Ripio Credit Network is a protocol based on smart contracts and blockchain technology, which brings enhanced transparency and reliability in credit and lending. The protocol enables connections between lenders and borrowers located anywhere in the world, regardless of currency. By reducing the traditional banking brokerage costs and management fees, RCN aims to allow better conditions for both sides, creating a better credit alternative than anything available today.
The RCN crowdsale was widely regarded as a success. Registerd in the Cayman Islands, the company managed to raise $37 000 000 dollars for their project.
RCN is a protocol based on smart contracts that standardizes credit lending through blockchain technology. The protocol facilitates connections among several agents, each of whom play a role to ultimately offer the lender better tools to manage its capital, reduce the intermediation costs between a lender and borrower, provide increased credit access to borrowers, and, as a result, make more projects viable. The Ripio Credit Network can connect borrowers, lenders, and other network agents all over the world, allowing each one of them to manage the credit in their local currencies, as long as they have Internet access.
The first participants in the RCN ecosystem are Wallet Providers. Wallet Providers generate the smart contracts and broadcast them to the network, adding information on the borrowers and their credit requests.
ID Verifiers verify and attest the identity of each borrower as a first security measure.
Scoring agents provide a detailed credit rating for each borrower and gather transactional information from all past sources.
Cosigners insure the loan in case of a default and distribute the lender’s risk by improving the contract conditions and retaining access to the borrower’s local legal system.
The platform also offers credit exchange services and an oracle service.
Although Borrowers and Lenders will likely prefer to denominate credit transactions in a local currency, RCN Tokens will be required to facilitate transactions among the other agents in the RCN. RCN Tokens will be required to access the RCN network given that agents’ fees and obligations – plus the corresponding distribution expenses within the network – are driven by the use of these tokens. RCN Tokens also act as an incentive to each one of its participant agents to continue to participate in the network.
Despite raising a considerable amount of funds and having a working dApps to lend Ethereum, the project hasn’t gained much traction. This is partly due to the fact that there’s quite a strong market for decentralized lending platforms and competitors like SALT or ETHLend are much better marketed and have broader user base.
The Ripio Credit Network isn’t a bad project. It already has a working product and the team along with the developers seem to be quite committed to what they’re doing. Their social media is active and updates about the platform’s development are frequent.
