The financial sphere has long ruled the world, large banks that manage huge flows of money, establish their own rules of the game in the corporate, social and even political spheres. The crisis of 2008 showed that the collapse of just a few financial institutions could harm the entire state on the planet, to millions of people.
The greatest dependence on centralized financial institutions is observed in the credit sphere of activity, where a simple person becomes a hostage to the decision of banks to issue or not to grant a loan, although often this is vital.
To solve the financial problems, the Distributed Credit Chain project was created.
This is a block-ecosystem, developed for financial services providers, as well as their clients. The main focus of the platform is aimed at credit activities. Its goal is to reform this sphere, offer companies convenient tools for conducting activities and simple opportunities in obtaining credit.
First, it is a high cost of credit. The percentage on it depends on the central bank’s key rate, as well as on the risks across the entire loan portfolio of the bank. What does it mean? The bank or any other credit institution always takes into account the risk of non-return, respectively, by placing it in the interest rate, that is, in fact, bona fide payers are required to pay a higher percentage to cover losses on non-performing loans;
Secondly, if we look at the sphere through the eyes of a credit institution, the main problem is a large time spent checking the borrower. Until now, there are no reliable models for identifying the future of a bona fide, or negligent payer.
To overcome this situation, the platform presents its decentralized infrastructure. All that a client needs is to create an account in which it is necessary to deposit data for obtaining a loan, form an application, and receive offers from credit organizations around the world. The interest rate for such a loan will always be lower than the bank rate. The system fully guarantees the security of your personal data, in addition, you will not depend on centralized decisions of financial structures. I can especially note the transparency of the conditions for obtaining a loan, as they say, in this case the fine print will not have to be read.
For clients, the platform provides data security, protection from third-hand attacks, convenient, simple registration and elementary operation of the system as a whole;
The main advantage is decentralization, the platform seeks to give power over its finances and cash flows to the people themselves, rather than to large institutions;
The platform significantly reduces the amount of routine work for service providers, offering such functionality as the ability to store all necessary data about borrowers on the network, with quick access to them, the ability to qualitatively analyze the information received.
Initially, the project is aimed at solving problems in the credit sphere, and will allow to take almost any type of loan:
credit for studying at the university;
mortgage and so on.
However, this functionality is not limited to the platform, since the launch itself will be available functionality for the registration of loans, registration of claims for loans, as well as issuing a crypto credit card. Over time, the capabilities of DCC will only grow.
At the moment the platform is under development, the release of the fully working version of the application is scheduled for 2018. In 2019, a large-scale expansion to the countries of Southeast Asia is planned, and in 2020 – already around the world.
At the moment, in the sphere of finance and crediting are quite acute problems, which were accurately noticed by the leadership of the platform Distributed Credit Chain. In response to these challenges, a solution is proposed that can really cope with the tasks. In my opinion, the turning point in the development of DCC will be 2019, following which we will be able to judge the future prospects of the company. However, I do not doubt the final success of this idea.
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