Barter System. Banking. Bitcoin!
Feels there is some close relationship between “B” and the economic revolution! Isn’t it!
YES! We have traveled a long way back since the trading has pierced through this universe. Right from the barter system, humans have evolved in asset transfers to popular e-banking of this era.
Since the invention of cryptocurrencies, they took up the global market with its high standard asset transfer process. Avoiding intermediary charges and fastest transactions, it came up with flying colors in this decade. As of now, leading crypto investors have dived into the hassle-free business of blockchain P2P crypto lending platform development!
In this blog post, let us pinpoint some of the flaws in the banking system and how blockchain, P2P lending platforms can be the real solutions!
Obvious Flaws of the Banking Sector!
Let me put you the bullet shots of common flaws that’s in the current banking and intermediary transfers!
- Currency is the current asset transaction method that is happening in banks. The limitations of local currency with fluctuations in value makes it hectic for the overseas transaction.
- Intermediaries, banks involved in global transactions take a handsome of money as a commission fee and also take 5-15 business days to complete the transaction.
- Banks and other global third-parties processes the transaction for a very long time. Verification and reconciliation are the headache tasks for every banker.
- With the central system of hosting, the banking industry is exposed to hackers and other cyber attacks. All the users of banks are at risk of exposing their data, money, and asset information to the fraudsters through a single point of failure.
- The central bank systems include a set of rules and regulations for lending money. But, due to some imperfections in entrepreneurship, there may be delays in repayments. This may affect the loan approvals.
Now, let’s get into the details of the lending process!
What is all About P2P Lending?
P2P lending platform eliminates the intermediaries and banking system and creates a direct connection with investors and lenders. Unlike banks, the lumps of money are crowdsourced through multiple investors to reduce the risk of repayments.
Starting from $1 to millions of dollar investors can split their assets and lend them across the community. According to the sum of money involved and risk, the investors can fix the interest rates and proceed with the lending process. In advanced, lending platforms, the lenders are rated with reviews for every trade. This helps investors to borrow money in the future.
Here’s the next evolution of the P2P crypto lending platform!
What Makes P2P Crypto Lending for the Futuristic Era?
The critical aspect of the P2P crypto lending platform is that instead of traditional currencies, crypto coins are lent to the borrowers. The most popular cryptocurrencies used for P2P crypto lending are bitcoin and ethereum.
With added advantages of blockchain technology, the P2P crypto lending platform is decentralized, secure, and immutable. In the upcoming days, the P2P crypto lending platform would be the appropriate channel for global investors and lenders.
P2P crypto lending has paved the way for all kinds of lenders who lack some documentation and other processes according to central banking norms.
The blockchain-based P2P Crypto lending platform would be the best part for the global economy in the future era. It could connect investors and lenders across the world. Also, it can lower the risk for investors by splitting out the assets across the lenders.
Investors have the freedom to set their interest rates based on the asset involved and tenure period, risk factors. To launch your blockchain P2P crypto lending platform, join hands with Blockchain Firm team through live chat or telegram!