What is the Libra Credit (LBR) – How Does it Works? (Easy To Understand)

What is the Libra Credit (LBR)? – Friends, in this article we will tell you about a very interesting project, the name of which is Libra Credit (LBA). Exploring information sites, we did not find detailed information about Libra Credit, so we decided to write it ourselves.

What is Libra Credit cryptocurrency?

LBA cryptocurrency is a Libra Credit digital token platform. The essence of this platform is to provide users with the possibility of obtaining loans in cryptocurrency. To build a decentralized ecosystem, the Libra Credit platform will use the Ethereum blockchain.

Project developers want to develop an algorithm that would allow completing the lending process in 5 steps:

  •  Application;
  •  User verification (scoring) and valuation of the collateral asset;
  •  Confirmation or rejection of the application;
  •  Transfer of collateral;
  • Issuance of credit.

As you probably saw, the term “scoring” is indicated in the list, and if you are not closely cooperating with banks as a matter of duty, then you probably do not know this word. Therefore, here is his definition:

Scoring is one of the ways to assess a client’s solvency, which is based on a variety of methods, including analysis of credit history, property availability, wages, monthly expenses and so on.

So, given that the field of cryptocurrency is in the state of the germ, and the number of frauds in it is becoming more and more, Libra Credit will use the scoring mechanism with double credit risk.

Libra Credit Features

The Libra Credit Ecosystem will consist of 5 key aspects:

• Unique credit models based on AI;

• Client base of Jaxx, Bread and other wallets;

• Partnerships with stablecocks;

• Cooperation with exchanges;

• Networks for checking users.

All activities on the platform will be controlled by smart contracts, which will give confidence to both parties that the terms of the transaction will be fulfilled. Inside this ecosystem will be “walking” own LBR tokens that can be used to access the platform, exchange, remuneration and voting on the platform.

If you schematically depict the ecosystem of Libra Credit, then it was illustrated as follows.

Libra Credit Features

Let’s sort out the work of the future platform. So, imagine that you have any cryptocurrency that you do not want to change, but want to get fiat money. In this case, you are accessing the Libra Credit platform and applying for a loan. If we understand correctly, then passing authorization on the platform, you will be tying up your crypto wallet. After submitting the application, Libra Credit analyzes the transactions that you made inside your wallet, estimates the number of cryptocurrencies on it, etc. Against the background of the obtained results, Libra Credit will set you the maximum amount for the loan and the size of the collateral.

Then, you must transfer a pledge to the smart contract, after which you will receive your money. Together with information on the size of the loan amount and collateral, you will receive information about the interest rate and crediting period.

Libra Credit Perspectives

We believe that the Libra Credit platform and its LBR cryptocurrency have great chances to take a significant place in the cryptocurrency industry. After all, Libra Credit creates functionality similar to banking, only in a digital format, which is simply necessary for the normal functioning of the digital money industry.

Where to buy LBR tokens

Less than a month ago, the LBR token was added to the listing on its first cryptocurrency exchange, and a month later it can be bought on HuobiOKExGate.io and many others. The cost of 1 LBR is 6 cents, with a capitalization of $ 11 million.

The Libra Credit algorithm laid down the maximum number of tokens – 1,000,000,000 LBR.

Conclusion

Friends, the Libra Credit project is really very interesting, so we recommend that you visit its official website, www.libracredit.io, and get more information about it.