It is a token linked to a lending platform, i.e. a loan platform. This is a well-structured project, but above all we dare to say revolutionary. The basic idea is to take advantage of BLockchain and Cryptocurrencies to create a micro-credit platform. The platform operates in Ethereum with a ERC-20 token-type, thus, its operation is linked to intelligent contracts, a type of secured contracts validated by the network, which acts as a guarantor of each transaction.
The main objective of ETHLend is to make micro-credit a democratic tool for everyone, even for those who do not have bank accounts or special guarantees.
This lending platform permits any person to lend or borrow money in fiduciary or digital currency by providing security guarantees for both the borrower and the lender, thereby removing the monopoly of the credit sector, especially micro-credit, to the banks.
We have as many advantages as seen below:
• General advantage (advantage for all): all the transactions that takes place are secured and encrypted thanks to Blockchain;
• Advantage for Loan applicants: Commissions will be considerably lower than those offered by banks;
• Advantage for lenders: the opportunity to generate with complete confidence the benefits derived from the loan granted and, therefore, a new source of income.
When a loan is requested, the ETHLend platform activates an intelligent (smart) contract which guarantees in a totally independent manner that the applicant receives the pre-established amount and has all the necessary guarantees to return it on a fixed date. With the additional commissions reserved to the established creditor. The guarantee lies in the fact that the borrower must have a number of tokens/Cryptocurrencies or ENS domains, which are, in any case, digital objects of a certain value, so that they can be assigned to the creditor if the loan is not fulfilled as established.
It is a peer-to-peer technology that does not require the intervention of a third party or an intermediary, such as a notary who stipulates the contract, which will further reduce the costs of such transactions.
ETHLend to lend money to foreigners
Here is the real revolution, on the one hand, the ability to lend your money even to foreigners as a form of investment and with the certainty of recovering the invested capital on a certain fixed date and, obviously, with a benefit, while on the other hand, the possibility of obtaining a loan in fiat currency or Ether without having to give personal or family guarantees, but only by depositing a certain amount of tokens to an escrow as insurance for the counterpart.
As a practical demonstration of the project's application and potential, ICOBench (a well-known review and qualification site for ICO) has given this financial platform a 4.5 rating, where 5 is maximum. We can certainly say that this project, is one of the highest qualifications given by ICO Bench.
From an operational view point, to use this platform, you need to download the Google Chrome browser and an add-on like Metamask, which can connect this platform with your browser. Once you have installed the plugin, you can now access the "loan marketplace" and will be able to see current loan applications and decide whether you will participate in the loan or, enter your loan application and awaits the platform to find a lender.
The platform will request a commission fee of 0.01 Ether (about 2 USD) in exchange for each transaction.
The Finnish Stani Kulechov is the founder of ETHLend, an academic and technology expert from Blockchain, and a staunch supporter of the impact that this has on the entire financial ecosystem.
ETHLend timeline began on May 15, 2017 with a series of milestones that will end on December 9, 2019. Pre-sale has already ended, the sales of tokens during the ICO were made between November 25th, 2017 and December 27th, 2017. 1 000 000 000 loans have been put up for sale.
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