For the vast majority of us, obtaining a bank loan is a piece of cake. Currently, loan applications are quite simple and painless. That is not the case for the world’s unbanked people.
The unbanked do not possess accessibility to standard banking activities since they do not have a checking account or a payment history. As a result, when they require a modest loan, non-bank loans remain their last alternative. Traditional banks, on the other hand, will not accept credit records from non-banks. As a result, the unbanked will never be able to develop genuine credit.
Creditcoin is a suitable option for bridging the barrier between the unbanked in emerging markets and credit development.
What is Creditcoin?
Creditcoin is a blockchain-powered, cross-border credit investing network. The inter-blockchain network’s fundamental function is to enable unbanked people with access to crypto loans and to assist them in constructing credit histories by recording their credit and transactional information on a transparent ledger.
The Creditcoin network provides an accessible and transparent credit investment market, allowing organizers and borrowers to easily and safely match their demands. Users utilizes Creditcoin, or CTC, is the local currency to pay transaction charges.
To begin, sponsors make loan requests on the Creditcoin network with their preferred loan amounts, collateral property, rate of interest, and loan periods, and pay CTC as a processing fee to the Creditcoin network.
Lenders can examine the liabilities associated with the demand recognition procedure by looking at the fundraisers’ payment history on the Creditcoin network. The borrower will then transmit the loan to the fundraiser if they both accept to strike a contract. Whenever the investor collects the return from the fundraiser, the loan cycle is complete. All activity information will be forever maintained on the distributed ledger, allowing borrowers to establish credit. Creditcoin’s network presently handles Bitcoin, Ethereum, and ERC-20 token mortgages.
How does Creditcoin work?
Creditcoin is a mechanism for lending that is self-sustaining. It services at least 1 million customers each month with approximately 150, 000 loans. In addition, it pays rising demand for small loans and credit development in developing economies. As a result, the company introduced greater credit history to the network. People’s demand purchasing and keeping Creditcoin increases, and the price of the Credit network rises. Moreover, it ensures a high degree of protection because the system is completely decentralized and transparent.
Consumers can share their credit histories with any potential lender while keeping their personal information private. This is to prevent cybercriminals from gaining access to their information. Investors can analyze danger and determine judgments depending on the credit history offered by the network. Gluwa and Aella Credit are the two top financial entrepreneurs located in San Francisco. They are the ones who cofounded and constructed Creditcoin, a ten-million-dollar blockchain-based system. This is a smartphone loan startup and a transnational financial platform.
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