Blockchain is making history by shifting power from centralized entities into the hands of the consumers. It has empowered people to manage their own assets without the intervention of any banks, brokers, or institutional monitors. This is a welcome necessity since people risk too much today by allowing their crypto assets to be controlled by a central entity. They don’t realize that it is not them but Wallets, Exchanges, & Lending Platforms that are controlling their assets. Hence, they have given up control of their identity, privacy, and money because they believe that they don’t have a choice. But not anymore. We aim to be the access point that provides people with this choice.
BtcCredit is an all-in-one decentralized wallet which gives you complete control of your Blockchain asset to Hold, Exchange, Lend, Borrow, Invest, and Stake. This document outlines the design of a Decentralized Next-Gen Banking Ecosystem that is powered by decentralised multi-currency wallet, decentralised p2p lending, and decentralised p2p Exchange capabilities.
Market Analysis of P2P Lending
It is cited, that “According to Morgan Stanley, the market for Global Marketplace Lending may reach $290bn. by 2020, with an expected Compound Annual Growth Rate of 51% from 2014 to 2020.”
The BTC Credit team is trying to showcase the potential of this market, in order to explain that their truly innovative peer-to-peer wallet solution holds great potential.
There are some existing Crypto lending platforms which are following different business models. On one end they are a just like a traditional p2p lending platform with the ability to accept cryptocurrencies as collaterals. On the other end, they deploy the entire loan contract on the blockchain and execute events on the loan agreement through smart contracts. The blockchain technology, with its fully transparent and incorruptible transaction ledger, forms the ideal system for managing the loan with its parameters like tenure, interest rate, crypto collateral, etc.
There are many platforms that offer crypto lending:
P2P Lending Platforms can be divided into three main categories:
1. Traditional P2P
Lending within the same country and in that country’s currency
2. Cryptocurrency without Smart Contract
Lending globally with cryptocurrencies like Bitcoin
3. Cryptocurrency using Smart Contract
Lending using Blockchain Smart Contract as an intermediate
How Does it Work?
As a lender, a user enters the system and funds his system generated Wallet with USDTs. The system creates a lending profile where his acceptable loan parameters are recorded. The lender’s loan profile becomes a part of a “credit marketplace”. As a borrower, the user enters the system with his system generated Bitcoin wallet. The bitcoin funds in the wallet form the collateral against the potential loan. The borrowing requirement also becomes a part of the “credit marketplace”. A system internal logic automatically matches and suggests existing loans and borrowers. A borrower or lender can also manually select from a set of loan offerings or borrower’s requirements. Once a loan is selected, and both sides agree to the parameters on the book, a “handshake” is said to have taken place, which will result in a deployment of a smart contract on the Ethereum network. The borrower’s wallet will be funded with the requested USDT and a schedule for repayment gets created.
Defining the BTC Credit Platform
Keeping the competitors in mind and analyzing the market conditions and trends, BTC Credit has been able to identify 4 key verticals when it comes to the services offered by its Wallet:
1. P2P Lending and Borrowing
2. P2P Crypto Exchange
3. Handpicked ICO Investments
4. Interests through Staking
System’s Unique features
Market research filters out some unique features of the system that are not found in other competing platforms:
I. The Credit Marketplace The first unique feature will the implementation of a loan marketplace. The borrowers and lenders that register on the platform will be prompted to declare their requirement set in terms of figures. A lender will declare parameters such as the tenure, the rate of interest sought, the maximum amount per loan from his corpus amount etc. The borrower will declare his offered rate of interest, the amount sought, tenure for which the loan is requested. The borrowers and lenders will participate in a loan matching flow much like a stock exchange with buy and sell orders.
II. Partial bidding on loan offers The marketplace will also enable partial bidding on loan offers from borrowers
III. Crypto Collateral The platform would allow for collateral in multiple cryptocurrencies like Bitcoin, Ethers, Altcoins etc. There will be wallet support for each supported cryptocurrency and borrowers will deposit the collaterals as per the conversion rates.
IV. Collateral valuation The platform will manage the continuous collateral valuation and take remedial measures if collateral value fluctuates beyond certain prescribed intervals. For e.g, if Bitcoin valuation exceeds 100% from the time of pledging it as collateral, there will be a policy of releasing a certain amount of crypto back to the borrower.
V. Each loan agreement on Ethereum The platform will follow template based loan contract, which will be deployed on the Ethereum blockchain as an agreement between the lender and borrower. The platform will have a loan contract template that will be translated into an Ethereum smart contract between the borrower and the sender. The transparency of the agreement will be expressed through a publicly visible deployed contract that will calculate the loan execution parameters through a well-defined, and undisputable computation.
VI. The USDT The platform will use USDT as a means to disburse the loans, which will make it very easy for borrowers to convert it into fiat currencies. This will make the loan feasible for any kind of need.
VII. One Wallet for Everything The platform will be powered by a wallet that will provide all the necessary features. In this way, a wallet based ecosystem will be created that will function similar to a bank. This will also take away the need for the users to make use of multiple platforms to meet all their crypto related needs by providing them with a consolidated platform that offers all the said features at one place.
BTCC is both the name of the platform and the token.
100 million BTCC will be issued immediately, no more emissions will occur.
Of those, 40 million BTCC will be sold in the pre-TGE/TGE phases.
The remaining 40 million tokens for future sale
To get more in-depth information about the BTC CREDIT project please visit the settings below:
BitcoinTalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=1860087