by Cindy Huynh
Decentraland, a virtual reality platform recently partnered with the Ripio Credit Network (RCN), a peer-to-peer credit marketplace, to provide smart contract-based mortgages for users looking to purchase land in Decentraland. According to Decentraland’s announcement published on November 5, 2018, RCN will ensure that lenders and borrowers from any region can enter into transparent, safe, secure, and reliable credit agreements.
Decentraland Introduces Support for Land Mortgages
Decentraland and RCN users, as of November 5, 2018, can request for a mortgage when they are purchasing land parcels for sale via the Decentraland marketplace. The RCN partnership will help lower the barrier of entry for developers, blockchain enthusiasts, and artists who are looking to buy land in Decentraland to create rich, interactive, 3D content.
According to the announcement, RCN is a well-suited partner for Decentraland. The former is a global smart contract and blockchain-based credit network built using the Ethereum blockchain. It connects lenders and borrowers from around the world and ensures that the lending process is transparent and reliable. Unlike traditional centralized credit networks, the decentralized nature of RCN minimizes fees and costs associated with loans.
— RCN (@RCN_token) November 5, 2018
“The partnership between RCN and Decentraland – two of the most promising Ethereum-based projects – is one of the first examples that highlight how different smart contracts-based applications can work together,” said the CEO of RCN Sebastian Serrano.
“At RCN, we drive our efforts to connect lenders and borrowers and offer them.”
Applying For Land Mortgage
Since the RCN is a peer-to-peer credit network, requesting for a land mortgage is a relatively easy and straightforward process. Users interested in a mortgage need to submit a brief application with details concerning amount required, duration, the minimum amount of interest to pay, interest rate, punitory interest rate, and request expiration.
The borrower also needs at least ten percent of the price of the parcel they wish to purchase. Once the brief application is complete, RCN will then publish the borrower’s request for the mortgage. Any lender on RCN can supply the funds and fulfill the loan as long as the parcel of land is still for sale.
When the lender agrees to the loan, the parcel is transferred to a separate smart contract for the mortgage. Once the user has paid off their mortgage, the parcel is freed from the mortgage smart contract and enters the user’s account.