The Creditcoin Network is a blockchain that provides a cryptocurrency (e.g., Bitcoin, Ethereum, or ERC20) credit investment market. Investors and fundraisers can announce their offers, get matched, and record their loan transactions on the network. Further, investors can transfer their bond to another user.
If you can think of Bitcoin as a store of value like gold, then Creditcoin is arguably a credit network like Visa or Mastercard. Bitcoin is a simple ledger of transfers. Additional to a simple ledger, Creditcoin adds the intention of the transaction. Who made a transfer to whom for what purpose.
Some might ask why we didn't use Ethereum then. We built our proof of concept as an Ethereum smart contract. However, Cryptokitties happened, and we learned that it would be too expensive (or even slow) to run this on Ethereum. Instead of being Turing complete, Creditcoin limits the type of operations to credit investment transactions. That's all we need.
We bring the concept of credit to the market. There are many collateral-based lending products in the market; however, there are no credit-based lending projects (at least a significant one). Why is this important? Because credit is a fundamental component in building a financial ecosystem. Also, there are more people with credit cards than a mortgage.
Further, Creditcoin connects the real economy to the cryptocurrency market. By supporting stablecoins, the blockchain integrates with fiat lenders like Aella. Investments they make becomes a stablecoin bond. We believe this will decouple Creditcoin investments from the cryptocurrency market, but couple it closer to the real economy. Crypto investors can hedge their portfolio beyond crypto by using Creditcoin.
We need to expand to the real economy. So far, most of the successful products were for cryptocurrency traders-only. However, we can do a lot more than that.
With cryptocurrency exchanges and stablecoins, we can now on-ramp people to the crypto-space. The question is, why should they? We need to create products that are worth people's time and effort to join the space.
We can solve this by making something useful that is only possible because of the blockchain. In our case, we focus on the borderlessness. We connect the cheap capital of the developed market with the high growth of the emerging market.
Creditcoin will have 3 phases:
Creating bonds, directly using Creditcoin
Creating a bonds and bond derivatives market
We are in stage 2. In this phase, we start aggregating the credit history of users and generating bonds. Once we have enough bonds in the network, we can move on to the next step and begin creating a bonds/derivatives market.
Ethereum created the concept of ICO (crypto asset sales) and acquired liquidity in the system. Creditcoin will create a new idea (fiat-based asset sales on a blockchain) and attract liquidity to space. If we reach that, the sky's the limit.
The smallest unit of Creditcoin is called “credo” (pronounced [ˈkɾeːdoː], Latin for "I believe").