From our previous reviews on bizshake project, we understood the project has to do with a p2p sharing ecosystem where users would be able to share their assets with other users on the platform by way of renting or pawning their assets. This gives rise to two major business models on the platform namely:
- Smartrent, and
- Smartpawn
SMARTRENT
As the name suggests, this is the business model that would allow users to rent/lease their assets to other users on bizshake platform for a certain period of time and at certain interest rates.
I think it would do us good to delve a bit deeper here by taking a closer look at how the model would operate. And as prospect users on the platform, it is really imperative we understand the modus operandi of these models so we can easily find our way about the platform on launching.
Naturally, users would have to register and create accounts on the bizshake ecosystem before they can make use of the platform. Individuals with assets to rent/lease (lessors) would then be able to list their assets, attaching every detail necessary before posting them on the platform. Other users in need of such assets, when they see the listed assets and are satisfied with the descriptions, would have then to make the required deposit as specified by the lessor. This deposit amount would vary from user to user depending of users’ credibility as well as the nature of the assets leased.
Assuming you are the lessor on the bizshake ecosystem, it would be vital you always consider the other party’s credibility while leasing out your assets for safety reasons. Also, you would be required to meet certain criteria in listing your assets on the platform. Some of these criteria include the following:
- Give a detailed description of your asset including every characteristic possible and a photo and/or video of the asset you are offering for rent
- Specify your rental fee as per the period of rent (ie either montly, daily, etc.)
- Include your geographical location. Some users might prefer renting from individuals who are in about the same geographical location as them.
- Include the locations you would be able to ship your assets (ie for assets that require physical delivery).
- Specify the date the asset would be available on the platform for lease.
- Indicate the value of the asset. The lessee would have to deposit the amount equivalent to the asset before you ship the asset to him. This is to serve as a guarantee in the event that he/she fails to return the asset or return it in good condition, the blockchain would release some or all of the deposit to you as compensation.
Upon making the required deposit including the rental fee, the blockchain would lock up the deposit while you ship the asset to the lessee. Upon receipt of the asset at the other end, the lessee would be required to confirm/acknowledge the receipt for the blockchain to release the rental fees to you. Thus, the blockchain would serve as an escrow to check fraud and ensure safety in all transactions on the bizshake ecosystem. This would go a long way in buttressing trust on bizshake platform.
SMARTPAWN
As the name here again suggests, the smartpawn business model of bizshake ecosystem on the other hand would allow users to acquire short-term loans from other users on the platform. Its mode of operation is pretty similar to that of smartrent. You might view it as smartrent turned upside down. Lol! The point here is that unlike smartrent that has to do with assets, smartpawn has to do with money/loans. The loans here would be backed by assets. That is, the individuals in need of loans would be required to list some assets on the platform which would be of about the same value as the amount of loan he/she wishes to obtain. The asset here would be held as guarantee so that in the even the pawner fails in returning the borrowed loans, the assets would be transferred to the lender as compensation.
Let’s again assume you are the pawner wishing to obtain some loan on bizshake ecosystem. To convince a prospective lender and obtain your required loan, you need to clearly indicate every detail of the asset you are pawning alongside some other basic information such as the following:
- Indicate the amount of loan you wish to obtain
- Indicate your asset, giving detailed description of it with photos and video if possible
- Your listed asset must be of about the same value as the loan you wish to obtain
- Indicate the interest rate you are willing to offer for the loan
- Specify the loan duration; ie the period of time it would take you to refund
- State the possible geographical location of the lender. It should be locations you’d be able to ship the asset to.
- And most importantly, your asset must be certified through smartcertify feature of the platform to ensure its authenticity. Otherwise no lender would almost certainly lend you a dime on bizshake.
Highlighting these business models has been intended to keep you abreast of the peculiar aspects of the bizshake ecosystem itself and thus sharpen your expectations until official launch of the platform.
For more information on the bizshake project, please visit their official website at: https://www.bizshake.io
Also read their whitepaper here: https://www.bizshake.io/sites/default/files/BizShake_Whitepaper_1.2_ENG_2.pdf
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Bounty0x username: diana1