A bank on blockchain? How will that work.
Before the mass infiltration of banks and financial systems, loans and repayments took place on a peer-to-peer basis. This was because at that time people trusted each other. In fact, credits and reimbursements occurred at a personal level. No third party was ever necessary but as greed and human nature began to set in the level of trust people accorded to each other began to fade.
Therefore, for Individuals to conduct a meaningful transaction, middlemen and outsiders had to be involved. Unfortunately, what these brokers gave with one hand they took away with the other. Although they gave a new layer of insurance, they also charged high fees, while infusing additional layers of complexity and regulations to the process of lending and borrowing.
Source: Distributed Credit Chain Youtube Channel
DCC is hoping to bring back the same level of transparency that existed before, by using a platform built on a distributed ledger. Blockchain. The basic goal is establishing a platform that’s both transparent and decentralized. The process makes it possible to exchange responsibility of an asset from one individual to the next, all without needing a third party or an intermediary, an attribute that could help restore peer-to-peer lending practices like before and even propel it to higher levels of popularity.
But how will - distributed credit chain - work exactly? and can they actually fix the flawed centralized financial institutions? Let's get into the details of the process and the aftermath.
How will DCC Handle it's Platform Users.
In DCC, every person that registers is given a unique DCCID, this - ID address - will be used to identify and store the individuals’ user data inside the ecosystem. The DCCID is produced through a Public-Private Key pair. The DCCID is a decentralized record framework that functions the same as a member ID in a customary internet system, to handle real name authentication, debit & credit cards held as well as the number of assets the member has in their possession.
One of the main advantages associated with blockchain is the freedom it accords to its both the service provider and the end user. A blockchain system as verse as DCC will put their users in the driver seat of their own personal and financial data. This means they alone control who sees or who they share their information with. The problem with trusting personal and financial information with a third party especially over a long period of time is they are more susceptible to mismanagement and leaks.
DCC utilizes an advanced digital signature technology every time any form of data exchanged all this to completely ensure the non-revocation of individual-chain or foundation chain collaboration of information.
DCC will also make available for its users a Distributed Credit Data Management Framework, also known as DCDMF that allows developers and cloud storage suppliers to remake users' personal credit reporting data based off their current APP development needs.
For extra security, DCDMF utilizes AES symmetric encryption to encrypt data. DCDMF uses the DCCID and an input password. This technology allows people to control their data ultimately the premium costs factored into data storage and third-party verification.
This DCDMF/AES combination prevents data from falling into the wrong hands during maintenance, from being used to carry out profiteering tasks and from leaking in case of a hacking event.
Thanks to DCCID this data can also be automatically validated and reused hence reducing the cost of institutions that use the data to service client needs. This type of verification frees time because organizations won't have to obtain authorization from users every time.
DCC wants to make the process of transition easier for users as well as maintaining a regulated platform that's good enough for everybody. In fact, through the platform users will be able to quickly obtain any data they might require to use later or even compare different offerings.
DCC isn't just suited to serve customer needs but also boost businesses.
How is data handled on DCC?
With the assistance of the open source framework SDV (Submitting Data Validation), the loaning organizations can without much of a stretch info the client's data to their current risk control framework. SDV continuously updates the data parsing and verification template libraries as indicated by the data providers on the DCC market, and after entry of the client's data into the system, SDV generates entry data that can be utilized by the risk control framework considering the computerized signature and the submitted data processes of the DCCID.
What's the process of lending on DCC?
DCC employs complex anti-fraud and modelling algorithms that use deep learning and artificial intelligence risk control systems, to enable finance agencies to process personal data without needing any capacity to store the data. This technique enables monetary organizations to enhance their risk control capacities and keep in accordance with compliance requirements.
DCC's Blockchain unveils risk strategies using their own encrypted algorithm, permitting borrowers to apply for verification based on the algorithms published by algorithm providers and credit institutions and proactively screen lenders through the risk strategy service. Borrowers who cannot access institutional borrowing can decide not to apply for credits from those establishments, in this way anticipating entries of individual data by various establishments. This would prompt radical increment in exchange productivity and further drop in exchange costs for credit organizations, dispenses with the need to apportion computational assets and installment expenses to borrowers who can't get loaning administrations.
In fact, DCC recommends that the lending institutions should utilize chain data to keep up the lending process seamless and hassle free. The client's credit application can be submitted to the chain specifically by the client by means of signature, and the loaning establishment gets the passage information through the SDV and updates the endorsement result to the comparing request.
How will DCC determine credit scores?
Credit reporting in different credits is imbalanced. The development of credit announcing in a few developed and developing nations is generally backwards, not to mention the number of clients with credit records is very minimal, this gap has led to the emergence of fintech startups such as stripe and PayPal to serve clients with no credit records.
Through contracts the DCR (Distributed Credit Report) will generate a credit history index that records the client's entire lifecycle status from application for credits, audit of advances, reimbursement, late advances, accumulation, and bad debt. The list of indexes alongside the plain content information of the actual loan contract held by the individual constitutes of the client's history report inside the DCC system, which is also the epitome of returning information to the person by DCC framework.
For each record in the DCR, just the borrower and loan specialist hold the plain content information, and DCR has just the record list. In this manner, even though the record list is partaken in the blockchain, such record is of little incentive to outsiders. The instrument likewise guarantees that the sharing of information between the loaning foundations occurs on the commence of securing their own security.
Conclusion.
Through the development of a cross-chain adaptation mechanism, DCC's public chain is compatible with the current mainstream chains, such as bitcoin and Ethereum and is more than capable of carrying out a cross-chain asset exchange or a financial service supporting digital assets. DCC's public-linked R&D will also be open sourced at GitHub. Developers are welcomed to participate in the research and development of DCC's public chain with DCC rewards being offered for successful work completed.
DCC has an experienced team behind it with a great vision of global domination. A solid investing opportunity. Don't be left behind.
Use the links below to learn and participate more with Distributed Credit Chain:
Website
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Telegram Official 2
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Medium
WhitePaper
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