EtherLoan let the borrowing without borders can be negotiated
As old as trade credit system, has a very long history.
At the beginning of a loan is actually between a single Lender Borrower and a single agreement, the borrower wants money lenders will provide loans to him, after the lender can combine together, so they can provide a large sum of loans. Because not all people sometimes have enough money to provide large loans, so they can form a syndicated loan.
Now the bank or credit institutions, they take different lenders together, and then provide large loans. This situation has lasted for a long time.
We now have a system have some problems, the central platform is very easy to be attacked, even if some lending platform will be attacked, all the money flow out. At the same time, the center of the platform is also very easy to appear the phenomenon of fraud, for example, there are many news that all lending platform. For example, these people may roll underground money away, while interest rates are relatively low, probably for the lender or for borrowers not attractive.
There is a problem, because if it is not in the developed countries, such as South America, many people have no bank account, so they have no way to obtain a loan. Get a bank account problem for them is very large, so they can only find some local lenders to pay very high interest rates. So we put forward a solution, hope to be able to solve this problem.
First of all, we hope to be able to lenders and borrowers together, and the middle man to get rid of the lender can come from all over the world. So if you’re in a country or in a certain place, may have many local lenders, you want to apply for a loan, you don’t need to go to the local lender, you can go to the world in search of the lender. At the same time, the borrower can borrow to according to their terms, this is new, because before all loans are by the lender to make the terms. For example, the interest rate is fixed, or borrow or not to borrow, the borrower can now say I hope my loan is the interest rate, I hope to make a loan in terms of such repayment, so we launched a project like EtherLoan.
EtherLoan lender, if they accept the conditions of the case, he can provide loans, but loans are actually written contract intelligent way. For example, how to pay, what time, the return of principal and interest is written in intelligent contract, so no one can tamper with the contract. But when the borrower to repay the loan, then according to the terms of the contract to the smart money lender.
How the operation of the way? For example, we have a loan facility, each borrower can create new loans, so new loans will produce new loans to build smart contracts based on his own terms. Some terms can be very complicated, sometimes very simple terms. We are a relatively simple rules, the future can create very complex terms and contracts.
He can search the Lender Loans, then looking for a loan. For example, the borrower can even put their loans on Twitter or other platforms, the lender can go to search their hearts of the loan. If the borrower or lender Trust said the loan terms are acceptable, he is willing to provide funds, so borrowers can get money.
We have received such a characteristic, some borrowers he can suggest interest rates, lenders may say too low can increase a bit between lenders and borrowers can negotiate. If the borrower agrees that if he can get the loan, the borrower to repay the principal and then, you can directly enter the lender’s account.
What is the status? Now we are running the proof of concept has been used in our private chain, now we only very simple, ordinary loans. That is to say the interest rate is set to a single borrower repayment, but only accept coins ether. We have now integrated with Uport, so the lender may know the borrower’s identity information. If the borrower wants to achieve better reputation if I was a real person, can bring real information on Uport, so that lenders can see, and also the blockchain credit system Repayment together, it can be based on the borrower’s repayment of interest in credit scoring, but also can provide a credit score.
Our roadmap, hope that the new loan interest rates can auction it. For example, the lender said you want the loan, I will give you 3%. Another lender said I can lend you 2% interest, so we can auction, so borrowers can get relatively low interest rates, and we want to be able to provide the compounding system, easy for us, because each loan is a new contract, so we have to write a new definition. The future or the borrower can write intelligent contract on our own system. At the same time, we also hope to integrate with any stable currency, so borrowers can obtain local currency loans at the same time, we also want to and other credit rating and risk management platform integration, so that lenders can according to such a borrower credit score, not just for the loan according to the above Uport identity information.