All that matters when it comes to loans and debts is trust. Debitum network is a trustable company for all parties that are involved in the network especially investors. The business adopts a conventional system of lending money in a digital version with some adjustments that benefit both the lenders and borrowers. Currently, Bitcoin, as a decentralized payment theoretically enable retailers and consumers to interact without the presence of a mediator. Instead, it uses a free open source tool. However, in reality, there is Bitcoin operator, a kind of wallet software that can make things easier without monopoly expense. Debitum networks, in doing the business, use some values as explained below.
Debitum Network Key Values
Nowadays there are not less than 150 countries that undergo Small to Medium Enterprise (SME) credit gap. In order to help cover the gap, Debitum Network can provide some solutions for example by a provident partnership and connect it with the global investor. However, it does not mean that new Debitum Network would be opened in those countries because Debitum Network is the one initiating the market and facilitator to solve the credit gap. This is done by connecting SME and global investors that rely on services given by either regional or local parties that include risk values, debt, verification, and debt. This enables to attract global investors to distribute their capital and attract SME to borrow and fund their growth. However, in order to make the whole ecosystem decentralized, global service providers should work under the community.
Decentralized society is really globalized, consisting of various service providers and institutional borrowers. There have been many companies who serve SME and still can attract more global investment and restructure their portfolio using Debitum Network.
The Ecosystem of Debitum Network
In the long run, borrowers and investors can create a community in Debitum network because they can trust the service. In another side, it will be better for an individual partnership to be a part of a community because it offers more business opportunity and faster growth. As a result, a trust will grow. Thus Debitum believes that building community in the network is the only way to solve the problem.
How Debitum Network Run the Business
Crypto as a digital currency is not yet popular in some countries except Japan because most of the cryptocurrencies have too fluctuated. That is why most borrowers and investors choose a convenient way for handling debt including setting the interest.
There are, however, some drawbacks that may occur within such system. Therefore Debitum Network only uses cryptocurrency for finance cycles. Meanwhile, related to debt, they see it as a real good that can be handled with off-the-blockchain with blocked reference. The ecosystem has some appointed facilitators to tackle all fiat transaction thus it is highly needed to use smart contract.
The Token Flow in Debitum Network
The system involves three parties. They are investors, borrowers and service providers. Debitum Network lends to other parties, aiming to motivate to try the network. Then, because gets loan, interests, or payment, the tokens will be given back to Reserve. Debitum Network also aims to use funds that are not used at a particular to conventionally lend the money for borrowers so this will attract more borrowers to join Debitum.
In short, it can be said that by combining fiat and blockchain that is really powerful and efficient. Additionally, in order to ensure the objectivity of Debitum Network, smart contracts are based on blockchain-based facts that include services, debts, etc. Debitum Network financing process will ensure a good response from both investors and SME. Because lending is mainly driven by a trust that borrowers will able to repay, Debitum Network ensures that all transactions are interconnected. The approach that is used in the procedure is aimed to measure the level of trust for each party.
At the moment, however, the capital for funding the SME and loan is not available yet. That is why Debitum Network is creating a new market, a new asset class to fulfil the demand of investor global, attracting them in investing their capital to solve problems related to credit gap in all over the world. Meanwhile, for Debitum itself, it is estimated that in the long run, this platform will get more independent.