Debitum (DEB) | Global Small Business Financing
Debitum Network is a global small business financing, in other words, debitum wants to decentralize the financing process.
The value proposition is a hybrid solution. The companies’ financing will be done and executed in fiat. They claim that they are crypto realists rather than crypto fanatics, so they will not be using cryptocurrencies until it is not adopted mainstream.
So, what is the need for this kind of product?
Debitum Network has basically 3 types of beneficiaries, which are:
1. Small and medium enterprises (SMEs) which need capital;
2. Funds or individuals that want to allocate their capital; and
3. Various service providers, such as risk assessment, collateral valuation, insurance or bad debt collection.
They mention that there are a lot of people looking to invest their money, but they struggle to do it safely because they lack global lending or investing infrastructure.
Thus, Debitum Network will try and create a new asset class and give their beneficiaries the possibility to invest in the global small and medium enterprises loan market by providing suitable infrastructure to do it.
Let’s now discuss how does this product actually work.
So, the Borrower provides the needed information for the loan. Then, using the Debitum tokens borrower or investor pays for various services. In turn, these service providers freeze some amount of tokens received, as a guarantee for future service quality. Finally, they use smart contracts to automatically calculate and update trust ratings of each of these service provider.
Their role, the Debitum Network role, is to ensure a smooth fiat-crypto interaction until crypto payments become mainstream.
There is currently no competition in this market with a hybrid solution, meaning that companies will be able to finance themselves in fiat, until cryptocurrencies are adopted mainstream.
In terms of delivering what they promised, they claim that the smart contract is ready as well as their MVP. You can find this MVP at demo.debitum.network// They say however that in order to build the whole Debitum Network it will take around five years.
As far as feedback from the crypto community and investors is concerned, they claim to have won both the investors and public awards at the d10e pitch competition in Gibraltar. Thefore becoming the first ICO to win both awards at once.
Now, about the token, it’s called DEB and is a ERC223, not ERC20. If you’re not familiar with the ERC223 standard… it is backwards compatible with ERC20, meaning every software that supports ERC20 will also supports ERC223. In additions, ERC223 merges the token transfer function among wallets and contracts into one single function ‘transfer’. The biggest change is that ERC223 no longer allow token to be transferred to a contract that does not allow token to be withdrawn. Before ERC223, if someone send his/her token into a contract that has not allowed anyone to use it, the token will simply be locked and can never leave that contract. Because of this, hundreds of thousands of dollars’ worth of ERC20 token has been locked up.
So, DEB is a utility token that will have basically two roles:
1. Value exchange role = Debitum tokens will be spent by borrowers and investors to buy services on the ecosystem.
2. Toll role = Debitum tokens will be used as a security to guarantee a counterparty’s delivery of service.
Furthermore, Debitum tokens will also be used to run Trust Arbitrage smart contracts that will indicate trust levels of counterparties within their ecosystem.
In summary, debitum network wants to Leverage the Blockchain technology to secure and distribute fiat investments to the SME world.
If you want to read further into this project, here are the links to the whitepaper, their website and the MVP: