ETHLend, a company aiming to enable a global and transparent lending market, has released its whitepaper detailing plans to use blockchain for financial services. The idea behind the platform is to create a peer-to-peer lending platform for Ether tokens on the Ethereum network, providing a lending market where any lender from any area can loan Ether to any borrower, without the risk of losses.
Using the trustless and immutable nature of blockchain and the automation of AI, ETHLend provides the possibility to lending between people that do not know each other. It aims to solve the problem in crypto-lending of having no guarantee of repayment when sending Ether (or other crypto-currency) to an untrusted borrower.
Interest rates and conditions for lending on the platform are solely decided by the participants. EthLend eliminates the need for intermediaries that maintain control over the agreement. Smart Contracts enable security and the automatized exchange of Ether tokens for ECR20 tokens or Ethereum Name Service domains as collaterals. Credit Tokens will be mined for any successful transaction and represent a Credit Reputation System to the users. Credit Tokens can also be used as collaterals for borrowing Ether.
The ultimate goal of ETHLend is to provide transparent and global lending market to erase the interest rate differences between regions. This would hopefully lead to a situation where a borrower from one country would not be limited to banks and peer-to-peer loans solely from their own country, but would have access to finance from all parts of the world as well. ETHLend is currently running a stable release on Ethereum Blockchain Network.