A recent crypto initiative aims to blockchain a centuries-old financial form – allowing millions of unbanked customers worldwide to gain loans. Gradually, cryptocurrencies became a significant component of the financial ecosystem. Mainstream networks like PayPal allow users to purchase and sell digital goods, Bitcoin attracts favourable newspaper column centimetres, and countries unveil regulatory framing that allows the virtual currency to flourish.
But one beginning company argues that there is a big challenge which requires considerable attention: to offer crypto enthusiasts a trustworthy marketplace in which they can invest their coins freely.
DeFi For you, it builds an e-commerce platform based on the Binance Smart Chain that is able to buy, sell, rent and even pawn goods. The founders of the company believe that the cryptographic space must create its own ecosystem in which merchants and shop owners can trade rather than wait for Amazon likes to flood the space.
Whereas in some parts of the world in recent years pawn stores have attracted a rather shady reputation, DeFi For you think this century-old approach to finance has been a much-untapped market that could dramatically strengthen levels of financial inclusion.
The pawnbroking market alone in the US is worth US$14.5 billion, and in South East Asia it costs $400 billion, says DeFi For You’s founders. This concept has been difficult to make a jump into the online world until now because without intelligent contracts it could not be done.
Users can open their own pawn-stores and lend money to people around the world while holding collateral in exchange through DeFi For You platform. In a decentralised form of finance, managers say that this will make consumers their own bank. With all this information stored in an irrefutable smart contract, lenders and borrowers can directly determine the terms of any loan.
In time, DeFi For You believes that this will allow easy access to lending for billions of people excluded from middle-class financial services. It will be possible to verify the reputation of each user on the blockchain in order to reduce the risk of a default in their obligations, offering a more modern alternative to outdated credit results.
The conditions for loans will depend on the reputation of the lender and the type of collateral they are willing to offer, with preferential conditions for those with strong records.
The people behind the project build their infrastructure on the Binance Smart Chain and create a BEP20 intelligent contract token called DFY.
Although BSC is less decentralised than Ethereum, for the founders of DeFi For You, they are drawn to the blockchain because of the way it provides faster transaction costs and lowers costs with a block time of between 3 and 5 seconds.
Apps will soon come into the hands of anyone who possesses an Android device or an iPhone, on the Apple App Store and Google Play.