Credit Card Business - Disruptive Technology and Business Model via Ethereum

comtechnetcomtechnet Member Posts: 57

MasterCard, Visa, and AMEX - the big 3 of the CC biz - are underpinned by a 60 year + business model.
They enjoy large market caps (126B, 141B, 97B respectively)

However - I've heard their "costs" to operate include 40% for fraud protection, detection, remedy, etc..
MasterCard does about $8B revs per year, Visa around $12B, Amex a little less.

For Ethereum to effectively disrupt the financial services industry - it must include a solution for credit.

I propose NO MORE CREDIT CARDS, just FAIR CREDIT! Such a theme, meme, will help to usher in the era of fair credit.

We need a consensual credit system to uproot the incumbent model. Ethereum could play that role.

Yet, we need a financial backer that "believes" that a new business model for credit on a new foundation of a consensual
block chain based digital currency and "rules" - has a chance to win - and achieve success in financial industry cc "change".
Someone or a "pool", needs to step forward and provide liquidity to "fund" this "change". "Change" that could steamroll
an industry ripe for "change".

We can architect it, we can code it, but we can't fund it alone.




  • SatCaSatCa Member Posts: 29
    Hi Dave, I believe a lot of people want to currently jump in on this. I feel it would be better if we do not compete with each other for small short term gains...but collaborate to create a beautiful system that delivers supreme value.

    If you do not mind joining forces, I'd love to help get more people on board this train. :)
  • comtechnetcomtechnet Member Posts: 57
    @SatCa? @vitalik? This CC project is certainly going to be a team effort, regardless of the players. We need to organize around the business drivers - which are huge.

    We need a pool of funders that want to go up against the incumbents and "win".

    A Winning combination of marketing, awareness, etc. will provide a major intro for us.

    Tesla was scoffed at by the car companies 10 years ago, even 5 - not now.

    Tell me about your team members, resources, etc.

    Dave (comtechnet)
  • k_dayk_day Member Posts: 3
    This is a great idea, and something I would potentially be interested in collaborating on. I will keep an eye on this as this idea develops.
  • comtechnetcomtechnet Member Posts: 57
    @k_day? - good to see some interest in the idea / project
    Will need a pool of investors - like the kiva shoe string
    Then will nudge Andreson and Andreeson! and other big wheels
  • SatCaSatCa Member Posts: 29
    @comtechnet my marketing and awareness process has been going on for about 2

    months now.

    Please come:
  • JasperJasper Eindhoven, the NetherlandsMember Posts: 514 ✭✭✭
    @comtechnet what are you going to do that bitcoin doesnt already do?

    (stupidly speculating at what it might be)Suppose you could have a 'dollars' subcurrency. But issueing and de-issueing would require too much trust. A rich entity R could stabilize the price(for liquidity) by selling under- and buying over-price if the price isnt what is desired, but it would be expensive. Or you could have a premine for it, but again too trustful.
  • comtechnetcomtechnet Member Posts: 57
    @Jasper? - speculating that a consensual credit based system using a crypto currency can dethrone the incumbents

    Need a pool of $ - whereby they r provided a reasonable return

    Need a trust and reputation mechanism

    Transparency will be a hallmark of the new consent credit system

  • JasperJasper Eindhoven, the NetherlandsMember Posts: 514 ✭✭✭
    So you want a trust/reputation system and have essentially trusted parties doing the issueing and de-issuing into fiat?

    Not sure what my thoughts are. Trust and reputation systems arent solved problems.
  • ERNERN Member Posts: 1
    The liquidity for this project could be provided by the balances in the wallets themselves. We could imagine a savings/credit account along with the ETH account. Anyone could choose to put some ETH in the savings account against a small daily retribution while on the other hand being able to borrow a certain amount from the same account for a slightly higher daily interest. Of course the borrowed money repayment would feed a reputation database and increase or decrease the initial limit. For higher "credit" amount we could think of some "moderator" job analyzing the quality of the project to be funded....But there we might need to create the creditcoin !!!
  • yoyoyoyo Member Posts: 34 ✭✭✭
    Sorry to be blunt but I do not see what is it that you are proposing, it's too vague/undefined. I've seen a few posts along the lines of "Hey wouldn't it be great if we had trustless X". But Ethereum by itself doesn't solve the issues. It's just a platform. A catalyst maybe.

    Credit is a notoriously hard problem. It's not even solved in the physical world. The partial solutions are reputation systems, escrow, law enforcement... All currently need a trusted third party.

    Ethereum doesn't magically turn every human relationship into a trustless protocol. It may or may not be doable, so before calling for investors you should describe a solution and why you think it will work.

    So, Alice needs X monetary units to complete one of her projects. Why would Bob lend her money (as an individual or as part of a pool). What guarantees does he have that she won't run away? What are his incentives? What are *her* incentives to not run away?

  • JasperJasper Eindhoven, the NetherlandsMember Posts: 514 ✭✭✭
    Ethereum doesn't magically turn every human relationship into a trustless protocol
    I'd go a bit further; neither do all trustless protocols need the concensus the blockchain requires.
  • JulianJulian Member Posts: 6
    Hi! I am interested in this discussion. Should we get together in a Google Hangout?
  • alexnalexn Member Posts: 2
    hi guys.
    I just joined.
    being in the payments field I would be interested in this discussion too.
    what is the status? if any...
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