Lending network enables transparent credit history in Africa via blockchain partnership

African mobile banking platform Aella has partnered with Creditcoin Network to integrate transparent credit history by integrating all its transactions into Creditcoin’s public blockchain.

In an announcement sent to Cointelegraph, Creditcoin said that all Aella's credit transactions will be recorded on the Creditcoin blockchain, making it easy to audit and available for viewing through their block explorer. The recorded transactions will include the terms of the loan as well as payments and repayments.

Creditcoin said that the partnership comes with the release of Creditcoin 2.0, an upgrade that makes the network more stable and easier to integrate with.

Aella CEO Akin Jones highlighted that the move allows investors to monitor the performance of its business in real time by looking at the blockchain. This may eventually lead to more capital raises and contributes to giving more Africans access to credit. Jones explained that:

“For us, and millions of users across Africa, that means more and cheaper access to vital sources of credit.”

Tae Oh, the founder of Creditcoin, expressed excitement over the 2.0 launch and partnership with Aella. According to Oh, the new development is a step toward the project's goal of giving the unbanked a "fairer shot."

Related: From smart insurance to on-chain document verification: Here’s how Near aims to improve Kenya

In April, a report showed that crypto ownership in Nigeria was boosted because of the lack of proper financial infrastructure in the region. The report, published by crypto exchange KuCoin, noted that a lot of Nigerian citizens have begun adopting crypto as an alternative means of transferring assets.

Meanwhile, venture funding for startups within the African region has grown by 11x in 2022 according to The African Blockchain Report 2021. Because of this, the report predicts that a blockchain unicorn may surprise the region in two to three years.