Debitum Network review

Debitum is an existing business in alternative finance for 3+ years. There is a global credit gap for SMEs of more than $2 trillion wordlwide. We want to disrupt and revolutionize this by creating a new ecosystem – Debitum Network. It will be a blockchain and trust based ecosystem joining various players (investors, risk assessors, document validators, insurers etc.) to complete end-to-end financing loop for SMEs.

It is very important to have a process based solution here as only such approach allows for a mix of local / global players to close the financing gap, earn money on their services and provide needed juice to SMEs for growth and development. Traditional finance institutions are failing hard on this issue for ages – it is time we take it in decentralized hands and solve!

How it works?

Debitum Network uses coins as the only possible means of interest payment and fees for other services such as risk assessment or debt collection. All coins are the same, with no classes or statuses. All coin holders have the same set of abilities. While the system of borrower-investor relations is technically limited to using Debitum coins only, some external applications of the coin cannot be limited. For example, coins can be used for vo4ng sessions in the prediction market manner or they can be used in a burn-and-get process in some sort of a token swap.

For the purposes of facilitating business borrowings, there is no necessary logic for coins to be continuously mined or minted. With each new deal taking place in the system, the principal overall value of the network increases temporarily, only until the particular participants remain active within the Debitum framework. In case they leave the system after series of deals, there is little technical possibility to identify such fact and correct the system’s value. Considering the above, the system will be utilizing the limited amount of coins, minted once and forever during this ICO event.

The single time emission event will guarantee the scarcity of the resource and may suggest the exchange rate to be continuously growing as the system develops and attracts more and more participants. The maximum possible divisibility of Ethereum-based tokens allows Debitum coins to provide convenient functionality for indefinitely long time. Of course, most of the original demand is to be created by borrowers who can pay the interest in coins only. But not less important is that, at a mature stage, the closed loop of participants’ aligned incentives can exist forever. Those participants who will stop an active use of the system without selling the remainder of their coins in possession will only effectively raise the value of the remaining actively used coins.

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