Rubius’s Smart Escrow and Smart Loan are a Possible Solution

Rubius Inc., a fintech software startup, is growing into futuristic banking institution. They’re developing a suite of trustless financial products. The company aims to make credit accessible to the poor with its proposed Smart Escrow and Smart Loan applications.

Smart Escrow and Smart Loans utilize Ethereum Smart Contracts and Rubius’s Aryl wallet to make trustless credit a reality. Anybody would be able to create a Smart Escrow or Loan contract with Aryl.

The Rubius Smart Loan (RSL) is a trustless solution because it contains a built-in automatic repayment mechanism. Trustless solutions extend credit to the poor by eliminating the need for credit checks and banking history.

The RSL contract is designed to guarantee repayment of the loan. Here is a possible example of how Smart Loan might work:

1.) John opens his smartphone and accesses the Aryl app, planning to borrow $100 from his friend Muhammad.

2.) John will input the loan parameters like contract length, amount of money, etc., then submit the contract to Muhammad.

3.) Muhammad accepts reviews the proposal and accepts the loan, and the smart contract is automatically deployed to the Ethereum blockchain.

4.) The funds are then sent from Muhammad’s wallet to John’s.

5.) After the contract length expires, the funds will be automatically returned to Muhammad from John’s wallet.

The Rubius Smart Escrow (RSE) would work similarly, with the Smart Contract acting as holding vehicle for funds between two parties. Rubius CEO Joseph Rubin stated that “Although there are many issues that could arise with these contracts, they could easily be fixed by having the users pre-select another friend/contact to acts as an arbitrator of the agreements.” The arbitrator would be a neutral third-party who would settle any disputes that arise between the lender and borrower.

The full details of the RSL and RSE have not yet been worked out, Rubin admits, however the team plans to perfect the applications in early 2019.

The Smart Escrow and Smart Loan will most likely be paid with a cryptocurrency like Ethereum (ETH) or Rubius (RUBY) coins.

The Rubius coins are an ERC20 (Ethereum-based) cryptocurrency. That means the Rubius coins can be converted into Ether (ETH) through crypto-exchanges like Rubiex (the trading platform under development by the Rubius team).