This is a one-of-its-kind blockchain-based credit system where the value of any crypto asset can be used as collateral. However, the value and credit terms and conditions in this model are transparent and publically available at any moment—plus, they’ll be governed by smart contracts. Due to the presence of a blockchain and smart contracts, the lending model doesn’t need any intermediary apart from the link that ensures a transaction’s completion. As a result of the absence of intermediaries, all the financial institutes—banks and lenders—participating in the cryptocurrency economy can lower the loan-acquisition costs and improve the overall transparency of the process. 