Creditcoin (protocol)

Creditcoin is a public blockchain-agnostic lending protocol, and is built on top of the Hyperledger Sawtooth Project. The Creditcoin blockchain employs a Proof of Work consensus algorithm. It was designed jointly by two companies, Gluwa and Aella. Around the Creditcoin protocol there is the Creditcoin Foundation, which dedicates to build a sustainable ecosystem to accelerate technology development and commercial adoption. In 2019, protocol was licensed under the GNU Lesser General Public License software license.

The protocol has four basic interrelated mechanisms that compose structural support of the consensus tool. These four mechanisms are Sawtooth PoW consensus engine, Gateway, Processor, and Sawtooth REST API Hotfixes. By using randomized sampling and metastability to ascertain and persist transactions, It represents a new protocol family.

Scientific background
Consensus protocols are the basis for the state machine replication problem, which aims to enable a set of machines to achieve agreement over a network even when a subset of the machines are corrupted. There are two major families of consensus protocols to date - classical consensus and Nakomoto consensus protocols. The first achieves consensus through quorums, thus requires voting. Famous instantiations of this are Paxos (in the crash-fault-tolerant environment) and PBFT in the Byzantine-fault tolerant case. These protocols achieve agreement in a similar operation to a parliament: a proposal (transaction) is proposed and voted on to be accepted or rejected. If sufficient votes cast by the various replicas are accumulated (typically collected through elected leader replica), then a quorum is achieved, and thus agreement. The second family, pioneered by Satoshi Nakamoto and Bitcoin is that of Nakamoto consensus. Unlike quorum-based protocols, machines operating an instance of Nakamoto consensus achieve agreement on transactions by downloading the longest chain (typically called a fork). In Bitcoin, the longest chain is verified by ensuring that it is the one with the highest degree of work (or proof of work). Creditcoin loosens this requirement, thus enabling quorum-based protocols to estimate global network state *with errors*.
Design
Creditcoin is a public blockchain that creates a credit lending infrastructure allowing fintech lenders and microfinance providers greater access to capital while borrowers secure transactions, loans and their objective credit history on a groundbreaking immutable ledger with the Creditcoin token.
The Creditcoin blockchain is based on the Hyperledger Sawtooth architecture, and is designed to match and record loan transactions, creating an auditable and reliable source of credit information verification. By reducing informational a-symmetries, Creditcoin facilitates trust within its lending ecosystem. Creditcoin (CTC) is a utility token that is used as a transaction fee in the Creditcoin ecosystem. Whether you are a crypto investor, a fintech lender/developer, or a borrower in the developing world, the Creditcoin Ecosystem connects blockchain assets with a straightforward protocol creating trust and opportunity among an inter-blockchain lending market. In April, 2019, the CTC codebase for the Creditcoin consensus protocol became open-source and available to public.

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