The mortgage is one of the crucial elements of any economy with large banks and financial institutions making their profits through a healthy mortgage system. Blockchain offers an alternative to the existing system as loans can now be offered to a wider audience through an efficient use of smart contracts. This makes the processing of loans from origination to facilitation quicker and more efficient. All loans are recognized as digital assets with a liquidity mechanism that makes the system attractive to all types of investors. The ability to trade fractions of loans and reduced fees attracts users. Using cryptocurrency also means that the need for a bank account is negated.
Block66 introduces a platform where lenders can access a marketplace of vetted borrowers looking for mortgage finance. This marketplace is transparent, public and automated which makes lending streamlined with lower risks and costs. Each loan is a pool of (PoL) Proof of Loan tokens that can be resold individually to investors to provide investors with liquidity. Block66’s blockchain tech makes it possible to have tokenized and flexible lending contracts. A digital trust fund manages the safety of the underlying loan agreement.
Problems
- Tighter lending – Due to the financial crisis, most lenders have introduced stricter conditions to grant loans.
- Early selling of mortgage – This allows lenders to sell early on in the lifecycle but reduces long-term exposure and incentive to properly assess loans.
- Poor rating systems meant that candidates not in the prime bracket struggled to get loans.
- The sector is slow-moving, segmented and nontransparent since they are serviced by non-traditional entities.
- Lack of trust and transparency.
- High fees, capital requirements, lack of transparent trading and the time taken for processing are a deterrent.
- Shortage of long-term funding in developing countries like India.
Block66 improves the entire home loan software application and procedures stack. It becomes for brokers a one-stop buy credit history, building assessment, as well as lender matching. For loan providers, it gives a sustainable finance pipeline, a bookkeeping device, and a home mortgage securitization system. It becomes a fast and also problem-free means to accessibility debt opportunities for borrowers.
Block66 leverages existing technology to verify documents and application data which can go a long way in countering fraud. The combination of the power of the human mind coupled with the automation provided by blockchain technologies. All lenders are required to submit their credentials and criteria upfront so that the Block66 platform becomes truly transparent. Using the smart contracts on the blockchain and the proof of loan protocol allows the entry of a wider target base.
Related Propositions
PROPY – aids in global buying and selling of property where transactions are in escrow through the use of smart contracts. This removes all intermediaries from the buying process.
BrickBlock – an investment platform that securitizes commercial platform using the blockchain. There is also a decentralized exchange for security tokens following the Proof of Asset protocol.
USP
Block66 aims to become the world’s most sophisticated platform for mortgages where lenders and brokers can operate efficiently to the satisfaction of borrowers. All funds are issued via the blockchain and drawn down using smart contracts. Storing all data as a hash allows fuller transparency and cleaner paths to audits and checks.
In the second phase, it will allow lenders to create tokenized mortgage-based securities and create a uniform platform that matches private and institutional funds with borrowers and adds security to the loan agreement.
Essentially this will reshape the international mortgage industry.
The Block66 platform can be used by lenders, borrowers, brokers, financial institutions, underwriters, and solicitors.
How Block66 works?
The team develops the multi-sided platform as a dApp on the Ethereum platform.
Borrowers
First clients are guided through the process by brokers where information is collected about their borrowing needs and aspirations. The platform then uses third party API’s to carry out KYC identity checks and cross-checking affordability through credit rating agency and bank feeds. Next accounts are created for all borrowers with an approved crypto exchange that can be used for repayment. In case the application cannot be built properly, it is referred to a virtual underwriter. Once signed off on borrower file, the application is published and made available to the matching engine. If a suitable match is found mortgage is ready to be funded and the funds are transferred by the ledger via the smart contract. The last step is the repayment of funds.
Lenders
Lenders and brokers register themselves with the dApp, make an account and choose the Ethereum public key of their choice. This is followed by the KYC checks to verify identity. Lenders then add their lending criteria making it available for matching. After approval, the lender receives notifications with every match which they are invited to approve or reject. Once accepted and funding is okayed a PoL contract is formed. Both parties now wait for any additional requirements or conditions to be placed by their lawyers. The lender then transfers the funds to the smart contract in ETH. The last step of the process is the repayment of loan amount by the borrower.
Tokens
The B66 tokens are based on the ERC20 standard. B66 tokens are used to build BNET as users who activate their B66 can generate BNET for sale to other participants on the chain. BNET tokens are used to pay for services on Block66. B66 is used to set the price for BNET.
Network fees are all paid in BNET. These include application submission fee, unlocking the token etc.
Partners
Block66 has partnered with firms like aXpire, BountyOx, The CryptoRealty Group, and Civic.
Team
The Block66 core team consists of CEO John Markham – software and technology industry veteran, CTO James Tuckett – founder of P2P online brokerages, COO Kamil Mieczakowski – Sales and Operations veteran and Krista Mccallum – Chief of Staff and PR expert.
Advisors to the team include Shingo Lavine – CEO of Ethos, Piper Moretti – CEO of Crypto Realty Group, Hakim Thompson – CEO of Stem Lending and Dom Wolf of Virgin Mobile.
For More Details of Block66 ICO:
Official Website: https://block66.io
Whitepaper: https://drive.google.com/file/d/11ZevZaCwYSG_0iv8On810w3Sjj2E5FLq/view?usp=sharing
Telegram: https://t.me/block66_Official
Twitter: https://twitter.com/Block66_io
LinkedIn: https://www.linkedin.com/company/block66/
Medium: https://medium.com/@block66
Post By Anton De Mel
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=1770640
Bounty0x Username: cryptoze
