Recently I was doing a review of the Distributed Credit Chain project. Now I want to learn more about the real-life issues in which the solutions of this system can be applied and thus answer the most important question: will this platform be able to the fullest extent for the majority of consumers of financial services Be a substitute for the existing proposals of the classical financial institutions.
1. Consumer loans.
First of all, the system is intended for the issue of consumer or individual loans. For repair of habitation, purchase of necessary goods, training, on everything without which it is difficult to do to the modern person. The applicant sends the necessary data, makes the request and sends it to the network. After passing the evaluation algorithms, the company offers him a loan with one or another interest rate. Like other system services, they are distinguished by the possible mezhreginalnostju. That is, a customer with a good credit history, say, from Europe, can get a loan at a better rate (rather than in local credit companies) than, for example, in North America.
2. Payment of consumer contributions.
The most vivid example is the situation when the buyer enters into an agreement with the seller, on which the consumer is obliged to pay a batch of goods during some specified period. After they reach the agreement, the seller sends the buyer the first shipment of the goods. Before making a decision on sending the goods the seller has the right to check the personal data of the buyer, to evaluate its solvent status.
3. Use as a loan registration service.
In this case, data such as: Amount will be written to the chain; Duration of the loan agreement; Established interest rates; Personal data available for public storage, but protected from unauthorized access; Information on the integrity of payments and so on.
All recorded data in the future can be used to assess the creditworthiness of the client and make a decision on the issue of credit.
4. Issuance of credit cards with blockchain.
The system will not be able to circumvent and such a popular phenomenon as a credit card. Organizations-users of the platform will be available to issue credit cards with full functionality with reference to the technology blockchain. In further plans, DCC plans to become the largest organization for the issuance of credit cards in the world space.
5. Regulation of the asset securitization process.
This is one of the most important tools of the world of finance, the misuse of which has become, I remind, the main reason for the global financial crisis of 2008. You can read what it is and how to use it correctly here. As a result, it is clear that a high level of transparency in this process is a major challenge to maintaining financial stability around the world.
6. Mortgage loan registration service.
Ownership of certain assets, whether real estate, car and so on, are registered in the chain of the system. Therefore, at each subsequent resale, all milestones of the life cycle of any asset will be stored in the system databases, which will avoid issuing a re-mortgage loan for the same asset.
7. Provision of a system of distribution of securities secured by assets.
Securities secured by assets (in the original – ABS, Asset-Backed Security) – is a certain type of securities based on a set of assets combined into one pool and secured by a constant cash flow. The assets are just mortgage loans, receivables, and so on. Thanks to DCC, such assets will significantly increase the level of their transparency, which eventually leads to increased liquidity.
Output
As we can see, the capabilities of the system are truly comprehensive: a complete set of tools from clear to everyone in the form of credit programs, to complex schemes for asset securitization. In addition, the management of the company says that this is only the beginning, and further we are waiting for more functions for more target groups of clients.
Will DCC completely replace the current lending institutions? Will answer this question only time, and so far I advise you to follow this grandiose company on the links: