ASSETSTREAM - The Global Decentralized Peer to Peer Microfinance Platform

The centralized banking system is being control by a body and have a single system. This means if there is a server breakdown, it will affects everyone accounts and business is going to stop. The centralized financial system require a third party to execute a transaction, which therefore make banks charges people in every transactions being executed through their system.

To open an account with many of the financial institutes require some legal documents which many people don't have yet. The process of registering account in financial institutes is very tedious and stressful which has deprived many the zeal of opening an account with the conventional financial institutes.

The centralized banking system does not permit people to withdraw the quantity of their saving fund. They are restricted to withdraw certain limits of your money. They don't offer loans to people wishing to do business except you have enough collateral or you have mouth in the system.

Assetstream is a blockchain based financial institute for peer to peer transaction, a microfinance platform that will replace the banking system to a unbank system using blockchain technology. By leveraging on the blockchain, AssetStream aims to reduce poverty and bring financial inclusion by providing unbanked people with access to financial services.

As industrialists consider blockchain to be a ground-breaking technology, microfinance industry also feels the same and is searching for ways there can be a transformation with the help of this technology. As blockchain focuses on increasing transparency in any industry it steps foot in; blockchain in microfinance can significantly assist in reducing the rate of interest borne by the people in return for availing financial services with its decentralization feature.

With blockchain’s decentralized nature, it can assist several microfinance institutions to remove the need for mediators or the trust authorities. The use of blockchain in microfinance helps people in trusting each other rather than the centralized institutions to avail loans. This removal of trust authorities also helps in people being able to reach those who need the services.

With blockchain microfinance, small businesses and farmers requiring loans can avail the same by having a digital identity created with the assistance of blockchain technology. Ensuring efficient payment of loans is also more accessible with smart contracts. With blockchain’s smart contract availability, the financial organizations can create a bond based on the terms and conditions specified for repaying the debt.

AssetStream aims to reduce poverty and bring financial inclusion by providing unbanked people with access to financial services. AssetStream will expand to a full P2P network which will include the local communities that can take personal loans. AssetStream aims to create an extensive micro-financing ecosystem that will be able to bring financially excluded people to the new global economy through blockchain.

AssetStream’s vision is to create a sustainable microfinance platform based on blockchain technology. Inspired by the “International Year of Microcredit”— dedicated by the U.N. back in 2005—and Muhammad Yunus, a Bangladeshi social entrepreneur who was awarded the Nobel Peace Prize jointly with the Grameen Bankin 2006 “for their effortsthrough microcredit to create economic and social development from below”. The AssetStream initiative was established to create a sustainable microfinance platform to enable growth and advocate poverty reduction of the unbanked population while providing an alternative, high-yield, peer-to-peer microfinance platform for everyone.

Assetstream want to tokenize the banking and the financial system for ease transaction.

Assetstream is building a decentralized financial institute that will make people have access to financial services in an ease way. They are building an unbanked ecosystem that will make people manage their account and do a transaction without the involvement of third party. Assetstream is building a financial system that will make people have option to do a peer to peer transaction and have access to loans from the lenders.

In order for the goal of Assetstream to become viable, they are tokenizing the financial institutes to used cryptocurrency. For this reason, the platform has introduced their traditional token termed “AST” which will be utilize on this platform. Any holder of AST token can lend money to another pear users and earn interest from the platform.

ASSETSTREAM has also launched their own token in the platform which will be used in the platform to carry out several activities and rewards payments.

Features of the Platform

Credit Rating and Badge System - A badge system will be provided to represent borrower behaviour. This will reflect the credit rating system of the borrowers. For example, if a user has several good behaviour badges, such as “paying the loan on time”, compared to a user who has a bad behaviour badge such as “defaulting on loans”, the lenders’ sentiment might lean towards lending borrowers with good behaviour badges.
Immutable Credit Data – Borrowers will not be able to reverse or erase their credit history.
Transparency – AssetStream’s smart contract operates in real time and expected obligations are transparent to all involved parties.
Lower transaction costs – AssetStream’s platform will be using the existing infrastructure
and will bring out convenience for borrowers living in the rural areas. This will lower
overhead and transaction costs.
Two options for Lenders are provided in the platform –

Handpicking – The lenders have a choice to decide which borrowers get the loan based on the borrowers’ criteria.
Automatic matching – The lenders will trigger a matching system when they fill up the desired criteria they want for the loan and AssetStream platform will match the criteria to the specific borrower.