Hi, crypto-guys! Blockchain in the credit market has already found application in several projects. But today I will tell about a competitive and interesting project - Debitum Network.
The global lending market for small and medium-sized enterprises has enormous potential. And it's not just the scale of the market. Sooner or later, any business owner comes to realize the need to expand his company. And this often involves significant monetary costs. But ironically, business owners fall into a vicious circle - banks do not lend to large sums because the company does not have enough profit to secure a loan, and to increase its activities and increase profits, a loan is needed. Thus, the banking structure and issuance rules do not always facilitate a quick and successful decision in favor of the company. As a result, many enterprises remain uncredited. According to the World Bank estimates, this creates a credit gap of about 2 trilions around the world.
Alternative finance is an umbrella term for various financing options such as peerto-peer lending (P2P), crowdfunding, balance-sheet lending, , invoice trading (loans backed by account receivables), supply chain finance, reverse factoring, merchant loans, VAT financing, and others. No single institution, company, or regulator covers all business spheres in alternative finance.
By combining the best qualities of blocking technology and your experience in the field of lending, the debitum network gives you its platform (By clicking on the link you will be able to see the MVP: https://debitum.network/mvp).
Three main pillars of the ecosystem.
Debitum Network is based on three important pillars that ensure its uniqueness, disruptiveness as well as will ensure positive results on smalling the credit gap:
More detailed information is listed here - Whitepaper.
Network ecosystem.
Token demand will grow with a growing number of transactions by a growing number of counterparties within the Debitum Network ecosystem (mostly due to payments for services and downpayments as a guarantee for quality).
Hence the demand for tokens will increase until the Debitum Network fully matures. When we reach maturity of Debitum Network, the number of transactions will become stable, hence the price of the token will stabilize at its maximum potential.
Borrowers / Investors
Both borrowers (small business) and investors (willing to lend fiat to small business) will need tokens to perform various activities, for example, to list an asset on the network, to buy risk assessment, to buy insurance, to buy debt collection services etc. As soon as borrowers will spend all tokens on services, they will require more tokens to keep using the network. In addition, investors may receive certain amount of interest earned from fiat facilitators in Debitum tokens. That will allow investors to have constant supply of tokens for participating in the ecosystem. The more interest investors will earn, the more tokens they will receive and the more additional services they will be able tobuy.
Service providers
Service providers will receive tokens for services they provide. They will generally have two choices - sell tokens to cover their non-crypto expenses (i.e., salaries, payments for non-crypto data sources) or keep them to store value.
At the same time service providers will be requested to put down a small amount of tokens for each transaction they perform as a guarantee of their work quality. It means that the more simultaneous transactions (smart contracts) will be carried out, the more tokens service providers will need to use as a guarantee. Hence more and more Debitum tokens will be “frozen” at any given moment as a guarantee, as Debitum Network grows.
Fiat facilitators
While ensuring fiat transactions, fiat facilitators will receive interest payments from borrowers and may convert part of these interest payments into tokens upon investors’ requests to ensure constant supply of Debitum tokens for investors. The more fiat transactions (principal loan and interest payments) will take place, the more Debitum tokens fiat facilitators will buy for investors.
Trust Arbitrage smart contract
Each smart contract transaction will trigger Trust Arbitrage smart contract to account for objective increase (in case of successful fulfillment of smart contract) or decrease (in case of failure to fulfill specific smart contract). To be able to trigger Trust Arbitrage smart contract parties of initial smart contract will have to send a small amount of tokens (as this is the only technical way to trigger a smart contract). It means that all transactions will transfer tiny fraction to Trust Arbitrage smart contract, hence decreasing available amount of Debitum tokens in a short term. Tokens collected in Trust Arbitrage smart contract may be sold, thus returning Debitum tokens used to trigger Trust Arbitrage smart contracts back to ecosystem.
For more information, please visit Link:
· Web-site: https://debitum.network/
· ANN bitcointalk: https://bitcointalk.org/index.php?topic=2321064.0
· Facebook: https://facebook.com/DebitumNetwork
· Twitter: https://twitter.com/DebitumNetwork
· Telegram: https://t.me/debitum
· WhitePaper: https://debitum.network/whitepaper
This article was created by Tktktk: https://bitcointalk.org/index.php?action=profile;u=1119627
Disclaimer: The article is published for participation in the marketing program. Evaluation expresses my personal opinion and is not recommendation make investment decisions. This analysis is based on open public information and contains conclusions and information relevant to the date of the report.
