Karma’s task is to automate the process of interaction between the participants in such a way that the service does not require a physical presence during the transactions. To do so, Karma would have:
Karma is also using smart scoring on its platform. The smaller the proportion of collateral from the loan party, and the less familiar the counter-agents are with the party, the greater the importance scoring is in evaluating the borrower's request.
Karma’s second task is to create a space in which many localized scoring systems will be combined with different countries and different types of relationships. Now, the scoring system would initially consider:
Each of these indicators would have its own weight in the overall assessment. Later, machine learning tools would be able to determine the most important parameters which will help to assign the greatest weight to the most important parameters and less important parameters will be minimized or excluded.
Now that we have gone over Karma’s ecosystem and its decentralization of IT and geography, let’s look at the token utility.