Introduction & Features
Credit Protocol Usage Examples
Cost & Economics
Friend in Debt - Our First Demonstration of the Credit Protocol
Friend in Debt - Market Opportunity
Use of Funds & Roadmap
CP and FiD Roadmap
Friend in Debt is an extremely powerful tool not only for individual borrowers, but for lenders as well. As previously discussed, FiD gives each user the power to act as a lender to their friends in a jurisdiction agnostic format, allowing the unbanked not only to establish credit lines, but to individually issue credit to his or her associates—effectively acting as a self-run bank. Because FiD removes the high fees and overhead associated with traditional banking, lenders and borrowers can avoid the restrictive costs and oft-changing regulations that are prohibitive of natural, free-flowing transactions that occur within a social network.
In wealthier economies, banks are such an entrenched institution that many are surprised to learn vast swaths of the world operate with limited or no access to banking or credit. In Southeast Asia, Africa, the Middle East, and Latin America, such financial disadvantages burden regional economies, restrict fiscal growth, and obstruct individual actors from exercising power over their financial transactions.
Despite relatively little access to large financial institutions, many in these regions possess application capable mobile phones enabled with both data and wifi. Such individuals present an obvious market opportunity for FiD, as they have a clear incentive to manage their finances in a secure, digital fashion from their phone—further demonstrated by the rise of ‘mobile phone minute currency’ in eastern Africa, a system far inferior to FiD in terms of scale and efficiency.
Even in countries with widespread access to banking, many institutions do not offer the same easy ACH transfers available in the United States. Venmo, which requires access to a bank account, has gained popularity in parts of the U.S., but cannot be used anywhere outside of the U.S. Similarly, while Wechat Pay and Alipay have grown near ubiquitous in China, non-Chinese usage of these systems is almost nonexistent.
Existing financial transaction systems across the world generally require users to pay fees for transfers. The few mobile apps that aim to improve financial liquidity require bank accounts and have limited market reach, implying a huge demand for a cryptocurrency based financial transaction application like Friend in Debt. While FiD is much more than a cryptocurrency wallet, even popular crypto wallets are often too complicated to promote adoption by the average non-technical user. FiD boasts a user-friendly interface and simple account creation to sign up new users with enthusiasm and ease.