Frequently asked questions about the Creditcoin Network.

What is Creditcoin?

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.

Who uses Creditcoin?

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.

What is the relationship between Creditcoin, Gluwa and Aella?

Gluwa is a technology provider of Creditcoin. Aella is a distributor and agent of the Creditcoin blockchain. In other words, Gluwa builds, and Aella acquires users.

How does the Creditcoin Network work?

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.

What consensus algorithm does Creditcoin use?

Creditcoin uses a Proof-of-Work (PoW) consensus algorithm. While this is subject to change, there are no such plans at the current time.

When was the Creditcoin Mainnet released?

The Creditcoin Mainnet launch was on April 4, 2019. For technical details, please review the Creditcoin Github repositories at https://github.com/gluwa/Creditcoin.

What are the details of the Creditcoin token allocation?

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.

Did Creditcoin have an ICO or token sale?

A private token sale was conducted from 01/09/2017 in the form of a Creditcoin SAFT. The token sale had a soft cap of $10m USD and a hard cap of $30m USD.

All 200 million available Creditcoin tokens were purchased and introduced into the market following this sale.

What is the difference between $CTC and $G-CRE?

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.

$G-CRE is listed on exchanges, but exchange tickers denote it as $CTC.

Are $CTC or $G-CRE tokens tradable on exchanges?

At this time, only $G-CRE, which is Creditcoin's ERC-20 vesting and trading token, is tradable on exchanges. Exchanges list $G-CRE using the $CTC ticker”.

Which exchanges is $G-CRE listed on?

$G-CRE is currently listed on these exchanges:

More listings are planned. See https://coinmarketcap.com/currencies/creditcoin/markets/ for a complete list of active exchanges.

How can I swap $G-CRE for the $CTC mainnet coin?

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.

What is the total amount of $CTC issued?

The maximum supply is 2,000,000,000. You can view the total current supply using the block explorer: https://explorer.creditcoin.org/

Do you have a Block Explorer for Creditcoin?

What is the Creditcoin network transaction fee?

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/

If the value of $CTC increases, higher network transaction costs might negatively impact usability. Do you have a solution?

We discuss these issues both in our blog and in the whitepaper.

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/

How do I mine $CTC?

Please consult the Creditcoin miner's manual for detailed instructions. The manual is available at: https://docs.creditcoin.org/creditcoin-miners-manual

Is there a benefit to holding $CTC?

Naturally, the primary benefit of holding $CTC is to utilize the Creditcoin blockchain commands and network as a lender or borrower. $CTC is a utility token.

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/

While holding $CTC, all disclaimers of risk apply. All content associated with Creditcoin is for informational purposes - and not investment advice. Any value derived from an investment can go up or down. Past performance is not a guide to future performance. If you have questions about risk associated with an investment, contact your financial advisor.

In terms of vision, what traditional financial problems does Creditcoin want to solve, and what Bitcoin can't solve?

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.

In the current big market of cryptocurrencies, what kind of market role do you think Creditcoin plays? In which scenarios will it have its unique advantages?

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.

What are its weaknesses in terms of market development? If so, how can we solve it?

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.

Any future plans for Creditcoin?

Creditcoin will have 3 phases that we address in the whitepaper.

What do you call the smallest unit of Creditcoin?

The smallest unit of Creditcoin is called “credo” (pronounced [ˈkɾeːdoː], Latin for "I believe").

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