Distributed Credit Chain: Using blockchain technology in establishing a decentralized ecosystem for financial institutions
INTRODUCTION
Blockchain can be referred to as an incorruptible digital ledger of electronic economic transactions which is programmed and recorded. Blockchain is the name given to distributed ledger technology which provide a trusted and immutable record of transactions. With the introduction of blockchain technology in 2008 by Satoshi Nakamoto, virtually all sectors of the world as witnessed lots of technological changes. Blockchain has changed mode of operations of all sectors of the world. Blockchain with its radically decentralized technology, has great innovative disruptive potentials which can positively contribute to the developmental process of any sector it is introduced. Restructuring an ecosystem and displacing sector players is the classic pattern of innovative disruption. The financial sector is not an exception in this aspect.
Financial institutions are companies that engage in the business of dealing with financial and monetary transactions which ranges from deposits, loans, investments and currency exchanges. Financial institutions have a very broad range of business operations in the financial service sector. Everybody living in developed world has regular need for the services of financial institutions. This means that the service of financial institutions has become part of what we need for daily survival. In some twenty years ago, financial and banking business is done in a crude way by visiting the office to speak with officials working for the financial house. With the advent of technology, customers can now monitor accounts, transfer funds and deposit checks without leaving the comfort of their house. Financial institutions have embraced digital technology and it has become a mainstream in the financial world. The digital technology embraced by the banking institutions are solely centralized in nature.
Centralized financial and banking institutions are financial institutions that the control of its financial and monetary activities is centralized. Under the centralized financial institutions, control is always monopolized at the centre creating a lot of administrative bottlenecks. Ofcourse, in some financial activities, centralization is the best. These financial areas are gradually becoming few and will soon be fizzled out because technology is gradually taking over. There is no doubt that financial and banking institutions has lots of advantages to its customers, this institution is faced with lots of challenges militating against it survival and operations. These challenges faced (though not limited to these) are listed below:
The rise of resiliency: Centralized banking has greater risk around it. Ideas is likely to converge, creativity stifled. For example having moneylenders, credit guarantors and marketers in different areas. This will allow diverse point of views. This tends to permit redundancy which can make the organization more diverse and resilient.
Centralized Profiteering: Looking at the intermediaries that provide credit service, many of the online credit agencies have become a centralized profiteering industry giving them the opportunity to exploit and take the advantage of the borrowers. Data indicates that majority of the income they make is from the high interest rate charged on borrowers.
Centralized banking brings credit dilemma: The main cost model of any credit agency is to share the costs incurred by non interest-earning elements and non-repayment of loans by charging the credit eligible clients who has the ability of repaying the loan. To some school of thought, this is irrational because for borrowers, it brings added cost. For credit institutions, cost management becomes difficult with limited profit margins. The level of efficiency is lowered and profit margin is drastically reduced.
Monopolistic tendencies: The centralization in banking institutions gives the players in the industry monopolistic powers. This monopolistic power give the institutions the opportunity to exploit the borrowers and also causes administrative bottlenecks which makes it difficult for those seeking loans to get the loan.
These problems and many more is of great concern to the team behind Distributed Credit Chain and this makes them to come up with lasting solutions using the blockchain technology. Distributed Credit Chain comes with the first distributed banking public blockchain in the world. The major aim and objective of the Distributed Credit Chain team is to establish total decentralization f the ecosystem for financial service providers all over the world. This process will remove the monopolistic tendencies associated with centralized banking. This will inturn take away the exploitation done to borrowers. When blockchain technology is introduced into banking, it helps to decentralize control of financial institutions and helps with realization of inclusive financing.
Decentralized ecosystem gives a win-win situation among all players involved in the banking system. This is ensured by breaking the monopoly of the traditional financial institutions. One of the advantages of using blockchain technology is that any data recorded on it cannot be tampered with. This alone will help in carrying out regulations. Data analysis institutions can easily have vivid understanding of how to respond to risk associated with the institution.
The enabling of peer-to-peer relation by the Distributed Credit Chain brings in mutual cooperation among independent participants because decision made is sole personally made. This doesn’t bring about cooperative environment that can lead to exploitation of others.
CORE TEAM
ADVISORS
ROADMAP
CONCLUSION
The Distributed Credit Chain project is obviously going to be very successful because it is addressing challenges that have since being lingering in the financial sector of the world. This is coupled with the integrity of the members of the team. This is why you see that the project has already had early investors who had invested in it. It is a wise decision for investors to invest in this project
FOR MORE DETAILS ABOUT DISTRIBUTED CREDIT CHAIN, VISIT THE FOLLOWING LINKS:
Website: http://dcc.finance/
Whitepaper: http://dcc.finance/file/DCCwhitepaper.pdf
Telegram: https://t.me/DccOfficial
Facebook: https://www.facebook.com/DccOfficial2018/
Twitter: https://twitter.com/DccOfficial2018/
Bitcointalk ANN: https://bitcointalk.org/index.php?topic=4185316.0
Bitcointalk Username: msbtrooper
Bitcointalk Profile link: https://bitcointalk.org/index.php?action=profile;u=2182082;sa=summary
Wallet Address: 0x88290a269F8EE26CA6182e2aD42C3D40046E4DaC