Inlock recently launched a blockchain-based platform for lending to the cryptocurrency holders. It will be using the distributed ledger technology. Moreover, the platform will allow the licensed lenders to look into the borrowers. Basically, the cryptocurrency Holdings will be used as collateral. As a result, it offers secured lending options.
In addition to that, with the help of blockchain technology and smart contracts, the execution of such loans will be done quite easily. According to the CEO of the platform, with the advancement in technology, the lending procedures can be made much simpler. Moreover, with the help of blockchain technology, the procedure can be easily automated as well. This will ensure that loans against the cryptocurrencies are easily available for the cryptocurrency holders.
How does the platform work?
The borrowers will be able to browse through the offers which are presented by many lenders. As a result, they will be able to choose the best offer quite easily. In case, they are having a temporary liquidity problem, they will be able to get the loan on the platform. The loan will be in the form of ILK tokens. Moreover, any charges are not withdrawn from the cryptocurrency collateral. As a result, when they are able to pay the loan back, they will be able to get the entire value of the cryptocurrency. This is one of the main reasons why it is a good medium for them to borrow against cryptocurrency.
With the help of blockchain-based platform, P2P lending will be made possible. This will ensure that as the number of members increases, more and more lenders will actually show interest in the platform. When that is the case, it will become much easier for most of the lenders to find suitable borrowers as well. In case, the borrowers are not able to pay, the lenders will be able to sell the cryptocurrency holding since they will have complete control over the same. This will ensure that the lenders are able to secure their money as well. Thus, it will become a much easier platform for borrowing as well as paying back.
With the help of such P2P lending solutions coming up, it will become easier for the cryptocurrency holders to actually get finance against their cryptocurrency Holdings. Most of the banks, as well as financial institutions, have not ventured into this territory. That is why such start-ups are the best option for the cryptocurrency holders who are looking to tide over temporary liquidity needs.