We will make Banks Compete -- All People Benefit!
The modern financial system has many shortcomings. While it appears to be working well, it has many shortcomings, and this is the very cause of Bitcoin's creation. A mass of developers has taken the lead to carry the revolution forward by developing platforms that hope to eventually decentralize the industry.
The peak of achievement would be when anyone could lend to anyone else without the need of an intermediate financial institution. Whether such a system can be achieved some day is to be seen, but it is undeniable that the current blockchain infrastructure needs to be further developed to sustain p2p lending.
Given that the financial system has many shortcomings, progress is possible even when blockchain technology needs further development. Decentralized Credit Chain is offering an innovative solution to a long-standing problem faced by the financial industry: limited competition.
More Competition
There are thoudands of banks across the world but most consumers have access to services from only a few of them. In an era when communication is so easy, banks are the only businesses that consumers have limited reach to.
Competition breeds improvement but there is a natural entry barrier that allows a limited number of banks to be physically present in a specific place. The natural barriers being the fact that only a few possess the capital needed to establish a bank. Thus, most people can only get loans from a only a small number of banks (in or near their vicinity). Consequently, banks can decide prices as an olligopoly, leaving consumers to merely decide upon which bank's unrealistic loan rates to accept.
Even within the banking industry, there's a hierarchy of power as banks with a larger source of capital, and thus more power, are able to limit the abilities of small banks. This is the factor that Decentralized Credit Chain hopes to exploit in benefit of the consumers. DCC aims to increase the competition among banks by an even playing field, in terms of market reach, for both large and small banks.
Access Without Borders
Decentralized Credit Chain is going to offer banks the ability to exist on an open credit network. Consumers will have access to this network and would be able to compare the loan rates of one bank with the loan rates of another bank. This fuels a natutal state of competition in the industry at a scale that has never been achievable before.
People will no longer be limited to banking facilities by physical peremesis. Every single bank in the world would be able to compete for clients on one platform. The Decentralized Credit Chain will increase people's ability of choice while providing them with access to better loan terms eith respect to fees, interest rates, and repayment timelines.
Additionally, as the financial system is a two-way mechanism, the savers will also benefit. Decentralized Credit Chain will place all the banks' offers for saving and people will have the opportunity to choose the best savings rate being offered by any bank in the world.
DCC Essential Links
🌐 Website: http://dcc.finance/
💡 Whitepaper: http://dcc.finance/file/DCCwhitepaper.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=3558425.msg%msg_id%
💻 Telegram: https://t.me/DccOfficial
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Thanks for your point of enlightenment
Bravo
You're welcome Thompson 😊
It needs a lot more developments for replacing the traditional banking system. It needs more time.
As I said in my introduction, "the current blockchain infrastructure needs to be further developed to sustain p2p lending."
There's a need for staunch development before we can adopt an overhaul of the current banking system. Meanwhile, DCC's concept is easily applicable even at present. It's not an overhaul of the banking system, but makes way for competitive pricing of services.
right said lot of development still required to change the whole system
Last sentence is very true and I agree
"Decentralized Credit Chain will place all the banks' offers for saving and people will have the opportunity to choose the best savings rate being offered by any bank in the world."
this can happen but it will take some time
Every project needs some development time, but I believe this would be easy to integrate into society.
Completely agree with you that it needs lot of development which i am sure will happen in coming years.
It's a journey and I feel that DCC is the first leap in the right direction.
Putting DCC into the market, providing similar services to those of banks, this will allow banks to be forced back into the competitive free market. By diminishing the power of large financial institutions e.g banks, will also allow smaller players to re-emerge on the market in an effort to promote social and economic progress. So YES, it sure does increase competition.
good luck ..........
we are waiting for this, it might be better for us.
It will definitely be good for the average consumer.
The ICO is over and project development is under way.
@hatu
According to me it's easy to say but difficult to do.. will take time
Great things take effort.
I am not too certain that i will call the existing banking industry an oligopoly. Most developed countries and even larger developing countries have enough banks, in fact I believe the system is overbanked. The problem is competing for bigger fish and ignoring the plankton, somewhat like steemit. Then, the models to determine risk are the same, and with changing income sources, technology, banks haven't updated their risk models to actually pass on cost reductions to consumers. Banks as business do one thing - move money from party 1 to party 2 and take a cut. The bigger the pie, the bigger the cut. For a smaller pie, increase the size of the cut. The smaller guys are the ones who get ripped off and frankly, were powerless, until bitcoin came into existence.
From the looks of it, it seems DCC is moving in the right direction. However, to provide cross border financing, the problem is loan recovery and dealing with local regulation. Crypto financing companies, smart contracts and unified banking recovery process and regulation are also needed as tailwinds for DCC to succeed in its mission of making small and large banks equal. Otherwise, the idea is right. Small banks need a platform like DCC.
You raise a valid point and I agree: DCC will assist small banks. Giving those banks that have a limited reach will boost competitiveness.
It's unlikely that personal loans will be issued via this platform. However, the largest portion of loans are collateralized. This platform can easily support collateralized loans at a cross-border level as assets can be verified and could be claimed in case of default, irrespective of issuing bank's location.
Very true, it opens up a whole new loan segment to collateralization, and thereby facilitating competitive loan practices.