Credito eliminates physical constraints and reduces borrowing costs and traditional management fees,
Credito is building a Credit Intelligence Network for the credit industry to prevent Credit Risk by identifying fraudulent transactions as they happen, allowing the industry to take well informed decisions.Although financial institutions are normally known as one of the most strictly regulated sectors, they are still a target for fraudsters. The consequences of fraud are not insignificant, resulting in financial distress for both banks and customers. While the financial institutions are active in the quest to identify fraud and reduce costs of fraud, they still lack a true global intelligence of all known frauds and compromises.For some, however, not building a credit as a young adult could pave the way for an invisibility of credit for a lifetime. People who do not have a credit score or credit history may find it more difficult to rent an apartment, buy a car, buy a house and, of course, get a credit card. In short, it excludes them from many common financial transactions. Credito is building a Credit Intelligence Network for the credit industry to prevent credit risk by identifying fraudulent transactions as they occur, allowing the industry to make informed decisions.
Credito is introducing a decentralized collateralized lending marketplace and enables connections between lenders and borrowers located anywhere in the world. This removes physical constraints and reduces the traditional lending costs and management fees, thus creating a better credit marketplace than anything available today.
Smart Contracts achieve this through their pre-defined parameters removing the need for trust between participating parties. They are also entirely transparent and viewable by anyone using an Ethereum blockexplorer.
Decentralization through the use of Smart Contracts also removes any trust requirement between borrowers and lenders, providing a trustless and transparent lending environment unavailable in today’s market.
Decentralization provides more security and trust. It is a method to organise anything in a way that does not require trust on third parties. The trust is eliminated by executing code that does not require centralized governance, management, or servers. By decentralizing lending, we do not require banks or any other intermediaries for conducting a loan transaction.
For any given analytic node, the Leasing Contract monitors the following metrics:
Total number of completed requests:
The total number of past requests that a node has fulfilled. This can be averaged over number of requests assigned to calculate completion rate.
The reputation of the node based on previous scored transactions. All nodes verify and vote each other’s scores, if the majority of the nodes return an identical value, the node become trustworthy. This reputation system helps to identify and remove faulty nodes from the network.
Total number of assigned requests:
The total number of past requests that a node has agreed to, both fulfilled and unfulfilled.
Average time to respond:
The timeliness of the node’s responses which is an indicator of the nodes efficiency. Average response time is calculated based on completed requests.
To continue development, Credito will conduct a one-time event to generate tokens (“TGE”) and sell sales credits, where 50% of tokens will be available for public sale. The TGE start date will be announced soon, and will allocate a total of $ 1 billion in loans. As follows:
- Employee distribution will have a 12 month transition period, 25% — every quarter, with 6 months old rock. The allocation will be proportionate to the ownership of each employee on the date of sale of the token.
- With the distribution of Dana Credito, the transition period will be 12 months.
According to a 2016 report by Nilson, losses from credit card fraud amounted to $21.8 billion in 2015 that’s an increase of 162% from the 2010 figure which was $8 billion. The losses for 2016 are already estimated at over $24 billion, and these losses are expected to reach $31 billion by 2020.
Despite the efforts made by banks, card issuers, and merchants, credit card fraud continues to grow faster than credit card spending. Data breaches have resulted in more card details being compromised, and the growth in online shopping has led to more opportunities for ecommerce fraud.
There were over 15 million victims of identity theft or fraud in 2016 with the total amount stolen being $16 Billion.
The recent Equifax hack exposed 140 million+ identities and personal information to the hackers and termed as the worst security breach in US history.
As the credit scores are not portable, a low risk borrower may be denied access to credit when they move internationally, having to rebuild his credit worthiness from scratch.
“More than one in five consumers have a ‘potentially material error’ in their credit file that makes them look riskier than they are, and consumers contacted one of the big three credit reporting agencies to dispute information Eight million times an year”.The global credit intelligence is controlled by a handful of credit bureaus, and it has been alleged many times that their scoring models are outdated, flawed, and not portable as they are specific to a country or a region.
Outdated Analytics and Incomplete information:
As the information becomes more centralized it becomes monopolised and incomplete. This leads to decisions being made without all the available information at hand, significantly increasing the associated risk. Moreover, the credit scores are not updated in real time, with the delay prejudicing millions of consumers and businesses as their current credit history is not factored into the decision making process.
The data collected by credit bureaus is centralized. It is a common misconception that these bureaus exchange information automatically, which is not true. These agencies are separate businesses providing similar services for a fee.
How is Credito the solution?
Credito encourages the expanding and proficient operation of the credit industry by permitting both fiat and digital resource loan specialists to broaden credit to people and establishments with underdeveloped or a juvenile credit framework. The ecosystem provides solutions to enable any verified lender to safely and securely issue credit to the verified borrower.As a solution to the above problems, we have created the Credito Network, or simply Credito. A decentralized network based on Ethereum blockchain coupled with smart contracts and Interplanetary File System (IPFS) providing Credit Intelligence and Decentralized Lending Marketplace.
Credit is transparent:
Credito leverages the transparency of the blockchain registry by monitoring the activities of borrowers and lenders to prevent one or the other of the parties from surpassing themselves. For example, it would be used to prevent a borrower from obtaining multiple loans from different lenders that he would then be likely to default.
Credito Loan Agreements are Smart Contracts
Credito Loan Agreements permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible.
Credito Loan Agreements are self-executing contracts with the terms of the agreement between Lender and Borrower, directly written into lines of code which brings enhanced transparency and reliability. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.
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