Decentralized finance is taking off. Interested investors pouring in. The time is ripe for business ideas to take flight. Here’s an instance of a DeFi lending platform targeting Moroccan women entrepreneurs.
Global blockchain development company HashCash Consultants proudly announces its collaboration with a DeFi startup in a project that aims to make micro-loans available.
The Micro-Loan Platform
The blockchain-powered platform is designed to transfer funds to the women who are registered with their verified digital identities. The platform allows pool-based borrowing wherein lenders provide liquidity to a pool that borrowers may avail themselves of.
“In such application, smart contracts take over the role of financial institutions that have traditionally acted as guarantors for such transactions,” remarked Raj Chowdhury, founder, and CEO of HashCash Consultants.
Also Read: Impact of Blockchain Technology on Corporate Treasuries
Smart Contracts
The smart contract governed application will disburse the installment amounts weekly to the borrowers’s account until the full amount is disbursed.
When asked to describe how the smart contracts will perform, Chowdhury outlines, “A contract will be written, that will disburse an allowance from lending account A to recipient account B, say, every Friday until the recipient account has received the required amount.”
No one can change the account address to Account C to steal the funds, as no one can tamper with the smart contract while it is live. Also, the funds are periodically transferred only until the stipulated amount is fully disbursed.
Also Read: Smart Contracts Reshaping the Global Financial Landscape
Further Expansion
The DeFi startup has created quite a stir among the north African countries inviting women investors from Europe and the Middle East. The project may be extended in the future to function as a DAO.
A Decentralized Autonomous Organization, or DAO would be a future enhancement with Artificial Intelligence and automation processes layered on the existing framework. Functioning as a DAO, would mean that all decision making would be tasked onto the software.
Recent Updates
Development-wise, HashCash has announced its participation in building a consortium for a global digital media brand. The company has also asserted its contributions to the spurt in crypto growth in the UAE. HashCash chief, Raj Chowdhury has earlier predicted a turbulent timeline for generation Z in the Metaverse.
Wrapping Up.
This project is important for both collaborators as it primarily focuses on women in entrepreneurial roles. The accomplishment of this venture should lay the foundation for many more in the decentralized space. The project fulfills the dual goal of the organization. “First, it promotes entrepreneurial ventures in economically struggling regions. At the same time, it empowers women with business ideas to realize their visions while bypassing the bureaucracy meted out by financial institutions,” sums up Chowdhury.
Source: https://finance.yahoo.com/news/hashcash-collaborates-defi-startup-developing-070000038.html
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