As blockchain technology shows an impressive potential to be disruptive in many sectors, the Credit and Lending industry is no exception. As of today, the infrastructure needed to provide credit is both costly and complicated. The Credit Protocol, created by Blockmason, is a new system that is here to resolve this issue.
The majority of the world is run on credit. In reality, there are only a few trillion dollars of real money while the estimated amount of debt is in the range of quadrillions. The Credit Protocol addresses this problem by creating a new infrastructure to record debts via the Ethereum platform.
Other platforms are trying to simplify access to credit, such as ETHLen and SALT, but their focus rests on peer to peer or collateralized lending on the blockchain. Unlike them, Blockmason believes that the first step to making it easier fo real world companies to adopt a blockchain based solution for debt and credit obligations is not to solve how to lend but how to record such obligations. As a result, the Credit Protocol is a recording layer which serves as a base on top of which the lending, collateral, enforcement and underwriting can be built.
Why is the Credit Protocol unique?
The Credit Protocol is using blockchain technology and decentralized apps to help facilitate payments of debts, making debts easier to manage, track and collect. With the Credit Protocol, both parties— the lender, and the borrower— will confirm their obligation through a transaction that will permanently be recorded onto the blockchain. Because of the transparency of the decentralized ledger, both parties can easily trace their obligations and security will be assured as the entire crypto community will be privy to any suspect transactions. Finally, by building dapps onto the Credit Protocol, debts can be swiftly and reliably settled to facilitate easy debt management.
Blockmason’s talented team is comprised of co-founders Michael Chin, Timothy Galebach and Jared Bowie. The team is leading by example in this new industry: openness, accountability and commitment to developing dapp technology have separated the company from its competitors— who, all too often, seem to be trading in hype for empty promises. The transparency of this project and actual delivery of the product is already making it appealing to buyers who need teams they can trust.
Lndr – The Credit Protocol in action
The first demonstration of the Credit Protocol is the Lndr Dapp, which is a comprehensive solution for people to keep track of debts and pay for them too. It’s compatible with both iOS and Android software.
For individuals who cannot secure access to credit through financial institutions or simply want to cut fees associated with them, the Lndr Dapp is an optimal solution.
For example, let’s say you had a great night out while visiting a friend on the other side of the world. During the course of the night a number of debts were recorded, and you decided to settle the debts once you returned home. Typically, cross-border payments would incur fees, but with Lndr fees are kept to a minimum. The platform will also support multiple currencies, which includes Ethereum, Bitcoin, Litecoin and Dogecoin.
However, minimizing fees associated with cross-border payments is only the beginning.
Moving into the future, Lndr will allow for the group recording and settlement of casual IOUs. Further, regular debts— such as alimony or subscriptions— can be programmed into an auto-payment system, that will help streamline the payments. Finally, payback schedules will be created— allowing management of loan repayments to be secure and easy.
As these applications illustrate, Lndr shows a lot of promise down the line, and this is only one Dapp – many more will be created. Consequently, the Blockmason Credit Protocol displays an impressive potential that will keep actualizing as more applications build on top of it.
If you want to learn more about the credit infrastructure Blockmason is building, be sure to read their whitepaper.
Earn your free BCPT tokens by joining Blockmason’s Airdrop now: https://airdropx.com/en/blockmason/