How does Creditcoin (CTC) make credit accessible to borrowers worldwide?

Some blockchain developers are introducing solutions for more specialized areas like credit. The Creditcoin platform is one such solution.

What is Creditcoin?

Creditcoin is a global payment system created in 2017 based on blockchain technology. It is designed to develop an efficient network for lending to users.

The Creditcoin platform provides financial companies and individuals a solution to integrate credit transactions into the blockchain network. Moreover, Creditcoin uses a collateral-based lending system rather than the traditional collateral-based lending system of the decentralized finance (DeFi) market. Thus, Creditcoin facilitates the creation of a borderless network of so-called "credit investments."

How does the Creditcoin platform work?

A unique feature of Creditcoin is the presence of an Ethereum Virtual Machine (EVM)-compatible universal smart contract, which allows coordinating development across multiple blockchain networks at once. In this way, developers can update smart contracts in various blockchains simultaneously, allowing them to create multichain applications.

Creditcoin's blockchain network is EVM-compatible, allowing developers to use the same programming language to create Ethereum-based decentralized applications (DApps). Thus, applications developed for the Creditcoin ecosystem will also be compatible with the Ethereum blockchain and other EVM networks, such as Polygon, Arbitrum, and Avalanche.

Creditcoin's universal smart contract allows developers to access data and events from other Layer-1 (L1 or Layer-1) blockchains, such as the identical Ethereum, Avalanche, or even Bitcoin. This approach dramatically simplifies the development of multichain applications, i.e., applications that can be managed through a single standardized interface across multiple blockchains.

In the Creditcoin network itself, participants are divided into four categories:

1. Investors — individuals or credit institutions that provide liquidity to the Creditcoin ecosystem in fiat currencies or digital assets, earning interest.
2. Lending Pools, also called "money markets," are the same liquidity pools to which investors supply their assets. Lending Pools are formed by pooling all the applications of investors and the issuer Gluwa Capital, which issues stablecoins and is one of the founding companies of Creditcoin along with Aella.
3. Fundraisers (lending intermediates) who attract active users to the Creditcoin ecosystem, especially those who do not have access to banking services. Credit and microfinance organizations, NPOs, or government agencies can be fundraisers.
4. End-User Borrowers — end-users of the Creditcoin ecosystem, which are individuals who do not have access to traditional credit services.

Creditcoin Token

The native token of the Creditcoin platform is CTC. The CTC cryptocurrency exists in its network and as an ERC-20 token on the Ethereum blockchain. In Creditcoin's network, the CTC token has several uses:

1. Conducting transactions. CTC tokens are used to pay transaction fees on the Creditcoin network. The size of the commission will depend on both the workload of the blockchain network and its computational parameters, which, on average, range from 0.07 to 0.1 CTC.
2. Staking rewards. The NPoS consensus allows users to stake the CTC cryptocurrency by participating in the distribution of rewards to contribute to the network's security.
3. Governance. Users can use CTC to vote on proposals to improve the Creditcoin ecosystem, influencing decisions and supporting decentralization.
4. Lending. Users can use CTC tokens as collateral to obtain and issue loans.

The CTC token was initially released in 2017 as part of an ICO: 200 million tokens were allocated for the initial token sale — about 33% of the maximum CTC of 600 million. According to CoinMarketCap data for December 2024, 412 million CTC tokens are circulating. The remaining tokens will be unlocked according to the asset allocation schedule set by the Creditcoin team.

In addition to CTC, there is another token in the Creditcoin ecosystem, G-CRE. The ERC-20 token G-CRE is used for interest accrual, trading, and management. However, the G-CRE token cannot be used directly in the Creditcoin network — for this purpose, it must be exchanged for CTC.