Blockchain is a wave of technology that has emerged globally in recent years, and all major countries around the world are actively exploring its integration with traditional industries in different fields. infrastructure, making it clear that it belongs to the information infrastructure of new infrastructure.
In the spirit of the kernel of blockchain, it is based on the decentralized way to reorganize the way of information transmission and storage, and its essence is the reorganization of credit structure. For the financial industry, which is also based on credit, blockchain seems to be a natural tool to upgrade the traditional financial industry, which can help us achieve more inclusive and mutually beneficial cooperation and lead us into a new financial paradigm.
Asymmetry in the supply and demand of funds
The history of people’s demand for capital is a long one. As far back as the Tang Dynasty in China, peer-to-peer lending services for small and micro amounts have emerged and spread to the entire East Asian cultural sphere. In the modern financial era, although there are many large banks and financial institutions, this kind of peer-to-peer banking system is still very popular around the world.
This is mainly due to the asymmetry between the supply and demand sides of capital.
On the supply side, although large banks have stronger deposit-taking and credit capacity, they can ensure the safety of users’ funds and stable but lower interest income. However, for individual wealth, large banks have very limited significance. The rate of money flow has a strong correlation with the growth of wealth. Letting money lie in a bank account certainly does not add value as much as letting cash flow through legally and safely. Seeking a stable way to generate money is a real need for many people.
From the demand side, both individuals and small and micro enterprises often have some capital needs, but the modern banking system, with some hard system restrictions certainly cannot meet all the capital needs. According to the Bankers’ Questionnaire Report for the fourth quarter of 2020 released by the People’s Bank of China, the loan demand index for micro and small enterprises has always been higher than 60% since 2017, especially in the first half of 2020, the loan demand index for micro and small enterprises is close to 80%, and the loan demand index for micro and small enterprises in the fourth quarter is also 74.7%. In contrast, the bank loan approval index was only 53.6% in the fourth quarter of 2020. For many individuals and micro and small enterprises, there is a huge space for capital demand.
The information asymmetry between supply and demand of funds is the pain point encountered by the traditional financial system at present. But the problem is that so far, there is no scientific allocation system in the market to accomplish banking with full trust. Most of the credit still comes from human care, such as the emotional trust between friends and relatives.
When it comes to solving the financial credit problem, the role of blockchain becomes apparent.
GSN emerges at the right time
GSN is the world’s first decentralized social banking service system, which reconstructs the credit model based on the decentralized spirit of blockchain and completes the matching of users’ capital needs with smart contract technology, making the whole process more transparent, secure and reliable.
In GSN’s service system, everyone can get the dominant right to use funds, and all users can provide liquidity or get sufficient liquidity support from the platform in a peer-to-peer form to maximize the efficiency of using funds and enhance personal wealth.
In a traditional bank, the user’s money is deposited in the bank, which is equivalent to authorizing the bank to perform various financial operations, such as lending and investment. However, in GSN platform, users’ money will be placed in their own wallets. When users decide to provide services, GSN platform will use smart contracts for aggregation to find users who need to receive fund services, and the flow of funds is done in a completely peer-to-peer manner, and user information will be presented in anonymous form to ensure maximum information security of users. After providing funds, users will receive additional rewards from the platform, so as to motivate more users to participate in the economic cycle of GSN platform. The GSN platform is a platform that provides an additional incentive for users to participate in the economic cycle.
GSN advocates a social economy that is inclusive, mutually beneficial and win-win, connecting all classes, communities and groups around the world to find corresponding channels for different capital needs and opportunities for wealth creation. In a more inclusive, open and reciprocal financial environment, not only does it enable everyone to have an abundant life, it also enhances the resilience of economic growth of the whole society.
In terms of technology, GSN, based on blockchain technology, will provide an open source personal credit data management framework DCDMF (Distributed Credit Data Management Framework) based on a specific cloud storage provider, through which users can quickly build personal credit data, quickly Export credit-related data and conduct social activities.
In GSN’s system design, each person can choose whether to participate in the platform’s economic cycle matching mechanism based on the credit report provided by the platform, and the ledger data from the blockchain browser, allowing the market to operate under a decentralized service. In this way, the choice based on credit is returned to the users instead of being delivered to third-party intermediaries. Market participants are allocated based on the total amount of data through the AI algorithm of the GSN platform and use the blockchain system to gain revenue.
It is based on an efficient and secure circular system that GSN has 5 major advantages over traditional banking institutions.
Decentralized: smart contract system, no escrow funds
No regional restrictions: scalable and borderless worldwide
Double-book system: records cannot be tampered with and can be checked at any time
Revenue: 5% block bonus
Security: when the success rate is less than 90%, the assets will be returned to the original path
The decentralized social banking service platform is just the first step of GSN to optimize the traditional financial system, and the platform has bigger expectations for the future development. After the rising number of platform users and the gradual expansion of the bank’s balance sheet, GSN will start the second phase: creating global trade to provide financial support for global business and supply chain. In the future, with the successful promotion of the global trade program, GSN will conduct crowdfunding for international inter-infrastructure construction and contribute to the further advancement of global trade!
History proves that in the crypto market, the market will always reward and reward those investors who are brave enough to explore new things and believe in growth. As an innovator in the field of FinTech services, we have reasons to believe that GSN will be an important direction for future financial development, and now is the best time to understand, study, and even participate in this revolutionary platform.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/let-everyone-have-an-abundant-life-gsn-redefines-the-social-economy/
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