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January 18, 2018, 11:28:04 PM |
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Been working on a concept, have got it to the wireframe stage and ready to start coding.
There are a lot of proposals popping up about how to best introduce people in low income countries to crypto. This is the new frontier and competition is going to be heating up.
The idea is a p2p microfinance app with multicurrency wallet support and tokenized microventures. Microventure tokens as well as various cryptocurrencies can be traded in the built in exchange (cryptocurrency trading could be done by API).
Nothing special right? Wrong. Add in a group lending aspect for viral growth. You have to have a minimim of 5 or maybe 10 "backers" to be eligible for financing. This would usually be achieved by going and getting a number of friends or family to sign up. Then add in a crowd collateralization system where collateral pledges are recorded on a contract.
Each user has a unique identifier address on the platform's native blockchain. This is then linked to an algorithmic credit score which analyzes mobile phone data. (Similar algorithmic lending schemes have achieved up to 98% repayment in places like the Phillipines and Mexico, exceeding success rate of Europe and North America with borrowers with no bank accounts or formal credit history.)
Honoring contracts, whether financing or collateral, results in an improvement in credit. Project "backers" collect a tiny percentage of profits payed on the contract (as little as a few cents, but significant in many such countries) which gives them a taste of making money with the platform, and enough money to invest, but not enough money to reach the minimum withdrawal threshhold. The level of earnings as a 'backer' as well as eligibility for finance is determined by reputation. Furthermore, the blockchain consensus protocol would be a PoW ETC (or the like) fork with an additional layer added that limits both the number of miners and total hashpower based on the credit score, thereby creating a triple incentive for cultivating a track record of honesty-
1- ability to get finance
2- level of earnings from backing projects
3- probability of block discovery
The cap on hash power and the awarding of slots in the limited mining pool would grant the ability for people to leverage their social connectedness and the integrity of their social network as a means of mining.
All of these factors would position a platform to gain incredible traction within the unbanked population that more and more crypto projects are setting their eyes on.
Then add to this that the entire thing can run on an interest free profit sharing model that would give it a competitive edge in moral terms for the approximately 800 million of the unbanked who believe in a prohibition of interest, and you have a platform poised to gain brand dominance in a very, very large market.
Just hoping someone will read this who can get as excited about the idea as I am.
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