RE: Decentralized lending
I think that the concept itself will definitely be realised, but further down the road. As we move to bio metric and cloud based ID identification, it will be easier to perform the due diligence as it will just be reaching out to an API. What I still think will be the biggest stumbling block will be enforcing the contract, as different jurisdictions have different rules in relation to contract law. For instance which jurisdiction would be responsible for the dispute process, the buyers or lenders. I think the next step for p2p lending will be to mature the technology and processes within one jurisdiction because the above issues simply will not apply. The greatest test for the people around this industry will be to find out how they can scale that cross border in way that ensures confidence for both the borrower and lender.
I agree. The enforcement is difficult. That is the reason ETHLend uses collaterals such as ERC-20 tokens or ENS domain, to regain any defaults. We are introducing unsecured lending as well based on reputation. Would be great to solve the enforcement issue if lender wants to regain the lost loan capital. I think going jurisdiction by jurisdiction is not the right way. On the bio metric, I had lot of research on it, there are still some security isses, for example if one leaves fingerprint or shows a thumb on a picture, it could be compromized, some hybrid system would definitely work. Now we are keeping the ethlend so that enforcement is not necessary due to the collateral. However, once secured loans are in place, we definitely should consider how to enforce the defaulted debt.