WeTrust is a platform that was developed to add value and take the banking and insurance industries to another level using a platform for most the sought after lending circles. Arguably, today’s insurance and banking systems encounter a myriad of challenges. Moreover, these systems rely too much on third parties, making them inefficient. Is that all? No, there is a whopping two million people in the world who don’t have access to any conventional financial institution, and the high risk and conflict of interest with the customers doesn’t make the situation any better. WeTrust comes in to offer lasting solutions to all these problems.
WeTrust was released to the general public in January 2017, and on March 2, it launched its crowdsale. It was at this time when almost eighty million Trustcoins were released.
How it works
Basically, WeTrust was designed to increase efficiency in the insurance and banking industries by eliminating third parties. It makes use of Ethereum blockchain that creates a comprehensive financial system for leveraging the existing social capital and trust networks. Consequently, the risks and the unnecessary fees in the conventional financial institutions are eliminated. There are also decentralized risks, and an enormous amount of capital is available to the customers.
ROSCA is an acronym for Rotating Saving and Credit Association. It is a lending platform that was designed to allow the participants to save and/or borrow funds effortlessly. It acts both as a peer-to-peer lending or peer-to-peer banking service, and most developing countries are taking advantage of this flexible system where financial exclusion is dominant.
The system allows people who can trust each other due to language, religion, family ties, or communal bonds to join hands and form a ROSCA. Through these ROSCAs, members can contribute a certain amount to a shared pool, and the person who is in need of urgent funds will take the whole sum. The process is repeated in subsequent meetings, with someone else receiving the full amount until the last person in the ROSCA gets the chance to take the entire pool.
ROSCAs do not only encourage savings but also allow members to get access to a large amount of capital that can be used productively. For instance, a single whole sum can be used to jumpstart a business or buy machinery for your company.
As it turns out, members of a ROSCA are motivated to save, and pay back any pending loans because of the close ties among the members – social elements come into play.
It is worth noting that there is no fixed exchange rate in WeTrust ICO because the investment limit is variable – somewhere between one thousand and six thousand BTC. However, the number of trust coins in circulation is fixed.
What is the Trustcoin?
Trustcoin or just TRST as many people call it is the token that WeTrust uses. These coins are arguably the most crucial elements of the platform as they are used to reward any user who facilitates the trust and paid by any actor who uses the Trust Network. In a perfect competition market, the laws of demand and supply dictate the amount of goods in circulation, and this is the same case with the Trust Network – the number of Trustcoin in any transaction are dictated by the forces of supply and demand.
The Trustcoin ecosystem is made up of four parties. These include:
• Sponsors – they support the development of this platform by offering help in programming, bug bounties, and any help that can improve the system. They also participate in auditing.
• General users – these are the participants who use such services as credit scoring products, ROSCAs, insurance, or borrowing services.
• Referral Partners: these are the people who are given the responsibility to spread the word about the platform. They are rewarded with Trustcoins in exchange for their exceptional promotional work.
• Forepersons: they are the advocates, organizers, and product experts on the ground. They are an integral part of this platform because they are used to enforce, coordinate, educate, and reinforce groups. For instance, a foreperson is responsible for setting a fee rate for all the ROSCAs in the Network.
The platform is a brainchild of a team of engineering and computer science experts, including former Google employees. George Li, a former Google employee and Patrick Long, a financial specialist are the Co-Founders of this platform. Other members of the team can be viewed on bitcointalk.org.
WeTrust is marketed towards those people who cannot access the conventional financial institutions for one reason or the other. The company has promised to continue growing ROSCA to reach as many people as they can. In a nutshell, WeTrust is likely to change the face of the banking and insurance sector.
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