

The white paper released by the company in December 2017 cites research stating that 46% of SMEs in the UK experienced some form of cash flow problem and late payment. Populous saw much of its value and upside in this ever🌠-present issue faced by SMEs.

Global Invoice Market

The invoice market is not a new concept. In fact, invoice markets exist around the world. However, they tend to function in localized and limited market areas. Populous aimed to imp🌳act the invoice market through its scale. By connecting business owners with invoice buyers all around the world, the developers wanted to create a globꦦal invoice market.

Populous claimed to offer a number of benefits within its service. First, the platform offered high speed and low costs; invoice sellers could receive immediate funding from invoice buyers without the need for 澳洲幸运5开奖号码历史查询:third-party intermediaries. Because 澳洲幸运5开奖号码历史查询:smart contracts were used to perform funding and the collecܫtion and release of payments, transaction fees could remain low.

Additionally, Populous claimed to offer both buyers and sellers access to transactions and the Populous platform around the world, regardless of location. Furthermore, the Populous platform was going to record all transactions "transparently" on the 澳洲幸运5开奖号码历史查询:Ethereum blockchain, helping to ensure safety and priva𝔉cy throughout the process.

Populous Cryptocurrency (PPT)

In order to offer funds to invoice sellers, Populous supposedly maintained a liquidity pool. This was tied in with the Populous cryptocurrency (PPT). An investor securitized PPT by making an initial purchase, and the PPT was held in escrow as 澳洲幸运5开奖号码历史查询:collateral throughout the process.

Transactions between invoice buyers and sellers took place with Pokens, were exchanged for PPT, and used as the currency for buying and selling invoices, either drawing from or contribꦏuting to the liquidity pool in ♚the process.

The Bottom Line

Populous ꦫWorld was a blockchain project that attempted to gꦰlobalize invoice financing, but it failed to create enough interest.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our for more info. As of the date this article was written, the author does not own cryptocurrency.