In the cryptocurrency circle, many people feel that the biggest shortage is the opportunity for 'money to be flexibly transferred,' but in fact, what is most valuable is 'everyone can trust each other.'
What @Huma Finance 🟣 a aims to do, to put it simply, is to connect our real-life 'capital flow'—such as the salary you receive steadily every month, or the daily revenue of a small company—with the 'credit records' on the blockchain.
You see, in traditional borrowing methods, if you want to borrow some money, you always have to put something as collateral, like a house or a car. Without these hard assets, people are reluctant to lend. But the new finance of Web3 is different; it should rely on real data and contracts that automatically calculate according to set rules. Huma has come up with a way to 'borrow money based on income': turning an individual’s stable earning ability and a company’s daily operational income into credit assets on the blockchain that can prove 'this person/this company is trustworthy.' In this way, those blockchain-based financial tools (what everyone refers to as DeFi) will not just be used by a few people for speculation, but will truly integrate into daily production and life as financial assistants.
What does this mean?
In the future, when we want to borrow money, we might not need to mortgage our houses or cars; the amount of money you can steadily earn each month and your ability to continuously generate income will be your 'assets.'
It may also mean that future financial services will not only serve those who already understand cryptocurrency, but more ordinary people will also benefit and enjoy convenient financial services.
Many people see Huma as just a new story in a niche field. But I believe this is actually a key step for Web3 finance to truly enter more people's lives and be used on a larger scale.
#HumaFinance $HUMA
