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Let's see an example of
blockchain usage where it
creates value for participants
in the ecosystem achieving
social impact purposes as
well as business purposes.
EthicHub is a
crowd-lending platform
of high social impact,
connecting small
unbanked farming
communities with
international lenders
and direct buyers
with blockchain technology.
In other words, EthicHub
is a peer-to-peer
marketplace which connects
farmers with lenders
and direct buyers.
The company was founded
in 2017 in Spain.
The next year, it
was awarded for
the biggest impact project by
the ship to be
venture Capital Fund.
Since then, the company
has rapidly evolved.
Recently, gained 400 farmers
projects on the platform,
transferred $2 million in loans,
and has helped over 1,000
families in 21 communities.
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Why they did it? The
main purpose was to
bridge the gap between
investors around the world
and unbanked farmers in
developing countries, by
minimizing interest paid by
the farmers when returning
the loans and maximizing
profitability for investors.
The main issue to
be addressed was
the exclusion problem in the
traditional finance system.
Sadly, the majority of
the people excluded from
the financial system are those
who needed the
most, the poorest.
According to a world bank,
they account for
almost two billion
people around the world
or about a 1/4 of the
global population.
The majority of the unbanked
are smallholder farmers.
They're the cornerstone
of our economy
and produce more than a 1/3
of the global goods
and services.
Excluding them out of
the financial system
is not only immoral,
it is also unfair,
as modern technology can
mitigate the risks associated
with lending them capital.
Decentralized finance and
blockchain technology enable
people around the world
take part in solving
this problem.
How they did it? The company
developed an international
platform, which
allowed to invest directly to
local farmers. Based on
blockchain technology,
the solution provided
clear and transparent ways
for investments and built
trust with investors.
By creating collaborative and
successful relationships,
the platform has allowed
to pull more investors in
agricultural finance
and help to build
stable profit and economy
what they wanted to achieve.
More than 1 billion
small farmers
globally get an opportunity
to build their own property,
have a stable source of profit,
and improve their welfare.
A more inclusive and
prosperous economy
has created additional
opportunities for investors.
