Celsius

Celsius, found online at Celsius.network, is aiming to be the future of consumer credit. Find out how the platform works today in our review.

What Is Celsius?

Celsius is a blockchain-powered global credit network. It’s a P2P decentralized credit protocol built using smart contract technology.

The goal of the platform is, according to the official website, “to create a modern platform for peer to peer lending, develop a protocol to enable the next generation credit ecosystem, powered by a worldwide community of members.”

In layman’s terms, Celsius is a peer-to-peer lending platform built on Ethereum smart contracts.

The Celsius Foundation, which leads development of Celsius, was founded by Alex Mashinsky.

Obviously, Celsius isn’t the only company that seeks to reinvent the global lending industry using blockchain technology. Like other platforms, Celsius promises to provide the best experience for lenders and borrowers – including good returns for lenders and easy access for borrowers.

With that in mind, let’s take a closer look at how Celsius works.

How Does Celsius Work?

Both lenders and borrowers on Celsius are carefully selected. These parties interact on top of the Ethereum blockchain. Instead of working with traditional banks and their high fees, participants can interact with colleagues, friends, and other Ether token holders.

Celsius’s services are particularly catered towards millennials, a group described by the company as “the generation that often suffers the most at the hands of credit lending services.”

Celsius will be a platform where credit scores and legacy data are posted onto the blockchain. This data is used to create a digital identity for each client. That digital identity will include their social and digital footprint. The goal of this digital identity is to encourage the creation of a community of lenders and borrowers with lower loss factors and higher on-time payments, with the end result being higher credit limits, lower interest rates, and a better overall experience to borrowers.

Practically speaking, here’s how the platform works: Celsius allows members to lend to other members and earn higher interest rates than they normally would with a long-term deposit at the bank. Meanwhile, borrowers can pay lower interest rates than they would pay on a bank loan.

The cost savings comes from the use of blockchain technology. Celsius eliminates the middleman (the bank) and their high fees.

How can lenders ensure their money is going to the best possible borrower? The Celsius platform issues each user a credit score based on their digital identity. Users can also supplement their digital identity by uploading data like FICO credit scores and past transaction history on websites like eBay or Amazon.

Celsius also has an insurance system in place in case a borrower defaults. In that case, Celsius covers the portion of the principal loan amount for the lender, and they’re responsible for recovering the money owed to lenders.

The entire transaction between lenders and borrowers is secured by a smart contract. An in-platform utility token called “Degrees” is used to facilitate frictionless transactions.

When a new member joins the platform, that member will be issued a smart contract with a credit limit and low interest rate. Members can receive that interest rate within minutes of signing up.

The Celsius Token Sale

Celsius is holding an ICO for its Degree token in January. However, this past month, Celsius raised $30 million in a pre-sale for accredited investors.

During the ICO in January 2018, users will be able to join the platform with a small purchase of Degree tokens. All money collected in the ICO will be used to form a general pool of money. This will create an initial base of capital lending for the organization.

The Degree token itself will be used as a utility or membership token. It won’t be used as a security or in-platform currency.

About The Celsius Foundation

Development of the Celsius network is led by the Celsius Foundation. The company was founded by Alex Mashinsky, who also works as the CEO. Mashinsky has previously founded companies like GroundLink, Transit Wireless, Elematics, and Arbinet, and has 30+ patents to his name, $1 billion in raised funds, and $3 billion in exit deals.

Other key members of the team include S. Daniel Leon (President and COO) and David Brill (General Counsel/Corporate Strategy).

The Celsius Foundation has offices in New York, Tel Aviv, London, and Belgrade.

Celsius Conclusion

Celsius aims to provide a better lending and borrowing experience for everyone. It gives lenders an easy way to lend Ethereum and receive a positive ROI on their investment. Meanwhile, borrowers can sign up for the platform and view an available interest rate within minutes. It’s all built on the Ethereum blockchain and Ethereum smart contracts.

The Celsius pre-sale already took place, and the company raised $30 million from accredited investors during that pre-sale. The general crowdsale takes place in January 2018. To learn more about Celsius, visit online today at Celsius.network.

TOP GUIDE ON HOW TO BUY BITCOIN TODAY

Enter Your Email To Receive Weekly Cryptocurrency Coin Reviews, News & Investing Insights

I will never give away, trade or sell your email address. You can unsubscribe at any time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here