A credit system is an activity wherein an individual or organization temporarily lend an agreed amount of money at an agreed interest rate to a borrower which repays the principal and interest as at when due.
The development of so many communities, state and countries were as a result of the credit system(business).
A lot of challenges to business entrepreneurs has been caused by the centralized nature of the credit system. The central system does not allow lenders and borrowers to have direct trading opportunities. This is due to the credit systems being monopolized by intermediaries, borrowers risk control models and insurance institution to participate together.
Some of these challenges posed by the system include high interest in loan procurement, insufficient data/services delivery, inability to ascertain borrowers' right and interests profiteering. Most of the challenges have been solved by distributed credits chain (DCC).
Distributed credit chain (DCC) was formed to solve the inadequacy of centralized credit system through the elimination of monopoly and profiting protection of privacy, improvement of data validation efficiency and reducing data used to cost. The distributed credit system is a form of decentralized blockchain and will facilitate an easy transaction between creditor and debtor. One of the prominent issues of the centralized credit system is the issue of monopoly and profiteering is being eliminated in distributed credit chain.
In distributed credit chain,
every person will be able to select his or her own debtor and the profit is minimal due to numerous competitors that influence the market and reduce cost. The Decentralized credit model does not center monopolistic advantage to the institution. Hence, financial institutions serve customers without the aim of making profit but instead to improve better investment in technology and promotes the sound development of more industries.
Also, the distributed credits chain makes use of the blockchain technology that gives an individual firm easy access to own and use their data. The technology removes the cost caused by centralized system and verification of data by third parties thereby eliminating data monopolies. Hence, the need to revolutionize the centralized credit system becomes essential in order for individual, firms, and institutions to have easy access to data.
The low data validation efficiency and the high cost of data exhibited by the centralized credit system cannot be found in distributed credit chain. Distributed credit chain has made it easier for the individuals to use data for multiple times once the data has been validated thereby reducing the cost for the institution that makes use of the data.
Through Distributed credit chain, there is confidence in lending, granting individual and institution incentives to establish their own good credit unlike the centralized credit system, DCC facilitates easy and fast procurement of loan within a short period of time, creating a favorable ecosystem for the participants. Also, DCC system is a great facilitator of the multinational business of lending service agencies. It provides a cross currency credit service of the direct assets, therefore, corresponding to the value of different legal tender of loans in various countries.
USEFUL LINKS
Website: http://dcc.finance
Telegram: https://t.me/DccOfficial
Whitepaper: http://dcc.finance/file/DCCwhitepaper.pdf
Facebook: https://www.facebook.com/DccOfficial2018/
Medium: https://medium.com/@dcc.finance2018
Twitter: https://twitter.com/DccOfficial2018/
ANN Thread: https://bitcointalk.org/index.php?topic=3209215.0
In conclusion, an Immense contribution can be done to the development of our society with the aid of Distributed credit chain. The elimination of monopoly, protection of privacy, improvement of data validation efficiency, provision of cross-currency credit service and reduction of data use cost, just to mention a few things brought by Distributed credit chain. DCC will bring advancement to industries, companies and other business forms in our society. The impact of decentralized system cannot be underestimated. Hence the need to revolutionize the centralized credit system.
AUTHOR: Golden
Bitcointalk Link: https://bitcointalk.org/index.php?action=profile;u=2262328
