Distributed Credit Chain : Centralized Credit model

[marydarli]

DCC provides Centralized Credit model. The Centralized Credit model gives such centers monopolistic advantages monopoly. Due to asymmetry, The lenders and borrowers lose direct trading opportunities. Many online credit agencies, taking advantages of information asymmetry, have become a centralized profiteering industry. Where do their huge profits come from? Data tells us that the highest proportion of their income comes from interest spread. From an industry-wide perspective of a particular developing country, the interest spread provides 80% of a bank’s revenue. Therefore, people are thinking about a possibility for credit service without a spread made by intermediaries, which would allow lender,borrowers,risk control models, collection offices, and insurance institutions to participate together. In such service, lenders and borrowers would be able to achieve debit-credit balance based on consensus and for the purpose of service.