Volans decentralized Blockchain

Volans decentralized lending based on the Blockchain technology

The issue worth special attention is the one of the main components of the Volans platform. It is lending based on the Blockchain technology.
So far, lending by a bank or a credit institution often works based on the borrower’s credit history and credit scoring (credit rating of the borrower). The traditional credit history contains a complete history of the natural person`s compliance with obligations under loans and credits. Such history is collected from various sources, such as banks, lending institutions, government agencies. Banking statistics determined the influence of some social factors of the borrower on integrity. Such factors are the availability of work, level of education, age of the borrower, credit rating, existence of property rights, presence of children and other. The credit scoring is formed based on these factors.
However, the widespread usage of traditional credit system by institutions providing loans creates a number of inconveniences for customers.
Firstly, in order to get a credit, the borrower needs a personal presence in a bank or in a credit institution.
Secondly, the evaluation takes time. The procedure for collecting information on the client is very voluminous and the goal of gaining respect and greater loyalty from the bank is rather unpleasant.
Another problem is the ambiguity in making the assessment by the bank based on the scoring system. In other words, it may happen that the scoring system of a certain bank “rejected” you, guided by its data and indicators whereas other would willingly agree to work with you. Also, it is important to understand that the main decision on extradition of the credit based on the scoring system is taken by a credit expert whose can be personal predisposed to the client.
The Volans team aims to bring changes to the existing credit system by fully decentralizing the process of determining the user`s credit rating and completely eliminating the human factor, which will reduce the number of aspects affecting the decision to give the credit to a minimum. This means that to get a loan user will only interact with the system via the Volans application on the device. Due to this, obtaining a loan will be safe and comfortable for the borrower as possible.
Also, using a decentralized approach ensures that no financial institutions have the ability to disprove the user’s credit history because it is stored in the open base of the Blockchain where no record can be removed or tampered with.
Nowadays the client should live in the country for a long time, confirm the existence of business or real estate within this country to receive the credit from a foreign bank. To get a credit from Volans you do not need to be linked to a particular country. You can get a loan wherever you are.
Also, using an automated system based on the Blockchain technology, the user can explore following advantages:

• getting a credit in a few minutes;
• receive minimum interest rates by reducing operating costs and risks that the credit will be unpaid;
• getting a credit in cryptocurrency.

How does the process of receiving a credit work in the Volans system?

If you decide to get a credit from Volans, you need to provide some basic information about yourself. The user should to fill out a form with 9 parameters that include user`s personal data and send documents that approve the information provided. The whole process takes only 20–30 minutes. All information is securely and anonymously stored in the Blockchain.
Each customer who completes the form receives an estimate. According to the estimate the credit limit and the loan rate are calculated. When you received a personal credit limit in the range from 0.01 BTC to 10 BTC with an individual interest rate, you can choose credit value and cryptocurrency. After a few minutes, requested funds will be sent to the balance in your personal Volans account. Then you can use these funds for your own purposes through the Volans application. Also, Volans issues a Volans Credit Card to pay for goods or services by credit funds easy in any shop.
The Volans system calculates a credit rating for the claimant as follows:

• Age: Give a credit of 0.01 for each year of age over 20, with a maximum of 0.30 for 50 years or more;
• Sex: Credit of 0.40 if applicant is a woman;
• Stability of Residence: Credit of 0.042 for each year at present residence, with maximum of 0.42 for 10 years or more;
• Occupation: Credit of 0.55 for either of two good-risk occupations, nothing for either of two bad-risk occupations, credit of 0.16 for all others;
• Industry: Credit of 0.21 for those employed in utility industries, government service, and banking or brokerage business;
• Stability of employment: Credit of 0.059 for each year at present employment, with maximum of 0.59 for 10 years or more;
• Three Asset Items: Credit of 0.45 for a bank account, 0.35 for real estate and 0.19 for life insurance;
• Volans Account and Blockchain activity: from 0.00 to 0,79 for activity on the Volans Platform including past transactions and credits, from 0.00 to 0.49 for past activity in the Blockchain.

A score of 0 is the minimum that any applicant could receive, and the score of 4.74 is the maximum.
If Volans collects a sufficient amount of funds during the ICO, the team will implement lending in the Volans system no later than the third quarter of 2018. Following this, Volans plans to release the first virtual and plastic cards.

You can find more information about Volans ICO in our White Paper or on our website volans.io.
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