“The issue of competitive currencies by private-sector organizations and the survival and loss of currencies due to market competition is an ideal institutional system.”

– Friedrich Hayek, Nobel Prize-Winning Economist

The rise of blockchain technology is making Hayek’s dream become reality. There is still much progress to make though; competitive currencies alone are not enough to destabilize the existing traditional financial system, nor to establish a truly desirable one. DCC, the world’s first public chain for distributed banking, is ready to bring real change to the financial markets.

From centralized to distributed banking— DCC’s vision

“Distributed banking is a new kind of cooperative service relationship where financial service organizations collaborate with each other on a decentralized blockchain basis.”

– Stewie Zhu, Project Leader, DCC

The traditional financial markets are heavily dependent on centralized banking institutions, with key user credit data and transaction data controlled by a handful of mega-sized financial firms. By contrast, DCC’s goal is to serve as a public chain for distributed banking, establishing a decentralized financial trading platform. In DCC’s framework, each individual has full control over their credit information. Financial institutions are then able to provide multiple competitive services to customers according to their digital credit data and there are no fixed relationships among institutions.

DCC’s user account system is based on decentralized DCCID which ensures that transactions and credit data cannot be tampered with. Personal credit data reports are stored in the cloud, while all data transmissions are encrypted for the highest level of security. Blockchain’s intelligent contract interaction architecture successfully shifts personal data from the grasp of centralized credit institutions to decentralized individuals.

The DCC platform is open architecture too, meaning any party can create intelligent contracts based on open standard protocols or develop DApps (decentralized apps) to expand the DCC environment.

DCC will ultimately transform the financial market structure, leveraging innovation to drive change from centralized to distributed and decentralized.

Why do we need DCC?

The traditional financial industry is highly centralized.Financial transactions rely heavily on the endorsement and support of large financial institutions, with substantial transaction fees paid out to these institutions. Monopolistic financial institutions have in fact raised lending rates for borrowers and reduced the interest income for lenders. In some cases, intermediaries have even distorted the credit rating of borrowers for their own benefit, making it impossible for lenders to accurately identify risk, which can have a destabilizing effect on the market. The outbreak of the 2008 financial crisis, to a large extent, was the upshot of excessive greed and a complete disregard of market risk by several major investment banks.

Public chains for distributed banking based on blockchain technology have now broken this monopoly. As the first ever distributed blockchain financial service platform, DCC can virtually abolish transaction costs and commissions while providing a secure and convenient service that’s affordable for traditional financial institutions. On DCC’s public chain, all financial services firms have equal status, and they bid for customers based on the same criteria. There are no longer a monopolistic few who “control the whole”.

In the new era, the traditional major banks will have equal status with smaller institutions, which is in the interest of fair market competition. This way, competitive smaller financial firms have the opportunity to set the trend, making the overall market more active and free. There are even benefits for the traditional major banks, as their own risks will be greatly reduced, benefitting their long-term development.

How does DCC achieve inclusive finance?

“A family in South Africa could easily get a loan from a North America-based financial institution that changes their lives through DCC.”

-Stewie Zhu

Under the current financial system, there is almost zero possibility for the above to happen, but such cases will be commonplace in the future with DCC.

Let’s take this South African family as an example.They would not have to pay expensive fees, or spend time and money building credit records with a bank. By registering their credit footprint on the DCC platform and entering the needs of the family, financial institutions around the world would be able to learn of their circumstances and offer appropriate services. The cost of financial services on DCC can be greatly reduced by cutting out credit data control from traditional central financial institutions. The family can quickly and easily find out what they can afford to borrow and sign digital contracts online.

As the family works hard and begins to repay their loans, they leave a positive footprint on their DCC records. Other financial institutions cannot take control of these records, and the family are the owner of their own credit data.

Similarly, the general public all over the world can, through DCC, prove that they are trustworthy and have the ability to repay loans before quickly obtaining financial support. By rewarding the service party and trustworthy borrowers in the form of digital currency, DCC has a positive impact on financial activities. Compared with traditional financial markets, the DCC platform not only achieves lower interest rates and easier borrowing but also will greatly reduce default and risk.

As greater numbers of people get the support they desire through DCC and transform their lives, the global economic polarization of the rich and poor can be curbed, and productivity from individuals from all social backgrounds enhanced. One of the greatest features of the distributed financial services system is that it enables financial services to reach an extensive number of people and spread benefits to all sections of the society.

How will DCC change the blockchain industry?

DCC addresses the biggest shortcoming of the traditional blockchain currencies — the lack of true value. DCC’s value comes from the financial activities and transactions of all its members. As increasing numbers of financial transactions are completed via DCC, the DCC digital currency will have a more concrete foundation. Today’s socio-economic operations go hand in hand with the flow of large sums of financial capital, which bringsDCC a broad range of potential commercial applications and invaluable potential.

This is the beginning of the commercialization of blockchain technology. Based on the huge market demand and by eliminating the key weakness of traditional digital currencies, DCC can become a high-quality digital asset which is worth holding on to in the long term.

Passion and inspiration —the essentials of a successful team

DCC’s core team of experts is an all-star line-up. Stewie Zhu, a graduate of Oxford University and the London School of Economics, is a specialist in behavioural economics and game theory, and has been an active player in the blockchain industry for many years; Professor Lu obtained a PhD in mathematics from Yale University, and brings extensive experience as a former director in several major investment banks along with an unwavering enthusiasm for all blockchain related topics; Shi Fei, Vice President of JP Morgan, is an authority on quantification, derivative pricing and quantitative risk analysis, with valuable insights into blockchain; Chen Yu is an angel investor with countless successes and achieved fame online as “Jiangnan Young Cynic” by advocating decentralization;YuhangGuo is founder of DIANRONG and Chairman of Galaxy Capital, and is one of the earliest blockchain investors.These top-class academic experts and investment gurus make concerted efforts to develop the distributed banking system and allow millions to benefit from blockchain finance. Professionalism, strength of character, inspiration and enthusiasm are the key to DCC’s success.

Will DCC cause an explosion in the blockchain industry? It may be too soon to draw a definitive conclusion. What’s certain is that the financial industry needs a blockchain revolution, aided by the support of real economic activities. DCC is the bridge connecting the two. Responsive investors have already started to explore DCC’s investment channels. Whether you sit and wait to see how things unfold, or act now to seize a potentially valuable opportunity, the decision is yours.