Vivigle service: a credit bureau in the cryptocurrency world
It's not so long ago that public institutions and traditional bank institutions as well as all active participants of the classic financial system viewed new opportunities of cryptocurrency technologies with a pinch of salt and distrust. Banks and governments viewed cryptocurrency rather like an enemy, without noticing those favorable qualities that are associated with it. Now, we see that this attitude has started to change little by little and all participants of the traditional financial sector increasingly resort to using new blockchain developments.
Lending organizations and insurers would love to bring in new clients and offer to the broad market new cryptocurrency-based products, however, constraining factors exist. The key one is the absence of the ability to identify a client and check it to assess risks of repayment of a loan or the probability of occurrence of an insurance event, speaking of an insurance contract.
One might wonder - anonymity, one of the basic ideas that attracts users of cryptocurrency networks, makes it significantly difficult to perform any checks. However, a mechanism allowing companies working with cryptocurrency products to check their clients, potential partners and counterparties exists already today.
Vivigle service is expected to become the requisite guide that will connect banks and insurance companies with their clients, ensuring complete security of all transactions made.
Insurers and banks yet stay away: what problems are current in the cryptocurrency market?
Bitcoin and all other cryptocurrency payment instruments have earned a rather controversial reputation. It’s no secret that sometimes they are used for money laundering and avoidance of taxes, as well as that some percentage of cryptoassets has been involved in grey market transactions in selling drugs, arms and other restricted products. In addition, cases of commonplace fraud have place, when developers of various cryptocurrency projects abscond with huge amounts of money that investors entrusted them.
All of this creates certain problems for implementation of cryptocurrency systems into the traditional economy. Thus, for example, banks simply cannot lend to users of cryptocurrency wallets because, on the one hand, they know nothing about potential clients and cannot forecast the probability of repayment. And, on the other hand, they do not want their funds to be eventually used in fraudulent or other illegal transactions – it is big risk for business.
Of course, the potential of the cryptocurrency market is great and it represents a lot of quite active clients who would bring a great profit through lending, insurance and products as well as other services.
At the same time, until the legal framework is created and an instrument for conducting a comprehensive check of users of cryptocurrency wallets is in place, the question of real integration of bank, insurance and state structures is off the table. In this context, their support and participation would also have a positive effect on the overall state and development of the cryptocurrency market.
There is a solution - Vivigle service will help to check the reliability of cryptocurrency clients and partners
Understanding the desire of potential players that for the above reasons cannot join the market having a great potential, as well as assessing the overall scope of such work, Vivigle developers have created a full-fledged service that can accumulate necessary information on users and the situation of their wallets. In its own way, Vivigle will become an equivalent of credit history for banks and companies working in other segments, assisting them in making decisions regarding cooperation with owners of certain wallets.
The key concept of the service consists in providing participants with all necessary information that would evidence the reliability and reputation of users of cryptocurrency wallets. A wallet owner registered in the system provides all information solely voluntarily, which demonstrates to other participants that such user has no problems with performance of its obligations to counterparties, nor problems in terms of legal compliance.
The rating and feedback system, assessment of activity and a check of all available funds for cleanness – these are just a few aspects among a vast complex of features that system uses when analyzing wallet users.
Ultimately, as Vivigle develops and expands, it will become a global tool that will ensure transparency within the cryptocurrency world and will help to build business relations not on simple trust but on real data.
For bank and insurance organizations, the system will become a convenient tool for analyzing their clients. Besides basic information on an account's situation and transactions entered into through the wallet, Vivigle will provide information on what percentage of "toxic" funds is on a user's account. Feedback and business activity indicators that it has within systems, turnover of funds through all of its wallets registered in the system will also be taken into account. Eventually, a user's presence on the service alone will indicate that it takes care of its financial history and is not afraid to show the purity of its intent.
Development of the service: building credit histories
Right now, the founders of Vivigle hold negotiations with various participants of the financial system, explaining all plus sides of using this service. As the user base expands, this system will become more attractive to financial structures that will begin to join it on their own.
The platform operates not only as a check service – within Vivigle's social network, one can network with other users and, that is why, various insurance, bank and other financial structures will want to advertize their services and bring in additional clients, placing their ads and directly addressing users.
Of course, a lot of efforts will have to be taken for implementation and expansion of the system, yet one should start using Vivigle right now, because building a positive credit history takes time. At present, the service has no direct competitors that could professionally provide same analytical services. In many respects, for this reason as well, the system will develop very quickly and gain momentum, bringing in new major players step by step and, with them, additional useful features.