SCAM
Why Catena?
Fraud problem costs the world over 4 Trillion USD annually, and we have experienced fraud in different shapes, from false credit insurances, bad quality products, lead time delays, and even fake companies, on the other hand, supply chain problems slows down the global trade growth massively as it doesn’t cope with the volumes or the timings, Catena proposes a very powerful solution to all related parties in a trade, through a decentralized platform on the blockchain network developed to solve not only the trust issue but to build a base were all parties in a trade can agree on different terms and conditions for the payment, shipping, product parameters and quality, etc.
Global trade Market Size and Economic Growth
Trade has continued to support economic growth and development, helping to reduce poverty around the world. World merchandise exports have increased in value by about 32 per cent since 2006, reaching more than USD 16 trillion in 2017. At the same time, world exports of commercial services have accelerated by about 64 percent reaching a total of USD 4.77 trillion.
The highest growth in merchandise trade has been achieved by manufactured goods and agricultural products, which have increased by 37 per cent and 67 per cent in value respectively. We strongly believe that the rise of new technologies is likely to have a positive impact on trade in coming years, offering many new opportunities to entrepreneurs and small businesses around the world, fulfilling Catena vision and mission.
Global Trade growth challenges and barriers
Fraud is a problem that the world suffers from in global trading, as more than 90% in North America and 95% in Asia of firms have been exposed to fraud, and this is due to the fragility of the current systems even the digital ones, it is estimated that fraud causes a loos of about 4 Trillion USD every year, causing some firms and companies to declare bankruptcy and shutdown, a common way of committing fraud in trade is by buying goods or services on open account with the sole intention of absconding without paying.
Most of the times the first delivery is against cash to gain trust. If, or the next delivery, the credit granted is for 30 or 60 days for example, there is enough time for the buyer to receive the goods, re-sell them and run.
Sometimes the buyer and seller set up legitimate companies in their respective countries and execute several transactions on a relatively small scale over a period of one year. This is usually enough time to form a payment history and get a credit risk assessment, becoming perceived as reliable and verifiable. This is then followed by a big order, which is usually insured without any problem. The seller exports bogus goods from a port with poor shipping procedures and the seller creates false documentation showing that goods were supposedly shipped.
In other cases, fraudulent policyholders misstate overdue, establish fraudulent payment schemes, or present audited financial statements based on false information.
With modern technology, it has become relatively easy and inexpensive to create a fake website or fake trade documents with convincing logos and specific documentation such as bills of lading. The impression of a legitimate company or trade transaction is easily made.
Yet there are more challenges in addition to fraud, supply chain problems and its related issues, regulations, exchange rate volatility, transparency and more, all these have a direct impact on the global trade and its growth.
Payments
Prompt and full payment, particularly for small- and medium-sized enterprises (SMEs), can mean the difference between survival and bankruptcy. Making Payments is among the top challenges companies face in trading, this arises from a range of issues, including
Currency fluctuations Process inefficiencies Limited payment visibility Bank Fees
Challenges arising from payment issues impact these companies primarily through increased foreign-exchange-rate exposure, increased costs and limited ability to respond to emergency payments, these have broader implications for company profitability and competitiveness.
Opportunities with the global trade growth challenges
Catena tends to tackle this 16 trillion USD market, offering a robust solution to facilitate its growth and impact on global economy, the fact that Catena provides a smooth, fast, and reliable platform will enable small and medium traders to join such a big economy and be significant contributors to its growth.
The estimation for profitability of service providers to this economy, like banks is over 4 Trillion USD in 2017, and this is where Catena aims to find its share of a very lucrative market, that arguably hasn’t been tackled in the right way from technology providers, and is still suffering from barriers and limitations that can be solved through the utilization of blockchain technology.
Team Members
