Industries That Blockchain Will Radically Transform Credit

Industries That Blockchain Will Radically Transform Credit


The term “cryptocurrency” is a misnomer.
A common misconception, held by many newcomers to the blockchain world, is that the technology’s potential lies solely in the banking and financial industry. In fact, the recent suggestion of the Indian government to rename cryptocurrency as “crypto assets”, and Warren’s Buffett’s belief that Bitcoin is not in any way a currency, are perhaps closer to the true nature of cryptocurrency than the commonly held belief that it is simply digital money.

Cryptocurrencies should not be seen as just money, but as tools. Blockchain technology, which underpins cryptocurrency, has potential in many more forms than just as a medium of exchange and store of value.

The application of this technology to industries as varied as supply chain management, fashion and publishing is a result of the innate flexibility of blockchain. The nature of a platform can be programmed to suit a variety of needs. The sooner an investor realizes this, the sooner they will see how exactly it might be applied to different industries, giving them a degree of clarity with can help them measure the potential of a project to disrupt a particular industry.

Given the immense potential of blockchain, we take a look at industries, one at a time, that will be upended by its imminent commercial arrival. The shown here is as folows:

Credit

A lot has been said about blockchain disrupting the business of money, but the economy of credit and debt will also be similarly disrupted.

Blockmason, a project that is establishing a credit and debt platform, is seeking to bring blockchain to one of the biggest components of an economy, credit flow, that is estimated to be around $5 trillion in value. They plan to use the Ethereum blockchain to create a credit and debt ledger that features smart contracts.

WeTrust is platform that lets friends and families pool their money in together, in a process traditionally called a ROSCA. In bank-controlled ROSCAs, individuals leave the lending period with more money than they had before. However, the banks keep a sizable chunk of the interest. On WeTrust, the interest is kept within the ROSCA group since no third party is involved. This allows a group to support itself. In fact, WeTrust has been marketing this to friend and family circles. They also have a reputation system in place to ensure that no one backs out of an obligation.

PayPie’s objective as a blockchain-based credit project is to offer risk assessment algorithms derived from business accounting. The vast majority of SMEs undergo risk score checks and this is the niche that PayPie is seeking to serve.

Chuck Reynolds


Marketing Dept
Contributor

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