The blockchain solution to trading finance loans
In our previous articles, we discussed Reditus and its Receivables Management System (RMS) disrupting the traditional loan agreement markets. But how exactly would Reditus go about doing it?
A recap on Reditus
Reditus provides a blockchain-based platform that manages and disintermediate the current landscape and create a more conducive environment for everyday investors to participate in this sphere.
Why blockchain?
Transparency
The nature of the technology is that it is open-sourced. As it is open-sourced, any user or developers are able to modify it as they see fit. It can be viewed as a way of governance: governance by code — where users are expected to run whichever specific version of the code contains a function or approach they think the whole network should embrace. This shared version is one which has to be updated through everyone’s consensus, ensuring that the process is transparent.
Tamper-proof environment
As the ledger is distributed, it is not reliant on a central data hub. This makes the entire ecosystem very resilient against manipulation. When there is a situation where many of the users go offline, the information stored can still be accessible. Due to its decentralised design and verification by many computers, it reduces the possibility of tampering data within the infrastructure. Due to its decentralised nature, users have proof of validity and authority to maintain checks and balances, which ultimately turns it into a trustless ecosystem as the question of trust would not come into play.
No need for intermediaries
Traditionally, users have to rely on trusted intermediaries such as banks or lawyers when conducting businesses to verify our data. However, this additional step incurs extra time and money. As the data is immutable with blockchain technology, one will not require as many intermediaries to verify that his/her data is indeed true. Therefore, users can reduce cost and save time which would have been originally been used on these third parties before proceeding with their transactions.
The Reditus RMS: Blockchain interface
In the chart below, it shows how the RMS will be interacting with Reditus’ main-net on the blockchain.
The blockchain interface of the RMS, and nodes that affect the interface are as follows:
Approver
Approver verifies token generation by validating receivables whenever each receivable is created. This comes into play when issuers submit their receivables to the RMS, and the approver would be required to verify the token generation by validating these submitted receivables by issuers, against the blockchain main-net through the Super RPC adapter.
RPC here refers to Remote Procedure Call which is a protocol that a program or platform uses to request service from a program/platform within another network without requiring or understanding its network details.
Block Generation (Node)
Block generation (Node) creates a block every minute, reaches a consensus on block content, and verifies it. Likewise, the block generation node here uses its Block Generation (BG) RPC to request service, in this case to be node verification and generation, from the Reditus Supervisor on the main-net.
Participants
Participants can view the Reditus® blockchain through the RPC adapter on the Reditus Explorer (similar to services such as etherscan, unique to Reditus blockchain).
These participants can include the Issuer, Trustee, Debt Collector, Investor and Debtor — members of the ecosystem.
The current loan market is cumbersome, tedious and involves more third-parties. Being on its own blockchain main-net, Reditus provides an open and transparent platform for people to issue, trade and view tokenised receivables. It allows accessibility and greater liquidity for everyday investors to buy and sell receivables. It presents a new market full of opportunities for individuals who were usually unable to access the loan market previously. With this advanced technology, your experience with trading receivables will never be the same anymore.
