Bedwetting and Other Financial Crisis
There’s nothing wrong with bedwetting. It’s a normal process of growing up. However, past a certain age, this acrid “leakage” morphs from being a mild inconvenience to an irksome embarrassment to the parties involved.
The same goes for financial debt.
Like the bedwetter, the last thing any debtor wants is to have their publicly identifiable mattress dragged into the open for all to feast their eyes on the spots littering the mattress and call out its sizes. However, unlike the bedwetter, the action of a debtor is not born from an unconscious necessity, but rather, a conscious want. Also unlike the bedwetter who has to air their mattresses to minimise the potency of the odour assaulting their nostrils, debtors have no such pungent discomfort. As long as debtors keep convincing their creditors that they are good for their debt, the credit remains open. By the time they turn it off, it's often too late for everyone involved.
Access to an accountable and transparent debt profile management and collection system for creditors the primary reason why debtors can flagrantly rob Peter to pay Paul in broad daylight. Individuals can borrow from one end of the street and immediately turn around to perform the same feat at the other end. Businesses can present the same assets as collateral to a myriad of disconnected financial institutions and countries can keep rolling over the debt into new loans simply because countries just don’t up and vanish into thin air. This is why corporate debt now sits at $9 trillion, while the National Debt to GDP Ratio of several countries is well over 100%.
Debt collection is a difficult task, compounded by the fact that the law is highly geared towards the debtor who can always file for bankruptcy at the end of the day. Solving the problem of debt management requires an easily accessible, secure, and autonomous system free from third-party interferences, trust issues, and data manipulation. Such a platform is what the team behind Joos Protocol is developing. Also known as, JProtocol, Joos is a robust, decentralized solution for debt resolution leveraging reputation and social proof.
Social proof is a psychological and social phenomenon based on the concept that people often rely on the feedbacks and actions of others for their own decision making. This phenomenon can be observed when we shop, travel to new places, or interact with new establishments. We look for reviews, check up on feedbacks and ratings before engaging. This information also shapes how we respond and interact.
So, imagine not only being able to check up on the entire debt profile of an individual, company, or country before engaging them, but also knowing that the debt will always be repaid as scheduled. This is what Joos Protocol is capable of through its groundbreaking development on the blockchain, preserving data integrity and providing a trustless network for immutable transparency.