Creditcoin makes crypto-lending and investments accessible to the masses, cuts the red-tape.
Two FinTech firms have come together to make it easy to navigate the crypto world. These two companies plan to launch Creditcoin, which will operate across blockchains in the P2P lending market.
The Gluwa platform, to be powered by Creditcoin, will address the issues of accessibility of the crypto market by those in the fiat world by seamlessly connecting them with cryptocurrencies. This platform simply aims to interconnect the $600 billion fractured across the world of crypto.
The Technical Aspects of Creditcoin
Gluwa and Aella Credit are the two fintech companies that have come together to create a blockchain based protocol that will allow investors to lend in any crypto. The Creditcoin network is a blockchain purpose designed for investments. It aims to connect fundraisers to investors with similar goals. And, the use of distributed ledger system ensures permanent record of lending and borrowing interactions on the platform, which can be used in future credit evaluations.
The Creditcoin network starts by matching offers from investors and projects. A fundraiser will post seeking certain amounts of money. It will also post the collateral it intends to offer and the interest rate of repayment. If they find an investor willing to accept these conditions, they will announce the deal on the Creditcoin network. The network will then verify the transaction and send Creditcoin to the fundraiser. For this transaction to go through, the fundraiser has to confirm that it is willing to return the funds with interest.
If an investor needs to evaluate which fundraiser to trust, all they have to do is use the transaction history of the fundraiser on the blockchain to verify how safe it is to invest in a certain project. The good thing is that the blockchain is immutable. That means the details cannot be altered to hide what is really going on. If a fundraiser wants to receive better terms, they can always share details that are more personal.
Why the Creditcoin Network Matters
The good thing about the network is that it eliminates third parties. By doing so, this network helps to cut down the costs that third parties impose on investors. It also means that smaller scale investments can be feasible due to the elimination of third party costs. Since the system is decentralized and public, there is no way to mess around with it. Thus, you can always trust the credit history and make an objective risk assessment.
The Creditcoin token sale is currently underway and those interested to know more about the platform or purchase the tokens can do so by visiting https://buycreditcoin.com/
The post Harnessing the Full Potential of the $600 Billion Crypto Network appeared first on NewsBTC.
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