If you're a finance connoisseur, then you must have heard of the Libor scandal? But before that let’s explore DCC. Short for Distributed Credit Chain – DCC is one of the world's first distributed or decentralized banking public blockchain. It's complicated but I’ll try break it down as best as i can, so you can understand why we need DCC, especially for our flawed financial and credit industry.
The Libor scandal was a huge scandal that rocked the banking system a few years back involving a ring of twenty or more ‘big’ banks. These big banks were all accused and investigated after allegations emerged that they were part of a massive fraud meant to manipulate interbank lending rates to profit from trades, or to give the impression that they were more creditworthy than they were. It affected over $800 trillion dollars in loans and derivatives.
Citigroup, The Royal Bank of Scotland, Deutsche Bank and JPMorgan were mentioned in scandal and fined millions of euros. But is this enough? Would DCC have done better?
What’s evident is that our current centralized credit and finance institutions are flawed, whether it’s unclear interests rated, high operating costs, inefficient operations (raised lending rates for borrowers and reduced interest income for lenders) or privacy leaks the system has failed to keep up with current demands of society.
After all this model has been in existence ever since 3000 years ago, during the Mesopotamia period when the first written loan contract was drafted.
It's time to find a new solution and DCC is ticking all the boxes.
For borrowers, DCC allows customers to use their blockchain account to determine where to send their data as well as submitting a borrowing request. For Data service providers; DCC integrates personal and financial data and storing them on a secure and impenetrable chain and cleaning dirty and errorful data. For credit data, DCC provides a detailed and complete credit history report to credit institutions to ensure problems such as repeated test borrowing and long-term borrowings in the form of bank loans, mortgage bonds and other obligations are prevented sooner rather than later.
With a worldwide disseminated banking ecosystem, DCC intends to break the restraining infrastructure of customary budgetary foundations and to return profit from monetary administrations to all suppliers and clients engaged with such administrations so every member may share the arrival of natural development. circulated saving money will eventually be an approach to really accomplish a comprehensive arrangement of back.
But can DCC succeed where centralized credit models have failed?
Can DCC tackle Profiteering?
A term used regularly: Profiteering is technically making or seeking to make excessive and unfair profits illegally. Banks and financial institutions have perfected the art of profiteering. Banks especially achieve this by deducting lenders of their total amount of earnings and squeezing borrowers.
See most countries usually have a cap on interest rates but because of the power of big banks and a low customer bargaining power, these big banks can easily charge more interest but DCC hopes to change that by introducing an entirely new concept and hopefully eliminate monopolization in the industry because by allowing everyone to choose their own debtors within a decentralized market where a ton of competitors exist, pricing power will rest on the market (the people) rather than being influenced by the middle men (big banks). This translates to a high customer bargaining power. DCC for the win!
DCC also helps clear the air regarding unclear interest rates.
It's true that centralized institutions raise their interest rates significantly with hopes of making more revenue from clients and because of a lot of borrowers in the consumer financial markets of most countries have little knowledge on application requirements, services information or their own credit score. A centralized credit model also promotes monopoly because lenders and borrowers don't have access to direct trading opportunities. DCC's wants borrowers and lenders to be able to achieve a good credit - debt balance based on consensus.
Most financial agencies take advantage of this information asymmetry to make huge profits. In fact, recent data shows that for the average developing country interest spread makes up to 80% of a bank's revenue, DCC is trying hard to make this situation tilt in favor of clients by establishing a standardized marketplace that helps data certification bodies promote the data standards they process as well as fixing the market price according to the feedback collected on data platforms.
Banks and finance institutions fail to understand that increasing interest rates doesn't necessarily translate to higher revenues, the opposite is in fact true, because as market rates rise so does the institutions funding costs and since financial institutions need to fund their investments more isn't always better.
Protecting user privacy at all costs.
It goes without saying that having a bunch of lucrative information stored at a central location is like dangling a lamb leg in front of a tiger, criminals can't resist it and no matter how many measures and millions you spend trying to protect that data internet criminals will always find a way to get to it, so it's true original personal information and sensitive data should not be stored at intermediary institutions for a long term, personal data should be stored by the user as it's the most secure method, DCC is taking this route by allowing for local storage and cloud encrypted storage. All the data can be conveniently retrieved via a local addressing.
Here's how DCC's privacy protection measure works: Personal data is transmitted to the other party (i.e. customer) through an encrypted, point to point manner. Only the recipient had the capacity and the clearance to process the data and may choose whether to process the data. On the other side the data is provided to the banks and institutions in the form of zero knowledge proof, which allows the institutions to verify the data's authenticity without revealing too much information from the customer. This process not only protects the customers privacy but ultimately promotes transparency.
Can DCC'S blockchain Credit cards get the job done?
DCC will also introduce a blockchain Credit card that's cool! Based off a DCC contract set what the card does is grant specified individuals and financial institutions the power to give credit to users within the DCC platform. The credit score is stored within the decentralized chain. Through a proprietary system of zero confirmation and homomorphic encryption, credit providers can decide if a particular utilization takes account of overdraft, all this without revealing the clients credit sum to each other. This ensure privacy is upheld and no customer data is ever misappropriated.
Because DCC's credit cards are also equally distributed they can also effortlessly coordinate amount limits from different credit suppliers as far as possible for effortless portfolio consumption. This translates to a better experience for customers because now credit card reimburses can offer lower cost services through the beautifully integrated credit reporting system provided by the DCC system. It's expected that because of blockchain technologies, DCC is expected to grow into the largest credit card organization, bigger than Visa or MasterCard, without ever issuing any credit cards. Which is nothing short of pivotal.
DCC ROADMAP FOR THE YEAR (2018)
During this 3rd and 4th quarters, DCC will be focusing on opening a self-creation API of distributed credit chain, entering the Indonesian lending market and establishing a unified DCC of MPC.
Conclusion.
The truth is the bigger the world's banks become the more power they have to manipulate markets, control price and even affect a nation or even the global economy. Central banks are supposed to be at the top of the chain - to assist big banks if they get into any trouble, but they have now been turned into mere puppets ready to bend down to the will of big banks. Not good for you and me but luckily DCC has the solution. Keep reading to learn more about how you can participate in their upcoming ICO
The Token
Cyber Sheng Foundation Ltd. a non-profit organization tasked with maintaining the healthy growth of the entire DCC ecosystem in its first phase, plans to issue a total of 10,000,000,000 tokens of the encrypted digital currency, DCC tokens. In the private round, well known financial specialists in the fields of credit and managing an account will be welcomed to participate in the venture and with the raising money rate close to 18%, and the venture measure of single financial specialist no under 100ETH. At this stage, DCCs will be bolted, with 25% of the aggregate to be opened before the opening of trade, and another 25% to be opened at regular intervals, with everything to be opened in a half year. In their, ICO round, a total of 200,000,000 DCCs will be issued to Non-Chinese and American investors. All these will be directly circulated. *DCC tokens will be exchanged by ETHEREUM.
Use the links below to learn and participate more with Distributed Credit Chain:
Website
Telegram
Telegram Official 2
Twitter
Medium
WhitePaper
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