BCRS utilizes CREDIT tokens to assess a borrower’s ability to repay. In other words, CREDIT token serves the purpose of representing a borrower’s creditworthiness. The platform users can utilize their CREDIT token balance to apply for uncollateralized loans. Both, the minting and burning of CREDIT tokens, are recorded on the smart contract. By making use of the CREDIT token balance of user, BASIC’s credit system minimizes the uncertainties with respect to borrower not repaying uncollateralized loans.

Overview of Platform Structure

Smart contracts allow secure negotiations between the concerned parties without the need of intervention by any third party. The terms of the agreement are recorded on the blockchain and are digitally verified and enforced on both the parties. BASIC adopted the blockchain infrastructure to simplify the processes for the users such as submitting the documents, evaluate the loan applications etc. which eventually reduce the costs associated with the overall loan disbursement process.

BASIC’s loan contract includes information on the user ID, loan amount, interest rate, and repayment period. The use of CREDIT and BASIC tokens on the platform for holistic risk management process is a critical aspect that makes BASIC as the next-generation crypto finance platform.

Here are some of the features of BASIC’s Oracle currently available on platform: