How The ReSource Protocol Is Changing How Businesses Access Credit | Benzinga

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Running a business in the modern world is a tricky affair; between navigating the online space and the ever-changing real world (including the ongoing pandemic), business owners are constantly having to adapt to survive. One of the ways that business owners have been able to adapt in the past was by accessing credit. 

Whether it was for expansion or survival during hard times, credit access has been a major way for business owners to access labor, equipment, expertise, and everything else that they need to thrive. This system, however, was far from perfect and had several pitfalls.

First, access to credit facilities is not uniform across the board as smaller business owners are often at a disadvantage compared to their wealthier counterparts. The demands of collateral, payback terms, and interest also make the process of accessing credit, and the benefits that come with it, difficult.

How Blockchain is Changing Credit Access

Despite these age-old problems for business owners, a solution seems to be on the horizon and this comes through blockchain technology. Take ReSource, a blockchain-based resource that is designed to help businesses access the benefits of credit without having to use fiat currency or pay compounding interest. 

In a typical setup, a business owner would need to apply for a loan from a bank or other financial institution, offer collateral, and then they would be able to use the money borrowed to pay for expertise, equipment, and so on. With ReSource, the need for fiat currency itself is circumvented. 

How it works is that business owners put up their unused or unsold material and immaterial resources (equipment, expertise, labour, etc) on the site. Other business owners then borrow these resources from them while offering their own in return.

This offering of resources on a secure blockchain to other business owners is a process called mutual credit and is on track to become the future of business operations. In a world where people barter clothing online, sell their unused internet, and crowdfund for worthy causes, resource staking is exploring how business owners can turn shared resources into credit.

Creating a New Business Landscape

This resource staking and the mutual credit system that it creates also takes away some of the power from fiat currency over business operations. Typically, businesses’ access to resources is heavily affected by economic factors such as inflation. Simply put, if the fiat currency of the economy is not doing well, businesses often suffer.

This new system creates some level of immunity from this as business owners are always able to tap into the power of the community and its resources. Even cryptocurrency, which is a product of blockchain, is limited in the way that it can affect business operations thanks to this. 

Because the native ReSource stablecoin is not pegged to a fiat currency but to business resources, the importance of fiat currency is reduced even more in this context. The ‘loans’ that are given out via the blockchain are uncollateralized and have an interest rate of zero. 

This system also takes on the often unfair setup of credit scores. It has been well-documented that the credit system is largely unfair and is one of the factors that hinder business growth. 

With the ReSource system, users vouch for one another based on their interactions on the platform. 

What ReSource is doing, essentially, is disrupting the process through which business owners can access vital resources for growth and taking away power from the hands of centralized institutions. With this foundation in place, we are looking towards a world where business is easier and more equitable than ever.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

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