The Destination is Disintermediation
There are a lot more people in the world that can lend micro loans on a regular basis than there are organisations that can regularly furnish loans above the value of a thousand dollars.
With this being true it becomes more apparent that a network of independent lenders committed to furnishing micro loans could potentially rival already established financial organisations, in terms of the overall amount of loans serviced to borrowers on a world wide scale.
A network such as described above can directly bring increased financial capability to more people than a traditional lending organisation is able to, via a peer to peer mode of operation.
Peer to peer loan platforms such as the Funding Circle already exist, however the loans delivered on these platforms are unsecured. This adds an enormous pile of risk to the equation. Simply, when a borrower defaults on his loan — lenders on these platforms lose out.
If this risk didn’t exist then more people would be inclined to join these services as lenders to profit from interest payments.
The invention of the Blockchain has made it possible to secure micro loans using a form of collateral; digital collateral, that is easily transferable and easily liquidable.
A micro loan that is secured with digital collateral poses less of a risk to lenders than a loan that isn’t secured.
Good behavior should always be rewarded!
The targeted destination of the Meridian project is an environment in which borrowers and third party lenders are able to transact effectively on our Bitcoin loans platform.
However before this can be achieved the Meridian team will bear the initial risk of being the sole lender on the platform, whilst our database of user credit history is collated.
Once our database has been sufficiently populated, only then will it become responsible to open our platform up to third party lenders to whom we’ll be able to provide a pool of borrowers that have an already established and verifiable positive credit history.
In an effort to hasten the process of accumulating records, incentives are offered to borrowers who complete their loan repayments in orderly fashion. Incentives that will allow borrowers heightened access to bitcoin loans.
We endeavour to create an environment in which it is more profitable to maintain good behaviour than it is to attempt to cheat the system.
Networks are becoming the new corporations
Disintermediation is the reality made possible by the globalised nature of the internet. There are more than 3 billion internet users in the world, this is nearly half of the world’s entire population.
The creation of networks and platforms that allow the removal process of third parties from both personal and business related transactions is on the increase.
Through this process of disintermediation, third party interlopers are being made redundant as people become able to conduct direct, person-to-person transactions through the use of new and disruptive technologies.
Services like UpWork allow businesses to bypass Recruitment agencies and connect directly with independent professionals based around the globe. This same process is taking place in the digital asset industry.
The long-term goal of the Meridian project is to build infrastructure that will allow our Bitcoin loans platform to match borrowers and third party lenders, with Meridian tokens underpinning the security of each loan that is delivered on the platform.
Not only will this lead to the expansion in financial capability of those that participate in the Bitcoin market, but this will also establish a constant stream of transactions occurring on the Meridian blockchain.
Meridian tokens can be purchased during the ICO on 12 October 2017 and will then become tradable on all alternative currency exchanges.
To learn more about how Meridian differs from the alternatives, you are invited to watch our two-minute explainer video at https://goo.gl/n7rkVf
Learn more about Meridian at — http://myMDN.io