Credits – A new Format for Business Relationships

Interview with CREDITS team about future of the small and medium business


Blockchain technology is a solution for most of the problems in small and mid-sized business, – Igor Сhugunov, the founder of the CREDITS platform, confidently states.  – Workflow based on a distributed register and smart contracts will completely change business relationships.



Businessmen and experts share Igor’s confidence. Ken Tregidgo, deputy chief executive at Calastone Limited, London company that provides fund order routing and connectivity services to the fund industry, commented on how difficult it is for small and medium businesses to access funds and larger markets.

– The industry still rely on manual processes and paper forms, often transmitted through fax, to process fund transactions. This creates inefficiencies, high costs, operational risks and delayed settlements, which can increase during peak processing times and times of market stress, – Ken says. – By migrating the entire market on a distributed market infrastructure based on blockchain, a fully linked trade life cycle from order, settlement, all the way to payment and post trade services – all these become smart contracts. Reconciliations can occur in real time as the transaction chain cannot be broken.

Small and medium companies will considerably reduce costs, staff numbers and increase their client base by using a blockchain.

Calastone plans to go live on blockchain starting 2019.

Chong Sing Holdings Fintech Group offers credits to small and mid-sized businesses in China and their Chief Operating Officer, Phang Yew-Kiat reports:

– We have registered more than 4 billion blockchain-based transaction records during the last 6 months. This is not surprising since according to our calculations, a blockchain will save small and mid-sized business no less than 30% of their costs.

Jeffrey Moore, an American organizational theorist, management consultant and author, predicts that  small and mid-sized businesses will be able to easily and cheaply  use and analyze Big Data in the near future thanks to blockchain.

– Half-jokingly Jeffrey added that this currently doesn’t happen because companies are blind and deaf, wandering out into the web like deer on a freeway.



Simply put, blockchain is a data register that constantly grows and contains different types of information. It is impossible to delete or modify data in this kind of a register, which is its key point. Every record created in a blockchain is stored forever. The absence of centralized data management gives a high degree of trust and data validity.



Even smallest companies have a dozen contractors, suppliers and other business relationships. Currently, mutual trust between companies is established by contracts. If a party to the contract does not fulfill the terms and conditions, the affected party applies to court. Proceedings can take months and be expensive.

A blockchain turns standard paper contracts into smart contracts programmed and executed through the blockchain network. The advantage of this solution is that terms and conditions of the contract cannot be altered and there is no way to avoid their fulfillment.

– Smart contracts will cut down the costs and speed up business processes. They are simply a program code, and perform what the programmer designed, – explains Igor Сhugunov.



The volume of international money transfers is growing annually. Businesses lose a lot of money on currency conversions, not to mention that it can take up to 5 days to make a transfer. There is no single inter-bank payment system, which also causes a number of issues.

– Blockchain and cryptocurrencies are often looked upon as “bank killers”, but this is not totally true, – corrects Eugeniy Butyaev, the CTO of the CREDITS project. We are sure that this technology can help banks to be more flexible, quicker and safer. This is especially useful for banks which are subject to constant cyberattacks. We should remember the WannaCry virus which blocked operations for thousands of companies in 74 countries.

Today if cryptocurrency is used for payment, the procedure takes several minutes. CREDITS is the flagship of new blockchain platforms, and promises transactions performed within a second. Such a data processing speed can be compared to the instant payments of Visa or Mastercard.



Head hunting has always been a problem for companies.  Endless job interviews and competence tests are very tiring and require much effort and time.

In future every employee will have a life-long personal database open to employers. It will contain information concerning previous work experience, probation periods, and skills upgrades. Thus the blockchain will verify the prospective employee’s competence.

This new type of blockchain-based ecosystem will eliminate the need for the HR-manager and potential employer to do data validation and additional tests.



According to recent research, more than half of all small and mid-sized companies use data cloud-storage services. The blockchain application will improve the safety of these services.

Blockchain technologies like ours will broaden the use of cloud technologies, – states Eugeniy Butyaev. – A blockchain will give a high security levels thanks to the ciphering system and effective data verification.

Undoubtedly, blockchain technologies have introduced many innovations into our present-day world, and smart contracts have radically changed concepts of trust and doing business. Blockchain technology has only recently become widespread, which explains why not all of the opportunities and uses are well known. The world awaits a new digital revolution.


by Merkusheva Darya


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