Of course, since you requested a topic about the HUMA coin in colloquial language, I will provide a simplified and clear explanation about it.
HUMA Coin: What's the deal and what's its purpose? (in Egyptian colloquial)
Look, my friend, since you asked about the "HUMA" coin, let me simply explain to you what its story is, and what distinguishes it from the many cryptocurrencies we hear about every day.
What is HUMA Finance, actually?
Imagine there is a platform (like an app or website) that provides loans to people who do not have traditional bank accounts, or who do not deal much with banks. This platform operates on a "decentralized finance" (DeFi) system, meaning there is no bank in the middle or traditional intermediary. This is exactly the idea behind Huma Finance.
This platform is called "Huma Finance," and the currency it operates and uses is called "HUMA."
So what distinguishes Huma Finance?
The main goal of Huma Finance is to provide financial solutions (i.e., loans) for certain categories, especially:
* People who work as "freelancers" or have "small businesses": Many of these people find it difficult to get loans from traditional banks because they may not have a strong credit history or the required paperwork. Huma comes in here to facilitate their ability to obtain loans.
* Focus on future income: This aspect is very important. Traditional banks look at your financial history. Huma focuses on your expected future income. This means if you are a freelancer and receive regular payments from your work (or have future contracts), you can use these contracts as collateral to get a loan. This opens the door for many people who were deprived of loans.
* It operates on a blockchain (decentralized): Since it is a DeFi platform, it is built on blockchain technology (like Ethereum, for example). This means it provides greater transparency, and its transactions are recorded and known to everyone, without relying on a single intermediary that can control everything.
What is the purpose of the HUMA coin itself?
The currency called "HUMA" is the "heart" of the entire platform. You use it for several things:
* Participation in platform governance: If you have HUMA coins, you have a say and opinion in important decisions regarding the future of the Huma Finance platform. This means you can vote on updates and new proposals, and be part of a community that shapes the direction of the platform.
* Incentives and rewards: The platform may use the HUMA coin to reward people who participate in the platform, whether lenders (who put money for people to borrow) or committed borrowers.
* Liquidity: The coin can be used to provide liquidity within the platform itself, which helps lending and borrowing operations to happen smoothly.
Simply put:
Huma Finance is trying to solve the loan problem for categories that traditional banks do not serve well, like freelancers and small business owners, by focusing on their future income and using blockchain technology. The HUMA coin is the tool that powers this entire system and allows its owners to participate in platform decisions.
Final advice:
As I always say, for any new cryptocurrency, especially one that offers a new business model like this, you must do your research very well about it. The cryptocurrency market is volatile and carries high risks. Understand well what Huma Finance is exactly, who is behind it, and what their plans for the future are before making any decision regarding the HUMA coin.
I hope this explanation is clear and useful for you! If you have any questions.
Another thing, I'm here.
