As previously described, Colendi project differs from other microcredit and credit scoring platforms because of its genuine components in its ecosystem.
We present you the 3rd part of our Colendi Ecosystem series to continue explaining the components and tools Colendi is comprised of, showing these parts of the Colendi Project with details. In the previous blogs:
you can find out what the some of the Colendi components are, while getting to know better the functions of protocol and non-protocol layer contributors in our ecosystem. In this part, you will learn more details about other components of the project, Colendi Token, Colendi DApp, and Colendi Card.
Colendi Token can be described as one of the essential tools of our self-governing, decentralized credit score evaluation and microcredit platform. To be performed the functions of Colendi token, as a first step, it is necessary for users to create Colendi ID, their financial passport, through Colendi app and other integrated platforms.
When a user goes to the Colendi application, there will appear a screen to log in and register. To register, the user will be prompted for a pin number, a private password, and they will also be given a 12-letter code that we heavily recommend all our users save to protect their accounts in case the password is lost. Already registered users can simply log in to access the Colendi DApp.
Once inside the Colendi application, users will go to the ID page. Below the main screen, they will be able to see additional pages titled: Score, Wallet, and Settings. On the ID page, they can see their saved names, automatically generated and unique Ethereum wallet address, their IPFS profile, their Colendi ID and their network type.
All in all, every users’ unique features make it possible for each Colendi ID to be users’ self-sovereign digital identity including their relevant information in a private and protected model. When users log in to their Colendi account, only the automatically generated and anonymous Colendi ID will be shared with the users on the network to keep all other data secure. It means that all access to identity parameters is only possible by user-owned password. Another function of Colendi token, the Score Query System is designed for the merchants and lenders in the ecosystem to learn about their potential borrowers’ Colendi Score. Thus, lenders can make a more comprehensive risk analysis in the lending process with the help of data partners’ contribution to users’ credit score after lenders pay score query fees. However, under Colendi privacy and reliability principles, user-owned and tertiary data sourced from data partners in the ecosystem are either encrypted with users’ public keys or anonymized, and may only be processed correctly in the Colendi network after checking with the user approval with the data partners.
Furthermore, the hashed signature of data is kept on the Ethereum blockchain, and Colendi cannot edit or relate a data segment with the user’s ID parameters. The data owner is only authorized to access each data segment. All network related events in a decentralized data storage system are recorded to make instant updates on users’ Colendi score. Accordingly, a financial rating of each user is shaped by not only smartphone and social media data, user inputs but also their Colendi credit history that shows transactions and repayment performance. The process that produces Colendi Score of each Colendi user is as follows:
On the score page, there will be four links that users are able to click to link their accounts to Twitter, Facebook, LinkedIn, and Gmail. As they compare accounts one by one, they’ll see their first digital Colendi Score uniquely calculated by our protocol for each user by examining social media data, smartphone data, transaction data, phone data and more than 1,000 other parts of personal information. The algorithm will then store this score in the smart contracts of the Ethereum blockchain, where it will become a decentralized Colendi Score.
On the wallet page, users will automatically receive 15 Colendi Tokens, COD, and 0.01 ETH on the TestNet. In order to send or receive COD, users can interact with their friends or contact other people within the Colendi Community, and consequently observe the necessary changes made in their wallets. Below the COD amount, there is a ‘Pay with Colendi’ button. Paying with COD allows users to pay their debts in COD; however, this section is still under development. When the user presses the button to refer to the loan, there are the three dummy companies, Dunder Mifflin Paper Co., Acme Co., and Hooli, which are the traders of Colendi for our Alpha product( alpha product bloguna link ver). If a user clicks on one of them, a certain amount ready to be sent will appear. When Colendi Dapp will be launched on the Mainnet, users can access microcredits through this interface. On the settings page, personal information and security settings can be edited along with Colendi’s contact information. In the ‘Score Settings’ page, users are under the control to bind their accounts to create the Colendi Score. This is a specifically implemented settings mechanism which enables the Colendi users to control their credit Score.
After a detailed explanation of the characteristics of the application presented by Colendi, at this stage, it is necessary to introduce our project’s another tool, Colendi Card, which is able to incorporate the most common payment method to the Colendi application. The users can acquire their physical Colendi Card and connect it to their Colendi ID and Colendi Score.
In order to change the traditional payment habits, Colendi Card can be seen as the revolutionary power in the digital market economy. Considering general population’s needs to encounter proper new ways for financing, Colendi shines as a disruptive concept offering new generation opportunities for finding the necessary funding for any small business or bringing the borrower and lender together in a platform. Colendi envisions an expanding user access by the integration of this Colendi Card as a tool to enable its users to access credit at any Point of Sale (POS) easier than ever. Therefore, regardless of the inclusion of shopped merchants in the Colendi ecosystem, people can access financing through Colendi in any merchant. Users who have the Colendi Card can create Colendi Scores for each of their transactions. These can be efficiently handled without the risks implied by typical credit cards, such as excessive credit withdrawal and high-interest rates. Furthermore, users can efficiently transact with merchants in the rapidly-growing Colendi ecosystem, or anywhere a MasterCard®️ and Troy®️ is accepted.
As Bülent Tekmen, CEO and co-founder of Colendi put it, Colendi Card can be considered another step helping to achieve the aim of financial inclusion, especially for the unbanked and underbanked around the globe because it helps to remove traditional barriers and bring them closer to regular interactions with the banking and financial system.
As is also seen clearly in every detail of our project’s tools, we aim to establish the Colendi Platform on a global level. With the distinctive characteristics of Colendi project, we believe that we will have more comprehensive understanding about our existing and potential community members’ problems and needs, and we look forward to the alternative solutions for these problems with the help of our product mechanism.