ETHLend is an innovative platform for making loans between individuals. It is a DAPP, a decentralized application, which runs on the Ethereum blockchain. The initial goal of the developers is to allow the users to access the loans and standardize interest rates around the world.
Lending via the Ethereum blockchain
1- The Ether Loan
On the ETHLend network, the loan is made in Ether, which is the currency of the Ethereum network. The loan is fully decentralized: it does not go through any central body to be validated. Loans are formalized in the blockchain via smarts contracts.
2- The purpose of ETHLend loans
ETHLend aims to decentralize finance and globalize the credit market. This network is an interesting opportunity for emerging countries that do not have a sufficiently developed banking system. Loans via ETHLend are also much faster and more secure than in traditional banking organizations. Indeed, operations via the blockchain take place in just a few minutes.
The smart contract
The lender and the borrower agree on the interest rate or the risk premium. This agreement is then formalized via a smart contract. It is a secure contract in the blockchain, which is self-executing and which is completely inviolable. The special feature of a smart contract is that it can only be executed if all of the conditions defined at the start are met. There is therefore no room for fraud, falsification or human error.
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