Largo on- and off-chain solutions
Even though today’s technological capacity has allowed us to optimize most risks faced in small and mid-sized businesses, there is still harm dealt to both the seller’s and the buyer’s sides of any trade.
One of the fastest-paced developing and lucricious markets for both large enterprises and sole-proprietorships is e-commerce; with its total volume exceeding several trillion dollars, and world’s top giant companies rivaling for every share of it, the technological growth of the industry remains one of the most impressive. At the same time, one can observe that still fortunes are lost monthly and annually due to fraud and/or disagreement, especially in cross-border trade.
This is the problem Largo Coin aims to solve: we offer every buyer and seller to mitigate their operational risks by incorporating Largo Escrow into their transactions. Applying Largo services will increase financial security during transfers. Every trade can be processed through Largo Platform Escrow: a buyer of a product can acquire the necessary amount of LRG to pay the seller, then the two parties sign a contract on the platform and the buyer deposits the sum of LRGs to the escrow account. In this case the escrow service guarantees that the contract conditions will be met before the payment is processed further; besides, the seller is assured there is no chargeback from the buyer’s side.
The greatest advantage of Largo Coin is that it has been tailored for instant B2B and C2C multiplatform and cross-border transactions; thus, it allows users from various ecosystems to operate with their customers risk-free in any location or line of business.
New level of trade security with Largo Platform
The technological level of today’s e-commerce is allowing us to transact freely between the borders. It also allows for speed and some transparency. But it’s severely lacking in security. And that presents a serious obstacle for the development of e-commerce markets.
Let’s get to the point by demonstrating a real-life example problem and then present a solution that is based on the most recent technological advancements.
Let’s say a person from the United States wishes to buy certain electrical components from a small Chinese store. There is a considerable distance between the two, but that’s not the main problem: the two countries are very far apart legally and politically too. This creates a lot of possible risks for both parties as it becomes hard to hold a potential fraudster accountable for his or her actions. Since there is a lack of a stable reputation system that would make both the seller and the buyer honor their part of the deal in real life some of these deals end with considerable loss of either goods or money.
The seller might cheat by sending low-quality goods or simply by sending an empty package. Since there is a rather big delay between the payment from the buyer and delivery of the goods (sometimes weeks) buyers sometimes get scammed and lose money. And there is almost no way that the seller will be held accountable because of the nature of the market. This creates a lack of trust and slows down trade, inevitably leading to the decline of the economy.
The buyer might cheat by requesting a chargeback from his payment provider or bank after receiving goods. In this case the seller won’t be able to do anything to prevent a loss because payment systems like PayPal are known for protecting their clients. And since PayPal is an American company that is far more likely to take the side of their American client than someone from China who happened to receive payment. The same principle may be applied to American banks. The buyer could simply say that the deal was scammed and would simply receive the money back in a matter of days.
To sum it all up it can be said that although we are using very advanced technologies to transfer essentially electronic money overseas in a matter of seconds the whole industry is still very prone to trust-related issues.
This whole situation has created an opportunity for the emergence of a new generation of services that utilize modern technologies to provide security and convenience of trade both to sellers and buyers with the use of deal insurance.
The main downside of on-platform insurance services is that they operate within one rather often single currency oriented environment. Thus, since a customer will most likely prefer the e-commerce platform that accepts his or her currency and that operates in the customer’s location, there is no expanded global transaction insurance service to embrace multiple online marketplaces.
Largo Coin on the other side, provides frictionless experience in its deal insurance for both B2B and C2C users. By combining modern web technologies with blockchain and cryptocurrency Largo Platform helps markets grow by eliminating security issues from both domestic and international e-commerce trade.
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Null Transaction PR, Khareem Sudlow