The value and scale of Peer to Peer (P2P) networks are well known. There are several examples of very successful uses of this framework including Skype, Kazaa, Napster etc. The emergence of “social” software and web 2.0 infrastructures is largely based upon the core analogy of P2P. At TrustExchange, we are building the first P2P Risk Assessment Platform which will leverage this model to enable businesses to obtain a more accurate view of risk inside their operating ecosystem (customers, vendors, and partners). Our goal is to be the "waze" of business information.
To gain a better view of what we’re up to, it may be helpful to first discuss the core idea behind P2P networks and then expand on how it applies to risk analysis. First, the definition, from Wikipedia, of Peer Peer networks:
“Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the application. They are said to form a peer-to-peer network of nodes.”
Note the part about peers being “equally privileged, equipotent participants,” and you’ll understand the core idea behind TrustExchange's approach. We’ve noted previously how the existing b2b credit granting and credit management process is broken. And we believe these processes can be greatly improved by creating a P2P, open, and transparent risk analysis platform where the data is created and maintained by the peers participating in the network.
Currently, the data used to assess the creditworthiness or viability of a given company is maintained and controlled by the large credit bureaus such as Experian and Dun and Bradstreet. These bureaus are fundamentally middlemen with limited value since they don’t grant or issue credit. Businesses make the credit decisions themselves and need a better tool that is more accurate, timely, and correlated to viability.
Wouldn’t it be better when analyzing the risk of a given company, if you could not only look at their payment history but examine how they perform in all aspects of their business? A global risk assessment that takes into account how they perform as a customer, vendor, and partner?
Wouldn’t it be valuable to not only look at a single company but view an entire portfolio of customer risk, vendor risk, and partner risk?
This is what we are creating at TrustExchange. If you think this is valuable and have strong opinions on the issue sign up now and participate in the discussion and give your input into the development process.
