What is Creditcoin?
Creditcoin is a Layer 1 infrastructure protocol co-founded by Gluwa and Aella, with investment from DWF Labs. Built on the Parity Substrate framework using Nominated Proof of Stake (NPoS) consensus, it creates a decentralized, interoperable marketplace for Real World Asset (RWA) credit lending. By leveraging blockchain's immutability, Creditcoin records credit transactions to help investors and borrowers verify and assess risks. Both parties can publish lending needs on the platform.
Key Reasons Behind Creditcoin's Creation:
- Disintermediation: Directly connects lenders and borrowers for better rates, enabling micro-lending.
- Decentralized Credit History: Supports diverse credit scoring systems for tailored market access.
- Sustainable Crypto Economy: Facilitates storage, payments, and investments within a self-sustaining ecosystem.
- Enhanced Security: Shared ledger architecture reduces centralized data breach risks.
How Creditcoin Works
Core Architecture
As a blockchain-agnostic L1 network, Creditcoin operates across multiple chains via:
- Parity Substrate: Modular framework for customizable blockchain builds.
- NPoS Consensus: Validators and nominators secure the network while earning rewards.
- Gateway DAO: Permissionless cross-chain bridges managed by decentralized governance.
- WASM & Rust: Primary tech stack ensures efficiency and security.
Ecosystem Dynamics
Creditcoin’s ecosystem revolves around decentralized lending:
- Borrowers publish loan bids with terms (amount, interest, duration).
- Investors browse bids, submit offers, and finalize transactions on-chain.
- Transactions are recorded permanently, building credit histories.
Supported Chains: Ethereum, Polygon, Flow, Aurora, and others.
$CTC Tokenomics
- Max Supply: 600M CTC (currently circulating: ~549M).
- Use Cases: Transaction fees, staking, collateral, and validator incentives.
- Token Types: Native CTC (mainnet) and ERC-20 wrapped tokens for flexibility.
Economic Mechanisms
- Fees: Paid in $CTC to validators; partial burn reduces supply.
- Staking: Required for validators; borrowers may lock collateral.
- Rewards/Penalties: Validators earn $CTC; defaulters face reputation hits.
FAQs
How are Gluwa, Aella, and Creditcoin related?
- Gluwa: Tech provider developing Creditcoin’s infrastructure.
- Aella: First institutional user integrating Creditcoin via Credal (2022).
What’s $CTC’s inflation rate?
- 2 CTC per block (~8 CTC/minute). View real-time metrics on Creditcoin Explorer.
How does Creditcoin handle loan defaults?
- Reputation-based: Defaults damage credit scores but lack punitive on-chain actions. Off-chain legal agreements may enforce terms.
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