In my previous posts, I have explained about several crowdfunding websites and micro-finance institutions in India. I have also described pros and cons of our current system and how blockchain will address some of those challenges. Today I have come across a new token which is coming in to market soon. Everex.io (EVX), they have raised 1,580 BTC and 49,479 ETH in their ICO last month. 

![](https://steemitimages.com/DQmNojvvc9n9Cy6X2LqkpUjiTG7mJU3qiemBsG2uiu2Hcbd/image.png)
[Image Credits](www.everex.io)

### Everex.io: Blockchain based Microfinance and Remittance
To solve the problems of the present economic system, Everex is coming with blockchain based micro-lending and merchant payments to people who are living in developing countries.

Everex has designed their financial framework called “Credit and Capital Transfer System” - CCTS, which is based on fiat-pegged national currency & shared wallet architecture smart contracts. It is powered by Ethereum blockchain. By Using CCTS, it is possible to any micro-finance Institute, NGO or Mobile operators can issue CryptoCash tokens backed by any fiat currency. But before that these organizations are audited by some third party auditing companies to check their credibility. 

### How EVX token are benefiting both Lenders and Borrowers:
**To Lenders:** 
As EVX tokens are used as credit or collateral in the blockchain. By using EVX token one is building their credit score. Lenders can see the credit score of one individual both on and off the chain. Once any borrowers are requesting the loan, Cryptocash will be assigned to that person as collateral, and if there is any case of default, lender can take Cryptocash and compensate his loss.

**To Borrowers:** 
Credit is allocated to an individual based on their available EVX tokens, more the token more the chances of getting loan. If people are paying loans on time, they will be rewarded with more EVX tokens. If they are not repaying the loans, their EVX tokens which are pegged as collateral will be claimed. Any individual can sponsor others and can keep their EVX tokens as collateral. If borrower is paying on time, both will be awarded EVX tokens. If there are any defaulters, the credit score of both Sponsor and borrower will be at risk. 

### How Everex will calculate Creditworthiness 
The creditworthiness of any individual will be calculated with the help of social media data is collected by individual’s mobile phone (Web Browser), previous history of transactions of EVX token on the chain. Additional information will also be collected by using social media accounts (Individuals need to provide their chat histories, shared and tagged content, geographic location, social status and their meta information)

Everex is relying on Machine learning capabilities, by collecting data they can provide advice to lenders, whom to choose.  With this data they will fix the interest rates and also predict, what is the chance that the borrower will repay the loans.
A majority of the chain features depend on personal data collected from both lenders and borrowers, Everex is providing a share of tokens to users who opt-in to provide such data. Everex is claiming that personal information will not be shared with third-party use without the consent of the members.

I will try to explain how steem blockchain will address these challenges better, in my upcoming posts.   

`All images are taken from respective websites as given in source, this is only my review about www.everex.io - Blockchain Based Microfinance and Remittance. I am not promoting any tokens.`

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