I would like to have some feedback about a potential use case for the secret network.
In the last years Pay As You Go technologies became very successful for companies (especially off-grid solar) who sell physical assets to unbanked people (mainly in Africa) on installments. The concept is that the asset is only unlocked - either via Keypad or GSM/IoT - when the customer does an (electronic) payment - mostly via Mobile Money. So the asset is only usable when the customer pays the installments. Biggest use cases are solar home systems, water pumps and smart phones. Volume is around 1Bn yearly with 20-30% increase per year.
This reduces the default risk as the customer has little incentive to not repay the asset and the collection costs are very low.
One existing issue is that the financing for PAYGO companies is provided by traditional finance and due to the (unbanked) customers high risk profile the interest rates are very high and funding is difficult.
Here comes DeFI with the opportunity to directly connect the PAYGO customers with retail investors.
- Each PAYGO device belongs to a specific secret key that is needed to create valid unlock codes
- A secret contract contains this specific key (or is linked to it)
- When a customer does a mobile money payment - the corresponding amount of SCRT is forwarded to the contract and a valid token is generated (e.g. 1 SCRT => 2 days of unlock)
- Only one specific contract is able to unlock a specific device
- The contract also contains the nominal value of the underlying asset sale (how much the customer has to pay until the device unlocks forever) - this is the maximum amount of money the contract is worth
- Each payment to the contract updates the remaining balance of receivables and thereby defines the residual value of the contract
This would lead to the effect that the contracts are related to real world assets and repayment plans with the specialty that: only a particular contract can create valid unlock codes for this device which makes it valuable in itself.
This concept can not be implemented (at least to my limited understanding) with a public chain as Ethereum as the secret key for the device needs to be kept secret to make sure only the specific contract is capable of creating the correct codes. A combination of public / private side chains could work but seems very complex.
Do you think this use case could be interesting for secret? If yes - how could that be designed? If no -are there better solutions around to implement it?
I really would like to work on this as I am passionate about bringing financing to unbanked people (800 Million in Africa alone) to improve their lifes and thrive their businesses.
Looking forward to hear your thoughts and I am happy to give more background (I have a 9 years background in PAYGO Software)