Ethlend Will Democratize Lending Forever
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Since they began, lending has been a service offered by banks. This is where banks make most of their income from.. They do this by imposing a high rate, higher than the loan they lend. However, with the effective power behind blockchain technology, it's no lie that banks are being threatened. As mentioned before, Ethlend is a decentralized P2P lending service that leverages on the Etheruem blockchain. Ethlend is designed to offer customers an exceptional loan format via the use of smart contracts. Security and transparency are also some of the attributes that come along with Ethlend, moreover, borrowers are able to use digital currencies and Etheruem Name Services (ENS) as collateral for loans.
"Lend" is the native currency for Ethlend platform, the token leverages on the Etheruem blockchain and it has many users who use the token when trading on the Etheruem platform. With the help of blockchain technology and smart contracts, Ethlend has the following advantages:
Difficulties to stop an approved contract. Since it's a decentralized platform; even the developers have no power to avert an approved loan contract.
As a transparent decentralized platform, all transactions are visible on the platform.
Swift and secured transactions.
With the help of Smart Contracts, Ethlend will seamlessly carry out loans.
Elimination of middlemen or brokers, as mentioned afore - Ethlend is a peer-to-peer lending platform.
Having said that, it's assumed by the people that they have the capacity to determine the interest rates all by themselves. According to their official website, the loan interest is much lower than the rates our traditional banks charge us when issuing a loan. As a result, the service is open for people from far and near even in local communities where no banks are. Above all else, you literally don't need a bank account when requesting for a loan from Ethlend.
As a result, the main objective of the platform to create a high-class world-tech credit market where borrowers and lenders will come together from different parts of the world to strike a loan deal.
Looking At The Technological Aspect Of The Platform
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I was checking out their platform and discovered that the app has a friendly use-case. I also realized that Ethlend uses MetaMask plugin The Ethlend app provides a piece of prompt and precise information to users as well as the loan requirements. The idea of requesting a loan all boils down to the fact that users will need to configure the terms and condition pertaining to the loan requirement which can be done in a split second.
At the time of writing this, all loans are carried out via the Etheruem-based tokens, however, loan payments and collaterals are managed by sending digital tokens to a specific address via the Etheruem application.
The platform uses ERC-20 tokens when lending. The ERC-20 tokens serve as collateral, in the same manner, the borrower has every right to use the ENS (Etheruem Name Service) domains as a source of collateral.
At the time of this writing, the ERC0-20 compatible tokens capitalization evaluated at a couple of decent billion dollars while ENS, is estimated at almost a billion.
The system enters the LEND token. Its main purpose is to pay for the implementation of ETHLend. In future, when DAPP expands to a full-fledged loan market, holders of the LEND token will receive additional privileges. source
My Thoughts
Having explained all the peculiarity that accompanies Ethlend, it is stated on their official website that the P2P lending market will boot-strap by about 50% in a couple of years (three years to be terse). And as such, being an investor or in this case, investing in projects like Ethlend is really promising and encouraging.
Moreover, the developers are having a good time with technical settings - this is because the application hasn't discovered any issues after the working version was tested.
Lastly, the platform already exists as a legal entity in Hong Kong, and are making more plans to expand their project into Switzerland. With this at hand, the risk here is very narrow and slim, but a much higher profit is made when investing in this project.
The State Of DApss @stateofthedapps
The state of DApps (@stateofthedapps) is a decentralized applications/projects that leverages on Ethereum, EOS, POA and of course steem.
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Disclaimer:
This is not financial advice. Please do you own research before investing in cryptocurrencies or any digital asset. This blog post is done for entertainment and knowledge purpose only.