LIBRA CREDIT: A BLOCKCHAIN LENDING ECOSYSTEM

Over the years, getting reliable and easy access to credit facilities have not been an easy feat. Even though access to credit should be hassle free, simple and real time, the traditional financing channel which is one of the major source of credit access is saddled with stressful, tiring practices and outdated systems. Even though traditional lenders like banks, NGO's and P2P platforms have been very helpful in making credit accessible to people when needed at one point or another, some of the challenges associated with them are highlighted below.

For borrowers:

• Difficulty in cross border, cross currency and cross time-zone lending
• Unsatisfied borrowing experience due to complicated KYC procedures.
• High barriers due to unrecognized personal credit data.

For lenders:

• Opportunity cost of uncaptured digital savvy market segment
• Lack of traditional records increases lending difficulty

With the way the world is going, lending is expected hit a 14% increase globally over the next five years going with the rise in digital ecosystems and technology disruption. Going by this, to make credit easily accessible to anyone at any time and anywhere in the future, the need for a global and open digital platform cannot be overemphasized. Cryptocurrency and blockchain technology have been seen to be this digital future we seek, but on the other hand, the rise of crypto-assets faces challenges as well. Some of these challenges of the crypto market are highlighted below.
Liquidity Issues:

• Difficult to convert between digital assets and traditional assets(i.e. gold, stocks, etc)
• Lack of liquidity and integration into fiat financial service offerings.

Limited Appplications:

• High volatility with little to no asset backing
• Lack of recognition and application as a general payment method.
• There is therefore a genuine need for a solution that provides safe and convenient credit services accessible for all.

Libra credit comes to the rescue.

WHAT IS LIBRA CREDIT:

Libra credit is a decentralized lending ecosystem that facilitates open access to credit anywhere and anytime based on the Ethereum blockchain to be developed by Libra Foundation. Libra credit aims to launch a first of its kind crypto-to-crypto and crypto-to-fiat lending ecosystem.Libra credit is a global initiative with the mission to make credit easily and readily availble to the world.The libra credit will be launched and released in July, 2018.

THE LIBRA CREDIT PLATFORM:
The Libra Lending Platform allows token holders to access the
network with a front end interface using a mobile application on mobile devices. A mobile application has already been developed to facilitate crypto-to-crypto loans.
(The image below shows the Credit application, pledge crypto collateral, stable coin deposit receipt arranged from L to R)

The Libra Credit Platform encompasses a dual-credit risk scoring mechanism that takes into account both the creditworthiness of the pledged collateral, as well as individual credit information of borrower. So when a borrower needs a particular asset, all he has to do is pledge collateral in any crypto-asset and then he receive loans in his/her desired asset. Libra credit will then lock in agreed terms between all parties involved. This is indeed an amazing ecosystem that intends to pull all these amazing features through using four different types of partnership:

1. Identity verification partnership network: With this Libra will have access to the information of all users of the platform. All informations will be kept secured and customers behaviours will be monitored.
2. Customer acquisition and E-wallet partnership network: This network will help drive scalability and adoption.
3. Exchange and custodian partnership network: With the exchange partnership, borrowers can go through Libra Credit to get the best rate offered.
4. Lending and Stablecoin partnership network: This network will allow crypto to crypto lenders i.e private investors to be able to lend their tokens or other crypto currencies to institutions and crypto users. For example institutions with large holdings of proprietary tokens can borrow BTC or ETH to fund their operations.

THE LIBRA CREDIT TECHNOLOGY
This comprises of four major components including:
A) Libra Lending Platform
B) Partnership Network Access Integration
C) AI Credit Assessment Engine
D) Smart Contract Suites built on Ethereum blockchain

BENEFITS OF USING THE LIBRA CREDIT PLATFORM

1. Major challenges associated with the traditional lending method and even those with existing digital lending methods are eradicated using the Libra Credit platform.
2. It provides the best crypto-to-fiat lending method while accepting cryptocurrencies as collateral, hence one can get fiat without sacrificing a particular cryptocurrency.
3. Libra Credit uses an advance AI-based dual-credit risk assessment computation featuring a collateral-based assessment and an individual credit scoring.
4. It provides a global and easy access to all asset classes.
5. 24 hours credit application anywhere, anytime, with instantaneous approval.
6. It provides reinvestment opportunities through margin lending.

CONCLUSION
The Libra Credit with ticker LBA is a global initiative built with a mission to take credit to the world in the best way possible. With the technology on ground, it is safe to say that Libra Credit is a revolution that will take over. Even though the token sale has currently ended, any wise investor will know well to be a part of the game changing project.

LIBRA CREDIT PARTNERS

LIBRA CREDIT TEAM AND ADVISORS

FOR MORE INFORMATION:
https://www.libracredit.io/
https://medium.com/libracredit
https://twitter.com/LibraCredit
https://www.linkedin.com/company/libracredit/
Whitepaper Link: https://www.libracredit.io/page/Libra_Credit_Whitepaper.pdf

AUTHOR'S DETAILS: UNITRUST