Swapy network - universal access to credit

Swapy is building a decentralized protocol with a suite of three integrated applications aiming to
provide Universal Access to Credit. These applications are:

1. The Swapy Exchange, which aims to connect smart money to emerging economies. It will introduce international investors from countries where the interest rates are comparatively low to credit companies in countries where the interest rates are comparatively high, providing better returns to the investors and lower cost capital for the credit companies.
2. Swapy Financial ID, which aims to empower people, giving them a financial identity that has the purpose to be valid anywhere in the world;
3. Swapy Data Market, which aims to transform users’ financial data into self-determined value through a token-based system. This suite of decentralized applications will allow the individuals to hold their own data and to choose how many tokens they receive in exchange for it, and when, and with whom they want to share. The Swapy Data Market also aims to reduce the entrance barriers for new participants since huge pools of data will no longer be exclusive to large corporations, and instead will present an opportunity for the new entrants.

The Swapy Company envision a world of efficient credit markets, with no barriers to entry for new players, where consumers have the power and reap the benefits of Universal Access to Credit.

Swapy Network

Swapy Network is a decentralized protocol that aims to connect the various participants within the financial industry:

• borrowers,
• creditors,
• insurers,
• data producers,
• data consumers, and others.

With Swapy Network, individuals and/or companies are able to offer or consume services and collaborate within the ecosystem to decrease the prices of financial services, all the while being more inclusive of new entrants in the financial industry. The fees to operate
in Swapy Network will be charged in Swapy cryptographic tokens (SWAPY). This way, token holders will have access rights to use the Swapy Network, benefiting from and contributing to
it, and receiving tokens in exchange. This section provides an overview of the Swapy Token, the proposed D’Apps, and the protocol itself.

How does Swapy Network aims to solve the problems of access to credit?

1. It facilitates offers of credit in order to lower the costs of capital.
2. It eliminates information asymmetry between participants through a commonly shared and updated data network.
3. It provides better data so that credit companies can make better lending decisions and
   offer lower rates to good clients.
4. It encourages lower cost capital and better information which can reduce entrance barriers
   for new companies.

Technical Overview

The focus of Swapy is to provide the basis for a B2B fundraising ecosystem, the technology for a financial identity valid worldwide, and the aspects for a data/insights market that relies on the financial identity as a source. The protocol we are proposing is the first step toward a world of Universal Access to Credit. Our protocol was released under Apache 2.0 license. Our official wiki details the technical aspects of our network while proposals are managed on SWIPs repository.

1. Self-Sovereign Identity

As a standard for identification in the protocol, every peer will have their own profile, trust points, attestations, and recommendations. However, private data will not be stored onto a blockchain. This will allow peers to trust each other despite pseudonymity. In addition to this standard, the Swapy team and its community provides the Swapy Financial ID, a decentralized open-source application that allows individuals to store sensitive data in their own smartphone and associate it to their blockchain identity using
the data hash as a fingerprint. The data is granularly modeled into a Merkle Tree allowing one to share and validate only the needed piece. Using Swapy Financial ID technology, data is organized in levels of granularity. Therefore, individuals can share specific parts in a way that only the real recipient will be able to read.

2.                  B2B Fundraising

The main aspect of this flow is the creation of a fundraising offer that is encomposed by a gross return rate, a payment term, and one or more assets, each one containing its specific value, its reference currency (in any FIAT or cryptographic currency) and its particular physical contract fingerprint. The lender raising capital, also known as the offer owner, does this by instantiating smart contracts from our protocol and providing its asset’s attributes. Investors are able to check the fundraising details as well as the contract owner’s self-sovereign identity directly on the blockchain, and decide whether to invest or not. This process consists of sending an amount of ETH (and further possibly any other ERC20-compliant token) to the smart contract accordingly to the value and currency established during its creation. After transferring, the lender raising the capital is able to accept and withdraw funds, registering the investor as the return’s recipient.

3.                  Data Sharing

Data is not stored inside a blockchain. Instead, it is cryptographically stored on the user’s device or in a decentralized storage (e.g.: IPFS). Anyone can use any possible means to share the data off-chain with whomever they want. However, to ensure that only the recipient will be able to read the information, the protocol provides an smart contract that implements a selective disclosure mechanism. It consists of signing the data’s private key using the recipient’s public key and storing it at the data sharing smart contract. As long as the recipient solely maintains his private key, he alone can decrypt the data’s private key and, therefore, decrypt the data.

4.                  Data Ingestion

The data flow in the protocol provides a way for individuals to share their financial history, or only a smaller part of it to other peers on the network in exchange of Swapy Tokens. To do so, a peer interested in buying data from a single peer or multiple peers must start a smart contract informing the ETH address of the peer intended to share data and a timelock for the transfer of funds to complete. Then, the peer must share the encrypted data (off-chain), for example through the IPFS protocol or using the Signal Protocol. By using a Selective Disclosure-based approach, we determined that the data seller should encrypt the data key using the buyer’s public key and register it inside the smart contract.

5.                  Insights Consumption

Swapy team is working to provide a interface in which peers in the Swapy Network can filter and request data in bulk to individuals in the network, paying value through Swapy Tokens. We expect many different algorithmic approaches to arise towards credit analysis, investment risk analysis, and new market targeting strategies, all enabled by Swapy Network’s huge and reliable data source.

LINK TO JOIN

Swapy Network = https://bountyhive.io/join/Swapy%20Network