100% Self-assured Credit Loops System!
Marmara v.1.0 is a system that uses 100% self-assurance as a general feature, as opposed to “Paper based Analog Blockchain of Trust Based Credit Loops” systems used worldwide.
Marmara Credit Loops on Marmara Chain are coded using “Antara Framework” technology by Komodo Platform as Custom Consensus (CC) Smart Contracts. Every credit that comes out in Version 1 has a 100% collateralization. Issuers and endorsers in credit loops have the right to “staking” with 3 times more chance in exchange for full collateralization in Millennium Edition.
Trust Based Credit Loops:
The credit loop system that is inspired from standard post-dated cheques works based on trust. Marmara 2.0 Credit Loops in their basic form work in many countries as analog version on papers known as post-dated cheques and promissory notes in circulation.
The system working as analog blockchain in countries such as Turkey and India is in forms of papers and has no digital version. Marmara Credit Loops is the first in the World with the circulation of post-dated cheques and promissory notes. Furthermore, the most unique feature is the solution to universal problem of nonredemption. It hast the possibility to become a common culture in the World by this way.
Marmara Credit Loops (MCL) is the first and the only Decentralized Finance (DeFi) system in the World designed to run in real economy. The system rewards buyers and sellers when shopping with credit loops instead of cash. It works as an independent smart chain with a 25% mineable and 75% stakeable coin integrated with two DeFi protocols. The system uses UTXO based Turing Complete Smart Contracting system powered by Komodo Platform.
Marmara Chain is protected against 51% attacks by means of Komodo dPoW technologies which recycle the hash power of Bitcoin by backing up independent blockhains on the Bitcoin network.
Staking could only be done when users lock their coins in one of the two different funds, namely; “Activated” and “Locked in Credit Loop” (LCL) funds. When coins are locked in LCL funds, both issuer and holder(s) of credit have the chance for 3x staking. The system has a unique solution for coins locked in credit loops unlike other staking systems. Locking coins into credit loops for staking does not make them static. Instead, they can be circulated while they are locked and doing 3x staking via endorsement. The process of credit endorsement is designed to assure that transfer is only meaningful while shopping.
Credit Loops work also similar to post-dated cheques in cultures where redemption is not made before maturity date of a cheque and hence making collateralization unnecessary. The system consists of two protocols; 100% collateralization and under- or zero-collateralization. The first protocol is based on 100% collateralization. It is an interest-free system providing the negative entropy established through the mining and staking rewards on the same chain. The issuer provides the coins required for 100% collateralization until the maturity date of a credit loop. The second protocol is based on money creation with many different fiat and crypto currencies as well as assets such as gold and silver. The second protocol works by merging the trustless blockchain with communities and escrows who provide the required trust layer into system. The protocol 2 was designed to run in a multilaw structure to enable the use universally in any country and community. A third layer of blockchain fund integrated with escrows is maintained as a kind of distributed notarization system to further protect holders of credits against non-redemption.
In trust-based mode, the issuance or settlement of credit loops are performed by trusted escrow service providers, which act as distributed notaries. Those who provide this intermediary services are called “Escrows”. All issuer nodes in credit loops must verify their data by an escrow service to join the credit loop system. The Escrow system is similar to Notarization system with more responsibilities. Further details will be published.
Mining/staking people can easily use the system with trustless features of Marmara Credit Loops. Data Management is only necessary for necessary people such as credit issuers and for trust based version.
Data association for issuers must be through escrows. Escrows may be Web-based escrow services, Crypto Exchanges, Notaries, Post Offices, Law Offices, Credit Unions and even Banks. Not everyone can become an Escrow. Please contact us for details if you want to be an escrow.
Escrows and avalists in community layer provide an additional layer of trust in the blockchain. Currently, in the analog version of post-dated cheques, cheques are initiated by banks and banks do not issue checks to everyone. In case of promissory notes, avalists are more important. Escrows bear the main responsibility during issuance and settlement of peer-to-peer credits on Marmara system.
To ensure that there is no identity theft in version 2, user (issuer) data should be managed by only through Escrows. This will be done by the Escrows with the their own Know Your Customer procedures, financial credit scoring system etc. Escrows will be responsible during issuance and settlement of trust based credit loops. Therefore, they will have earnings from blockchain fund in third layer planned for Version 2.
The requirement definitions have been completed for trust-based blockchain solution (Version 2) but not yet been fully implemented on the existing blockchain. The trust-based system works similarly to the existing trust-based analog blockchain in paper-based check checks, but with several preventive programs (3-layer recommendation), self-assurance is provided against the problem of non-payment (defaulting) or bouncing. In the trust-based blockchain system, the issuer creates a credit similar to the banking system. The difference here is that the credit created in blockchain is circulated in a credit loop, in contrast to the bank credit where the credit generally remains as the contract between the bank and the borrower. Non-redemption problem in trust based credit loops is solved in a unique way.
There are several layers of protection against defaulting, i.e. non-redemption. First of all, the issuance and settlement processes of trust based credit loops will be through Escrows acting as responsibility and trust centers. They can have additional guarantees to be used in case of no refunds.
Issuers and endorsers in the credit loop layer will most likely have active/locked coins to be used as a collaterals in case of defaulting. Avalists’ activated funds in community layer may also be used collaterals.
The blockchain fund layer will also be used as a last resort against nonredemption.