Blockchain Startup Whose Fundraising Was Led By Coinbase Said It’s Financial Services “Can’t Be Evil”

Bitcoin (BTC) and digital currencies have been laud for a very long time for their reliance on trustless distributed ledger technology. They eliminate the need for third parties such as fund transfer services and banks to approve transactions.

In 2018, Google – one of the largest tech companies in the world – attracted the attention of the media by getting rid of its famous “Don’t be evil” line from its code of conduct. The firm earlier introduced the “Do the right thing” line in its code of conduct when the firm reorganized under Alphabet – the new parent firm of Google.

Dharma Labs Says Its Financial Services “Can’t Be Evil”

Dharma Labs is a blockchain financial technology and Bitcoin (BTC) startup that is based in San Francisco. The startup just announced a fundraising of $7 million from a raft of investors including Coinbase – a top digital currency trading platform in the United States led by Green Visor Capital. Dharma Labs recently boasted that its financial services “can’t be evil,” even without a central point of failure.

The startup is planning to use the raised funds to expand its margin loans for Bitcoin (BTC) and digital currency traders and high volume investors. Dharma Labs argues its use of blockchain technology and smart contracts – a decentralized ledger technology that is distributed across different computer systems means users no longer have to rely on single operators to grant them access, potentially eliminating unconscious bias and corruption from the system.

Margin loans give investors the flexibility to borrow money against managed funds and shares. It can also help investors to increase their returns as well as magnify losses.

According to the CEO and founder of Dharma Labs – Nadav Hollander – “One day, digital currencies will power financial services that are user-friendly, competitive, and accessible across the globe as the best internet products we are using today. In the same way that Uber made it cheap and easy to get a ride from any part of the world, we believe that Dharma Lever will make the accessibility of margin loans cheap and easy for anyone across the globe.”

In a statement when announcing the funding round, the firm said: “Smart contracts have a lot of implications on financial services due to the fact they eliminate the ability for a single entity to deny the service of users based on where they live or their economic status.”

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$12,643.00
11.60%

The firm said that the present credit infrastructure is “opaque and fractured,” compared to the world debt markets that “allocate trillions of dollars in capital.”

“Don’t be evil” was added to Google’s code of conduct back in 2001, when the firm was still very young. The firm added that line to its code of conduct in a bid to define its corporate values. Dharma claimed “can’t be evil” in order to avoid the mistakes Google have made in the past.

The claim of Dharma that it “can’t be evil” is based on the belief that trust issues are eliminated by blockchain. Nevertheless, they more accurately minimize the level of trust needed from any actor in the system.

A lot of people in the Bitcoin (BTC) and digital currency space have been attracted to BTC and digital currencies because of the poor experiences with the traditional banking services sector. The digital currency space is growing on a daily basis, as its awareness is increasing. However, the value of digital currencies in the market are not reflecting these growths.

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