There is tremendous potential for blockchain technology in the financial sector. This is especially true when it comes to solving some of the major problems affecting the industry as we know it today. Distributed Credit Chain claims it will solve most of those problems in the coming years, although it remains to be seen if that is the case.
Distributed Credit Chain in a nutshell
There are numerous blockchain projects which aim to disrupt the financial sector in one way or another. Distributed Credit Chain wants to become the world’s “first distributed banking public blockchain”. While that sounds counterproductive, the team is planning to establish a decentralized ecosystem to enable competition among financial service providers.
Solving Key Problems in Finance
This project, if successful, will solve key problems found in the financial sector. Lowering the costs of the financial services on which we rely will not be easy. Improving efficiency in this industry will require a lot of work as well, for rather obvious reasons. Plus, the profiteering aspect has caused many issues over the years and will continue to do so for some time to come.
Distributed Credit Chain aims to let borrowers establish a blockchain account to authorize data service providers. These service providers will integrate individual data and store it on the blockchain, as well as clean “tainted data” in the process. Using complex algorithms and computation service providers, characteristics will be “extracted” from this data pool.
As one would expect from a financial platform, there will be various tools which people can use. Distributed Credit Chain will offer credit history feedback, funding solutions, risk assessment, and so forth. All of this sounds rather interesting on paper, but building the required infrastructure will require a lot of time and effort.
The DCC Token
No blockchain ecosystem can exist without its own proprietary token. That is a bit problematic, but in the case of Distributed Credit Chain, DCC will pay for jobs and other activities. Anyone who requires data or reports will need to pay an amount of DCC to the relevant data institutions. Moreover, credit institutions will need to pay an amount of DCC to a certification body when verifying the validity of data.
The Road Ahead
There is still plenty of work on the horizon for the Distributed Credit Chain team. Throughout 2018, the company will focus on bringing more DApps to the table, as well as engage financial institutions and service providers. The Indonesian lending market seems to be of great interest in this regard, as does that of Vietnam and other Southeast Asian countries.