The Future of A Decentralized Finance Ecosystem
If you love revolution, then you'll love BridgeX Network. Just like the mission of Bitcoin to replace fiat money as a means of payment in electronic transactions and 'fight' traditional banks which is not transparent and centralized, BridgeX Network has the same vision of bringing decentralization to the masses. Especially, they wanted to revolutionize how finance ecosystem works, from centralized with banks at the core, into a decentralized system where people can access credits/loan using cryptocurrencies across the world. To put it simply, to make banking decentralized. This vision has been recognized by the world because blockchain is being considered as the way to make unbanked people can access the finance system.
Why does creating such ecosystem important? First and foremost, there is a love-hate relationship between banks and debtor, or someone who wanted to or has a debt to banks (or the lender). Banks want to get profits, they don't want to get any deficits, while debtor, especially those who really in need of money doesn't have any guarantee that they can repay back the money they owe, even if they have cryptocurrency assets. This put banks in control, where they can reject or accept a proposal from a potential debtor.
Not only that, to get a loan from banks is a lengthy process, which is not suitable for people who are in dire need of money. To put it simply, the bank can't help people who are poor, which results in many people to be underbanked that don't have any access to bank services especially credits or loan. When this happens, those people tend to search other options, and like it or not, they can be the victim of loan sharks which give them a loan with a high interest, that is almost impossible for them to pay. Eventually, the high interest creates a never-ending debt for those people and probably their family, to the point that it could result in a slavery, child labor and so on.
Banks have another problem, they can't service people who aren't in their area. To put it simply, it is not possible by people in a remote area to get a loan from bank A which is 100 miles away from them. When they need to get a loan, of course, they will turn to their peers or loan sharks. What if banks open a new office? They will probably do it, as long as they can get profits too, which is likely not going to happen in some areas.
An existing P2P lending solution might already exist and grow. For example, in the UK, P2P lending grow more than 80% in 2015, and it is predicted that it will grow up to $1 trillion by 2025. At the same time, the rate of P2P is increasing while lending from banks and credit card are decreasing. This shows a huge potential in the P2P lending market.
However, P2P lending is not free from problems. First and foremost, there is a huge risk of scam or loss for the parties involved. Using an escrow might be an option but finding a trustable escrow is also hard to do. The current P2P network also has a problem in serving many people across the globe, because it is hard to find somebody who offers a loan quickly.
The P2P lending network also still relies on a centralized financial system or bank to process the payment especially if both parties don't live near each other. Even though digital lending can reach more people, it is still hard to get access if there is no financial support around them. It becomes a lengthy and difficult process to do when there are no available bank services that can help them do a transaction to the other parties. Using cryptocurrency might be an option, but they can't do it if there are no crypto services on the other end.
This is where a revolution in the finance ecosystem is needed, which is where BridgeX Network comes in.
Cryptocurrency-based Peer-to-peer Lending with Fiat Support
In the upcoming era of cryptocurrencies and blockchain projects, we can expect that many people will use cryptocurrencies regularly, just like what already happens in some countries. For example, there is already ATMs for Bitcoin, followed by growth on the number of Bitcoin Wallet. In such a situation, P2P lending will enter a new era too. BridgeX Network will be the first project aims to solve the problems we've discussed above while at the same time preparing to be the future platform of cryptocurrency based peer-to-peer lending across the world with fiat support.
BridgeX Network will add another option for users who wanted to get a loan by utilizing their cryptocurrency assets as the collateral. To put it simply, BridgeX Network will be the platform where you can get a loan from your peers directly, transparently and quickly by utilizing on-chain and off-chain transactions. All of the data about your loan will be accessed on the blockchain. It will be interesting to make sure only you and the other parties know the details of your deals.
BridgeX Network will also help you to make your crypto liquid, in terms of converting it into fiat or vice-versa, to the point that it is possible to send fiat payments to other parties directly to more than 180 countries. If BridgeX Network can acquire IBAN license in the future, then it is possible that you'll be able to directly do a fiat transactions with other parties via BridgeX Network bank services, which is pretty cool. By applying this solution, BridgeX Network will help you to convert your crypto to fiat quickly, without any lengthy process such as converting from exchange and etc.
The solution might sound simple, but the effect is extraordinary. Using BridgeX Network will help you to decrease the possibility of getting scammed, removing difficulties to find credit with reasonable interest, allowing your cryptocurrency to be much more useful, and most importantly, help cryptocurrency adoption to the masses. People will surely love to get credit directly from other people rather than go into banks.
Decentralization is the future, with the advance of blockchain and cryptocurrencies as the leader on the revolution. BridgeX Network will take part in this revolution by providing the platform for peer-to-peer lending across the world, removing the limitations and increasing the options for people to get credit using their cryptocurrency, thus unlocking the full potential of the market with more than $1 trillion predicted value at 2025. Will you join this revolution?
Don't forget to check more info about them on these links below: