Ripio Credit Network

Ripio Credit Network is a global peer-to-peer credit network based on co-signed smart contracts. Find out how it works today in our review.

What Is Ripio Credit Network?

Ripio Credit Network is a global credit network that uses smart contracts and blockchain technology to connect lenders and borrowers – regardless of which currency they’re using or where those parties are based.

The platform was first launched in May 2016. A token sale is taking place throughout October. The full-featured platform is expected to go live in April 2018.

The company was formerly known as BitPagos. The name Ripio means “gravel” in Spanish. The name was chosen because gravel serves as a foundation for new roadways, just as “Ripio aims to build new roads throughout the digital economy.” The RCN whitepaper also describes the company as “one of the most promising bitcoin-blockchain startups in Latin America.”

How Does Ripio Credit Network Work?

Ripio Credit Network, or RCN, is a protocol that aims to bring enhanced transparency and reliability to the worlds of credit and lending. The protocol uses blockchain technology and smart contracts to enable a connection between lenders and borrowers located anywhere in the world, regardless of their currency.

RCN aims to provide value by reducing the traditional banking brokerage costs and management fees. The end result is a better credit alternative than anything available today, with better conditions available for both sides.

RCN also aims to neutralize the lender’s credit risk by including an intermediary agent called “the Cosigner”. In case of a default, there’s an “alternative mechanism for managing the debt collection in the borrower’s country of residence.”

RCN isn’t some brand new startup. The company started its life in 2013 as BitPagos, which was the first bitcoin payment platform in Latin America. The company launched a digital wallet called Ripio a year later. BitPagos allowed merchants to access bitcoin-based financial services, while Ripio allowed users to send, receive, store, and buy or sell bitcoin in local currencies. Overall, Ripio has 100,000 users across Latin America.

How Do RCN Tokens Work?

RCN tokens are the backbone of Ripio Credit Network. 51% of the total supply of RCN tokens will be made available to the public through token sales.

The token sale is scheduled for October 17, 2017. There will be a total supply of 1 billion tokens. the maximum amount sold during the pre-sale will be 42.5%; the minimum crowdsale amount will be 8.5%; fund previsions will be set at 34%; and the network bootstrapping pool is set at 15%.

Uses For Ripio Credit Network

Like other blockchain lending solutions, Ripio Credit Network wants to connect lenders with borrowers over a blockchain-based network. Here’s an example of how RCN could work, as outlined in the company’s whitepaper:

For Borrowers

  • Pedro, a student, wants to buy a car
  • Pedro requests a loan from his wallet provider for 9799 Brazilian Real, or about $3,000 USD
  • The wallet provider generates, fills, and signs a smart contract with an amount requested in RCN equivalent to 9799 BRL, then broadcasts that contract the network
  • The contract includes terms like interest rate and the number of installment payments Pedro needs to make
  • The smart contract is then completed with data from the ID verifier, scoring agent, and cosigner

For Lenders

  • Wang, a person from Shanghai, has CNY 20,000 (about $3,000 USD) he wishes to invest in a P2P loan
  • Wang makes an order with a few requirements, like interest rate, due date, and more, via Ripio Credit Network
  • The smart contract is settled in RCN; however, the value of the settlement is represented in USD in accordance with data supplied by the Oracle
  • The equivalent of $0.85 in USD goes to the ID verifier, $1.10 in RCN goes to the scoring agent, $111.69 in RCN goes to the cosigner, and $2978 in RCN is transferred to Pedro’s wallet provider
  • Then, the wallet provider trades those RCN for the amount of BRL requested by Pedro as a loan to buy his car

The end result is that Pedro is now committed to paying back a debt of about $3,000 USD in 24 monthly installments. Pedro agrees to return an amount that includes the commissions for the ID verifier and the score provider. Wang, the lender, pays the cosigner fee. Wang ends up earning a rate of return of about 9%, while Pedro pays an interest rate slightly higher than 9%.

Who’s Behind Ripio Credit Network?

Ripio is led by Founder and CEO Sebastian Serrano, the former CEO of DevsAr.

The company is registered in Grand Cayman under the name Ripio International. The company launched a testnet of Ripio Credit Network in August 2017. Full scale completion of the project is scheduled for December 2017.

Ripio Credit Network Conclusion

Ripio Credit Network, or RCN, is a blockchain-based lending solution that connects lenders with borrowers. Lenders can earn high interest rates on their money, while borrowers can access easy loans outside of the conventional credit and financial system.

Ripio is in development by the team behind Ripio (the wallet) and BitPagos. To learn more about Ripio Credit Network, or to participate in the upcoming ICO, visit online today at Ripio Credit Network.


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