As a dealer of second-hand construction machinery, cash flow and inventory management have always been pain points in the industry. Traditional financing methods often require collateralization of physical assets, with cumbersome and time-consuming processes. However, with the development of blockchain technology, a new financing model is changing this situation.

By combining IoT technology and blockchain, an innovative 'device traceability + tokenization' model has emerged. This model mainly includes four steps:

First, install special terminals on the construction machinery and equipment to record key information such as operating status and maintenance history. At the same time, upload relevant documents of the equipment and integrate with the industry database to quickly complete the on-chain confirmation of equipment ownership.

Secondly, the tokenization of the equipment after the rights have been confirmed. For example, a mining machine worth $500,000 can be divided into 50 tokens, each valued at $10,000. These tokens are sold to investors on a specialized platform.

Thirdly, the income from equipment leasing is automatically distributed to investors according to the token ratio, while the dealer retains a certain percentage of the profits. This model does not affect the normal use of the equipment and can provide stable income for investors.

Finally, establish a redemption mechanism. When the dealer's financial situation improves, they can redeem the tokens at a price slightly higher than the issuance price to regain full ownership of the equipment.

This innovative model has brought significant benefits to the second-hand engineering machinery industry. Some dealers have raised $2.5 million in just two weeks through this method, greatly improving equipment utilization rates. Compared to traditional loans, this method not only saves lengthy approval times but also avoids the risks of mortgaging physical assets.

Overall, this blockchain-based financing model significantly enhances the liquidity of second-hand equipment and injects new vitality into the industry. It not only addresses the funding difficulties faced by dealers but also provides investors with new investment channels, making it a multi-party win-win innovative solution.