Getline In A Nutshell [INFOGRAPHIC]
In the infographic below, we give you a glimpse of the Getline Network in a nutshell. The Getline Network is a decentralized Peer-to-Peer (P2P) lending platform on the Ethereum blockchain. We enable people to get a digital identity, gain and build a credit score, and attain loans even if they have a lower credit rating than most would accept, and we enable a new investment platform for investors. Being decentralized enables us to operate on a global scale, with default rate scorers around the world, with much less worry about particular jurisdiction’s compliance laws hurting the network.
We aim to disrupt and fully revolutionize the P2P lending market, and fully decentralize it, making it easily accessible, safe, and compliant for everyone.
So, what is P2P lending? P2P lending is a method of debt financing, that enables individuals to borrow and lend from each other, without the need of a traditional middleman, like a bank or credit bureau. It helps individuals gain capital, who may have otherwise not been able to attain it from traditional financial institutions, and also opens a new source of investing to individual investors.
The global P2P lending market was valued at $26 Billion US dollars in 2015, & is projected to reach $460 Billion by 2022. It was growing at a compound annual growth rate of 51.5% from 2016 to 2022. The European online alternative finance market, including crowdfunding and P2P lending, grew by 92% in 2015 to €5.4 Billion. Out of all the European countries, the UK dominates the online alternative finance landscape, representing 81% of the overall market in 2015 with a volume of €4.4 Billion. France, Germany, and the Netherlands are the top three countries for online alternative finance by market volume in Europe, excluding the UK.
This market has seen tremendous growth as of recently. In 2014, P2P lending platforms in the USA alone issued around $5.5 Billion in loans, and it’s projected that that same criteria will be around $150 Billion or higher in loans by 2020. The value of global peer-to-peer lending for four years and estimated up until the year 2025 is also impressive. From 2014–2015 the value of global P2P lending rose to a value seven times what it was in 2014, from $9 Billion to $64 Billion U.S. dollars. By 2050, the value is expected to be close to one trillion U.S. dollars. 2012, it was $1.2B, 2013 was $3.5B, 2014 was $9B, and 2015 was $64B.
What Are Our Main Feature?
The Getline Network runs on the latest high-end technology to make sure you get a seamless and secure experience in lending money & getting loans. Our main features include:
The Ethereum Blockchain:
Ethereum is a decentralized platform that runs on a custom built blockchain, which operates Smart Contracts. It has little to no downtime, censorship, fraud, or third-party interference. It’s an open-source, public, blockchain-based, distributed, computing platform. The Ethereum’s blockchain focuses on running the programming code of decentralized applications.
Benefits of Blockchain:
Blockchains are distributed. Blockchain works as a system of records that’s distributed among participants, eliminating separate or centralized ledgers. A blockchain is a distributed ledger. Blockchains are permissioned. Each participant has access rights so that confidential information is distributed on a need-to-know basis. Blockchains are secured. All validated transactions are permanently recorded and based on consensus. No one can make double transactions or delete the record.
GET Tokens:
Our native token is called GET. The GET token is meant to bootstrap our product, and is essential in the running of the platform to keep all parties accountable. GET is going to stabilize the Getline Network, helping to prevent fraud, and allowing for more trust between its participants. The GET token is going to be a standard ERC20 token on the Ethereum Blockchain, which runs on a set of six functions. The ERC20 standard token hosts a few main features, including: Transfer of tokens by the owner, transfer of tokens on behalf of the owner, getting data about the token, and token events. GET tokens will be the only tokens allowed as collateral in the Getline loan contracts. The loan’s Smart Contract will lock up a certain amount of GET and send them to the lender(s) in case of a default, but are returned to the borrower after the loan’s repayment.
ARAs:
The risk assessment process will be entrusted to for-profit, third party entities called Attestors of Risk Analysis (ARAs), which effectively serve as credit rating agencies. These make up our credit risk scoring network, and they provide risk-evaluation of borrowers’ creditworthiness, effectively creating a prediction market. Each ARA will be a legally compliant agent, which will ensure the feasibility of giving a legal lending contract anywhere on the basis of jurisdiction.
How It Works:
Borrowers can apply for loans through Getline, and can even obtain a recognized digital identity through an identity service provider. Users with a verified identity can apply for a loan.
A verified borrower will be able to specify the desired terms of a loan. The Getline browser will then issue a loan request to the Ethereum blockchain. The loan request will then be scored by an ARA picked by the borrower. The ARA will attach their scoring to the loan request and sign it with their unique signature. The assessed loan request will then be put up for public auction for investors to bid on. Finally, the investor(s) who offer the lowest interest rate will then fund the loan.
The Getline Network will connect various Attestors of Risk Analysis through identity services and then put the information on the network’s blockchain system.
Smart Contracts:
Our Smart Contracts link everything together, handling both collateral & the loans’ capital, and are designed to mitigate damages in the case of a security breach. Getline will use Smart Contracts as one of its main features. Smart Contracts are computer protocols on the Ethereum blockchain, intended to facilitate, verify, or enforce the negotiation or performance of contracts automatically as programmed.
“Smart Contracts are more like computer programs creating protocols”
~ Paweł Bylica, Lead Ethereum Engineer at the Golem Network
How They Work?
An agreement between the Lender and Borrower is written as a code in the blockchain. Both individuals involved have their secured & verified identities but the contract is stored in a public ledger. A triggering event such as a payment deadline, loan extension, early payment, or an expiration date then causes the contract to execute itself according to the coded terms. The platform regulators and attestors can use the Smart Contracts to minimize risks, while maintaining the privacy of the individuals involved.
Value Projections Of Smart Contracts:
The value of Ethereum had rocketed from around $8.15 per ETH on January 1st, 2017, to around $748.35 per ETH on December 14th, 2017, partly because of their Smart Contracts. The projection of the global blockchain technology market (including Smart Contracts) by 2021 is $2.3 Billion. Smart Contracts will also revolutionize the IoT (Internet of Things) industry as the devices connected to IoT are projected to reach 75.4 Billion devices by 2025.
We hope you enjoy the infographic below, and we’re glad you’re interested in learning more about us.
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