PayPie wants to be the world’s first credit risk assessment platform based on blockchain technology. Find out how it works today in our PayPie review.
What Is PayPie?
PayPie, found online at PayPie.com, is a credit risk assessment tool based on blockchain technology. The platform aims to bring “ultimate trust and transparency to the financial markets by introducing the world’s first risk score algorithm based on decentralized accounting.”
The PayPie crowdsale is scheduled to launch on October 15, 2017.
Overall, the goal of PayPie is to create a new credit score-style system built on the blockchain. The company believes today’s risk score analysis tools are outdated – yet they still play a crucial role the financial sector. With that in mind, let’s take a look at how PayPie works.
What Problems Does PayPie Seek To Solve?
PayPie understands that risk score analysis is at the heart of the financial sector. Put simply, banks need some type of independent system that tells them about the risk of lending money to a company. Risk score analysis is at the core of many major industries within the financial sector, including financing, compliance, auditing, credit insurance, and more.
Despite the widespread importance of the risk score market, the business is filled with problems. fraud and data manipulation are two of the biggest problems.
Another problem is the use of isolated, closed, and disconnected systems. Today’s accounting systems are closed systems, which makes it easy for companies to engage in unethical practices – like editing balance sheets to show favorable performance, or fudging the numbers in other ways. These are all problems of double entry accounting.
That’s where PayPie sees an opportunity to use blockchain technology – specifically, blockchain’s triple entry accounting system.
How Does PayPie Work?
PayPie plans to solve crucial problems in the world of risk score analysis. To do that, PayPie plans to use a unique risk analysis algorithm.
That algorithm is based on blockchain triple-entry accounting, which guarantees the risk score is accurate and fraud-proof.
The end goal is to create a decentralized accounting platform for businesses that will provide real-time insight into financial data to achieve 100% accuracy for a credit risk algorithm that can be used globally.
Overall, PayPie claims to be the first fintech company to develop the credit risk profile of a business based on an in-built algorithm to constantly adjust it on the Ethereum blockchain, depending upon the changes in more than 150 data points. The end result is that the world of risk score analysis will be more efficient, enabling live financial auditing, ending duplicate tasks, speeding up credit approvals, and improving the overall credit scoring process by disrupting the landscape of business accounting.
PayPie’s core technology – their blockchain platform – is called PayPie Single Ledger.
How Will PayPie Assess The Credit Score Of A Company?
PayPie plans to use 150+ data points to calculate a unique credit risk algorithm for a company. To calculate that risk, the company will primarily use “big data” related to a company’s financials. That big data will be collected through the PayPie blockchain.
Some of the 150+ data points will include things like:
- Current assets and liabilities, as well as total liabilities and total assets
- Working capital
- Retained earnings
- Earnings before interest and taxes
- Gross sales
- Book value of equity
- Payment history
- Cash flow forecasting
- Decentralized trust and transparency rating (DTTR)
- Social fingerprints
After analyzing these data points and more, PayPie will produce a credit rating. Instead of just giving companies a number, however, the PayPie credit rating will “include numbers, ratios, and colors”, according to the PayPie whitepaper. These tools will help lenders quickly evaluate the risk.
PayPie will list its tokens under the symbol PPP. the tokens will be based on the Ethereum ERC20 standard.
PPP tokens are utility tokens that provide access to the PayPie platform for certain transactions and services. Each PPP token grants the holder the right to access certain services – including the purchase of invoices and access to the credit histories of SMEs.
Meanwhile, on the lending side of things, lenders will need to use PPP tokens to access the PayPie platform. Tokens can be used to buy discounted invoices, credit scoring data, and real-time financial data for a particular SME.
There will be a total initial supply of 110,000,000 PPP tokens. 82.5 million PPP tokens are for sale to contributors, while the remaining 27.5 million are kept for the team, advisors, bounties, and other uses.
An additional 55 million PPP tokens will be generated and kept as a reserve for one year “solely to develop partnerships and future acquisitions to become a dominant market leader.”
1 PPP token is priced at 0.0011 ETH. The crowdsale is scheduled to begin on October 15.
Who’s Behind PayPie?
PayPie’s whitepaper describes its dev team as “an international team with vision, ability, innovative thinking, openness, management skills, marketing knowledge, and developers coming from various backgrounds from IT, accounting, finance, blockchain, and more.”
Key members of the team include Nick Chandi (Co-Founder and CEO) and Jag Barpagga (Co-Founder and CIO).
PayPie is located in Vancouver, British Columbia, Canada.
PayPie is a company that aims to create a credit risk assessment technology for the world of blockchain accounting. The company wants to solve problems in the world of risk assessment through the use of blockchain technology.
PayPie is currently preparing for its crowdsale, scheduled to begin on October 15. For more information about the company and its technology, visit them online today at PayPie.com.