Developed by experienced pioneers in fintech and crypto, Bholdus aims to improve the credit system in emerging markets and help small and medium enterprises (SMEs) access capital via their sophisticated blockchain network.
Solving real-world problems with blockchain
Since it’s difficult to prove their creditworthiness, SMEs often find themselves struggling with financing their business operations. The introduction of blockchain technology has revolutionized the crowdfunding process, thus allowing startups to have better opportunities for growth and expansion.
A popular approach in recent years is token issuance in the form of an ICO (Initial Coin Offering), an IEO (Initial Exchange Offering) or an IDO (Initial DEX Offering). However, Bholdus proposes a brandnew solution: NFT-based lending.
Difficulties in assessing SMEs’ credit risk
Because of the fragmented financial data, assessing the credit risk of SMEs has been a challenging task for traditional banking. The sheer unavailability of their financial footprint remains the biggest obstacle in securing a loan; and even if they do have explicit information regarding their financial statements, invoices or cash flows, it still takes a lot of time to verify the consistency and reliability of such information.
NFTs as collaterals
Yes, we all know that the lending platform MakerDAO introduced the new era of decentralized finance (DeFi) as early as in 2015. Lending is the crème de la crème of DeFi: the current TVL of decentralized lending protocols makes up half of the total DeFi TVL. But nearly all lending protocols provide collateral-backed loans, which are not at all the optimal option for startups.
Understanding that startups don’t have enough assets, be it real-life or cryptocurrency, that can be used as collaterals, Bholdus allows borrowers to tokenize their credible evidence as NFTs and stake them to obtain a loan. The finesse system of Bholdus on-chain “pricing oracles” will determine the quality of these NFTs and underwrite the loan.
The accepted real-world assets for NFT minting include financial statements, invoices and mortgages. This brings a relief to the underserved SMEs since these entities can use their audited business information as an alternative collateral and the administrative costs of service delivery are significantly reduced.
Bholdus Network as the true game changer
To achieve full decentralization, the Bholdus team has also developed their own network that uses the NPoS consensus algorithm. Nominated Proof of Stake (NPoS) is the refined variation of the PoS system where network stakeholders, BHO holders in this case, will nominate a set of validators by staking tokens for these validators, therefore indirectly participating in the validation of transactions, the production of new blocks and the assurance of network security. In other words, the authority and responsibility are distributed proportionally to all stakeholders of the network, making Bholdus the true decentralized blockchain.
Better, safer and greener
Adopting the strength of PoS and pushing it to the next level through NPoS, Bholdus is able to deliver the following advantages:
- Eco-friendly: In the conventional PoW system, miners run computer software to solve complex algorithmic problems and sign transactions and produce carbon emission that could potentially undermine global sustainability. This problem is solved by the PoS model; it reaches consensus by activating validators upon stake receipt and therefore requires less energy.
- Resilient to attacks: The nominators will receive a slashing, i.e. the punishment if one of their nominated validators misbehaves. Moreover, it is not guaranteed that the full set of nominated validators will enter the active group, making it much harder for attackers to conduct malicious activities.
- Higher transaction throughput and block production: The NPoS system requires a specific number of validators to optimize time and data size to communicate between nodes, resulting in better network performance. Transaction speed is also improved because complex puzzles are banished.
- Provable finality: Bholdus uses Hybrid Consensus to separate the finality gadget from the block authentication mechanism, allowing new blocks to be constantly produced while making sure that no transactions are reversible.
Scalable and interoperable
The Bholdus network is designed to support multiple blockchains via a parachain/parathread mechanism, allowing for information exchange and the establishment of new funding channels for SMEs.
Key products of the Bholdus Ecosystem
Bholdus is a blockchain network that focuses on connecting DeFi and the real world. All built on their own blockchain, which promises the best transaction speed (up to 3,000 TPS) for the most reasonable fee, Bholdus products will definitely give their users the exceptional crypto experience.
Bholdus Wallet is specifically designed for storing and transferring NFTs. It is also compatible with many cryptocurrencies and supports different blockchains for convenient asset management.
Bholdus Wallet will be integrated into their mobile app and have its Chrome extension.
Bholdus DEX will make trading cryptocurrencies and NFTs easier. The uniqueness here lies in the speed and transaction fees of the Bholdus blockchain. Bholdus DEX uses smart contracts to get rid of intermediaries and as a result are low-cost and immune to disruptions.
Black Hole Pools
The operating mechanism of Black Hole Pools is similar to that of open-end funds, which is a collective investment scheme. Startup projects (Asset Originators) can create funds of their own and issue tokenized shares to pool verified investors’ money. The number of shares is not limited and all levels of investors can have access to Black Hole Pools, although they are required to complete the KYC process beforehand.
Black Hole Pools are always open to investment, allowing Asset Originators to have regular liquidity resources. However, investors can sell their tokenized shares back to the Asset Originators at any time to redeem the initial capital, ensuring continuous liquidity of the Pools. This is how lending for SMEs can be accomplished in a trustless manner.
Bholdus offers two lending options for their users. Users first get access to various lending protocols on different blockchains within a single, user-friendly interface. Later on, Bholdus will release their own lending system, which allows cross-chain collaterals and pay staking rewards for users.
Black Hole Stablecoin
Black Hole USD is an algorithmic stablecoin that comes with the introduction of Bholdus native lending system. After depositing their assets, users can borrow against the value of their deposits and take out a loan in the form of the newly generated Black Hole USD. Similar to DAI, Black Hole USD is strictly pegged in a 1:1 ratio with the US-Dollar.
BHO is the native token of the Bholdus Ecosystem.
Token name: Bholdus
Token ticker: $BHO
Network: Bholdus Network
Contract Address (BEP20): 0x8717e80eff08f53a45b4a925009957e14860a8a8
The main functionalities of BHO are described below:
- Farming rewards: There will be yield farming pools on the Bholdus Network. Liquidity providers will receive their rewards in BHO.
- Lending fees: When users deposit BHO to borrow Black Hole USD, they will automatically receive a 50% discount. The remaining 50% will be burned to reduce the number of BHO in circulation.
- Launchpad participation: BHO holders will have exclusive access to fundraising events on Bholdus Launchpad.
- Governance right: BHO holders can exercise their voting rights on important changes of the Bholdus Ecosystem.
- Validator nomination: BHO holders have the right to select validators, i.e. people responsible for verifying transactions.
Team & Advisors
Bholdus is a member of Global Digital Asset and Currency Association (GDCA), and a partner with other fintech firms such as TechQuartier, Broctagon, Kambria Network.
The competent Bholdus team is joined by trusted advisors.
Bholdus’ vision is to revolutionize decentralized financial services and untangle complicated real-world situations. They are committed to helping SMEs access funding opportunities through a combination of DeFi and NFTs, marking a new milestone in the mass adoption of cryptocurrencies.
Writers’ opinions are solely their own and do not constitute any financial advice, investment advice or trading advice.
BSC Army strongly recommends that you do your own research and seek professional advice from a financial advisor where appropriate.