Creditcoin Reinvents Lending Process to Make the Most of $600B Crypto Network
| Updated by Alexandra Sayapina · 3 min read
The decentralized, verifiable market eliminates third party from the lending process and brings the investor-fundraiser relationship to the new level.
The blockchain technology provides lots of opportunities to upgrade everyday life. One of the spheres that can significantly benefit from the new technology is traditional financial tools. Creditcoin, that has already gained lots of attention for re-thinking the lending process, is a perfect example of a game changer.
Creditcoin is a product of Gluwa and Aella Credit partnership. These two companies have united their efforts in order to create trustworthy cryptocurrency lending market. The system is supported by the CRE token. $10M has already been raised – while the funding cap is set to $30M.
The story of Creditcoin begins on two different continents: North America and Africa. Gluwa, Inc. is a San Francisco-based company which created a Bitcoin payment platform. The platform has gained lots of support from different businesses for being secure and low-risk. But the company does not want to stop at this point. Gluwa combined its efforts on creating exchange risk-free platform with a notable African project.
Aella Credit is known for bringing the institute of instant loans to Africans. The company which is using blockchain technology has become a real sensation in the region. It has created the top financial app in Nigeria and is ready to boost in 2018. The plans are ambitious: Aella Credit is aimed at 1million users in 2018.
The partnership of these two companies is expected to create a glorious project. The Creditcoin network is solving some of the most acute problems of traditional lender/borrower problems. The project has a wide range of benefits that can turn it into resounding success.
Loans have been an effective financial practice for long time. They have proved the efficiency and become a part of various business models. However, they have a significant disadvantage – the need for the third party. Creditcoin eliminates the mediator from the process. Investors contact fundraisers directly – and this algorithm has become possible thanks to the blockchain technology. It allows creating trustworthy credit history that can easily be shared without providing personal details of the party.
The idea behind the Creditcoin network has strong potential. The system provides the users not only with a set of tools for lending money – it creates a crypto society based on trust. Each investment in the system can be proved. The markets are designed to be decentralized and verifiable. The platform turns investing into the main activity for miners.
The future of Creditcoin is now seen as success. Both Gluwa and Aella Credit has invested a lot in the project and completed the private sale. Both companies have already worked with notable investors: Y Combinator, 500 Startups, VY Capital, Zeno Ventures, co-founder and CEO of Coinbase Brian Armstrong. This experience is sure to benefit the development of the Creditcoin network.
The new approach to lending is expected to meet high expectations: the creators of the Creditcoin want to interconnect the $600 billion of capital which is now spread all over the crypto sphere. And the chances Creditcoin succeed seem to be high.
Alexandra is a software engineer who specializes in core banking systems development for financial and IT spheres. Taking strong interest in blockchain, cryptocurrencies, and IoT, Alexandra got deep understanding of the emerging techs believing in their potential to drive the future.