The network of Debitum has a market, which is three-sided. But it is not an easy job to reach out to service providers, investors, and borrowers on all the sides. The Debitum platform can resolve this issue by lending these tokens of Debitum to all the parties and encouraging them to become a part of the Debitum network. After the receipt of interest as well as the loan payments, the tokens that were lent will return back to the reserve.
By bringing together an efficient as well as trustable Blockchain with the fiat operations, the network of Debitum is going to get high interests from investors as well as the SMEs. The Debitum network is going to ensure that the transactions are connected with one another through the use of the smart contract that is going to offer trust rating for every counter party.
The smart contract of trust arbitrage is going to be based on the services that smart contracts are involved in. Every positive experience is going to add some points of trust rating whereas every negative experience is going to deduct the points of trust rating.
This will enable investors to view the level of trust of every party involved in each deal of financing. Moreover, it is going to motivate the communities of service providers, individual counterparties, and borrowers to act in a responsible manner.
It is worthy to notice that the platform of Debitum understands the requirement for more than two major parties, i.e., the lender and borrower to successfully implement an investment transaction. The team running this platform does not believe in the p2p approach that only connects borrowers with investors. All other stages of the financing procedure are required to be performed by someone too.
In order to have a greater access to financing for small as well as medium companies, the entire procedure of financing should be decentralized. It is important for one to understand that the process of funding is based on a set of particular phases in which the consumer is required to indicate the financial need, and the authenticity of the collateral must be verified. Moreover, it is important to evaluate the risk of the potential loan. Plus, the funds should be provided on time. After this, the procedure of debt collection is activated.
The network of Debitum enables investors to weight the opportunities of investment in a transparent manner so that they can directly make an investment in the small enterprises. This opportunity is not available in the traditional system of financing. This ecosystem works as a layer of incentive above the framework of smart contract.
Additionally, Debitum provides a logical structure for payment and data exchange. The additional trust as well as transparency developed by this platform enables the existing regionalized alternative industry of finance to remove the dual levels of centralization. If you are interested to know more about the Debitum platform and its decentralized nature, then read its whitepaper.