Debitum Network is present to facilitate an alternative funding via distributed platform intended for both business and individuals. The background of the business is the fact that the expense of lending money service is still too high yet the security for the transaction is still in doubt.
The company builds a decentralized ecosystem based on trust that links borrowers, investors, and service providers efficiently. In the network, Debitum token is used while the loan principle and interest payment is transferred using fiat.
Market System of Debitum Network
As Debitum intends to be independent in near future, it commits to produce money soon without relying on larger crypto adoption. Its system uses distributed business-to-business ecosystem. Debitum Network uses particular business model that intends to produce money in the ecosystem. The income of the society is earned from the growth of the society itself. Meanwhile, interests get interest for loans that are given to the borrower. SME, on the other hand, gets access to loans that are needed for their growth. Debitum Network ensures arbitrage trust and smart contract to be used in the whole ecosystem.
In doing the business, Debitum Network is competing with peer-to-peer system with centered management and some other institutions that are vertically integrated such as banks, credit unions, and other blockchain-based solutions. Compared to its aforementioned competitors, Debitum Network is better in a way that it offers lower cost and low level of barriers. Whether you are an investor or borrower, you must be wondering with the future prospect Debitum holds. It is important to know the prospect of this business as a consideration to decide whether or not joining the network is beneficial.
The Business Prospect in the Future
The giant industries today are actually an existential threat for themselves. They monopolize all sectors and increasing prices. Moreover, they improperly use crowdsourcing and make use of economy trend together, create democracy illusion, yet in fact, they limit access, set rules, and lowers margin for others. This leads to endless flow of all conflicts. The recent update is that they tried to make a distributed ledger to share.
The system grows in the sterile ecosystem that is prone to be hacked as hackers are trained to keep attacking open platforms that are continuously developing their immunity. Debitum Network has a good prospect as they use particular financing system supported with advanced technology.
How can New Borrowers Apply for Loan
The procedure for applying for a new loan is very simple, far from being complicated. First of all SME uses their business credential to join Debitum Network. It is required for them to walk through initial pre-qualification process to prove that the SME is a legal instruction. The evidence from this is the generic records of the company. Then, SME automatically check arbitrage contract to make sure that SME is delete earlier from Debitum Network. Thus, it can be back before the reconciliation time ends.
SME can join Debitum Network directly or via agent while moving the loan to Debitum Network. Borrowers are registered in the network and new account for cryptocurrency is made. After the pre-qualified process, borrowers can go on to the next step if the pass the process. But if they don’t pass it, they cannot join the network and try again next time. After they join the network, they can propose loan. They have to give information about assets used for debt guarantee. They have to wait after the loan application is verified.
All of the transactions are completely recorded on a blockchain. Meanwhile new smart contract for certain assets are automatically made. Borrowers should have Debitum account to apply loan because borrows pay Debitum token to create assets in the ecosystem. After the asses are verified, new smart contract is made. Both borrowers and investors can ask for more than one verifier to do this step so all individual and partnership verifications are presented. The result of verification process is recorded on blockchain.
Those are the steps for borrowers to apply for load in Debitum Network. The process is quite clear and the parties involved are also clear. The transactions are kept in a secure system. Meanwhile there is a smart contract that add security to the transactions.
By : Ashadiya_