Together with Holepunch and Synonym, Tether will launch a P2P сredit system, Pear Credit, in 2023.
💡 Pear Credit is a peer-to-peer credit system (P2P lending), thanks to which issuers are able to create peer-to-peer credit "tokens". Companies see the advantages of Pear Credit in the fact that "credit issuers a faster, cheaper, and more scalable token format, without relying on blockchains or any global shared-state networks”.
Remember that P2P lending is a way of lending money between unrelated users who are equal parties. P2P lending allows you to bypass a traditional financial intermediary (for example, a bank) in the process. In this regard, the Tether blog says that Pear Credit is superior to the traditional banking system and will help people to control their finances.
“Unlike traditional credit systems, Pear Credit is a transparent accounting system that leverages peer-to-peer technology to reach high scalability and resilience, perfect for big enterprises and one-person companies.”
“Pear Credit will be a strict upgrade to existing credit systems and token formats. By combining the Lightning-Network-styled speed with cutting-edge P2P networked storage systems, Pear Credit will unlock a new era of digital society and the economy. There will be Bitcoin and credit, obsoleting all else.”- said John Carvalho, employee of Synonym.
In addition to working with the Pear Credit economic system, according to the creators, it meets the latest requirements of the crypto market, and is also able to facilitate the transition from web2.
“Peer-to-peer applications will be essential in helping the transition from Web 2. Rather than relying on centralized entities who operate through a centralized infrastructure, the way that most of today’s traditional financial applications work, Pear Credit is fully transparent, scalable, decentralized and open.” - Mathias Buus, CEO of Holepunch Inc.
Let's hope that the developers will be able to achieve the expected result, and the product will be popular and will benefit the crypto community. We will continue our observations with this project and inform you about developments.