(Creditcoin) White Paper

A Borderless
Credit Investment Network

Creditcoin
Whitepaper
Published March 2022
1st publication - November 2019
Abstract
Creditcoin is a permissionless blockchain designed to facilitate a borderless credit

investment network. At its most basic level, Creditcoin matches and records loan
transactions between parties. Credit transaction history is stored objectively, allowing
transacting parties to audit risk and screen potential investments.
By bootstrapping transparency into its ecosystem, Creditcoin can help facilitate the
trust and market information required for efficient lending markets, freeing DeFi from its
over-collateralization requirement, enabling new types of economic relationships, and
bridging the gap between cryptocurrencies and the real-world lending economy.
The versatility of the Creditcoin network, its decentralized community involvement,

and the engagement of Creditcoin Ecosystem users permits a paradigm shift in the
expansion of credit lending markets producing more robust, efficient economies -
agnostic of currency platforms.
Decentralized platforms which leverage both lower costs of verification, and reduce
the cost of networking, can enable new kinds of decentralized markets designed to
empower end-users, rather than platform owners. Helping us build a future of financial
inclusion and credit for all.
2
Table of Contents
Background 5
Problem Statement 7
The Solution - Creditcoin 9

Technical explanation 9
How Creditcoin helps us solve the problem 9
Reducing the Costs of Verification 9
Reducing the Costs of Networking 10
The Creditcoin Ecosystem 13

The Creditcoin Network 13
Credal - The Creditcoin API 15
Creditcoin Implementation 16
Stakeholder Advantages of the Creditcoin Network 17
The Future of Defi Credit Lending and Creditcoin 21
Total Addressable Market 21
What makes our vision unique to DeFi 21
User Flow 23
Fundraiser’s Flow 24
Investor/Lender’s Flow 24
Collector’s Flow 25
Creditcoin Tokenomics 26
CTC vs G-CRE 27
Creditcoin’s Unique Token Model 27
Creditcoin Distribution 28
The Creditcoin Token Sale 30
Mining and Mining Pools 31
Governance 32
Regulatory, Compliance, and Legal Considerations 33
Team 34
Gluwa 34
Aella 36
Creditcoin on the Web 37
[ Appendix ]
User Flow 39
Fundraiser’s Flow 39
3
Table of Contents
I. Find a Loan Offer 39

II. Make a Repayment 39
III. Make a Repayment with an Exemption 40
Investor’s Flow 40
I. Find an Investment Opportunity 40
II. Make an Investment 41
III. Collect a Repayment 42
IV. Transfer a Bond 42
Collector’s Flow 43
I. Purchase a Bond 43
Conclusion 44
Software Architecture 45
Introduction 45
Purpose 45
Scope 45
Overview 45
Architectural Goals and Constraints 45
Use Cases 46
User Use Cases 46
Investor and Fundraiser Use Cases 47
Subsystems and Layering 48
Processes 49
Deployment 50
Implementation Notes 50
Configuration Notes 51
Creditcoin Workflow 52
Exchange G-CRE to CTC 52
Register Ethereum Address 52
Show Address ID of the Registered Address 52
Exchange G-CRE to CTC 53
Using the Registered Ethereum Address 53
Using the Exchange() Transaction On G-CRE Smart Contract 53
Review the Updated CTC Balance 53
Create Investment Orders 53
Create Investment Offers 54
Create Deals 55
Exempt Loans 56
Transfer Loans 56
Repay Loans 56
Demonstration 57
4
Background
Since Satoshi Nakamoto’s release of the Bitcoin whitepaper, the usage of blockchain
technology and by extension, cryptocurrencies, has rapidly expanded. Distributed
ledger technologies including blockchains share several key properties:
• They represent a distributed database with no central point of control (or failure).
• They rely on peer-to-peer communication between nodes to achieve consensus.
• They (generally) afford transparency whilst maintaining pseudonymity.
• They provide transaction immutability/irreversibility.
• They operate via programmed logic.
In conjunction, these properties ensure that blockchain networks are able to record
tamper-proof and immutable data in an open and participatory environment. This
confers a number of economic advantages.
Firstly, by transparently storing immutable data through decentralization, blockchains

allow various parties to agree on the ‘true’ state of information. This is fundamental to
the operation of cryptocurrencies, which allow parties to reliably and independently
verify their transactions, without the need for a trusted intermediary to settle and verify
that transaction data. In economic terms, blockchains reduce the “costs of verification”1).
Informational failures or a-symmetries often lead to poor market outcomes – the
transparency and certainty of blockchain can help overcome this.
The second economic advantage is a reduction in the “cost of networking”2). In today’s

world, one of the most important currencies we have is our digital data. Yet centralized
platforms such as banks, technology giants etc. monopolise this data to extract rents
and influence our economic behaviour.
Decentralised platforms can overcome these centralized network effects. By recording

data on a transparent and permissionless platform, no single party is afforded
informational advantages or monopolistic control over a platform’s usage. Instead, end-
users can retain sovereignty over their accumulated data records.
Finally, cryptocurrencies have leveraged these two effects to great benefit. Verifying
payment is now easy and secure (cost of networking), meanwhile anybody with access
to the internet can create a wallet and exchange cryptocurrencies (cost of networking).
Combined with the as-of-yet untapped potential of programmable money to enable
new kinds of financial instruments, cryptocurrency will inevitably form the backbone of
tomorrow’s financial system. A system in which people are empowered to be their own
bank.
1 Catalini, Christian, and Joshua S. Gans. 2016. “Some Simple Economics of the Blockchain.” NBER Working Paper No.
22952. Accessed (21/05/2021): http://www.nber.org/papers/w22952.
2 Ibid.
5
Background
However, cryptocurrency still lacks a developed market for credit-based lending and
borrowing. As DeFi’s collateralised lending model cannot bridge the gap between crypto
and real-world lending, a new type of platform for cryptocurrency credit investments
must be established. A platform which leverages the inherent advantages of distributed
ledger technologies, openness and trustless verification, to reduce existing information
asymmetries and enable a more efficient global credit market.
The developing world represents the ideal grounds for such a network and further
blockchain/cryptocurrency adoption. Currently, low trust in authorities, poor market
information and underdeveloped financial infrastructures all inhibit economic growth and
security.
Creditcoin aims to build a blockchain which helps overcome these barriers, facilitating
a borderless, open and efficient market for credit designed to serve the millions of
unbanked and underbanked people in the developing world. We believe this is the
natural evolution of Nakamoto’s original vision for cryptocurrencies - the creation of a
sound currency for everyone regardless of borders or nationality.
6
Problem Statement
Credit Markets in Developing Worlds
Globally, over 1.7 billion people still live without access to the formal financial system.
These underbanked and unbanked people face systematic challenges when trying to
access formal lines of credit. Even though access to credit represents a vital component
of economic growth in developing countries, credit markets remain chronically
underdeveloped and inefficient. For example, in Nigeria, the private credit to GDP ratio
was 11%, compared to 191% in the United States.3)
Limited access to credit inhibits the growth of developing countries. In Africa, limited
access to credit is cited as the single biggest constraint on growth for micro, small and
medium enterprises (MSMEs)4). And globally, the credit financing shortfall is estimated to
be worth $5 trillion, spread across over 130 million different enterprises.5) Put simply, this
is a problem arising due to limited market information, poor infrastructure and restricted
networks.
Without access to ‘thick’ and open financial records, primarily credit history, many
lending institutions cannot reliably assess risk or offer loan products. In other words,
banks often suffer from adverse selection in less developed financial systems.6)
This exacerbates the usage of informal credit lines where credit information is left
unrecorded or siloed. Indeed, the OECD has noted that SMEs lack of “credible financial
records’’ is their primary obstacle to accessing credit.7)
This creates a vicious cycle, in which people are forced into informal and expensive
channels of lending, which further entrenches their lack of reliable financial history.
Beyond this, accessibility to the formal banking system and wider services remains
limited due to accessibility limitations such as ID requirements. As a result, millions of
people do not accumulate credit history.
In cases where credit history is recorded, this information is accumulated by the

lending intermediary, rather than the end-user. By creating siloed information, lending
intermediaries are able to exert market power, exploiting information asymmetries to the
detriment of the end-user.8)
A similar problem also exists for local lending intermediaries. Whilst local lending parties
3 World Bank, “Domestic Credit to private sector (% of GDP)”, Accessed (02/06/2021): https://data.worldbank.org/
indicator/FS.AST.PRVT.GD.ZS?locations=NG-US
4 Babajide Fowowe, “Access to finance and firm performance: Evidence from African countries”, Review of Development
Finance, Vol. 7 No. 1, 2017, pp.6-17
5 SME Finance Forum, “MSME Finance Gap”, Accessed (22/05/2021): https://www.smefinanceforum.org/data-sites/
msme-finance-gap
6 Svetlana Andrianova, Badi Baltagi, Panicos Demtriades, & David Fielding, “Why do African Banks Lend so Little”,
Oxford Bulletin of Economics and Statistics, Vol. 77, No. 3, pp.339-359, 2015
7 OECD, “New Approaches to SME and Entrepreneurship Financing: Broadening the Range of Instruments”, 2015
8 OECD, “Facilitating Access to Finance, Discussion Paper on Credit Information Sharing”, 2010.
7
Problem Statement
may be able to effectively assess risk and deploy loans, either through local knowledge
or data analysis techniques such as machine learning, any records they generate are
siloed or untrustworthy. Without the means to reliably audit the lending performance of
an intermediary, third-party investors cannot reliably invest lending capital. As a result,
institutions, or even individuals, struggle to raise lending capital effectively.
In summary, there is a vicious cycle of poor market information leading to poor market
outcomes. The lack of trustworthy and open credit history makes the process of
verification (risk assessment) very difficult. Solving these informational asymmetries
is crucial if we are to expand the availability of much-needed financing instruments,
increase capital-allocation efficiency in developing markets, and drive financial inclusion
forwards.
8
The Solution - Creditcoin
Technical explanation
Creditcoin is an interoperable blockchain-agnostic lending protocol designed to match

and record cryptocurrency bullet-loan transactions. At its most basic level, Creditcoin
connects investors/lenders and fundraiser/borrowers who register matching loan
condition requirements, such as interest rate and maturity dates. Once parties are
matched, they are free to view the credit transaction history of any matched parties in
order to evaluate any potential investment decisions. Once parties agree to a match,
they settle their transactions on a separate blockchain (currently BTC, Ethereum,
ERC20 and Gluwacoin are supported) with every stage of the loan process recorded
on Creditcoin by mining nodes using a plugin to monitor those separate chains. This
creates an immutable record of credit transaction history, including loan conditions and
repayment records for each loan and wallet.
Each announcement to the Creditcoin blockchain costs CTC. Currently, Creditcoin

supports several functions designed to allow various users to: (1) lend, borrow, and
repay cryptocurrency using the Creditcoin Network; (2) have decentralised/uninhibited
access to other users for the purposes of lending, borrowing and repayment of
cryptocurrencies; (3) interact with the network and communicate with other users for
the purposes of lending, borrowing and repayment; (4) trust the transaction history of
borrowing, lending and repayment transactions recorded on Creditcoin for purposes
of verification; (5) View and possess a decentralized public history of users credit
transactions which expands with each transaction; (6) Validate transactions through
the mining of blocks, receiving Creditcoin in return; (7) Provide an open lending
infrastructure that not only facilitates business activities, but versatility in identification
credentialing and credit scoring.
How Creditcoin helps us solve the problem
Reducing the Costs of Verification
Real-world lending necessarily relies on trust. Trust is based on the ability of lenders,
or other investing parties, to gather reliable market information from which to assess
the risks of a prospective lending investment. The most valuable form of information for
assessing risk is attributable credit history. By building a blockchain to record on-chain
credit transaction events, Creditcoin offers a way to record immutable, secure and open
credit transaction data for purposes of verification and risk assessment.
In its most basic form, credit history is tied to wallet addresses. This means that
individuals without access to a bank, or other financial institution, can accumulate
credit history as long as they hold a crypto wallet. The only requirement is the use of
a Creditcoin compatible chain (currently BTC/ERC20), allowing Creditcoin to serve the
9
unbanked.
Cryptocurrencies leverage blockchain to create a robust and auditable registry of

transactions9), ensuring that transaction data recorded on Creditcoin is highly reliable.
Therefore Creditcoin can effectively be used as a tool for auditing and risk assessment
purposes. Lending intermediaries can use the credit history of individual wallets to help
assess the risk-profiles of any potential borrowers and make informed lending decisions,
thereby reducing adverse selection risks. However, it should be noted that this value
can only be fully realised within a decentralised ecosystem once provable identity
verification layers are added to the Creditcoin ecosystem. This step is planned for phase
3 discussed in further detail below.
Additionally, by recording loan-cycle transactions on Creditcoin, lending intermediaries

can better raise further lending capital. By transparently recording their loan
transactions and performance on Creditcoin, fundraisers (lending intermediaries) build
credit. Potential investors can reliably audit business performance. By improving market
information, counterparty risk and uncertainty is reduced, trust is increased, and a more
efficient flow of lending capital into lending intermediaries can be achieved.10) See phase
2, discussed in further detail below.
By recording transparent credit history data for the purposes of verification, Creditcoin
bootstraps transparency into its ecosystem, reducing informational asymmetries
between transacting parties. Credit information sharing has been proven to reduce
default rates.11) Therefore, by improving market information Creditcoin decreases the
risks of investment for lending and investing parties, and by extension lowers interest
rates for credit-worthy end-users.
Whilst not directly related to Creditcoin, programmable money (smart-contracts) will

serve to further reduce uncertainty within the wider Creditcoin ecosystem - by creating
additional loan conditions and enforcement mechanisms.
Reducing the Costs of Networking
Network effects describe the increasing economic utility a network offers as its user
base grows. Facebook is considered a valuable network due to the number of parties it
lets you connect with. However, networks on centralized platforms also create market
power for the network holders.12) In the age of digital platforms, the most valuable
9 Fran Casino, Thomas K. Dasaklis, Constantino Patsakis, “A systematic literature review of blockchain-based
applications: Current status, classification and open issues”, Telematics and Informatics, Vol. 36, pp. 55-81, 2019
10 Maik Dierkes, Carsten Erner, Thomas Langer, Lars Norden, “Business credit information sharing and default risk of
private firms”, Journal of Banking & Finance, Volume 37, Issue 8, 2013, pp.2867-2878
11 Samuel Fosu, Albert Danso, Henry Agyei-Boapeah, Collins G. Ntim, & Emmanuel Adegbite, “Credit Information sharing
and loan default in developing countries: the moderating effect of baking market concentration and national governance
quality”, Review of Quantitative Finance and Accounting, pp.55-103, 2020
12 Cathy Barrera, “The Blockchain Effect: Network Effects without Market Power Costs”, Accessed (24/05/2021): https://
medium.com/mit-cryptoeconomics-lab/the-blockchain-effect-86bd01006ec2
10
asset these networks accrue is data. In such a model, platforms can monopolistically
leverage or sell this data for their own advantage, extracting rents and creating market
inefficiencies.
The same market dynamics affect the global credit industry. A limited number of parties
possess the information required to assess risk - be it a person, business, private broker
or any other kind of lending intermediary. The majority of this valuable credit data is
siloed and monetized by existing credit platforms, as opposed to the end-user. The
problem is one of data-ownership.
By decentralizing data and building a permissionless blockchain, Creditcoin seeks to

bypass the network effects built into the closed-shop financial system of credit, giving
people the opportunity to control their own accumulated credit history. Any party can
record their credit history on Creditcoin for any other party to view, audit, and potentially
transact with, creating an open network for credit information sharing. By reducing
informational gaps, parties within credit markets face greater competition for capital,
increasing overall lending whilst lowering interest rates for both end-users and lending-
intermediaries13).
This open economy model allows any party to use Creditcoin in order to compete
for funding, create a business, invest their money, form a lending pool or build an
application on top of Creditcoin. All without any form of centralized control.
By decentralizing credit history and opening-up market information to all market

participants, the possibilities for competition will increase. Investors can access a new
class of investment product. It will also improve the market for borrowers and lending
intermediaries, who can draw from a wider pool of competing investors, as all parties
compete on a level-playing field with open market information.
Reputational incentives are considered more important for facilitating effective credit
markets than legal enforcement contracts14). Creditcoin is designed to function as an
open reputational ledger. As the network expands, the reputational damage caused by
repayment failure will increase. This will create a self-reinforcing network incentive for
repayment as the network grows, reducing loan default rates, and facilitating overall
lending volume increases15).
Transparent networks can also have more widely positive macroeconomic effects. Credit
information sharing reduces the likelihoods of banking crises, especially in developing
13 Tullio Jappelli, and Marco Pagano, “Information Sharing, Lending and Defaults: Cross country Evidence”, Centre for
Studies in Economics and Finance, Working Paper No. 22, 1999
14 Ernst Fehr, and Christian Zehnder, “Reputation and Credit Market Formation: How Relational Incentives and Legal
Contract Enforcement Interact”, IZA Institute of Labour Economics, Discussion Paper No. 4351, 2009
15 Tullio Jappelli, and Marco Pagano, “Information Sharing, Lending and Defaults: Cross country Evidence”, Centre for
Studies in Economics and Finance, Working Paper No. 22, 1999
11
countries, due to its moderating effect on adverse selection and bad/risky loans16). A
transparent and open standard for international credit history can help build a more
stable and secure global financial system.
Open networks are the most valuable networks and first movers often build the biggest
networks. The internet was the first open information network, Bitcoin was the first
open value network, Ethereum was the first open programmable-value network17), and
Creditcoin is attempting to become the first open credit network.
16 Berrak Büyükkarabacak & Nevan Valev, “Credit Information sharing and banking crises: An empirical investigation”,
Journal of Macroeconomics, Vol. 34, No. 3, pp.788-800, 2012.
17 Aaron hay, “Crypto and Network Effects”, Accessed (25/05/2021): https://medium.com/coinmonks/crypto-and-
network-effects-e66e69e754d3
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The Creditcoin Ecosystem
The Creditcoin Network
The Creditcoin Network consists of 1) Investors that fund the loan processes by adding
Ask Orders onto the blockchain, and depositing funds when loans are made, 2) Lending
Pools that comprise an aggregation of all Ask Orders in addition to Gluwa Capital, 3)
Fundraisers or Lenders that add Bid Orders for Loans in to the market, and End-User/
Borrowers that create the demand for funds and therefore make the market. Posting
transactions or retrieving transaction data to/from the Creditcoin Blockchain will utilize
Credal - the Creditcoin API. These stakeholders can be further explained as follows:
Investors - Investors can be individuals or large lending institutions interested in

engaging in the Creditcoin Credit Investment network, facilitating loans for fundraisers
and borrowers, essentially floating the market with liquid funds. Generally, these
stakeholders are interested in earning fixed interest on pools of liquidity whether that be
fiat or crypto. Instead of selling crypto to earn, they can simply loan and earn interest
and still maintain their holdings. With Creditcoin, there is also the added benefit of being
socially responsible and helping the developing world establish credit markets, histories
and bringing consumers out of poverty - while advancing decentralized lending. In the
case where an Investor is also an independently funded Fundraiser doing business
in their respective location - Credal will allow seamless access to transact on the
Creditcoin Blockchain. This will be discussed in the Creditcoin Implementation section to
follow.
Lending Pools (or Money Markets) - A Lending Pool is formed through the aggregation
of investors’ Ask Orders on the Credticoin Network. They also can be created with the
13
technical assistance of Gluwa Capital which facilitates the onboarding process for the
Creditcoin blockchain, in addition to providing wallet, exchange, and investment services
through the Gluwa-wrapped stable coin, Gluwacoin. Gluwa Capital is a venture-debt
fund that invests in startups aimed at progressing the defi lending landscape. Gluwa
Fund LP is the limited partnership that exists between Gluwa Capital (General Partner)
and Investors (Limited Partners). If you are a fintech lender/startup seeking funds to lend
among your community, Gluwa Capital can help through direct investment or by loan
tranches. Not only does this build the network of funds available to fundraisers around
the world, but it also provides greater access to capital for borrowers who typically
do not have access to traditional lending. Gluwa Capital also utilizes the lending pools
created through its Gluwa Invest products - namely the Gluwa Savings Accounts, Bond
Accounts and Prize-Linked Savings Accounts.
Fundraisers (or Lending Intermediaries) - Fundraisers generally are lending

institutions, on the ground in their respective locations, whose business model
is to provide lending services to their community constituents - or the end-user/
borrower. Fundraisers register Bid Orders on the Creditcoin blockchain, thus creating a
marketplace for lending and borrowing. A fundraiser can take the form of a small to large
lending institution, a microfinance lender, an NGO or government agency interested in
improving the lives of the unbanked or underbanked. Additionally, these fundraisers
understand that the technology needed to establish a lending network, creating secure
loan transactions, and credit histories for its users can be costly, slow to build, and
insecure - and therefore see the merits of an immutable decentralized ledger brought
to bear by the Creditcoin blockchain. Fundraisers will also be able to take advantage of
Credal - the Creditcoin API - allowing them to connect and transact with the Creditcoin
Blockchain. This will be discussed in the Creditcoin Implementation section to follow.
Borrowers (End-Users) - With a population of 1.7 billion unbanked or underbanked,

the borrower is generally the individual in their respective community who has little to
no access to traditional banking or lending institutions, and therefore is captured in a
cycle of potential poverty. The empirical merits of microfinance, or micro-loans are well
documented in the developing world, and are therefore one of the main tenets of why
the Creditcoin Network supplies an efficient means towards increased liquidity and
economic prosperity for unbanked individuals. With the advent of DLT and smartphones,
never before have global citizens been in a position to regain control of their data, their
finances (their ability to quickly and securely transact), and their identity. Decentralized
identity will allow consumers to access their immutable credit histories, and, through
verifiable credentials provided by lenders and other institutions, be able to permission
and grant access to future lenders or other institutions through their sovereign wallet.
This will be discussed in more detail in Creditcoin Implementation.
If you are a Fintech Lender Startup, or a lending intermediary looking to secure funding
for your borrowers, please visit the Gluwa Capital homepage to inquire about eligibility
14
for potential investment. The sooner you are on boarded to the Creditcoin blockchain,
the sooner you can access the vast ecosystem of of Creditcoin investors, as well as
be able to utilize Gluwa wallet functionalities, and Credal - the Creditcoin API, making
it easy for you to establish connections to the Creditcoin blockchain, record your
transactions, and begin gaining the efficiencies of transacting on a blockchain platform
for your users.
Credal - The Creditcoin API
Much like what Infura does for the Ethereum Network, Credal does for the Creditcoin
Network. Credal is an API middleware layer that radically simplifies the development of
your lending app or platform by connecting to the Creditcoin Blockchain with its white-
labeled solution.
If you are a Fintech Lending startup, a defi startup, a small to large lending institution, a
microfinance/microloan service provider, an NGO or government entity associated with
lending in the developing world, or simply a “builder” - a blockchain developer - who
wants to build an dApp that transacts on the Creditcoin blockchain, Credal allows the
following:
• Access to a vast pool of loaned crypto or fiat funds - a money market of funds with
a variety of term limits and return levels.
• Record on an immutable and secure ledger with provisioned access to loan/
lending/financial transactions.
• Utilize a standardized methodology for credit scoring, or complement your own
technology.
• Access to a role-based, analytics dashboards highlighting your investments,
your loans, your access to lending offers, deals or pools of funds, and view your
success rates or performance.
• Ability to deposit funds or drawdown funds with instantaneous settlement and
processing.
Credal allows you to build this flexibility into your business, with all the advantages of
DLT that the Creditcoin Network offers.
For investors/lenders who do not require access to funds via Gluwa Capital, and who just
want to build and take advantage of the public Creditcoin Blockchain, Credal offers a API
call cost model. Please contact support@creditcoin.org for more information.
Credal Documentation can be found here.
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Creditcoin Implementation
Phase 1 Phase 2 Phase 3
Building the Creditcoin Making markets and The equilibrium and

Blockchain protocol (CTC) achieving economies of efficiencies of decentralizing
and the creation of a new scale: Onboarding private credit markets: Integrating
credit investment economy. investors, building Credal with other blockchains for
- the Creditcoin API, identity management, and
and creating investment proliferation of the network.
products.
• Defining a standardized • Building wallet, payment • Expand the presence of

loan process for app, Gluwa stablecoin, Credal among financial
recording transactions on investment products institutions to continue
a blockchain. like bonds and savings to onboard lenders onto
• Whitepaper 1.0 is accounts with expansion CTC blockchain.
published - Defining to address multiple • Fully integrate most (if
tokenomics, and how currencies. not all) fiat and crypto
it will be utilized on the • Expanding public platforms toward
blockchain. blockchain seamless transactions.
• Staging the ICO to documentation, as well as • Build out sovereign
launch the CTC token, stimulating engagement identity and verifiable
and launching the CTC with both the trading and credentials within the
mainnet. mining community. Gluwa wallets - to be
• ICO funds future • Onboarding first lending transferable among
milestones for Gluwa and organizations as well as lenders in building credit
CTC. investors. histories.
• Launching CTC on a • Build Credal - an API layer • Build out CTC credit
variety of exchanges to communicate with the scoring algorithm as a
CTC blockchain. rich data attachment - to
compete with traditional
credit scoring systems.
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Stakeholder Advantages of the Creditcoin Network
With the Creditcoin blockchain and lending

network protocols already in place, and with
the development of the Gluwa Wallet, the
Creditcoin API - Credal, and the presence
of the Credticoin (CTC) token live on
exchanges worldwide, the following are the
advantages for the Creditcoin Network and
its users as the network progresses toward
Phases 2 and 3.
Investors
Phase 2 Phase 3
Transparent Investment Opportunities for P2P lending

Transparent and immutable blockchain- Through the development of P2P lending
native data enables investors to reliably platforms based on distributed networks of
audit and assess the risk of credit trust, The Creditcoin ecosystem will be able
investment opportunities. to bypass further layers of intermediation,
enabling direct lending for greater investor
High rates of return returns and lower end-user costs.
By removing several layers of
intermediation, the Creditcoin ecosystem Smart Contract lending
offers investors a chance to earn higher Smart contract lending affords investors
yields than traditional global debt/bond greater control. For example, a lending
markets. pool focused on medical aid may use
smart-contracts to create spending
Access to new investment opportunities restrictions for borrowed funds, limiting
By leveraging the borderless nature of loan expenditure to on-chain registered
cryptocurrencies, the Creditcoin ecosystem hospitals. This ensures that funds are
connects investors to global credit spent as intended. Similarly repayment
investment opportunities. By enabling new mechanisms can be enforced via smart
forms of intermediation, novel investment contracts.
opportunities can be created, including
social-impact calibrated loan products.
New debt market products with higher
yields than global indices, issuance
of bonds and clearing and settlement
servicing will gain increased efficiencies in
cost and speed.
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Liquidity / Lending Pools
Phase 2 Phase 3
New sources of capital fundraising Access to new financial instruments

By leveraging the borderless nature of Lending pools open the door to various
cryptocurrencies, lending pools operating forms of management such as lending
on Creditcoin can raise funds from funds, socially-responsible investing, tax
anywhere in the world. harvesting, and a variety of derivatives, and
securitized instruments like credit default
Brokerage fees swaps, and fractionalized loan-backed
Through the process of distributing capital portfolios. The growth of the Crypto
to lending intermediaries, auditing risk, and Lending industry will necesitate these
ensuring legal compliance, lending pools movements into such asset classes and
such as Gluwa Capital earn brokerage fees. instruments.
Transparent investment portfolio - lowers Securitization of Lending Pools

uncertainty and risk. As funds become agnostic to which chains
By reducing the costs of verification, and currencies are transacted seamlessly
lending pools can perform cheap and in trading, portfolios could be built and
reliable auditing of Fundraiser’s lending securitized at various risk levels and sold
portfolios. By guaranteeing transparency, across trading platforms facilitating not only
Creditcoin reduces the risks of investment. a shift in bond markets, but a dynamic facet
Similarly, potential investors can audit of the asset class. We believe that the
lending pools before investing. Defi Lending industry traverses a variety
of markets, instruments and asset classes,
Borderless investment opportunities and how they utilize economic theory,
By leveraging the borderless nature of fundamentals of finance, and predictive
cryptocurrencies, lending pools can behavior (behavioural economics), and
transparently invest their funds and receive has the potential to effect revolutionary
interest payments from anywhere in the social and economic change for those
world with low fees. underserved global markets and lifting
millions out of poverty.
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Fundraisers / Lending Intermediaries
Phase 2 Phase 3
Better fundraising opportunities - Credit-scoring information

derived from transparent investment Once widely adopted, the credit scores of
portfolios. end-users can be assessed via their credit
Increased business cycle performance history on Creditcoin, reducing loan risks.
transparency reduces investment
uncertainty, thereby attracting more and New opportunities for competition.
cheaper capital. Siloed data practices give industry
Borderless nature of crypto allows incumbents market power through
fundraisers to attract capital from anywhere informational advantages. By improving
in the world with low transaction fees. transparency and therefore market
information, the Creditcoin ecosystem
Process cost-reduction should enable a more efficient credit
By matching and recording loan marketplace.
transactions on the blockchain, Creditcoin
automates the record-keeping process, Enables new types of intermediaries
reducing cost pressures on the value chain. The Creditcoin ecosystem would enable
new forms of intermediation. Examples are
Real time payment servicing information as follows:
At the loan level, lenders will see underlying • Directly invest funds into a credit union
loan performance in real time - thus in Africa. The Credit union then deploys
increasing transparency and efficiency those funds to various individuals who
of loan payments - and to purvey that act as lenders within local communities.
information to qualified investors. • Non-governmental organisations
set up a development programme
based around low-interest loans.
‘Investors’ can provide liquidity to
this development programme and
transparently track the usage of funds.
19
End-Users
Phase 2 Phase 3
Efficient means of transacting with a Build immutable Credit history on a

mobile wallet decentralized ledger
Consumers have an ability via mobile Consumers will now have a new credit
to connect to funding and commit history recorded for all time using DLT
instantaneous transactions with their - safe and securely stored away from
personal digital wallet - removing the need the large institutional credit scoring
for access to accounts behind traditional mechanisms that currently exist behind
banking walls. proprietary walls. This history will be owned
by consumers, but with permissioned
Cheaper access to capital viewing privileges given to prospective
Economies of scale within the Creditcoin lending institutions. Lending institutions
ecosystem allow greater access to capital may have their own scoring mechanism, but
without exorbitant fees built into traditional Creditcoin will devise their own standard on
lending. Mass scale also creates a greater the network.
level of choice in how borrowers select
lenders. Self-sovereign Identity
Through the use of DIDs, decentralized
identity will now provide sovereign identity
to consumers - thus giving end-user
consumers the ultimate privilege and
ownership of their data, their finances
and their identity - stored and secured
on chain and in their personal sovereign
wallet. Credit scores and histories will now
be permissioned and trustless. Lending
institutions will now issue verifiable
credentials to end-users for stages (and
completion) of the loan process
20
The Future of Defi Credit Lending and Creditcoin
Total Addressable Market
• With 1.7 billion unbanked (some sources say it is as high as 2 billion), Creditcoin
hopes to allay the cycle of poverty exhibited by developing country populations cut
off from traditional banking infrastructure.
• There are 1033 large scale Micro-Finance Institutions (MFIs) globally that offered
their services to 116.6 million borrowers in 2015. These financial service providers
(FSP) have a gross loan portfolio of US$92.4 billion and US$58.9 billion of
deposits18).
• In 2018, 139.9 million borrowers benefited from the services of MFIs, compared to
just 98 million in 2009. Of these 139.9 million borrowers, 80% are women and 65%
are rural borrowers, proportions that have remained stable over the past ten years,
despite the increase in the number of borrowers. With an estimated credit portfolio
of $124.1 billion, MFIs recorded another year of growth in 2018 (+8.5% compared
to 2017)19).
• Microfinancing is only available to 20% of the 3 billion global population classified
as “poor” while the global market for Microfinance is projected to reach US$313.7
billion by 202520).
• Globally, the notional value of bonds outstanding totalled $106 trillion at the end of
2019, with a range of $17 trillion–$21 trillion in annual issuance over the preceding
decade21).
What makes our vision unique to DeFi
Unlike most DeFi protocols which rely on over-collateralized lending, Creditcoin

recognizes that this form of lending is unviable for most real-world applications, where
most businesses and people are already capital-constrained. For DeFi to scale, a
different kind of platform must be established.
Smart-contract based over-collateralized lending is enabled by the following factors.
• Collateralised lending and forced liquidation removes counterparty risk for lenders.
• DeFi lending protocols do not interface with the off-chain world, but rather rely
exclusively on verifying on-chain information. Therefore they do not encounter
the ‘last-mile’ problem. Whilst blockchain offers immutable and costless on-chain
18 MIX, “2015 Global Outreach & Financial Performance Benchmark Report”, Accessed (04/06/2021):https://www.
themix.org/publications/2015-global-outreach-and-financial-performance-benchmark-report
19 Convergences, “Global Microfinance figures: What are the trends?” , Accessed (04/06/2021): https://www.
convergences.org/en/119115/
20 Reportlinker, “Global Microfinance Industry”, 2021, Accessed (03/06/2021): https://www.reportlinker.com/
p05799111/?utm_source=GNW
21 SIFMA, “2020 Capital Markets Fact Book”, 2020, Accessed (24/06/2021): https://www.sifma.org/wp-content/
uploads/2020/09/US-Fact-Book-2020-SIFMA.pdf
21
verification, how do you interface effectively with the off-chain world to assess risk
and enforce loan repayment?22)
In contrast, real-world lending necessarily relies on trust. Trust which is based on the
ability of lenders, or other investing parties, to gather reliable market information from
which to gauge risk. The most important form of information is credit scores/history.
Credit history on Creditcoin provides a source of credit information which can be reliably
used for verification purposes, given that a decentralized blockchain guarantees the
immutability and security of on-chain transaction data.
Nevertheless, aggregated on-chain credit information is insufficient for effective

assessment of individual borrower risk, especially when relatively fewer transactions
exist on the blockchain. Rather, local lending intermediaries are best positioned to
assess risk, being able to draw from a wider pool of data than credit history alone.
Furthermore, counterparty risk cannot be avoided without collateralization. Whilst
transparency can mitigate risk, off-chain mechanisms to enforce or encourage
repayment are still necessary until enforceable smart contract models improve.
To this extent, the Creditcoin ecosystem recognizes the need for intermediaries who
assess risk and enforce repayment. As such, Gluwa will first be working to integrate
its foundational Creditcoin blockchain layer with existing financial institutions and
fintech lenders during phase 2. By focusing on existing institutions and adopting an
intermediated model which relies on formal B2B contracts, the Creditcoin network can
quickly achieve scale and mitigate counterparty risk.
In phase 3 Creditcoin is envisioned to function as a heavily disintermediated credit

platform, in which intermediation processes are further decentralized towards a wider
pool of ecosystem stakeholders based on open participation. Enforcement in phase 3 is
achieved primarily through reputational incentives, the most determinant factor of credit
market effectiveness23). As the network grows, the reputational incentives for repayment
will increase, enabling the network to scale effectively.
Thus, Creditcoin can bridge the gap between crypto-lending and the real-world
economy in a way which current DeFi protocols are inherently unsuited towards.
22 Catherine Tucker, Christian Catalini, “What Blockchain Can’t Do”, Harvard Business Review, 2018, Accessed
(28/05/2021): https://hbsp.harvard.edu/tu/4167ec3d
23 Ernst Fehr, and Christian Zehnder, “Reputation and Credit Market Formation: How Relational Incentives and Legal
Contract Enforcement Interact”, IZA Institute of Labour Economics, Discussion Paper No. 4351, 2009
22
User Flow
Purpose
This section covers a step-by-step guide on how a Creditcoin user will use the
blockchain through a loan-cycle. From the perspective of an investor, how to create a
loan offer, find a fundraiser for the offer, learn the fundraiser’s credit history, and make
an investment. For a fundraiser, how to search for a loan offer, request for the loan and
make a repayment. The following outline portrays an abridged version of the User Flow.
(A more complete description of the User Flow is in the Appendix.)
When do you pay Creditcoin?

Creating a transaction on a blockchain is essentially making an announcement.
Creditcoin is a proprietary, utility token that provisions the recording of transactions
on the Creditcoin Network. Creditcoin is not required to read transactions, but to write
new information on the network, the network charges Creditcoin to have transactions
recorded on a new block on the blockchain. Depending on your behavior, each loan
cycle will cost from 0.07 to 0.1 CTC to get completed. While Bitcoin has only a send
transaction, the Creditcoin network supports a transaction type for each step of a loan
cycle. Investors and fundraisers pay Creditcoin to the Creditcoin network to process
each stage of their loan. It should be noted that depending on the complexity of the
transaction, the average transaction cost of 0.01 CTC can vary.
23
User Flow
Fundraiser’s Flow
On the Creditcoin network, a fundraiser is an account that borrows funds from another
account.
I. Find a Loan Offer

A Fundraiser will start a loan-cycle by creating a bid order describing the loan
conditions of their choice. The bid order is announced to the Creditcoin network
and attracts potential investors.
1. Create a Bid Order

2. Find Investment Offers
3. Create a Deal
II. Make a Repayment

A fundraiser can repay the full amount to finish the loan-cycle without the
involvement of the investor.
1. Lock a Deal
2. Transfer the Repayment to the Investor
III. Make a Repayment with an Exemption

Optionally, a fundraiser may negotiate with the investor for an exemption.
1. Negotiate an Exemption
2. Send a Partial Repayment
Investor/Lender’s Flow
On the Creditcoin network, an investor is an account that lends funds to another

account.
I. Find an Investment Opportunity

An investor will start a loan-cycle by creating an ask order describing a loan offer.
The ask order is announced to the Creditcoin network and attracts potential
investment deals.
1. Create a Ask Order

2. Find Matching Bid Orders
3. Review a Fundraiser’s Credit History
4. Create Investment Offers
24
User Flow
II. Make an Investment

If an investor likes a deal, he can accept it by registering the investment
transaction on the Creditcoin network.
1. Transfer the Investment to the Fundraiser

2. Complete the Deal
III. Collect a Repayment

involvement of the investor. However, an investor may choose to exempt a partial
amount of the repayment.
1. Negotiate for an Exemption

2. Accept a Partial Repayment
IV. Transfer a Bond

An investor may choose to transfer the ownership of a loan, bond, to another
account. We call the new account a “collector.” Once a bond is transferred to
a collector, the repayment of the loan will be sent to the collector. This allows
investors to liquidate their bonds before the maturity of their loans.
1. Searching for a Collector

2. Searching for a Repayment Order
3. Accepting a Repayment Order
Collector’s Flow
On the Creditcoin network, a collector is an account that receives the ownership of a

loan from another account.
I. Purchase a Bond
A collector can buy a bond from the investor to transfer the ownership of a loan,
bond, to his account. Once a bond is transferred to a collector, the repayment of
the loan will be sent to the collector. This allows collectors to acquire bonds closer
to maturity.
1. Searching for a Bond

2. Create a Repayment Order
3. Searching for an Accepted Repayment Order
4. Close a Repayment Order
25
Creditcoin Tokenomics
The Total Creditcoin token supply will be 2 billion tokens. The token sale is capped at
200 million tokens (10% of total supply).
As stated in the user flow, Creditcoin is a proprietary utility token that fuses together a
decentralized credit investment economy. It facilitates transactions between lenders
and borrowers, and provides for the recording of transactions onto the Creditcoin
blockchain, thus creating an immutable record of credit histories for borrowers. As
the ecosystem/network grows, lenders will have an increasing array of borrowers with
scored credit histories to choose from, and vice versa.
For lenders, the purchase of creditcoin gives them access to the network, and therefore
allows them to add lending Ask orders into the market with the ability to close loan deals
with prospecting borrowers.
26
CTC vs G-CRE
The Creditcoin ecosystem involves two distinct tokens which represent the same
underlying asset. CTC is the Creditcoin mainnet token used for transaction fees and
mining rewards (based on Substrate). G-CRE is the vesting and trading token (based on
ERC-20). G-CRE can be exchanged into CTC using a one-way hook.
CTC
• Creditcoin Mainnet Token: CTC is the token used on the Creditcoin Mainnet. It is
exclusive to Creditcoin’s Substrate blockchain network.
• Creditcoin Network Usage Fee: CTC is used as a transaction fee to add
transactions to the blockchain. CTC transaction fees are returned to the user after
one year (detailed explanation below).
• Mining Reward: Miner’s who run Creditcoin nodes receive CTC rewards in return.
G-CRE
• Ethereum ERC20 Token: G-CRE is based on the ERC20 Ethereum network
standard. It is not directly usable on the Creditcoin mainnet.
• One-way CTC swap: G-CRE can be exchanged/redeemed/swapped for CTC at
any time using a one-way hook. Note that CTC cannot currently be swapped for
G-CRE.
• Trading/Vesting token: G-CRE can currently be traded on exchanges. G-CRE is
the vesting token used by the Creditcoin foundation.
Creditcoin’s Unique Token Model
Highly variable transaction fees and token-price volatility create significant price
uncertainties for parties wanting to transact on current blockchain networks such as
Ethereum. Even parties who choose to stockpile a utility token at price X might not be
able to effectively offset the costs of higher transaction fees at point Y.
Instead, Creditcoin implements the following token usage process:

Each announcement to the Creditcoin network has Creditcoin as a transaction fee. Fees
are locked on the network for roughly a year and then get returned to the user.
Instead of CTC being a single-use utility token like most utility coins, any CTC purchased
represents buying a permanent right to use the network. This was introduced as a
means to reduce price volatility, and therefore uncertainty, for parties seeking to
transact on Creditcoin.
Note however that this implementation is subject to change. In the long-term future, as
the mining rewards decrease over time, the introduction of more traditional transaction
27
fees may be necessary as an incentive for node operators.
Limitations
Creditcoin’s token model does not wholly mitigate utility token price uncertainty. Parties
may always need to adjust their token usage, exposing them to long-term price volatility
when selling their tokens. This would be especially problematic for short-term users,
who are forced to factor in the higher costs associated with permanent network rights,
and thus face higher price uncertainty for short-term purchasing decisions.
For example, a credit union is experiencing a sudden surge in demand exceeding its
CTC transaction capacity. However, the firm has limited capital to spend on more CTC.
The firm is unsure of whether this spike in demand is part of a long-term trend or just
short-term. The firm may be reluctant to spend its limited capital on a token whose price
factors in several years of usage, and whose value could drop in the year before they
can re-sell it. In other words, there is a short-term flexibility problem.
Solution
If such a model proves advantageous, there are preliminary plans to introduce a

secondary market for CTC staking. With such a system, owners of CTC can lend their
CTC transaction capacity to other users for a fee. This solves the above problems, but
also allows CTC holders to earn interest on their fixed CTC capital.
When parties ‘rent’ CTC, they use it as a normal utility token in which price is determined
by short-term supply and demand. Equally, parties can make long-term transaction
capacity decisions to purchase CTC based on current market prices, operating with the
certainty they need.
Creditcoin Distribution
With any economies of scale, as more Creditcoin is released, distributed and circulates
into the economy, the Creditcoin lending ecosystem will continue to maximize its utility
as discussed in this whitepaper. Once a Creditcoin is distributed to any user, the user
has complete control over its Creditcoin, and therefore gains access and usage of the
Creditcoin network, exclusive of Gluwa or any other central organization or entity.
Token Allocation
Creditcoin tokens are distributed to the four major participant groups of the Creditcoin
Network:
28
1. 70% to Creditcoin miners (as mining block rewards) – For provision of investment
funds, maintaining the blockchain, and running contracts.
2. 15% to Gluwa, Inc. (Genesis allocation; 6-year linear vesting) – For R&D, deployment,
business development, marketing, distribution, and administration costs.
3. 10% to Investors (Genesis allocation; 6-month to 3-year linear vesting) – For funding
network development, business development, partnerships, and support. Any unsold
tokens were remitted to the Creditcoin Foundation with a vesting period of 6 years.
4. 5% to the Creditcoin Foundation (Genesis allocation; 6-year linear vesting) – For
long-term network governance, partner support, academic grants, public works, and
community building.
Vesting and Discount Schedules
Each group has a different vesting schedule:

• Investors: 6 months minimum
• Gluwa, Inc: 6 years, linear vesting
• Creditcoin Foundation: 6 years, linear vesting
• Miners: Release half-life of 6 years
For investors, the following vesting periods and discounts are available:
• 6 month vesting: 0% discount
• 1 year vesting: 7.5% discount
• 2 year vesting: 15% discount
• 3 year vesting: 20% discount
29
The Creditcoin Token Sale
Fundraising
Gluwa, Inc. requires significant funding to develop, launch, and grow the Creditcoin
Network. This includes all software development, including mining software, client
software, user interfaces and apps, network infrastructure and monitoring tools,
software that third-party wallets and exchanges need to support Creditcoin, integrations
with other investment software, tooling for web applications and dapps to use
Creditcoin, etc. We must deploy the network, facilitate its large-scale growth, market
to and bring onboard miners and clients, bring key partners into the ecosystem, and
various administrative tasks.
Offering of the Creditcoin SAFT

To raise the necessary funds, Gluwa, Inc. is conducting an offering of SAFTs. This
offering is happening in one part:
(1) A private sale for Gluwa, Inc. and Creditcoin community
Token Sale
The essence of the token sale is to bring together a large, diverse group of investors
from around the world consisting of those who share the vision of building the most
powerful cloud credit network. This includes strategic investors who can add value,
and work for, the Creditcoin Network. Ideally, reaching as broad of an investor base as
possible; we want people and organizations from countries across the globe, working
in many different industries. If our investors represent many different groups, we feel
Creditcoin can quickly come to serve those users and spread across these networks.
We want investors who will share their skills, their knowledge, and their networks to
achieve success. For those inclined, we have structured the token sale with discounts to
reward those groups of investors that can help us build the network through a variety of
vesting periods. (As with any risky investment, Gluwa, Inc. and Creditcoin cannot make
guarantees or predictions of value.) We are, therefore, legally restricted to involve only
accredited investors (global investors accredited to US standards or similar—see the
legal section).
Caps
A soft cap is the amount received at which your crowd sale will be considered a
success. It is the minimum amount required by your project. A hard cap is defined as the
maximum amount a crowd sale will receive. This offering has a soft cap of USD 10 million
and a hard cap of USD 30 million.
30
Token Sale Details
• Instrument: Creditcoin SAFT

• Increasing Price:
1. As investments are made, the price increases based on the Price Function
• Sale Price Function:
1. Pre-sale price = min(X, Y) where:
• X = max($0.85, amountRaised/ $4MM) USD / CTC
• Y = max($1, amountRaised/ $40MM USD) USD / CTC
• amountRaised is the actual USD dollar amount that is collected
• The ETH to USD exchange rate at the time of each individual sale should
be used.
• Sales Cap: 200 million Creditcoin (unknown how much this is equivalent to in US
dollars, as discounts affect the totals) Soft cap USD 10 million. Hard cap USD 30
million.
• Sales Timeline: Private sale starts on September 1st, 2017.
Token Sale Results
Token Sale Began: Thu, Feb 15th, 2018

Token Sale Ended: Sun, Apr 15th, 2018
All 200 million tokens were purchased and introduced into the market.
Mining and Mining Pools
If you would like to connect to the Creditcoin blockchain, run your own Server and Client
to mine Creditcoin, documentation attributed to Miners and setting up a node can be
found in our Creditcoin Miner’s Manual, and contains a brief description with FAQ.
As of the publication of this paper, a Creditcoin Mining Pool is still in the planning phase
toward its creation and implementation. The prospect of a Mining Pool allows groups of
miners to combine computational resources, strengthening their probability in finding
a block, and ultimately sharing in the rewards for participants in the pool. Please check
back at Creditcoin.org for further updates, feature releases, and news.
31
Governance
The Creditcoin Foundation was founded to support the Creditcoin ecosystem and
related technologies. Tae Oh is the current director of the Creditcoin Foundation. The
foundation will pursue a non-profit organizational model.
The foundation does not control Creditcoin, nor is it the only organization that can
engage in critical development of Creditcoin-related technologies. The Creditcoin
Foundation is the first of an open ecosystem of organizations, individuals, and
companies that support Creditcoin’s evolution and development.
The foundation’s mission is to do what is best for Creditcoin’s long-term success. Our
role is to allocate resources to critical projects, to be a valued voice within the Creditcoin
ecosystem, and to advocate for Creditcoin to the outside world. The Creditcoin
foundation will fund and support projects which improve the Creditcoin ecosystem, such
as bug bounty programs or community projects.
Gluwa, Inc. is the technology provider of Creditcoin. The company maintains the
Creditcoin blockchain, the Creditcoin token and other Creditcoin properties (The
Creditcoin homepage, Creditcoin Explorer, Documentation and all social channels).
The company is not the only organization that can contribute to the development of
Creditcoin-related technologies.
Any updates or software upgrades made to the Creditcoin blockchain are currently
managed by developers within Gluwa, Inc. Creditcoin is a public blockchain, and is
built on top of the Substrate Project. The Creditcoin blockchain employs a Proof-
of-Work consensus algorithm. If the need arises, the Creditcoin Foundation is not
opposed to pursuing alternative consensus mechanisms given their future advantages
or efficiencies, although it has no current plans to do so. A more detailed look at its
software architecture is appended below in the Appendix.
All decisions pertaining to the Creditcoin blockchain, token and properties are currently
made by members of the Creditcoin Foundation and its partners. The Creditcoin
Foundation complies with all legal and regulatory requirements stipulated by the
countries where it operates. As the number of stakeholders within the network expands,
The Creditcoin Foundation intends to modify this governance structure in order to
integrate a wider range of stakeholders into the decision-making process.
The foundation actively encourages community engagement through its various

channels (Github repositories, public Discord, Forums etc.) to promote upcoming
enhancements, projects, and/or further outreach toward the common good of the
Creditcoin ecosystem. Any questions or inquiries regarding Creditcoin or Creditcoin
Foundation can be directed to: support@creditcoin.org.
32
Regulatory, Compliance, and Legal Considerations

(Note: This section has not been updated since its original publication in November
2019, and was originally written with respect to the Creditcoin Token Sale)
Currently, digital tokens are being closely and regularly scrutinized by various regulatory
bodies around the world, including but not limited to the SEC, European Securities and
Markets Authority, and each individual state in the United States. Law regarding ICO’s
is an evolving area of law, and there is no clear guidance from regulatory agencies,
courts, and laws regarding legally-compliant practices for ICO’s. As a result, the future
evolution of the law and potential consequences are too speculative for the Gluwa to
reasonably foresee and act upon. However, Gluwa has taken good-faith measures to
account for the evolving law and rules on ICO’s and in an effort to comply with such
law, but there is still substantial risk surrounding legal compliance for any ICO in light
of the little legal guidance. There is a substantial risk that in numerous jurisdictions,
including the United States, Creditcoin may be deemed to be a security, meaning such
a token must be registered or comply with an applicable exemption from registration.
For example, applicable securities laws may limit the ability to hold more than certain
amounts of Creditcoin; restrict the ability to transfer Creditcoin; require disclosure or
other conditions on you in connection with any sale of Creditcoin; and may restrict the
businesses that facilitate exchanges or effect transfers of your Creditcoin. Every user,
purchaser, and holder of a Creditcoin is required to make diligent inquiry to determine
if the acquisition, possession and transfer of Creditcoin is legal in its jurisdiction and to
comply with all applicable laws and any of Gluwa’s terms and conditions. Creditcoins
and the Creditcoin network may be eliminated by future regulation or legal actions. In
response to such action, Gluwa may take actions that adversely impact you and the
Creditcoins you hold, including: (a) ceasing operations or restricting access in certain
jurisdictions, (b) voiding, refunding or not processing token purchases, or (c) ceasing
operations entirely.
Each token holder is: (a) if in the United States, or a U.S. Person (as defined in
Regulation S under U.S. Securities Act of 1933 (the “Securities Act”)), an accredited
investor (as defined in Regulation D under the Securities Act) or (b) if outside of the
United States, a non-U.S. Person who is not purchasing for the account or benefit of
a U.S. Person (as defined under Regulation S under the Securities Act). Each token
holder of Creditcoin is sophisticated in terms of investment, business, and/or blockchain
technology, or be able to fend for themselves or have access to the information that
can allow such purchasers to fend for themselves with regard to the subject matter of
Creditcoin.
33
Team
Creditcoin was founded jointly by two companies, Gluwa and Aella. Gluwa is the
technology provider of Creditcoin and Aella is the initial distributor.
Gluwa
Gluwa is a global team distributed across the US, Canada, South Korea and several other
countries. Our team of industry experts have years of experience working in industries
including Blockchain Technology, Cryptocurrency Trading, Financial Services, Computer
Science, High Traffic Systems, and Clinical Psychology.
Tae Oh Scott Hasbrouck Sung Choi Tannr Allard

Gluwa VP of Engineering VP of Investment Director of Blockchain
Founder and CEO Engineering
David Lebee Alan Kong Carlos Gutierrez

Lead Architect Director of Marketing Technical Lead
Web Blockchain
34
Team
Investors, Advisors & Partners
Steve Chen Young Ki Kim Tom James Stuart Gardner

Investor Investor Investor Investor
• Co-Founder of Youtube • President of Samsung • Co-founder of Intec • Active investor with a
• PayPal Mafia Electronics • Angel investor in portfolio of 80 startups
• Network Business Zendesk, One Login, across five continents
Tessian, and others • Founding team at Comufy
Holger Assenmacher Leung Kwok 500 Startups Aigen Capital

Advisor Advisor Accelerator Investor
• Professor of Cryptography • Ex-Investment Manager
at UC Berkeley at GM
• Co-Founder at • $3+ Billion invested /
Cryptowerk $5+ Billion returned
[ OpenFi Partners ]
35
Team
Aella
Aella exists to simplify instant credit & payment solutions for emerging markets by
offering; instant loans, bill payments, micro-health insurance, investment and peer-to-
peer money transfer services. Our products are built to make an impact at the frontier of
financial inclusion across the region.
Akin Jones Wale Akanbi

Aella Aella
Founder and CEO CTO
Investors, Advisors & Partners
Michael Seibel Brian Armstrong Bill Paladino Eric Uhrhane

Investor Investor Investor Investor
• CEO of Y Combinator • CEO of Coinbase • Former Group Head • Fillmore Trust / Google
@Naspers
36
Creditcoin on the Web
Public Exchanges
Creditcoin (CTC) is currently being traded on the following exchanges:
OKEX
https://www.okex.com/markets/prices/creditcoin-ctc
Bittrex Global
https://bittrex.com/Market/Index?MarketName=BTC-CTC
GOPAX
https://www.gopax.co.kr/exchange/ctc-btc
Bithumb
https://www.bithumb.com/trade/order/CTC_KRW
Upbit
https://upbit.com/exchange?code=CRIX.UPBIT.BTC-CTC
MEXC Global
https://www.mexc.com/ko-KR/exchange/CTC_USDT
KUCOIN
https://www.kucoin.com/trade/CTC-USDT
POLONIEX
https://poloniex.com/exchange/USDT_CTC
Gate.io
https://www.gate.io/trade/CTC_USDT
Bybit
https://www.bybit.com/en-US/trade/spot/CTC/USDT
Huobi Global
https://www.huobi.com/en-us/exchange/ctc_usdt
Creditcoin and the Creditcoin Ecosystem

The following properties create, utilize and facilitate the Creditcoin Network and
ecosystem.
Credal: The only API for Defi Credit Lending

Credal is Creditcoin’s API middleware layer that allows connectivity between
37
Creditcoin on the Web
decentralized applications and the Creditcoin blockchain. Whether you’d like to

aggregate information from the Creditcoin blockchain, or you’d like your decentralized
app to communicate with and post transactions to the network, Credal allows this
instantaneous and secure functionality.
The Creditcoin Foundation

For all the latest information on Creditcoin, its associated products and services,
community development, blog articles, documentation or links to Gluwa, Inc’s product
suite, or if you need to contact the Creditcoin Foundation, visit https://creditcoin.org.
Creditcoin Block Explorer - https://explorer.creditcoin.org/

The Creditcoin Block Explorer is a web-based interface communicating with the
Creditcoin blockchain via the Credal API to detail the latest statistics on mainnet volume,
transaction and block history, providing a rich list and links to the community and
documentation.
Gluwa, Inc. - https://gluwa.com/

Gluwa, Inc. is the technology provider for the Creditcoin blockchain and therefore
utilizes Gluwa’s product suite - namely its wallet, payment app, exchange services
and savings and bond accounts. For lenders affiliated with Creditcoin, the option to
integrate with and build upon Gluwa’s wallet infrastructure is available, and provides the
easiest way to get your decentralized payments app set up and streamlining it to your
particular needs and customer.
Gluwa Capital - https://www.gluwacapital.com/

Gluwa Capital is a venture debt fund that invests in innovative, venture-backed financial
technology companies striving for financial inclusion of the unbanked and underbanked.
Gluwa Capital provides debt financing and technology solutions to financial institutions
hoping to utilize the Creditcoin blockchain for its secure transactions and immutable
history. If you are a fintech lender, a local credit union, a large or small lending
institution, Gluwa Capital could help you find financing to help you lend to the masses all
on the Creditcoin blockchain.
Social Media:
• Creditcoin on Twitter: Creditcoin (@creditcoin)
• Creditcoin on Reddit: r/Creditcoin
• Creditcoin on YouTube: Creditcoin
• Creditcoin on Facebook: Creditcoin - Home
• Creiditcoin on Discord: https://discord.gg/3XPV7uTqsn
• Creditcoin on Medium: https://medium.com/creditcoin-foundation
• Creditcoin on Telegram: Contact @CreditcoinOfficial
• Creditcoin Blog: https://blog.creditcoin.org/
38
Appendix
User Flow
The following provides a more comprehensive description of the User Flow.
Fundraiser’s Flow
On the Creditcoin network, a fundraiser is an account that borrows funds from another
account.
I. Find a Loan Offer
A Fundraiser will start a loan-cycle by creating a bid order describing the loan
condition he wants. The bid order is announced to the Creditcoin network and attract
potential investors.
1. Create a Bid Order

A fundraiser can announce the details of his bid order. It includes amount,
interest, and maturity. For example, a fundraiser may offer to borrow 100 Bitcoin
for a 10% interest per 30 days. The fundraiser will pay Creditcoin as a transaction
fee to the Creditcoin network to create the order. Note that the offer is in Bitcoin,
not in Creditcoin. On the Creditcoin network, you are not lending or borrowing in
Creditcoin, but a cryptocurrency on another blockchain. Currently, the Creditcoin
network supports Bitcoin, Ethereum, and ERC-20 token loans.
2. Find Investment Offers

If an investor likes the fundraiser’s bid order, he can create an offer. The offer
information includes a set of one add order and a matching bid order. The
fundraiser can retrieve a list of offers for free.
3. Create a Deal
If a fundraiser likes an offer he received, he can accept the offer by sending a
corresponding deal to the investor. The deal will have the exact loan condition
described in the offer. The fundraiser will pay Creditcoin as a transaction fee to
the Creditcoin network to send the deal.
II. Make a Repayment
involvement of the investor.
1. Lock a Deal
Before making a repayment, the fundraiser has to block another account from
making any change to the deal. Else, we have a potential concurrency problem.
The fundraiser may be closing the deal at the same time as the ownership of
the loan is sold to another account. In this case, there may be two transfers
39
User Flow
registered against the same deal order. The Creditcoin network prevents the
problem by requiring a fundraiser to lock the deal before making a repayment.
The fundraiser will pay Creditcoin as a transaction fee to the Creditcoin network
to lock the deal.
2. Transfer the Repayment to the Investor

A deal includes where the fundraiser would like to receive the investment. Note
that the repayment transfer happens on another blockchain (e.g., Bitcoin or
Ethereum). The fundraiser may pay a transaction fee on that blockchain, but not
on the Creditcoin network.
III. Make a Repayment with an Exemption
Optionally, a fundraiser may negotiate with the investor for an exemption.

In some cases, a fundraiser may not be able to repay the full amount but a
part of it. If so, the investor may choose to accept partial repayment since it is
better than nothing. The investor and the fundraiser can communicate outside
of the Creditcoin network and negotiate for an exemption. Since the negotiation
happens outside of the blockchain, it does not cost any Creditcoin.
2. Send a Partial Repayment

Once the investor agrees to exempt some of the loan amount, the fundraiser
will have to repay the rest. Just like the investment transaction, the repayment
transaction also happens on another blockchain (e.g., Bitcoin or Ethereum). The
fundraiser may pay a transaction fee on that blockchain, but not on the Creditcoin
network.
Note that in case of repayment with an exemption, the fundraiser cannot

conclude the deal on his own. The investor needs to approve an exemption by
registering the partial repayment transaction ID to the Creditcoin network. Learn
more about the process in the Investor’s Flow.
Investor’s Flow
On the Creditcoin network, an investor is an account that lends funds to another

account.
I. Find an Investment Opportunity
An investor will start a loan-cycle by creating an ask order describing a loan
40
User Flow
offer. The ask order is announced to the Creditcoin network and attract potential
investment deals.
1. Create an Ask Order

An investor can announce the details of his ask order. The detail includes amount,
interest, and maturity. For example, an investor may offer to lend 100 Bitcoin for
a 10% interest per 30 days. The investor will pay Creditcoin as a transaction fee
to the Creditcoin network to create the order. Note that the offer is in Bitcoin,
not in Creditcoin. On the Creditcoin network, you are not lending or borrowing in
Creditcoin, but a cryptocurrency on another blockchain. Currently, the Creditcoin
network supports Bitcoin, Ethereum, and ERC-20 token loans.
2. Find Matching Bid Orders

Using the ID string of an ask order, the investor can search for matching bid
orders. Fundraisers create bid orders by describing the desired loan conditions.
The investor can retrieve a list of matching orders for free.
3. Review a Fundraiser’s Credit History

If an investor is interested in any matching bid order, the investor can retrieve
a full transaction history of the fundraiser who created the deal. Each bid order
includes an identification string of the fundraiser, a sighash. The investor can use
the sighash to retrieve the fundraiser’s credit history from the blockchain for free.
4. Create Investment Offers

If the investor likes the credit history of the fundraiser, he can create an offer.
The offer information includes a set of one add order and a matching bid order.
The investor will pay Creditcoin as a transaction fee to the Creditcoin network to
create the offer. If the fundraiser likes the offer, he will send a deal to the investor.
II. Make an Investment
If an investor likes a deal, he can accept it by registering the investment transaction

on the Creditcoin network.
1. Transfer the Investment to the Fundraiser

A deal includes where the fundraiser would like to receive the investment. Note
that the investment transfer happens on another blockchain (e.g., Bitcoin or
Ethereum). The investor may pay a transaction fee on that blockchain, but not on
the Creditcoin network.
2. Complete the Deal

Once the investment transaction is confirmed on the blockchain, the investor can
make the investment official by registering the transaction ID to the Creditcoin
41
User Flow
network. The investor will pay Creditcoin as a transaction fee to the Creditcoin
network to complete the deal.
III. Collect a Repayment
involvement of the investor. However, an investor may choose to exempt a partial
amount of the repayment.

In some cases, a fundraiser may not be able to repay the full amount but a
part of it. If so, the investor may choose to accept partial repayment since it is
better than nothing. The investor and the fundraiser can communicate outside
of the Creditcoin network and negotiate for an exemption. Since the negotiation
happens outside of the blockchain, it does not cost any Creditcoin.
2. Accept a Partial Repayment

Once the investor agrees to exempt a loan, the fundraiser will have to repay the
rest of the loan. Just like the investment transaction, the repayment transaction
also happens on another blockchain (e.g., Bitcoin or Ethereum). After the
repayment transaction is confirmed on the blockchain, the investor can finalize
the exemption by registering the repayment transaction ID on the Creditcoin
network The investor will pay Creditcoin as a transaction fee to the Creditcoin
network to register the repayment transaction ID.
IV. Transfer a Bond
An investor may choose to transfer the ownership of a loan, bond, to another

account. We call the new account a “collector.” Once a bond is transferred to a
collector, the repayment of the loan will be sent to the collector. This allows investors
to liquidate their bonds before the maturity of their loans.
1. Searching for a Collector

An investor can find a collector for the bond outside of the Creditcoin network.
The blockchain does not support any communication tool for this purpose. Since
the search and communication happen outside of the Creditcoin network, it does
not cost any Creditcoin.
2. Searching for a Repayment Order

A collector will send a repayment order to the investor to purchase a bond. The
investor can search for outstanding repayment orders on the Creditcoin network
for free.
42
User Flow
3. Accepting a Repayment Order

A repayment order will include payment for transferring the bond. If the investor
likes the repayment order, the investor can transfer the bond by accepting the
payment. The investor will pay Creditcoin as a transaction fee to the Creditcoin
network to accept the repayment order.
Collector’s Flow
On the Creditcoin network, a collector is an account that receives the ownership of a

loan from another account.
I. Purchase a Bond
A collector can buy a bond from the investor to transfer the ownership of a loan,
bond, to his account. Once a bond is transferred to a collector, the repayment of the
loan will be sent to the collector. This allows collectors to acquire bonds closer to
maturity.
1. Searching for a Bond

A collector can find an investor outside of the Creditcoin network. The blockchain
does not support any communication tool for this purpose. Since the search is a
read-only process, and the communication happens outside of the the Creditcoin
network, it does not cost any Creditcoin.
2. Create a Repayment Order

A collector will send a repayment order to the investor to purchase a bond. The
repayment order includes a payment to the investor for the bond. The payment
can be in any cryptocurrency supported by the Creditcoin network (e.g., Bitcoin
Ethereum, or ERC-20). The collector will pay the Creditcoin transaction fee to the
Creditcoin network for creating the repayment order.
3. Searching for an Accepted Repayment Order

The collector can search for accepted repayment orders on the Creditcoin
network for free.
4. Close a Repayment Order

After a repayment order gets accepted by the investor, the collector can
finalize the purchase of the bond by registering the payment transaction ID. In
other words, the collector closes a repayment order. The payment happens on
another blockchain, and the collector may have to pay a transaction fee on the
blockchain. Once the repayment order is closed, repayment of the loan goes to
the new owner - the collector. The collector will pay Creditcoin as a transaction
43
User Flow
fee to the Creditcoin network to close the repayment order.
Conclusion
Creditcoin network has been built to support various investment scenarios and assists in
decision making and transitioning of the relevant artifacts through their lifecycle.
44
Software Architecture
Introduction
Purpose
This document provides a comprehensive architectural overview of the system, using

several different architectural views to depict various important aspects of the system.
Scope
This Software Architecture Document provides an architectural overview of the

Creditcoin system developed by Gluwa, Inc. to provide a decentralized credit network.
Overview
The Creditcoin system is a decentralized credit network for investors and borrowers and
to facilitate efficient and safe transactions between parties. A special cryptocurrency
named Creditcoin is used as an aid in performing transactions and incentivizing parties
to support, develop and expand the network and keep it operational.
Architectural Goals and Constraints
1. To support decentralization, the network is based on blockchain (distributed ledger)

technology.
2. To reduce the work required to build a robust and trustworthy foundation for
the network, an open source blockchain project was selected based on feature
completeness and ease of configuration and modification (Substrate).
3. The network supports the booking of investment and borrowing orders in a credit
market order book for which canceled or outdated orders are of little interest.
4. The network supports matchmaking, communication between involved parties, and
deal booking. The latter is stored permanently on the ledger and may be used for
dispute resolution and credit history verification.
5. The network supports interoperability with other cryptocurrencies through a generic
gateway that may be customized for use with a particular cryptocurrency.
6. The network uses a special consensus algorithm to incentivize validators and
prevent network abuse.
7. All performance, bandwidth and storage requirements were taken into consideration
to develop the architecture.
45
Use Cases
The figures below summarize the various use cases.
User Use Cases
46
Investor and Fundraiser Use Cases
47
Subsystems and Layering
The Creditcoin system is built on top of the Substrate project, which provides an
implementation of a distributed ledger and interoperation between distributed
components of the network. The system provides:
1. An implementation of the Creditcoin transaction family—a group of operations or

transaction types allowed on the ledger—which supports all required operations.
2. An implementation of a consensus algorithm to support the requirements, in this
case Proof-of-Work.
3. An implementation of a generic gateway to interconnect with other cryptocurrency
networks, such as Bitcoin, Ethereum, etc.
4. A family of client applications was developed for testing and use by end users, which
includes a command-line client, a UI client and simulation and load testing clients.
48
Processes
Each validator node runs a validator, Creditcoin Transaction Family Processor, Settings
Transaction Family Processor (stock, not shown in the diagram), and Creditcoin
consensus plugin. A gateway process runs to allow communication with other
cryptocurrency networks. Client applications send requests to a validator to perform
operations on data for a given transaction family; the validator then dispatches the
request to a relevant processor. The processor submits the transaction to the ledger.
Clients read the current state of data that has been made persistent by recording it on
the ledger.
49
Deployment
In the final distributed system, client applications can connect with validators across
local or global TCP networks. Any validator accepts transactions from one or more
clients and clients sends transactions to one or more validators.
Implementation Notes
The initial validator network operates on Ubuntu boxes running in Azure. The transaction
families were developed and tested on Windows 10, but also runs on Ubuntu. The
development language for Creditcoin transaction family is C++; clients are implemented
in C#, while the consensus is implemented in Python.
50
Configuration Notes
The initial setup runs with a temporary transaction family processor that sets up the
Creditcoin components on the ledger. The system is configured to run a predefined set
of transaction family processors.
51
Creditcoin Workflow
This document covers a step-by-step guide on how you can use the Creditcoin network
and Creditcoin through a command-line client. Refer to the User Flow section to
understand the what role each command plays in a loan-cycle.
Gluwa Creditcoin is the official implementation of the Creditcoin protocol by Gluwa, a

member of the Creditcoin Foundation. The implementation includes a command-line
client for Creditcoin users to interact with the network.
Note that you need to pay a transaction fee in Creditcoin per each command.
Exchange G-CRE to CTC
To start participating in Creditcoin network users need to register their Ethereum

addresses and exchange their G-CRE (Gluwa Creditcoin Vesting Token) to Creditcoin
(CTC). G-CRE is an ERC20 token used for initial distribution to token sale buyers, Gluwa,
and the foundation.
Register Ethereum Address
G-CRE is transferred from ERC20 by running the ‘exchange()’ method on the Creditcoin
smart contract and collecting the coins on the Creditcoin network.
In the following command:

$ creditcoin RegisterAddress ethereum address main
‘ethereum’ is the blockchain, ‘address’ is a user’s ethereum address, and ‘main’ is the
network id.
Show Address ID of the Registered Address
To find out the address id for the registered address a user can run the following
command:
$ show Address 0 ethereum address main
Where 0 is the sighash that identifies the interactive user and other parameters are the
same as provided for registration.
52
Creditcoin Workflow
Exchange G-CRE to CTC
Using the Registered Ethereum Address
Now the user can run the following command:

$ ethereum CollectCoins addressId amount
Where ‘addressId’ is the result of the previous show command and ‘amount’ is the
amount not exceeding the amount of ERC20 tokens on Ethereum.
Using the Exchange() Transaction On G-CRE Smart Contract
Alternatively, the user can manually call ‘exchange()’ on Creditcoin Ethereum smart
contract, write down the transaction id and call the following command:
$ creditcoin CollectCoins addressId amount transactionId
Review the Updated CTC Balance
Now the user can display the Creditcoin balance with the following command:
$ show Balance 0
Where 0 identifies the interactive user.
Alternatively, if the user knows a sighash of another user, the user can run the following
command:
$ show Balance eccd3cc374e641b8fabf12eff4d5e3506e...
Create Investment Orders
Create an Ask Order
An investor can add an AskOrder with the following command:

$ creditcoin AddAskOrder addressId amount interest maturity fee expiration
Where ‘addressId’ is an id of an address record registered by using ‘creditcoin

RegisterAddress’ command, ‘amount’ is the amount for investing in the blockchain
identified by the ‘addressId’, ‘interest’ is the interest rate, ‘maturity’ - is a number of
blocks to calculate the resulting interest, ‘fee’ is a loan fee and ‘expiration’ is a number
of blocks the order is valid for.
53
Creditcoin Workflow
Create a Bid Order
A fundraiser can add a BidOrder with the following command:

$ creditcoin AddBidOrder addressId amount interest maturity fee expiration
Search for Matching Orders
An investor can search for matching orders with the following command:
$ show MatchingOrders 0
Where 0 is a 0-sighash
For each matching pair of orders, the output will be a list of pairs of the respective order
ids:
askOrderId bidOrderId
Review Credit History of the Fundraiser
An investor can check the fundraiser’s credit history with the following command:
$ show CreditHistory sighash
Where ‘sighash’ is the identifier of the fundraiser
Create Investment Offers
Create an Offer
An investor can create an offer with the following command:

$ creditcoin AddOffer askOrderId bidOrderId expiration
Where ‘askOrderId’ and ‘bidOrderId’ are the output of the previous ‘show
MatchingOrders’ command and ‘expiration’ is the number of blocks the offer is valid for.
Search for Offers
A fundraiser can check for current offers with the following command:
$ show CurrentOffers 0
Where 0 is a 0-sighash. The output is a list of offer ids.
54
Creditcoin Workflow
Create Deals
Create a Deal Order
A fundraiser can add a DealOrder with the following command:

$ creditcoin AddDealOrder offerId expiration
Where ‘offerId’ is an id of an offer previously displayed by ‘show CurrentOffers’

command.
Search for Deals
An investor can check for new deals with the following command:
$ show NewDeals 0
Which displays a list of dealIds for the investor.
Register an Investment Transfer
To complete a deal Investor has to register a transfer with the following command:
$ ethereum RegisterTransfer 0 orderId
Where ‘orderId’ is an id of a deal previously displayed by ‘show NewDeals’ command.
This command will create an Ethereum transaction sending the amount of Ether
specified in the BidOrder to the address specified in the BidOrder from the address
specified in the AskOrder.
Note that the actual transfer can happen elsewhere as soon as it satisfies the
requirements, but it still has to be registered with Creditcoin, there is a special form of
RegisterTransfer for that - creditcoin RegisterTransfer gain orderId txId (note it’s not
etherium but creditcoin command and takes additional parameter txid).
Complete a Deal
An investor can complete a deal with the following command:

$ creditcoin CompleteDealOrder dealOrderId transferId
Where ‘dealOrderId’ is the deal being completed and ‘transferId’ is the loan transfer.
Lock a Deal
To close a deal Fundraiser has to lock the deal first with the following command:
55
Creditcoin Workflow
$ creditcoin LockDealOrder dealOrderId
Where ‘dealOrderId’ is the deal being closed.
Close a Deal
A fundraiser can close a deal with the following command:

$ creditcoin CloseDealOrder dealOrderId transferId
Where ‘dealOrderId’ is the deal being closed and ‘transferId’ is the repayment transfer.
Exempt Loans
An investor can exempt a loan with the following command:

$ creditcoin Exempt dealOrderId transferId
Where ‘dealOrderId’ is the deal being exempted and ‘transferId’ is a partial repayment
transfer.
Transfer Loans
A third party (collector) may offer to transfer the loan ownership by creating a
“RepaymentOrder” using the following command:
$ creditcoin AddRepaymentOrder dealId collectorAddressId amount expiration
Where ‘dealId’ is the id of the deal order, ‘collectorAddressId’ is the address of the new
owner, ‘amount’ is the amount offered for transferring the loan.
Repay Loans
Search for Repayment Orders
An investor can check for new RepaymentOrders using the following command:
$ show NewRepaymentOrders 0
The output is a list of ids.
Accept Repayment Orders
An investor can accept a RepaymentOrder using the following command:
56
Creditcoin Workflow
$ creditcoin CompleteRepaymentOrder repaymentOrderId
Search for Accepted Repayment Orders
A collector can check for accepted RepaymentOrders using the following command:
$ show CurrentRepaymentOrders 0
Close Repayment Orders
A collector can close the RepaymentOrder by registering a transfer and using the
following command:
$ creditcoin CloseRepaymentOrder repaymentOrderId transferId
Demonstration
https://www.youtube.com/watch?v=qpvVrChDzZE
Please refer to the live demonstration of the Creditcoin command-line client above for
more information.
57
Citations
Aaron hay, “Crypto and Network Effects”, Accessed (25/05/2021): https://medium.com/

coinmonks/crypto-and-network-effects-e66e69e754d3
Babajide Fowowe, “Access to finance and firm performance: Evidence from African
countries”, Review of Development Finance, Vol. 7 No. 1, 2017, pp.6-17
Berrak Büyükkarabacak & Nevan Valev, “Credit Information sharing and banking crises:
An empirical investigation”, Journal of Macroeconomics, Vol. 34, No. 3, pp.788-800,
2012.
Catalini, Christian, and Joshua S. Gans. 2016. “Some Simple Economics of the
Blockchain.” NBER Working Paper No. 22952. Accessed (21/05/2021): http://www.nber.
org/papers/w22952.
Catherine Tucker, Christian Catalini, “What Blockchain Can’t Do”, Harvard Business
Review, 2018, Accessed (28/05/2021): https://hbsp.harvard.edu/tu/4167ec3d
Cathy Barrera, “The Blockchain Effect: Network Effects without Market Power Costs”,
Accessed (24/05/2021): https://medium.com/mit-cryptoeconomics-lab/the-blockchain-
effect-86bd01006ec2
Convergences, “Global Microfinance figures: What are the trends?” , Accessed

(04/06/2021): https://www.convergences.org/en/119115/
Ernst Fehr, and Christian Zehnder, “Reputation and Credit Market Formation: How
Relational Incentives and Legal Contract Enforcement Interact”, IZA Institute of Labour
Economics, Discussion Paper No. 4351, 2009
Fran Casino, Thomas K. Dasaklis, Constantino Patsakis, “A systematic literature review

of blockchain-based applications: Current status, classification and open issues”,
Telematics and Informatics, Vol. 36, pp. 55-81, 2019
Maik Dierkes, Carsten Erner, Thomas Langer, Lars Norden, “Business credit information
sharing and default risk of private firms”, Journal of Banking & Finance, Volume 37, Issue
8, 2013, pp.2867-2878
MIX, “2015 Global Outreach & Financial Performance Benchmark Report”, Accessed
(04/06/2021):https://www.themix.org/publications/2015-global-outreach-and-financial-
performance-benchmark-report
OECD, “Facilitating Access to Finance, Discussion Paper on Credit Information Sharing”,

2010.
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Citations
OECD, “New Approaches to SME and Entrepreneurship Financing: Broadening the

Range of Instruments”, 2015
Reportlinker, “Global Microfinance Industry”, 2021, Accessed (03/06/2021): https://

www.reportlinker.com/p05799111/?utm_source=GNW
Samuel Fosu, Albert Danso, Henry Agyei-Boapeah, Collins G. Ntim, & Emmanuel
Adegbite, “Credit Information sharing and loan default in developing countries: the
moderating effect of baking market concentration and national governance quality”,
Review of Quantitative Finance and Accounting, pp.55-103, 2020
SIFMA, “2020 Capital Markets Fact Book”, 2020, Accessed (24/06/2021): https://www.
sifma.org/wp-content/uploads/2020/09/US-Fact-Book-2020-SIFMA.pdf
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smefinanceforum.org/data-sites/msme-finance-gap
Svetlana Andrianova, Badi Baltagi, Panicos Demtriades, & David Fielding, “Why do
African Banks Lend so Little”, Oxford Bulletin of Economics and Statistics, Vol. 77, No. 3,
pp.339-359, 2015
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country Evidence”, Centre for Studies in Economics and Finance, Working Paper No. 22,
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https://data.worldbank.org/indicator/FS.AST.PRVT.GD.ZS?locations=NG-US
59

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A Borderless

Credit Investment Network

Creditcoin is a permissionless blockchain designed to facilitate a borderless credit

The versatility of the Creditcoin network, its decentralized community involvement,

The Solution - Creditcoin 9

The Creditcoin Ecosystem 13

Creditcoin on the Web 37

I. Find a Loan Offer 39

Firstly, by transparently storing immutable data through decentralization, blockchains

The second economic advantage is a reduction in the “cost of networking”2). In today’s

Decentralised platforms can overcome these centralized network effects. By recording

Credit Markets in Developing Worlds

In cases where credit history is recorded, this information is accumulated by the

Creditcoin is an interoperable blockchain-agnostic lending protocol designed to match

Each announcement to the Creditcoin blockchain costs CTC. Currently, Creditcoin

How Creditcoin helps us solve the problem

Reducing the Costs of Verification

Cryptocurrencies leverage blockchain to create a robust and auditable registry of

Additionally, by recording loan-cycle transactions on Creditcoin, lending intermediaries

Whilst not directly related to Creditcoin, programmable money (smart-contracts) will

Reducing the Costs of Networking

By decentralizing data and building a permissionless blockchain, Creditcoin seeks to

By decentralizing credit history and opening-up market information to all market

The Creditcoin Network

Investors - Investors can be individuals or large lending institutions interested in

Fundraisers (or Lending Intermediaries) - Fundraisers generally are lending

Borrowers (End-Users) - With a population of 1.7 billion unbanked or underbanked,

Credal - The Creditcoin API

Credal Documentation can be found here.

Phase 1 Phase 2 Phase 3

Building the Creditcoin Making markets and The equilibrium and

• Defining a standardized • Building wallet, payment • Expand the presence of

Stakeholder Advantages of the Creditcoin Network

With the Creditcoin blockchain and lending

Transparent Investment Opportunities for P2P lending

Liquidity / Lending Pools

New sources of capital fundraising Access to new financial instruments

Transparent investment portfolio - lowers Securitization of Lending Pools

Fundraisers / Lending Intermediaries

Better fundraising opportunities - Credit-scoring information

Efficient means of transacting with a Build immutable Credit history on a

The Future of Defi Credit Lending and Creditcoin

Total Addressable Market

What makes our vision unique to DeFi

Unlike most DeFi protocols which rely on over-collateralized lending, Creditcoin

Smart-contract based over-collateralized lending is enabled by the following factors.

Nevertheless, aggregated on-chain credit information is insufficient for effective

In phase 3 Creditcoin is envisioned to function as a heavily disintermediated credit

When do you pay Creditcoin?

I. Find a Loan Offer

1. Create a Bid Order

II. Make a Repayment

III. Make a Repayment with an Exemption

On the Creditcoin network, an investor is an account that lends funds to another

I. Find an Investment Opportunity

1. Create a Ask Order

II. Make an Investment

1. Transfer the Investment to the Fundraiser

III. Collect a Repayment