Credits

Interview with the founders of Credits.com: A blockchain platform (protocol with smart contracts)

The founder and CEO of the CREDITS platform Igor Chugunov and the co-founder Evgeny Butyaev told our editor about their project and how it can change the financial sector of the economics. Credits.com aims to change drastically the image of blockchain platforms by providing quick transactions with the lowest commission. Users can evaluate all the advantages very soon: the pre-Alpha version of the CREDITS platform is about to be launched this month.

Credits

Let's start with the basics. How was the idea of the blockchain project born?

Igor Chugunov:

As for me, I am a banking specialist and I have a significant experience in creation and development of financial and Internet services in banking and credit sphere.

All members of our team have been working with cryptocurrencies for a very long time and know very well the blockchain technology. We faced some serious problems when we couldn't use smart contracts in the Ethereum network due to the low speed of transactions. We noticed some global problems and, at the same time, a huge potential demand for blockchain platform on the condition that the transaction price as well as the cost will be lower.

This is how the idea of blockchain platforms was born. It can solve a lot of current problems related to blockchain and thus satisfy the demand in the market of blockchain developments.

I must say that it cannot be free of charge but the price should be reasonable.

The financial technology market is full of similar products. What advantages do CREDITS have?

In spite of rather ambitious statements of top banks the matter do not get any farther than declarations and one time deals. In fact there are no large-scale blockchain projects that offer a very low price and a very high transaction speed. But in a long term prospective there will be projects with similar characteristics in the market. I say it again, they do not exist now. But some projects are being developed.

As far as we are concerned, thanks to the fact that we have been working on the project for more than a year now, we have the MVP ready, and in a very short time, we will have the Alpha version. We will be able to satisfy the demand of our users in a short period.

Why do you think other products won't suit the financial market?

Most of blockchain networks process transactions for more than ten minutes, and this fact doesn't speak in their favor. For example, it takes some seconds to perform a transaction with a credit card. We've decided to create a more advanced innovative product with totally new technical possibilities of the network. In such a way we want to open new horizons of the market and increase the potential of the blockchain technology.

How will the project be developing after the final version release?

In brief, this will be supporting the projects based on this platform through a special fund and the release of new versions of the platform. The project will be developing continuously and we will be releasing new and more advanced versions. And speaking about the project support, that’s the popularization, support of users who create their applications on our platform.

Could you please tell us briefly about the technical aspects?

Evgeny Butayev: We achieve the highest processing speed thanks to new consensus search algorithm, advanced acceptance scheme, processing and storing of all the transactions and, to the work of the registry. Blockchain processes from some hundred thousand to 1 million transactions per just a second simultaneously. In this process of functioning, the system uses finite-state automaton (FSA) solution algorithm with the participation of node election model of a federative type. With the CREDITS platform, you can successfully solve the problem of performing quick transactions and at the same time keep all the blockchain principles and comply with the highest safety requirements. To enhance the data protection, we use the latest achievements in the sphere of encryption. A transaction cost may be, for example, up to 0,0001% of the USD. We will propose a graduated rate that works by a certain algorithm. It is very profitable to make micro-payments in the IoT with this system.

Who are the future users of the platform?

I would divide them in 3 big groups. They are the users who cannot use other platforms because of their following disadvantages:

  • Banking and loan organizations:

Thanks to the blockchain technology implementation and business process automation it is possible to decrease the expenses for data reconciliation and different mutual payments. The expenses for centralized activity will get lower as twice as less. The enhancement of personality identification mechanism and the simplicity of access to the stored data for all the process participants will decrease the expenses for KYC and new clients registration. And I am not speaking yet about international transfers through the SWIFT system. The blockchain platforms allow performing such payments much more rapidly and with much lower commissions.

  • Financial services

Thanks to using the blockchain technology you have great prospects at the financial sector: by storing the precise and reliable information about all the transactions performed you can not only save money, but also make transactions with a high transparency. You do not need to trust each other or a third party agent.

Advanced encryption technologies are especially good for payment industry as a tool for safety, high quality, low price and high speed of transactions as well as the measure to enhance online trading infrastructure.

  • IoT projects

This unique and functional platform is able to upgrade the relations between IoT and Distributed Registry Technology. Obviously, the servers that get actuated by the increasing devices for exchanging critically important data become overloaded and that results in low performance and low reliability. In this situation, there hardly will be a scalable technology other than Blockchain which guarantees a high performance of the whole system and, besides, provides safety and authenticity of data. Additionally, you can use Blockchain in everyday life much easier thanks to such a large number of transactions with the lowest commission.

That means, your system does not depend on any other platform?

- Yes, we have an independent platform, and it can be integrated with the third party applications for data exchange. A blockchain platform offers permanent and irreversible data sources which may track the true owner through the whole supply chain. This is why CREDITS platform can be used as general data storage in different fields.

ICO and Returns - What can the investors expect?

- I would evaluate a potential capitalization of projects according to the similar ones existing at the market. For example, the IOTA-project with the prototype version costs about 2 billion dollars; the Lisk is about 1 billion. I believe the growth potential is rather high and equals to at least 500 million dollars during the first year, and can be higher. This is a rather modest perspective. We all witness a dramatic growth of Bitcoin which attracts the attention of not only the crypto community, but of the state persons as well. With the increasing worldwide interest many countries become more and more focused on blockchain technologies, research the possibility of using them and develop the proper legislation for cryptocurrency. So the perspectives are nice for sure.

Who is in your team?

- Igor Chugunov: We have built a team of professionals who are open for new ideas and always try to be in the know of everything concerning innovative technologies and blockchain in particular. Valentin Antonov and Alexander Krasnov develop software. Evgeny Romanov is a community bounty manager responsible for PR in social networks and marketing. David Kolmachidze is an experienced investor and staff consultant in blockchain projects, he is focused on building partnerships and analyzing ICO marketing strategies

What are the plans for ICO?

- Evgeny Butyayev: One of the main goals of the project is the optimization of ICO conditions and making our investors feel confident about the correct choice they have made. Before the necessary conditions occur, the ICO investments are blocked by the means of escrow. This is about the "third trusted party" that keeps temporary the documents, money and other materials until all parties fulfill their obligations. The interested party cannot spend the cryptocurrency without getting the proper permission. The Ethers collected during the ICO cannot be spent without any necessity.

Blocking some of the ETH obtained during the ICO happens on the condition of endorsement from four credible persons in blockchain industry.  Here are our plans for ICO:

-        Use up to 10 million dollars for the project promoting and developing. This is almost half of the all collected finance (50%);

-        About 30 % will be blocked until the alpha version is released;

-        The rest of finance (20%) will be blocked until the first release.

How will 1 billion tokens be distributed? 

Evgeny Butyayev: We plan to collect and sell tokens for 20 million dollars totally. The finance will be distributed as mentioned before, i.e. some of it will be used for the project development, and some of it will be blocked. We think that we'd better not collect too much finance for ICO to prevent the bad impact on the tokens growth in the future. It is more rational to use the remaining tokens in 1-2 years for the product promotion, operating activities development and, client support. All activities should be performed through a special fund.

This is how we plan to distribute tokens: 20% will be spent for the operating activities, 60% for ICO, 15% for the founders, 2% for Bounty and 1% to advisers. It is necessary to say that the operational tokens will be blocked for 1 year. One part (10%) until the 1st of January, 2019, and the second, the equal one, until the 1st of January, 2020. All the unspent tokens will be deleted. The tokens of founders will be blocked for a year period as well.

The technical characteristics of your project are really impressive, tell what is already done and about your plans for the future?

Igor Chugunov: We keep on developing and enhancing the usabilities of blockchain technologies with the help of our consultants (advisers) Christian Ferry, Kyle Vanga, David Drake, Michail Kopilkov, Christopher Ozkana and other sound experts. The minimal prototype (MVP) has been launched successfully; the ICO event is planned on the beginning of the next year. We are going to release a number of updates to make our platform more reliable. The CREDITS users assistance remain our priority.

Additional services will allow operators to use the system with even more comfort. In May – April, 2018 we are going to release the Alpha version and to attract new users. I regularly visit the conferences for blockchain start-ups and financial technologies. It gives me the opportunity to get to know about all the novelties in the sphere of blockchain innovations from the first hand and to implement them properly in our project and to tell people about the CREDITS project.

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