The lending market has not changed over the years. This market still uses the old system. This system is very dependent on trust and it makes the system worse. You cannot trust everyone in modern times. Everyone has the potential to commit a crime. This industry pioneer wants to develop a fair system for all borrowers and lenders. The company wants to make the loan system available on a global scale. You do not have to rely on local creditors and banks. You can get loans from existing lenders around the world. Borrowers from Germany can get loans from Japan, Canada, Brazil, China, and so forth.
There are many reasons that make this market require a global system. This market is bound by the rule of law and the border. Market competition also limits the scale of this market. There is a lot of liquidity used for this market. This proves that there is the same amount of liquidity in some countries. The effect of this system will look amazing because the interest rate differential will disappear. This is because there is a lot of competition and liquidity. The bank will lend money provided by the account holder when the bank requires liquidity. The next step is to lend liquidity to the market. Banks will charge 5 to 25% interest to hold your assets. You can have a banking institution when using cryptocurrency. ETHLend makes you a lender at the institution. You can decide the borrower and the interest rate on the loan. It is created by the blockchain technology used on ETHLend. The lending market will get the latest revolution.
All industries require transparency as this will bring convenience to the users. If you do the transaction with the banking system, then you cannot see the ledger. You cannot check counterparty of the transaction. This technique only creates uncertainty and friction. If this is related to lending, then time becomes the most important thing. The money should quickly move quickly because the borrower needs the funds in no time. The banking system cannot do that. Cryptocurrency technology successfully meets those needs.
ETHLend can provide such loans in the crypto world without worrying that you will lose capital. The ledger becomes an important factor in the loan system because the banking system will not give you a big book. The lender can check the loan. The borrower can also check the money given in the ledger. Democracy is an important part of eliminating barriers to credit markets. Borrowers and creditors can manage these transactions from different places using the Ethereum and ETH networks.
This system can unleash the power of decentralization. The system states that all things have value or can be represented by value. The value is represented by ERC-20. This is a token that represents the value of your transaction. The token can represent any value such as commodity, art, intellectual property, real property, and company stock. The first to be used in the world is gold. Gold is used to represent currency. The property is real and the world has gold reserves. The token can be guaranteed or traded on the transaction. This is a surprise from the global lending market.
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