ETHLEND - a better crypto lending platform

Some aspects of traditional financial systems are making their way into the crypto industry. But talking about the services offered on the blockchain, loans offer a particular opportunity for various investors who want to enjoy the service of assets maintenance on the blockchain. So today, I will be talking about a blockchain project that offers secure, transparent, and an accessible lending service, allow me to introduce you to ETHLEND.

The Ethlend is a decentralized cryptocurrency loan platform that is built on the Ethereum blockchain, the platform offers maximum security. The admirable beauty of Ethlend lies in its peer-to-peer lending Smart Contracts. While this service won’t be compliant with most countries, states and laws, it does, however, allow people to access it from any part of the world. Unlike other blockchain loaning applications, ETHLend allows the lender and borrower to process their loan details without the need of involving a middleman.

Since Ethlend works exclusively via the Ethereum smart contracts, no asset can be held by the Ethlend platform. Furthermore, this implies that lenders and borrowers can only utilize Eth and Eth-oriented assets such as Augur and OmiseGo and many others when committing to a contract.

Perhaps this is the biggest drawback of a digital currency-only ecosystem. Most individuals of course still transact with paper currency and will most likely desire a loan in euro, USD or some other local currency. But we need to always be aware that there’s some aspect of centralization when introducing a paper gateway into the equation.

The system's loan procedure is fairly straightforward - The two parties (borrower and lender) will initiate a smart contract and will agree to the terms for rates, collateral and all. It is necessary that borrowers post tokens compatible with the ENS (Ethereum Name Service) domains or the ERC 20 standard which is equivalent to the Ethereum loans, as collateral in case the borrower misbehaves. Once the process is confirmed the Ethlend network will send the Ethereum to the wallet of the borrower who is required to pay back in Ethereum (with interest).

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The power of Decentralization in the financial system is such that can fix many of the innate issues related to the current centralized borrowing system. These are the three major reasons the decentralization of loans makes a lot of sense.

TRUST: Decentralization totally eliminates the need to trust your counterparty and loan provider. Loan collateral is sealed and regulated by Smart Contracts that are announced on the public blockchain.

ACCESSIBILITY: By fully utilizing the Ethereum blockchain, ETHLend borrowers and lenders can carry out their loan transactions from anywhere around the world. These loan transactions are carried out from Ethereum address to another Ethereum address allowing unrestricted access. There is no limit to the access of both borrowers and lenders as they can access a much broader volume of loan liquidity.

TRANSPARENCY: The Ethereum network offers a transparent ledger which is accessible to users for inspection. Every transaction is therefore documented and can be confirmed. Ethereum’s transparent accounting gets rid of everything form of Blind trust necessary for transactions within two or more banking institutions.

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ETHLend guarantees a decentralized platform where secured, peer-to-peer Ethereum loans are carried out between any two persons in the world. Eliminating borders and politics from the scenario, the ETHLend platform hopes to achieve a revolutionized lending industry. ETHLend aspires to generate a truly global marketplace that will in turn benefit all interested participants looking forward to give and receive loans.

The main goal of blockchain and cryptocurrency technology is to bank the unbanked, literally, ETHLend is also creating new innovative ideas that will help them achieve their goal main goal, users are allowed to use their Bitcoin holding as collateral to borrow funds. In addition, the DAPP has a good ranking on the state of the DAPPS.

visit ethlend.io for more details