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SikobaPay is a blockchain based system for registering, tracking and canceling debts. It is a global and decentralized credit platform based on peer promissory notes, within the blockchain.

The project, which is a creation of monetary systems expert Alex Kampa, has as its main objectives to reduce dependence on money, boost local economies in developing countries and allow the unbanked to establish a credit history.

How does it work?

Participants who know and trust each other in real life grant each other credit lines in the Sikoba system, then they can pay each other without using fiat money.

These peer credit relationships are governed by contracts with specific conditions, rate structures and refund rules.

The use of promissory notes instead of cash is widely popular in developing countries to overcome money shortages. In these cases, SikobaPay provides the technology to make informal credit much more effective by providing legal security to users , because the debt is registered in a blockchain.

In addition, it allows users to carry out transactions beyond their immediate circle of trust, thanks to the platform identifying trusted intermediaries; while automatically deleting the circular debt, thus reducing the need for cash settlement.

All this, in turn, are part of the great advantages of Sikoba. And in comparison with loans or value transfer platforms, with this system participants can pay each other with promissory notes, even in the absence of fiat money, cryptocurrencies or other assets.

Whenever possible, debts are cleared through a compensation process, which is a system of continuous compensation among participants. Fiat money or crypto currencies will be used when there are no credit links between participants, or to pay outstanding balances when necessary.

Sikoba is being designed as a decentralized system with the goal of being independent and self-organized, eventually.

«Sikoba is the result of my lifelong interest in monetary theory. We see a future in which money will be diverse again, with many different issuers, with a variety of credit relationships, where people will be actively interested in the type of money they want to use. Our goal is to provide the tools to achieve that vision,” Kampa mentions on the company’s website.

How do you determine the creditworthiness of a user?

Sikoba users should grant credit lines only to users (individuals and companies) they know and trust personally. For that reason, the developers of the platform made the decision not to measure creditworthiness as such, as it could encourage some users of the system to grant credit lines to users they really don’t know, just because of their credit rating.

Therefore, Sikoba will indicate to the users that they do not fulfill their obligations and will introduce a simple qualification system , based solely on the lines of credit that other users grant to a user, which reflects the combined confidence of other users.

In this system, a user will only have exposures to the users to whom he has explicitly granted credit.

So, for example: if Bob trusts Alice and Charles trusts Bob, and Bob allows what is known as “credit conversion” for Alice, then Alice can pay Charles. However, Charles will only see Bob as his counterpart, and not Alice.

In the event that a user does not fulfill his obligations, he will have to deal with the default values ​​outside the Sikoba system, although Sikoba will mark the users who do not fulfill their obligations. The advantage of using this platform is that creditors will have strong evidence that there is an obligation.

Business model

Sikoba charges small transaction fees for using the platform, for which users must purchase Sikoba’s SKO tokens.

The system is designed to keep transaction rates permanently low, while SKOs should tend to be more valuable as the volume of transactions increases.

This is a system very similar to how ETH is used to pay on the Ethereum network . Therefore, this will not be a participation in the company. Sikoba (the company) will develop and “incubate” Sikoba (the network) and then unleash it as an independent, decentralized and self-organized entity. The long-term value lies in the network much more than in the company.

Marketing will focus on existing, commercial or social networks. Sikoba will provide efficient and economical solutions for the b2b commercial credit system. It will allow groups of companies, which do business with each other on a regular basis, to do it on credit without the traditional costs associated with bank credit or factoring.

The upcoming Sikoba app

The SikobaPay mobile application is essentially made and will be launched very soon. The mobile interface will not have all the features to accurately program credit rules, but it does have enough options to be useful not only for individuals, but also for artisans and small business owners who need to carefully manage their credit relationships.

In addition, there could be a simplified version of the application that will be very basic and usable even for people who are not used to smartphones.

Therefore, Sikoba developers still plan to make some minor improvements to the user interface. And they have already completed the generation and reading of QR codes, which are an essential feature for use in the real world.

Currently, they are working to configure the back-end server for testing their MVP (minimum viable product) and connect to an SMS service, to verify mobile phone numbers.

In addition, multilingual support has been added for both the SikobaPay web interface and the SikobaPay mobile application.

Do you want more information? Visit their website.

Website: https://www.sikoba.network/

Twitter: https://twitter.com/sikobaNetwork

Telegram: https://t.me/sikobaFeed

Medium: https://medium.com/sikoba-network

YouTube: https://www.youtube.com/channel/UC3nqhotmBxwn-wUjI4EziPg/featured

LinkedIn: https://www.linkedin.com/company/sikoba

Facebook: https://www.facebook.com/sikobanetwork

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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO, and should not be attributed to CriptomonedaseICO.

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