Chinese Entrepreneur Improves Financial Services with DCC

sunnysideupfang (55)in #bitcoin • 6 years ago (edited)

Like many people, I have to use banking services very often. Whether I need to open a place to save my money or take a loan, banks are the most secure option I can have. Most banks have been around for a very long time and they have developed to become good at what they do so the process of saving your money or getting a loan from a bank is easy. The problem, though, is that easy does not necessarily mean ethical.

Banks are some of the biggest and most profitable corporations in the world. They have a lot of control over money and that gives them a lot of power. Most banks are aware of this and they take advantage of this power to make sure their profits continue to swell. Even at my local bank, which is quite small compared to banks like Chase or Barclay’s, there is a wide gap between the return rate given to savers and the interest rate given to borrowers. It’s not possible to avoid banking services and people just have to agree to the banks’ terms. Financial services are an essential part of daily life so taking a stand against banking services is likely to do cause self-harm.

While people cannot stand against banks, other banks can. A new company called Distributed Credit Chain (DCC) is taking the concept of fight fire with fire into the banking industry.

Transparent Pricing of Financial Services

Most banks serve the people that live near them and this creates a location-based advantage. Nonetheless, because banks are motivated by greedy, they try to expand out of the location of their main branch. Many banks even make regular attempts of global expansion. Even with expansion, banks remain limited to customers who live near their new branches.

Banks want access to more customers, and DCC gives them this. Distributed Credit Chain gives banks a platform where they can provide services to anyone in the world. Banks will no longer be limited by geographic location and would be able to easily expand their services to any part of the world. Because banks are motivated by the greed of having more customers, they will use DCC. However, DCC is not a service for selected banks and is meant for every bank.

When banks will come to DCC to gather more customers, they will have to compete with other banks. Banks used to have the advantage of being able to charge whatever they wanted in their location but DCC will remove this advantage as any bank will be able to provide services to any location, and no bank will enjoy the advantage of having no competition.

Once banks start offering their services on DCC, they will have to compete in the price of the services. People will obviously pick the ones with the better pricing. Banks will have to work to make their services more appealing and so they’d have to compete at lowering prices. DCC will make the good banking service prices available to anyone in the world. It will use the blockchain to make the access to services secure, and it will also use the blockchain to make the transactions for the services transparent and unchangeable.