WeTrust wants us to “imagine a world where financial services are affordable”. What does that mean? Mainly, it’s about insurance and loans.
These two aspects of finance are more expensive than they should be, due to administration costs and combating fraud. What if their processes were… automated? Blockchain-based smart contracts could be the answer.
WeTrust Removes More Expensive Middlemen
WeTrust co-founders Patrick Long and George Li give Daniel and Jon their elevator pitch and stress the need for a system based on mutual trust. Can technology keep a record of social capital as well, removing the need for expensive third-parties?
They explain the concept of a ‘ROSCA’ — that’s a “rotating savings and credit organization” for those unfamiliar; a kind of savings and lending club where a small group of people help each other out financially. This happens via a form of “reverse auction”, with members each bidding to decide who receives the money they need.
ROSCAs have actually been around for years, and they’re useful to all sorts of people whether well-served by banks or “unbanked”. The social capital they’re based on keep default rates low.
Smart contracts make ROSCAs available to a much larger market. Even if the group itself remains small, people from a far wider variety of places can participate if there’s more information on who can trust whom.
WeTrust’s MVP is built on Ethereum, and the two founders explain that decision and how the platform could change in the future. They also talk about stablecoins and other tokens including Ether, Colu, government-based tokens and WeTrust’s own native token, TrustCoin.
Listen to the episode to hear how to use WeTrust’s platform and what services are coming up next.
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