Amplify wants to decentralize the digital asset market and SME financing

The impact of blockchain technology on business finance can be significant. Amplify aims to tackle the issue of SME financing through a different infrastructure. With the MVP now available it is time to look toward the future.

The Amplify Vision Explained

Several blockchain projects aim to tackle inefficiencies in the financial industry. Amplify focuses on SME financing, specifically, as small businesses often struggle to acquire credit. By actively supporting small companies, the global economy may undergo some crucial changes in the future.

The infrastructure of Amplify is capable of bridging the gap between on-chain and off-chain segments. The team's connections to the traditional financial segment and its blockchain expertise are two of the building blocks for this rollout. Various SMEs are currently struggling to make ends meet, and a new solution is an absolute necessity.

What Are the Advantages?

Rather than competing with traditional solutions, Amplify combines B2B trade finance and B2C blockchain-based financial solutions. Taking this approach will introduce new suppliers to the financial market for SMEs and other small companies. Additionally, the multi-trillion-dollar supplier financial market can benefit from blockchain technology across its infrastructure. 

The use of blockchain technology introduces more transparency, accountability, and financial inclusion. Through the legacy system, SMEs and other business owners can often not acquire credit or grow their business. Decentralizing this aspect of financing will allow for new money flows to be discovered.

Anyone who owns any assets will be able to add them to Amplify's Supply Market. These assets can then be used as collateral when attempting to acquire additional financing. As the global digital asset market keeps growing - analysts expect it to reach $6 billion by 2025 - there is a large market segment to tap into. 

Taking this approach offers a new lifeline to small businesses looking to improve their market position. More importantly, SMEs are more than capable of fueling economic growth. These businesses create new jobs, push the boundaries of innovation, and expand the tax base. Helping small businesses is paramount, and Amplify provides the necessary infrastructure to do so on a much broader scale. 

Another advantage of using blockchain technology is how there is no need for trust. Gaining credit through Amplify is possible through an on-chain governance agreement. This process is completely transparent and gives every SME a chance to acquire the necessary finances.

Amplify MVP Release

All of the above sounds good on paper, but it is often better to see the action concept. Amplify recently unveiled its MVP - AMPT Lend 1.0 - to the public. Through the demo, users and SMEs are introduced to decentralized financing for small business owners. Users can borrow and lend assets, add them to the Supply Market, and then either loan or borrow depending on their individual needs. 

All of this functionality is accessible through an intuitive interface. With a recent browser and the MetaMask plugin installed, it becomes very straightforward to access Amplify's technology. Once transactions for lending, borrowing, or supplying assets are on the blockchain, its record will be immutable forever. 

The launch of AMPT Lend 1.0 is a significant milestone for the project. With the help of multiple PoC partners, it will be possible to use Amplify for shipment tracking and financing of invoices. 

The Purpose Of the AMPT Token

To power Amplify's decentralized architecture, the team introduces the AMPT token. Another 20% of the pool serves as a risk reserve for off-chain assets.  Although the risk for digital assets is controllable, having a dedicated fund is no unnecessary luxury. 

AMPT will serve multiple purposes:

Its holders can partake in decision-making activities through voting, as it is a governance token.
Every token represents one voting right. Holding more tokens gives one more "influence" over the voting process.
AMPT is an incentive to add asset liquidity to the Amplify ecosystem

Considering Amplify's potential impact on SME lending and borrowing, one cannot take the importance of AMPT lightly. If this project proves successful, it will reflect on the token's value. This project aims to serve a specific purpose in the global economy. 

The token sale for AMPT will occur in Q1 2021. A more precise date will be announced shortly. 

A Reputable and Experienced Team

Building a new blockchain-based product or service is impossible without having the team in charge. For Amplify, the founding team members all have strong incentives to transform SME financing. Eugene Tan ( CEO), having been in both the traditional and B2B space of the industry, understands the pain points of the industry which he aims to innovate, Amplify’s tech lead Pranav Burnwal explains:

“Wall Street folded its sleeve in December 2020 to acknowledge they have a competition. Currencies which were termed a stupid algorithms have taken a seat at the table. Amplify (AMPT) is following suit to take a seat at the Global Trade and Finance table. We have found models and designed systems that provide the best of both worlds.”

Conclusion and Future Outlook

On the surface, Amplify may provide a service that will benefit SMEs globally. Being able to access credit without relying on traditional intermediaries is an intriguing market idea. Only time will tell if this approach is viable on a large scale, though.

While Amplify has a demo of its MVP ready for viewing, the team is already looking toward the future. Several new aspects will make their way to this ecosystem in the coming years. Leveraging Ethereum's blockchain to build an on-chain governance system and smart contract lending system are two upcoming developments.

The developers are ambitious, as they aim to explore decentralized finance solutions for Amplify as well. Options to explore include trading, insurance, and different forms of revenue aggregation.