The unbanked population around the world is massive, which can and should be solved with modern technology.
Egoras plans to use the power of blockchain and DeFi to try and do just that by offering micro-loans.
The unique feature of the project is that these loans are uncollateralized, so users can easily raise money.
Egoras is a young blockchain protocol that aims to offer decentralized, uncollateralized micro-loans, and in doing so, it wishes to help the unbanked.
Despite constant technological advancements that have transformed the world around us, humans around the world are not as well off as many seem to believe us to be. Even now, in 2021, when having a bank account seems to be as simple as filling out a few short forms on the internet, there is still a massive portion of our population that has no access to this privilege.
According to recent statistics, countries such as Morocco, Vietnam, Egypt, Philippines, Mexico, Nigeria, Peru, Colombia, Indonesia, and Argentina all have more than 50% of their population with no access to services of banks or similar organizations. While the percentage is below 50% for many other major countries, it is still uncomfortably high, and it includes millions of people per country.
The crypto industry aims to change this, but the process of adoption is slow, mostly due to the fear of the unknown, skepticism towards digital currencies and blockchain technology, but also because these technologies have been overly complicated for regular people with no financial or tech backgrounds. However, this is no longer the case, and projects like Egoras can really play a massive role in changing the lives of people in these countries for the better.
How can Egoras bank the unbanked?
When we are talking about banking the unbanked, what does that really mean? Well, it means offering people the ability to open up bank accounts and enjoy a variety of banking services, such as loans, or the ability to store money safely, and even have it make more money over time.
This is all impossible for billions around the world due to poverty. Essentially, the belief is that people cannot earn money without the access to the global economy, and they cannot access the global economy without access to the banks. Meanwhile, banks have no interest in offering them access because they themselves cannot earn the money from these people at this time.
This decision to only chase after profitable moves is what is keeping the majority of the world poor. Egoras aims to break this cycle by offering uncollateralized micro-credits that will allow users to raise small loans without the need to back them up. While this may seem insignificant at first, it could be a major game-changer, as sometimes, small loans are all it is needed to start a new business, improve the existing one, invest in a profitable venture, and more.
Small loans could be the key for improving countless lives, but that means little if you don’t have a place to get them from. Egoras plans to become that place by utilizing the power of Binance Smart Chain and DeFi.
The project offers its own token that people can use to earn high-yield interest through staking, and even support the causes they care about. The project wishes to help people make a real personal impact on these causes, all of which can contribute in changing the world for the better through a community’s effort.
The project also has a secondary coin called Egoras Right or EGR, which is a fluctuating token of the Egoras protocol, and it plays a role in stabilizing the main token, EGS. Users get to stake their EGR tokens by voting, approve loans without risking their own coins and receive interest when the 24-hour voting period is over. Over time, they can build a reputation and become go-to users of the platform for taking secure micro-loans.
The project appears to be well-thought-out, and it certainly seems to have the potential to improve the lives of many people located in the most unbanked and underbanked areas around the globe, if only it were given the opportunity.