ETHLend: exploring its main characteristics

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Introduction

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Two days ago I published the first ETHLend article, in which I shared some thoughts about the importance of having lending platforms in any kind of economic system, and a general overview in regards to what this particular project is all about.

Given the fact ETHLend is quite a complex project, with a lot of different features, it is impossible to cover everything in just one article, which is why, I decided the best way to provide proper coverage to this topic is to do it through a series of different publications, with each of them giving a proper insight into the corresponding features.

Today’s article is going to be about some key characteristics that can allow ETHlend to become the de facto lending platform for the crypto economy.

ETHLend key characteristics

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• “Funds stored on a non-custodial Smart Contract” ^Source: due to the amount of hacks that have happened in the blockchain industry and caused millions of dollar worth of tokens to be lost, it is completely understandable for most people to be kind of wary when it comes to putting their money into this type of projects.

When ETHLend mentions that funds are stored with a non-custodial smart contract, it means that instead of the company’s wallet holding the tokens, they are protected with a completely transparent smart contract, that based on which condition is met, it will trigger a transaction to one of the involved parties. This way, there is no private password restricting the access to the tokens, but rather an auditable and reliable code, which can result in an increased level of protection to the user's funds.

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• “Loan data auditable by design on the Ethereum blockchain” ^Source: one of the benefits of using blockchain technology to record data are mostly that thanks to its decentralized nature, it is extremely hard to commit fraud by manipulating data that’s already recorded. Besides, with its total transparency, anyone can confirm in real time that everything that’s being recorded is factual information. Doing an audit to a blockchain based ledger is something that anyone could do, and this can certainly make it easier for people to realize this new economy is completely legit.

• The users control their own wallet ^Source: this is related to the first point, since ETHlend is not the one holding the users tokens (these are protected with the non-custodial smart contract), this means that the passwords to the users wallets are under the control of the users in question, each one of them is completely in control of their own wallet, this means they have to be really careful when handling their private keys because they are the only one responsible for what happens with their tokens.

• “Regulated by code” ^Source: having transparent and auditable code can make everything more efficient and secure, but apart from making sure the code is properly written, another important aspect is its execution. In centralized platforms there is a single point of failure, if a hacker can manage to break the security of the central servers, they can take control of the entire platform and inject malicious code. But blockchains work on a decentralized way, this makes it almost impossible for a group of hackers to inject malicious code, because they will have to hack the majority of the distributed nodes that are located all over the world, and this titanic task is extremely challenging even for the most sophisticated attackers.

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• “Crosschain interoperability with Bitcoin” ^Source: this is what can be considered as a killer feature. Ethereum has been from some time the number 2 when it comes to market valuation and popularity (Ripple has also reached number 2, but most of the time Ethereum occupies that place), so every successful dapp that runs on the Ethereum blockchain will have a good chance of gaining a good number of users. But by adding compatibility with Bitcoin, the indisputable leader of the cryptocurrency scene, then the potential of earning massive recognition increases exponentially. Being compatible with the 2 biggest cryptocurrencies, can allow ETHLend to secure its positions as the number 1 lending platform of the entire sector.

Conclusion

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Given the extremely intensive competition in the blockchain scene between different projects trying to gain the highest number users, market valuation, and recognition, it is not a surprise to see project doing their absolute best in developing useful platforms that can bring value to the industry.

ETHLend is certainly doing everything they can to offer a versatile and easy to use lending platform for the crypto users interested in doing this type of economic activities. Having success is never an easy feat, but once a skilled group of developers focus on an idea, and put their best into accomplish, it is very likely the project can end up being successful. ETHLend is still a very recent project and there is a long way to go, but with features like the ones described in this article, I would say they are on the right path to success.

Some statistics and numbers about this project can be found in its State of the Dapps page.

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DISCLAIMER

The information contained within this post shall not be taken as a financial advice. I am not a financial advisor and none of your investment decisions should be carried out based on any information presented here. You can lose all of your money by investing. The information presented in this article is for educational and entertainment purposes only.