Introducing ETHlend: a blockchain based lending platform

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Introduction

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In order for any economic system that plans to be sustainable and stable in the long term, there will always be the need to have entities that can facilitate the access to financial resources so people & companies can leverage their activities with this capital and increase or maintain their productivity.

On the other hand, as we all know there have been some examples of big corporations acting in a very irresponsible way with their loan activities, even having the disastrous consequences that ended up causing the global financial crisis of 2008. But this economic disaster doesn’t mean that a loan is something inherently bad, in fact, nothing could be further from the truth.

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It is fair to say that everyone has asked for a loan at some point in their lives, whether the individual is rich or not, or whether the company / organization is big or small, pretty much every entity that is constantly involved in economic activities will be using loans sooner or later, and this is completely fine because through the use of loans, capital can be placed where it is more likely to achieve higher productivity, and this is good for the entire economic system.

This applies to all economies, even to the cryptocurrency economy that has been growing at an incredibly rapid rate for the last few years after the disruption of blockchain technology, but given the fact this new modern economy is of very recent creation, there are still basic elements that need to be properly developed and implemented. Such is the case of a lending mechanism.

In this series of articles, I am going to explore and discuss everything related to ETHlend, a project that is planning to provide a sophisticated solution for lending activities in the crypto economy, and as its name implies, operates in the Ethereum blockchain.

What is ETHlend all about?

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This project was created with the goal of offering to the growing number of people involved with blockchain initiatives, an easy to use platform that anyone can use to both give and receive loans through peer to peer interactions. This way the lending activities are done through a decentralized approach, with several parties offering loans instead of just one single party, which is by the way what happens when using regular banks and traditional financial institutions.

The goal with ETHlend is to be able to provide easy access to a place where everyone can request and receive loans, as well as offering them, all of this with the security of using blockchain technology to record every transaction and important information, and what is more important, since this platform will be used with cryptocurrencies, this means it can work on a global scale, without being restricted by countries borders and excessive corporate bureaucracy.

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Being a peer to peer platform means it will allow its participants to set customized conditions for each particular loan, although I personally believe that eventually the free market forces will result in conditions being very similar to each other.

Due to the fact this platform leverages blockchain technology, the assets are securely held in an Ethereum smart contract, that is completely transparent and available to be audited, using code can be very useful because it can automatically trigger certain actions as soon as the conditions are met without requiring any human intervention. This can certainly reduce the potential number of disputes that could arise when doing this type of activity, because in the end, the smart contract will decide what is the proper course of action.

As a curious fact, in the project’s website, everyone can check the maximum amount they can borrow based on how much cryptocurrency they have, in the following example I shared the calculation that results from having 1 ETH.

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Conclusion

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A project such as ETHlend can certainly satisfy any demand there might be for crypto based loans, and if it ends up being successful in the long term, it will prove that the crypto economy has the potential to continue its expansion when it comes to more sophisticated financial interactions, that could serve the constantly increasing needs of this market.

The crypto economy is still in its early stages, and projects like ETHlend can eventually become key players in the industry, especially when realizing that this is the “The World's First Crypto Lending Marketplace” ^Source and sometimes being the first one to provide a service can result in what is known as “first mover advantage”.

In the following articles, more features about this new platform will be properly explained and discussed, however, if anyone is interested in checking out basic information and statistics about this project, these could be found by visiting its page in the State of the Dapps website.

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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.