The crypto ecosystem has proven to be fertile ground for many different innovative startups. The decentralized nature of the blockchain has made it possible for entrepreneurially-minded individuals and organizations to create extremely disruptive solutions that streamline and optimize a broad spectrum of different industries.
The creation of blockchain platforms that allow new companies to quickly and easily create new digital currencies or cryptocurrency tokens, such as the Ethereum network, have made it possible for many ventures that would otherwise be unable to gather capital to launch interesting and innovative solutions.
This method of capital generation is called an initial coin offering, or ICO, and presents investors with the opportunity to purchase cryptocurrency tokens native to the prospective platform being launched. As a general rule, these platforms accept different cryptocurrencies such as Bitcoin or Ether as a payment method
There have been many extremely successful ICOs, and just as many unsuccessful ones. One of the most interesting new upcoming ICOs, however, is a blockchain based platform that aims to revolutionize and decentralize the way individuals rent goods to each other.
There are currently a number of platforms online that allow users to rent goods such as sporting goods, electronic tools, and even vehicles to each other, but as they are centralized they are typically slow, clunky, and expensive. The Dealhub Network aims to change this by allowing consumers to rent goods to each other with a native cryptocurrency token in a decentralized fashion.
In this article, we’ll take a look at the Dealhub Network platform and find out what it offers to help you make an informed decision on whether it’s worth investing in.
What Is Dealhub Network?
The Dealhub Network is an innovative new blockchain platform that aims to decentralize the peer-to-peer goods renting process. According to the Dealhub Network, “everything can be a miner”, providing the owners of goods with the ability to generate passive income from virtually anything they own.
The Dealhub Network market it possible to rent out virtually anything, from sporting goods, to power tools, even furniture or artwork. The Dealhub Network aims to revolutionize community lending, and uses an interesting and unique payment and investment system to facilitate this.
How Dealhub Network Works
The driving force of the Dealhub Network is the native crypto token being launched in the Dealhub Network ICO, the Dealhub Coin. Using Dealhub Network, individuals will be able to rent out their property for Dealhub Coins, which will be tradable on all major cryptocurrency exchanges.
The most interesting application of the Dealhub Network, however, is their take on “mining”. In this context, the term mining has almost nothing to do with mining the crypto sense, but has been used by Dealhub Network as a buzzword to hype their rent-based passive income generation system in a manner that appeals to crypto traders and ICO investors.
As an example, imagine an individual that owns a chainsaw decides to rent them out to another user with a price of 100 Deal Coins, or DEAL, at a 1:1 dollar exchange rate. If the user receiving the coins chooses to swap their DEAL out for USD at the time of the rental agreement, they earn the equivalent in USD.
If the user receiving the DEAL chooses to hold the DEAL they earn for one year, it’s possible that the DEAL will be worth more, as there is a limited market cap. If the DEAL/USD exchange after one year is 1:3, then the lending user has made a further $200 on top of their initial $100 earnings.
Dealhub Network calls this “mining”, but honestly, it has nothing to do with mining whatsoever. It is, however, an attractive model for lending goods between individuals, and offers lenders the option to capitalize on the assumed increase of Deal Coin market worth.
In order to protect lenders, the Dealhub Network also holds a deposit against possible damage or loss, in most cases to the same value of the rental agreement. In the above example, the borrower would pay a deposit of 100 DEAL, which they would receive back after the rental term. As the DEAL value is expected to increase, the initial cost of the investment- $100 USD for 100 DEAL- would return $300 USD for 100 DEAL, helping the borrower achieve a net profit of $200.
With this model, both sides of the rental agreement have the ability to generate passive income simply by lending or borrowing items. The Dealhub Network ICO is yet to announce a launch date for the DEAL token sale, but it’s possible to register for updates via the Dealhub Network website.
DealHub Network Verdict
The Dealhub Network platform, while perhaps using crypto terminology in a cavalier fashion, is founded on a solid business model that could potentially shake up the goods rental industry, and is therefore worth keeping an eye on.