MoneyCircles.com, created by Outlier Ventures, Europe’s first dedicated blockchain incubator setup, is a decentralised peer-to-peer lending app built on Uphold (formerly Bitreserve) which allows circles of people to get together and mimic a credit union to save & lend with one another based on a ‘common bond’.
By using smart contracts this allows for total transparency and verifiability, a first in the financial services market. This is a groundbreaking publicly verifiable and decentralised peer-to-peer lending platform using fiat pegged crypto-currency and is the first publicly released proof-of-concept from Outlier Ventures.
The commercial ambition of MoneyCircles.com is to enable financial institutions like credit unions, challenger or traditional banks, as well as a constituted, MoneyCircles to lend to people who can’t access mainstream credit facilities with greater flexibility and on better terms for both savers and borrowers.
MoneyCircles.com believes the growing wealth divide across our societies is compounded by lack of access to affordable credit. In the UK alone there are 6 million people locked out and trapped in a permanent state of indebtedness and in the developing world half of households have no access to credit at all.
At the same time millions of savers have money trapped in low interest savings accounts with institutions that want to lend, but that are unable to. Savers desire better rates and want their money put to better use. By making money more socially active, not just an abstract concept, we hope to encourage the 9m Britons with no deposit accounts to also start saving.
MoneyCircles.com aims to reconcile these two parts of the market, by making saving and lending more socially based, to better deploy deposits which will help significant parts of society build a positive relationship with financial institutions. The aggregate effect would be ongoing stimulus to economic growth, fairer rates and reduced inequality in financial services.
The Status Quo
MoneyCircles.com believes most new ‘challenger’ fintech focuses simply on enhancing user experience and the growing p2p lending market, estimated to be worth $150bn by 2025, rather than improving lending parameters to actually reinforce outdated risk averse credit scoring. They believe none fundamentally create a fairer marketplace that borrowers see as part of a long-term solution to managing indebtedness rather than just another creditor.
The POC demonstrates how, by building a decentralised application (DApp) on Uphold (formerly Bitreserve) blockchain and API, its users can mimic a credit union through deployment of Ethereum smart contracts. This means users can form ‘money circles’ with friends, family or local communities of ‘common bond’ to save and lend with full control and flexibility on saving & lending terms without the need for a middleman.
MoneyCircles.com intends to build their own cross-circle ‘trust score’ based on positive relationships people have across the network of circles. Circles can be connected up to external data sets including social media or traditional credit scoring through the use of ‘oracles’, a method of giving smart contracts access to information in the outside world in a decentralised manner.
MoneyCircles.com intend to exploit the technology and findings through Money Circles Ltd initially targeting the $1 trillion credit union market and are actively seeking investment and partners including a submission to a leading fintech incubator.
Outlier Ventures Ltd was created by to seed, develop and launch a new startup every 3-6 months across a variety of sectors.
- New Satoshi on the Block Plans a ‘Reveal’ – Bitcoin Community Responds - August 19, 2019
- Binance Announces Open Blockchain Project ‘Venus’ – Calls on Governments, Companies and Organizations to Develop Localized Stablecoins - August 19, 2019
- Blockchain-Fueled VeganNation raises $10 million for Vegan Global Marketplace - August 19, 2019
- Fight to Flame – Mike Tyson Denies Issuing Token and Working With Fight2Fame - August 17, 2019
- Bitcoin Wealth is Almost 50 Times More Concentrated than Global Wealth According to PARSIQ Research - August 16, 2019
- Graph Blockchain Signs LOI to Acquire Cyberanking Ltd. an Esports Company - August 16, 2019
- Blockchain Moves Into The US’s Largest Oil Fields With Data Gumbo - August 16, 2019
- BlockStar Teams Up With Cycling Apparel Brand De Marchi to Auction Fausto Coppi’s Cycling Jersey - August 16, 2019
- Zcoin Available to Five Million Merchants in Thailand - August 16, 2019
- Republic Partners with Althea to Launch First-Ever Compliant Security Airdrop for Retail Investors in the U.S. and Abroad - August 14, 2019
- Mark Cuban’s Dallas Mavericks Basketball Team Join Up With Bitpay To Accept Bitcoin For Tickets And Gear - August 14, 2019
- Mike Tyson Launches Fight to Fame – Crypto-Driven, Blockchain-Fueled Fighter Booster - August 14, 2019
- Blox Survey: Ninety-Five Percent of US CPAs Believe Clients are Not Disclosing All their Digital Assets and Transactions - August 13, 2019
- New Zealand Allows for Employee Payments to be Made in Cryptocurrency - August 13, 2019
- USA SEC Postpones Decision on Three Bitcoin ETFs - August 13, 2019
- Cryptocurrency Thefts, Scams and Fraud May Exceed $4.3 Billion For 2019 - August 12, 2019
- China’s Central Bank Gears Up to Launch it’s Own Cryptocurrency - August 12, 2019
- Overstock: Retail Traders Can Now Invest in STOs at tZERO - August 9, 2019
- Merj Rolls Out The First-ever Official Listing Of A Tokenized Security On A Regulated National Stock Exchange - August 9, 2019
- Commerzbank And Daimler Trucks Test Machine-to-machine Payments On Blockchain - August 9, 2019