EthicHub: The Ethical way of interconnecting global investors and our unbanked but highly potential Coffee and agricultural farmers worldwide

frankydoodle (59)in #cryptocurrency • 6 years ago

Good day to everyone who is in the cryptocurrency space again! It is me again your Mr. Decentralized giving you updates about the upcoming projects and how would this impact our everyday lives as well as how it benefits every people in this world.

Alright, today let us talk about what captured my attention in the past day. This is EthicHub.

If you would ask me, what is EthicHub? As I read their whitepaper as well as search about their project's mission, vision and team core, I feel a rush of good vibes because how great is the heart of this team for our farmers worldwide. EthicHub as per their project name implies it tells me how these people will revolutionize lending as we know. Mostly with lenders, if a lender is from the bank, they will ask for operational and large working group before they will lend money to the borrower. Another loan shark is when there are non-banking entities that are lending money to these poor farmers but with a massive interest wherein the profit margin of those farmers are too small if not break even. Worse is if a storm comes in and there is no way for repayment but to take a loan again to pay the loan shark until they will be repaid.

Here is where EthicHub comes in. With EthicHub, globally we could lend to these farmers from Africa, Mexico and other parts of the world where our specialists from Ethichub examines the soil and the reputation of these farmers that needs funds to start their farming for these livelihood crops and agricultural products.

Peer-to-Peer transaction lending with blockchain as a medium

Before, there is centralization of lending where the banks and other financial institutions will be the one handling the money of investors before giving or lending it to the farmers. There is a gap of information that could be embezzled by these centralized institutions. Why? because these are so-called intermediaries. So-called as agents between the lenders and borrowers. They could mark-up how much they want.

With EthicHub's platform, there will be no more intermediaries because all transactions will be in the blockchain. As for the architectural aspect, this project will run in the Ethereum blockchain being in the ERC-20. But with this platform and project, I feel that they will be able to run in the EthicHub blockchain in the near future.

Advantages of EthichHub:

a. Financial access- The reach of EthicHub platform is global and not only limited to the local farmers and lenders. With this platform, it widens the spread of investment opportunities for investors like me to help our international million farmers worldwide.

b. An automated reputation of borrowers and lenders- In this information age, it is important that us investors get our money with our interest back. That's why with Ethichub, they will be the one to extract all of the needed information and assess the borrower if they have a bad credit history with EthicHub or they are in good credit standing. If you are the investor, you would want to do a partnership with people that are willing to pay their financial obligations to their lenders because in this way is the only way to build trust and long-term business partnership and make your reputation and name in good standing.

c. No fees for intermediaries- Not even the EthichHub team has the control with the smart contracts or trustless contracts in technical term. Meaning that only the borrower and lender will have full access to the funds.

With those advantages made me like this! hahaha.

Aside from those advantages, the Ethichub has fees if the transactions of repayment are only done. They also have what I called as a 'safety net'. Wherein a debt goes into default, there will be a guaranteed fund that purchase the investors' rights. And that will be the repayment to the investors.

Let me show you a screenshot of the Ethichub workflow for the investment flow, repayment and as well as the default flow.

Investment workflow:

As you can see in here, just like in traditional lending, the lender or the investors will be able to place the funds to a smart contract wallet and will be the one to distribute to the farmers' representative bank account and wallet with the Ethichub tokens as well.

This is for the repayment workflow:

Now for the repayment workflow, from the farmers' wallets, it will be passed on to the farmers' representative bank account and Ethichub wallet wherein the Ethichub tokens will be having interest and be repaid to the lenders/investors. There will be nodes that would validate the payments and will record the transactions in the loans' smart contract to know how much and when should be the next repayment to the investor. There's what we call as reputation's smart contract. This refers to the reputation of the farmer repaying the loans. If the farmer is paying on time and has no lapses, their reputation will surely be in good standing. It is like the running credit line in fiat money or credit cards.

Now for the default workflow:

As what I was talking about, this is a risk-free investment because of the guarantee fund's smart contract. The staked Ethichub tokens of the farmers are what we call as reputation tokens that tell whether a farmer is a good payer or not. Reputation is everything in the credit line. Because of the immutable and public ledger local node in the blockchain, it will be impossible for those trying to tamper the credit limits and reputation because of the validations of miners worldwide approving the transaction. What a great secured platform!

This is their roadmap guys: