Introduction
There are many great businesses today that would not have been able to stand without the help of loans or contributory investments for them to be able to achieve their goals. Borrowing is as old as the existence of man. People have been borrowing from other fellows and from established institution right from time. Collateral security is generally and widely as one of the oldest forms of securing the lent money which ranges from any asset like landed properties, real estate, shares and many more. That is a kind of pledge that the borrower must not fails to return the borrowed money, and if he/she fails, whatsoever is used as the collateral security will be confiscated and taken in place of the borrowed money.
The invention of the blockchain technology and subsequently cryptocurrency made a whole lot of difference in the way things are done all around the world as many people’s fortunes have been changed through investment and transaction of cryptocurrencies. There is a project that is built on the blockchain that promises to make use of cryptocurrencies as collateral security. The name of the platform is called Depository Network.
What is Depository Network?
“Depository Network is a high-tech infrastructure enabling lenders worldwide to accept digital assets as collateral. Any lender can use DEPO infrastructure to build custom depository platform and accept different types of digital assets as collateral. Holders of digital assets retain ownership for the entire loan period. The terms for the collateral contracts are defined by every lender individually.”
Features of Depository Network
Available for all: The Depository Network platform is available for all and may be used by anybody, anywhere at any time. The only thing that is required is the possession of a digital asset.
Automatic Transaction: Transactions on Depository Network are executed automatically based on trigger events payments, non-payment of contracts.
Non-Tangible assets: The kinds of assets that are required on the Depository Network are not tangible assets like landed properties or houses but blockchain based assets, that is, digital currency.
Assets cannot be sold: The assets that are used as collateral on the Depository Network cannot be sold by owners of the assets for the duration of the contract.
No Transfer of Property: Using Depository Network platform, any property is not transferred. The platform does not collect any property from the users; it is only the digital asset that is at stake which is also at the disposition of the user.
