Swapy Network is a decentralized protocol. The ultimate goal of the project is to provide people around the world with universal access to credit. This is a high bar, especially since so many people in third world countries are living without regular access to the internet or traditional financial products. But the Swapy Network believes that they can provide individuals and businesses in developing countries with access to credit. This would benefit the entire global market, as billions of people would be able to enter the global economy. Universal access to credit would result in a greater demand for goods and services. Over time, increased demand means more jobs and a higher standard of living for everyone. Swapy Network is undoubtedly ambitious, but the platform has a strong team with experience in financial and credit markets. Let’s take a look at the Swapy Network whitepaper so we can learn more about their vision.
Swapy Network’s Vision: Universal Access To Credit
Swapy Network is building multiple applications in order to reach its goal of providing individuals around the world with universal access to credit. This suite of applications will include the Swapy Exchange, the Swapy Data Market, and Swapy Financial ID. The Swapy Exchange works by linking financiers and international investors with growth opportunities in emerging economies. The Swapy Data Market will allow individuals to hold their own personal and financial data and determine how many Swapy tokens they receive as a result. And the Swapy Financial ID will give users a financial identity that is valid around the world. If Swapy can realize this vision, the global credit markets will become more efficient and the barriers to entry will dissolve.
The Cost Of Capital Is High
One of the reasons why traditional financial institutions do not reach 2 billion people is because of the cost of capital and infrastructure. For traditional financial institutions, the risk-adjusted cost of capital lending in developing nations is significant. Traditional banks have yet to find a cost-efficient manner for servicing these populations, especially in rural areas in developing nations. The whitepaper notes that 40% of the population in Brazil is unbanked.
The Swapy Network Solution
The Swapy Network will connect multiple players in the financial industry, including creditors, borrowers, insurers, data producers, and data consumers. Swapy Network users will be able to collaborate in order to lower the costs of financial services. The Swapy Token (SWAPY) will be used as the basic unit of value within the Swapy ecosystem. The platform considers SWAPY a utility token that will be used to pay for an individual’s information and for services like credit scoring. It can also be used as collateral when requesting a loan.
The Swapy Network team is currently running awareness campaigns (https://bountyhive.io/join/Swapy%20Network) in order to increase interest in the project. Cryptocurrency enthusiasts are excited about the possibility of reaching individuals in the developing world who do not yet have access to financial products. The financial industry is watching as well, as they know success from Swapy could bring greater competition in their own markets. As one of the most anticipated projects in 2018, it will be exciting to watch how Swapy fares in the coming months.
Written by: liveheart
BountyHive ID: liveheart