Understanding the need for TRON Smart contract based MLM

Posted by MLM Smart Contract on February 17th, 2021

A smart contract is a self-executing contract powered by blockchain. It eliminates the need for a central authority or a legal system to carry out trusted transactions and agreements. As a result, it finds a perfect use case in the MLM industry. The terms of the agreement between the MLM operator and network participants are directly written in the smart contract code. As this code controls the execution of the terms of the agreement on the blockchain, the transactions are bound to occur on time and can never be reversed. In addition to that, all these transactions are traceable.

Benefits of using TRON smart contract based MLM software:

• Eliminates the need for a middle-man between the MLM operator and network participants. This lowers the cost of participating in an MLM network and also lowers the overhead cost for the MLM operators.
• As there are no middlemen and transactions are maintained on the blockchain, the chances of fraudulent transactions are very low.
• All the network participants’ accounts and commission data are managed in a decentralized ledger. As a result, there exists no single point of failure in the setup.
• All the user data is stored in an immutable ledger. Thus, the data can neither be misused nor corrupted by any attack.
• Facilitates global participation of users with ease.
• Enables higher transactional transparency. As a result, participants’ trust in the network grows.
•  Supports effortless traceability of transactions.
• Company policies, services, and product details are stored on a decentralized ledger. As a result, no one can mislead the network participants.
• Transaction processing is secure as smart contracts are audited pieces of code that are tough to hack.
• With a Smart contract MLM script, a customized MLM platform can be built easily, quickly, and in a cost-optimized manner.

How does an MLM platform operate? Where does a smart contract fit in?

MLM industry is full of complexities because of its model. That’s because it involves lots of disparate parties known as network participants and binds them in a transactional relationship. In simple words, the participants earn money on an MLM platform in two ways:

·       The direct commission for the sales they do.
·       The referral commission from the participants they referred to the network

At a glance, it seems pretty simple. However, in an actual scenario, keeping the track of sales, maintaining the commission hierarchy, calculating the exact commission, and then processing the commission pay-out timely is a tedious task.  Because of these complexities and inadequate infrastructure to manage the same, the MLM industry has earned itself a bad name.  Due to this, the multi-billion-dollar industry is not able to capitalize on its complete potential. Interestingly, a TRON smart contract based MLM seems to be a promising solution to the existing challenges.

The MLM Challenges – Does Smart Contract based MLM provide any solution?

Problem: Lack of transparency
The existing network participants refer more participants to the MLM platform to earn a commission. However, sometimes, the existing participants make fake commission earning claims or present manipulated policies to the prospective participants. As a result, the industry has earned a bad name.

Solution: With the implementation of smart contracts, an MLM platform becomes more transparent. This is because the participants can always have access to the actual policies and commissions offered by the organization.

Problem: Pay-out delays
One of the most obvious issues with the current MLM industry is that the commission calculation and disbursement is a time-consuming task. As a result, most of the pay-outs get delayed. In addition to that, many times, the commission calculations are incorrect. This is because the sales data or commission percentages were manipulated by someone.

Solution: As a smart contract based MLM platform is driven by blockchain, the pay-outs are automatically processed as per the terms of the agreement. Along with that, nobody can manipulate the data stored on the blockchain which is used for commission calculation. As a result, the miscalculation of commission amounts is highly unlikely.

Why TRON smart contracts?
Ethereum was the first blockchain to support smart contract development. However, it has been facing scalability issues since its inception. As a result, an Ethereum blockchain-based MLM platform faces transactional delays and has very high withdrawal/deposit fees.

However, the TRON blockchain is highly scalable and can deliver 2000 transactions per second. Along with that, it supports near zero-fee transactions. As a result, it ensures the development of a highly secure, transparent, and reliable MLM platform.

Why choose the team at MLM smart contract to build an MLM platform?
At MLM Smart Contract, we provide smart contract MLM scripts like Forsage, Doubleway, DAOZedXe, and more, to help you launch your smart contract based MLM software in just 7 days. Besides, we offer customized solutions to build MLM software from scratch, using blockchains like TRON, Ethereum, and Bitcoin,

Expedite the deployment of smart contract MLM software with our solutions.

Schedule a free demo of our Ethereum, Bitcoin, or TRON smart contract MLM script or connect with our subject matter experts to share your business needs.