Cryptocurrencies such as offer great growth potential because their technology behind makes their versatility immense. Not only do we have the option of using them as a payment currency, there are also platforms like Salt. Which pose a total change to current financial paradigms.
Salt is a platform that promises to be the revolution in the way we borrow money. And it is that thanks to the use of Blockchain technology, cryptocurrencies and other functions, it is sought to make loans much more accessible to people.
▶ What exactly is Salt?
Standing for Secured Automated Lending Technology, SALT is the next step in the financial offering. This platform seeks to be the first in the world to offer money loans using cryptocurrencies as collateral to ensure the solvency of the user.
Although there are many platforms that ask for an asset or property as collateral, it can be a promissory note or payment document, a property, vehicle, etc. There are none that ask for cryptocurrencies as a backup. In this way, it is sought to create an alternative to credit scores as a form of credit application.
In this way, the company based in Denver, Colorado, United States, seeks an alternative to traditional financing methods. You can forget about having to prove income or have an endorsement behind, since here your support will be the cryptocurrencies which are Salt Coins, the cryptocurrencies of the house.
Acquiring Salt Coins is easier than you think because they can be exchanged for ETH or BTC. In this way, if you have an emergency you can run to Salt, put your cryptocurrencies as collateral and thus easily receive a money loan.
▶ How does Salt work?
Suppose you want to buy a vehicle and you do not have money to give the down payment, then you decide to ask for a loan. The bank decides to reject you for your income, in that case you go to Salt. Here, all you have to do is put a certain amount of cryptocurrencies as collateral.
For example, imagine that you break your arm and have to pay for surgery. You do not have credit with the bank, but you do have an X amount of Bitcoins. So you go to Salt, you exchange these coins for Salt Coins and then you put them as collateral and apply for a loan. Ready, you can pay for your medical care.
▶ Difference between Salt and other cryptocurrencies
- Construction: The structure of Salt is made from the Ethereum blockchain which guarantees stability in the movements. In addition to this chain of blocks, we have here a native matrix which is responsible for guaranteeing the return of money.
- Transaction capacity: Another advantage that the construction of this platform offers is that it has a structure and chain of blocks designed to be efficient. This allows for a higher speed of transactions, as well as a greater processing capacity in these operations compared to Bitcoin.
- Safety: Compared to Bitcoin, for example, Salt increases the security of the platform, since it uses a double validation or two-step verification system. This prevents the incursion of strangers or fraudulent users within the platform. Two-step verification is easy to meet, but difficult to break.
- Encrypted: In addition, to improve the quality of the security systems in this crypto loan platform we found the incorporation of a better encryption system which is based on the AES-256 system. Thus, hacker incursions are prevented, as well as data leaks.
- Number of coins: Another of the clearest differences that we can find if we compare Bitcoin with Salt is in the number of coins available Bitcoin has 21 million coins in circulation. On the other hand, we find that Salt is capped at 120 million with just over 53 million in circulation.
- Mined: Finally, you should know that Salt Coin mining is not available because the release of coins is limited by the same platform. These coins will be released little by little in the market in order to maintain control of it.
▶ Technology behind
To work Salt uses a blockchain system which is based on Ethereum, although it has its own customization layer. This enables smart contracts to be carried out effectively, as well as making it possible for nodes to be formed by both lenders and borrowers.
Within this system we find two parts. Lfirst are the borrowers who are the people who are in charge of applying for the loans. They will be the ones who have to deposit a certain amount of cryptocurrencies to be able to approve the loan. Similarly, these nodes comply with the so-called two-step verification.
Furthermore, we have lenders who are in charge of lending money to borrowers. These are investors dedicated to lending money as an investment vehicle certified under 17 CFR § 230.501. In order to be a lender, you must complete an aptitude assessment.
The way in which the process of requesting loan money is fulfilled, using virtual currencies as collateral and receiving the money is necessary to establish a Blockchain process. For this, smart contracts are used as a method to support and validate this transaction of values.
▶ Is it worth using?
The answer is undoubtedly clear, yes, it is worth using Salt due to the radical change that this platform promises. We don't have a cryptocurrency here, Salt Coin, which only works as a way to make money. Rather, we have a mechanism that makes accessing a loan more accessible.
In addition, You should know that Salt Coin has good support by having the main cryptocurrency pairs available for exchange in Exchange. All this means that Salt, without a doubt, has a guaranteed leading role for the following years, at least in the loan and investment market.