CEO Alex Mashinsky says the “third wave” of the Internet’s “disruptive innovation” will come from the blockchain transforming fintech.
Comparing the blockchain to the Cambrian Explosion might be a gross overstatement, yet there is no denying the important role that this particular phase of fintech innovation will play in the coming years. CBInsights CEO, Anand Sanwal had this to say to corroborate the claim — “the financial industry will see more change in the next 10 years than in the last 100.” Thus, I might not be far off trying to draw an analogy between the current, exciting state of fintech and the Cambrian Explosion.
The Explosion, like the initial fintech boom that we are at the early stages of, produced a plethora of new multi cell life (Blockchain startups & ICO’s) that sparked an explosion of complex life forms (new disruptive financial services), following which, most of the new species became extinct in a relatively short period (58% startups in the financial sector fail in the first 4 years).
However, the species that survived expulsion after the Explosion were responsible for close to 90% of life on earth and so redefined the world. In the same breath, it can be estimated that as the fintech industry enters the blockchain phase, only a handful of path-breaking fintech firms will actually scale to the point that will force the legacy systems out of existence (and redefine finance as we know it).
At Celsius Network, my team and I believe everyone should have access to credit and that the new wave of fintech innovation is being spurred on by the distributed ledger technology known as the blockchain. Its most popular application, cryptocurrencies, are a hot topic of discussion in the financial circuits and the buzz has fueled the total market cap for the world’s cryptocurrencies to be more than $145B — trebling since the start of 2017.
With blockchain in mind and using an Ethereum-based smart contract marketplace, my team and I built the “Celsius Foundation” with the intention of providing an opportunity for everyone to participate in a membership ecosystem that allows members to engage in a peer-to-peer credit lending system.
Spurred on by my exasperation at the archaic lending methods of financial institutions, I developed Celsius so that certified members could extend loans out to other members for whom we did the credit score and risk analysis on behalf of the membership organization.
At first, we partnered with a dozen Ethereum-based solution providers so that an individual can join and be issued a Celsius smart contract with a credit score and credit limit in minutes. Our platform will conduct the Know Your Customer (KYC) and Anti Money Laundering (AML) review, digital identity and social media verification and social score, analysis of user uploaded FICO score and past e-commerce transaction history to tally the score for a user’s unique Celsius credit score. This score will then be accepted by our partners and the lending members.
At Celsius, we hope to become the future of consumer credit.
To read more about Celsius’ business proposition, check out our spread on the ICO Crowd Magazine here: ICO Crowd Magazine (September 2017 Issue).
We are currently presenting at several conferences, find the list of events at our site: https://celsius.network. Find out what we mean when we present the new parameters of the redefined E=MC² equation.