Qtum Hackathon — Weekly Update 1
Team Mint’s Entry for the Qtum Hackathon 2018
General Information:
Team Name: Mint
Team Members: Shruti Vinodh & Sabiha Shaik
Project Name: Mintosa
Our Project: We use blockchain technology to provide a secure and transparent online lending platform which connects lenders to lower income people. Through microfinance we help people access small short term loans which can help them improve their lives.
Business Model
Concept
In a world with many unpredictabilities, the importance of small lines of credit cannot be stressed enough. This is where the concept of microfinancing comes into play. Microfinance is the provision of small loans to underprivileged entrepreneurs and small businesses who often lack access to traditional banking services.
Mintosa is a microfinance solution to this problem by providing a platform where lenders can connect with low income entrepreneurs, all protected with the power of blockchain technology.
Target Audience
Mintosa primarily targets two demographics:
- Low income small time entrepreneurs: This could be a young entrepreneur who wants to start a small business (like a tailoring service, for example) in the local community. They would need a small short term loan to cover the initial cost of capital. (In this case, buying a sewing machine.)
- Lower income emergencies: This includes those with a need for immediate small time access to credit, like money for an unexpected car repair. Often, people in these situations have to resort to high interest loans like payday loans, so this offers a safer, less aggressive alternative.
- Lenders who want to provide short term loans: While not having sufficient funds to provide a large traditional loan, lenders who want to give short term small loans can do so through Mintosa.
Competition
Kiva is a primary competitor in the region. It is a global non profit which connects lenders to people who need small sources of credit. However, it doesn’t use blockchain technology and thus, lacks the transparency and security advantages that that provides.
While there are a number of Micro finance operations (SEWA Cooperative Bank in India and Rise Asset Development in Canada, just to name a few) they are substantially localized and operate only in their regions.
Personas
Robert Jennings:
Robert Jennings is a 25 year old waiter who commutes to work every day in an early 2000s Toyota. He lives paycheck to paycheck and finds it a struggle to make ends meet, while paying off his considerable amount of loans including student loans and the car.
His car breaks down in the middle of the road and he is quoted $150 dollars for repairs. He can’t afford to not repair the car since he would get fired if he misses a day and it is his only form of transport to his job. He also can’t apply for traditional credit since he has a low credit score, so he logs into Mintosa and within minutes is connected with a lender.
More About Mintosa
The web platform will be available online and will be very user friendly. There will be a short tutorial to help introduce customers to blockchain transactions.
Revenue Generation Model
Mintosa runs on Donations and earns revenue from commissions per transaction on the Blockchain. Other sources of revenue include Advertisements on the Mintosa Web Application.
How would we market our product and educate the target audience?
We will first increase target audience awareness by using Google Adwords (Especially on the Search Network, so users see our service if they search for “small online loans” and other keywords.) We will also contact target influencers and bloggers in order to promote our services. We will also use SEO to increase the number of hits to our website and ensure more people sign up for the service.
What are the risks our project might encounter?
The primary risk we face is vetting the loans. The loans need to be screened in order to comply with our policies.
We also need to ensure that lenders understand the level of risk they’re undertaking when lending to a particular individual, which is why we allow them to see a score indicating the individual’s risk.
Future Plan of Action
Core Technologies
We are opting to use the MERN ( Mongo, Express, React, Node) stack for development since it will allow for rapid development and easy deployment. We will be using Qtum as the decentralised blockchain application since it provides Smart Contracts and also allows for easy mobile development (which we’re planning to expand into.)
Credits
Design and Development by Sabiha Shaik
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