Creditcoin is a public blockchain that creates a credit lending infrastructure allowing fintech lenders and microfinance providers greater access to capital while borrowers secure transactions, loans and their objective credit history on a groundbreaking immutable ledger with the Creditcoin token.
The Creditcoin blockchain is based on the Hyperledger Sawtooth architecture, and is designed to match and record loan transactions, creating an auditable and reliable source of credit information verification. By reducing informational a-symmetries, Creditcoin facilitates trust within its lending ecosystem.
Creditcoin ($CTC) is a utility token that is used as a transaction fee in the Creditcoin ecosystem. Whether you are a crypto investor, a fintech lender/developer, or a borrower in the developing world, the Creditcoin Ecosystem connects blockchain assets with a straightforward protocol creating trust and opportunity among an inter-blockchain lending market.
The Creditcoin blockchain is designed for all members of the global credit economy, whether that means a local credit union, fintech lender or major bank looking to disperse funding, or a business or individual seeking to raise funds and build credit history themselves.
The Creditcoin token $CTC is used by parties to complete transaction events within the loan cycle.
Creditcoin Network users must pay a $CTC network transaction fee in order to complete certain transaction events in the loan cycle, with each stage creating a verifiable paper-trail of credit history for each user tied to their wallet address. The image below provides a summary of Creditcoin's transaction events.
Loan transactions matched and recorded on Creditcoin are completed using other cryptocurrencies. Currently Bitcoin and ERC-20 are supported, though more networks will be supported in future). For a full technical breakdown of Creditcoin and each stage of the loan cycle, please consult our Whitepaper.
Creditcoin uses a Proof-of-Work (PoW) consensus algorithm. While this is subject to change, there are no such plans at the current time.
The Creditcoin Mainnet launch was on April 4, 2019. For technical details, please review the Creditcoin Github repositories at https://github.com/gluwa/Creditcoin.
70% to Creditcoin miners (Mining block rewards) - for running and maintaining the network.
15% to Gluwa Inc. (Genesis allocation; 6-year linear vesting) - for R&D, deployment, business development, marketing, distribution, administration etc.
10% to Investors (Genesis allocation; 6-month to 3-year linear vesting) - for funding network development, business development, partnerships and support. Unsold tokens remitted to Creditcoin foundation with a 6-year vesting period.
5% to Creditcoin Foundation (Genesis allocation; 6-year linear vesting) - For long-term network governance, partner support, academic grants, public works, and community-building.
A private token sale was conducted from 15/02/2018 - 15/04/2018 in the form of a Creditcoin SAFT. The token sale had a soft cap of $10m and a hard cap of $30m.
All 200 million available Creditcoin tokens were purchased and introduced into the market.
The Creditcoin ecosystem involves two distinct tokens which represents the same underlying asset - $CTC and $G-CRE.
$CTC is the mainnet token used for network transaction fees and mining rewards. It is exclusive to Creditcoin's hyperledger sawtooth blockchain network.
$G-CRE is based on the ERC-20 Ethereum Network and is not directly useable on the Creditcoin mainnet. $G-CRE is used for vesting and trading, and can be exchanged into $CTC using a one-way 1:1 hook.
At this time, only $G-CRE, which is Creditcoin's ERC-20 vesting and trading token, is tradable on exchanges.
Information on the vesting smart contract is available in the whitepaper pp. 52-53. This function is planned to be integrated into the Gluwa Wallet in the near future.
The maximum supply is 2,000,000,000. You can view the total current supply using the block explorer: https://explorer.creditcoin.org/
0.01 $CTC per transaction event. A full loan cycle costs around 0.1 $CTC. Fees are locked for 1 year before being returned to the user, giving CTC users a time-restricted but permanent right to use the network.
For a detailed breakdown, read out blog post here: https://blog.creditcoin.org/what-makes-creditcoins-token-model-unique/
Discussion of potential issues: https://blog.creditcoin.org/what-makes-creditcoins-token-model-unique/
Discussion of potential solutions: https://blog.creditcoin.org/discussion-creditcoins-token-model-transforming-weaknesses-into-strengths/
Please consult the Creditcoin miner's manual for detailed instructions. The manual is available at: https://docs.creditcoin.org/creditcoin-miners-manual
While there are currently no intrinsic benefits to holding $CTC, we have plans to develop a $CTC staking market, allowing users to stake their $CTC to other users for a fee and earn interest on their $CTC idle assets. You can read more about this in our blog: https://blog.creditcoin.org/discussion-creditcoins-token-model-transforming-weaknesses-into-strengths/
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. In addition to a simple ledger, Creditcoin adds the intention of the transaction - who made a transfer to whom and for what purpose.
Some might ask why we didn't we use Ethereum. 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 on Ethereum. Instead of being Turing complete, Creditcoin limits the type of operations to credit investment transactions.
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 become 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. We feel we can do a lot more than that.
With cryptocurrency exchanges and stablecoins, we can now on-ramp people more quickly and easily to crypto markets. The question is - why would they want this? 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 made possible because of the blockchain. In our case, we focus on a borderless economy. We connect the cheap capital of the developed market with the high growth of the emerging market.
Creditcoin will have 3 phases that we address in the whitepaper.
The smallest unit of Creditcoin is called “credo” (pronounced [ˈkɾeːdoː], Latin for "I believe").