Bitcoin Forum

I'm contemplating on creating a loaning system for BTC.

The idea would be to have a hall of fame and a hall of shame. To get a loan you must first provide either something valuable (keys or something) or a picture of you next to your ID.

Then people who pay back on time will be added to hall of fame, if they don't they will be added to hall of shame along with their face.

Do you guys like this idea?

You might want to research btcjam and see what pitfalls they ran into (regulatory) and then what your platform would offer that would improve on it. http://www.coindesk.com/bitcoin-lending-btcjam-stops-us-accounts/

A lot of people in the community don't want to reveal themselves, especially with companies now focusing on identifying people and what they've done with their bitcoins. Exchange platforms also have a lending function, so you may want to see what gaps exist there that you could market on.

I would just recommend that you research the market, find gaps, and then develop a niche to fill that specific gap.

I don't think people would reveal their identity especially in bitcoin world, even for asking a loan.
However it's very important to to make very strict regulations about the collateral so that people will not be scammed by the borrower.
Provide the identity like picture with the id is a good way, but you must be carefull since it is too easy to manipulate the pic yeah you know what i'm saying like photoshop.

Hi,
there is also a big market for BTC Loan, so what your clue and what you will make better then the other ??

https://btcjam.com/
https://www.bitbond.com/
https://bitlendingclub.com/
https://loanbase.com/

As long as there s no simple and accessible way to provide collateral for your loans, there will be no successful lending crypto project. Why? Cause people tend to try to scam. If there s no collateral, they ll just run away with your money. Imagine what would happen with banking system should there be no collateral????

What you are thinking is good but the process what you are telling is the same process of the fiat loan default list but i dont think that anyone will be willing to give their identity proof and then take loan. As most of them mainly are using Bitcoin because of its security of not claiming identity details.

You have to think the same process without reveling the identity details of the loan persons. Their are lot of things to be done before getting process done.

This isn't going to work. Scammers will either just avoid using it altogether or take advantage of the fact that they can dupe someone with a fake ID or whatever.

I agree, the scammers will just use a fake id. You will need some way of verifying the person's id.

This is not going to work either. Let s say u do know identity of person who requires funding. You loan your money and they run away. How is their identity going to help you out?? Are you going to sue them over a few BTC you loaned to them? If yes, how exactly would u do that? What court? What institution? This does not work and collateral is the only way.

Bitcoin legal status is currently blurred and we don't have clear laws or ways to enforce them. Unfortunately it creates a scam friendly environment.

It is random profile of some BTCJam user: https://btcjam.com/users/147184 (https://btcjam.com/users/147184) take a look at amount of verification you have to do to receive better rating...

You need to do better than the likes of BTCjam.com to have a chance in the space, the loan default rate seems high in my opinion, I tried BTCjam out and the BTC I lent out to some users have not been recovered at the time of writing.

There is no guarantee that even the well trusted member gonna payback in future if he have payed back in past. And all the ratings systems usual bitcoin lending platform have may get passed with lots of fake documents or someone else documents, there is no single platform where lenders can have access to collateral of takers so there is no guarantee that you will get your money back.

Much saturated market filled with scammers and liers.Document forgery I may add.

Really? How difficult is it to photoshop that? Or ask a random stranger to do it on your behalf.This is 2016,you're thoughts are still stuck in 1980's mate.No offence but it just wouldn't work out.

So I will scam 2 bitcoins for once and maximum damage could happen to me would be a place in your website's hall of shame section? Cool.Wouldn't be that difficult to get stickied in your HOF section over and over.

Yeah,just not sure about the amount of bitcoins that will be stolen.

There are a few problems that will always exist in an open loaning platform. A new user can look legitimate, but scam and leave. This guy can make a new account, totally anonymous if they have access to different IPs or a VPN/proxy.

This.

I think loaning system cannot work on the internet, you know nowadays people can easily doing a cybercrime. If you googling it there are pretty much tutorial about hacking ect.

Well you can do this but a safe collateral would always be necessary online.

One idea could be to trade steam accounts for btc.

Problems:

My name is John Smith and here's my fake ID. I don't intend on paying the loan back and don't really care because it's not under my name.

Or

I give you my real name and ID, borrow $50 and don't pay it back. Now what? I'm on some wall of shame? Is that even legal due to privacy policies in certain countries? I highly doubt it. You'll end up getting sued when you're the one that's already out the money that they stole.

I would just do manual credit adjudication and take collateral that can be sold. Nothing else will be worth your time/effort/money.

Small issue with your hall of shame idea depending on the country your from its against the law to publicly post your users data.
Also users aren't likely to use a site that if they scam or have a hard time and can't make a payment their face is plastered on the web.
Any form of loan type site will have to require real details on users, home address valid email and normally social profiles.
The other issue is stolen identities which you can buy with a few dollars off the dark web.

Hall of shame really not helping his cause since we are on cyberworld and anything behind it can be possibly lie and also it is easy to stole someones identity and scattered some bad doings by using those fake profile, he really need to study this one since the business he plans is so risky on his side, and also he should remember that theres existing loan site scam happen and that is btcjam, hopefully you would not do the same act.

But what if people start to create fake photos with a fake ID card. they will not feel shame to get in the hall of shame with those photos and what will get the person who will lose his money in loaning system?

Well Issue is its against the law to dox people well depending on the country your from.
But if there from places like the uk they can have a page that is made about them blacklisted from google.
So the shame wall won't help much in many countries.

The concept is a good one but all the services provided by these service providers come with a very high risk, even on BTCjam the rate of loan default is quite high. Someone needs to come up with a better structure than the existing one that can truly work and protect the lenders

in case of btcjam even users with real photo/documents are defaulting huge loans.

No,it's not against any laws to doxx people.Maybe I'm not fully aware but that's why documentation is made compulsory on exchanges and digital payment methods.However,internet community strictly opposes it for obvious reasons.

At least this page doesn't say it's illegal : https://en.wikipedia.org/wiki/Doxing (not sure though)

And that would be ? Banks I suppose .

The documents are not real.You can buy any sort of validtaion online ,obviously fake.Take fake paypal verified accounts sold on this forum for example.

Making loans can be dangerous, especially with a irreverssible currency like Bitcoin.

I think the concept behind this is nice, but I wouldn't go too far as to making a hall of fame/shame with people's personal information on there, it might be a bit too far? And to some extent, personal information could be fake which would make it useless for including it in the first place. I think the BTCtalk's trust system + it's ranking system is a good way to deem whether a person is trustworthy or not.

the only way btc loaning site could work is if you develop a system of valid colateral
it could be digital products like accounts,access etc. basically anything you could sell for profit if things go south
no id checks or trust rating or whatever else helps
check btcjam stats on loans,there are more than half of that go bust due to scammers just running away with money
so in short,you have to combine an auction for colateral and loan site in one

There are lot of Bitcoin lending sites already but seems that there are also many people who want to borrow Bitcoin so there should be place on the market for your service too.
But it would be good to offer something inovative and new that will make a difference from other lending sites and provide you clients.
And security system against scamers is very tough task and hard to achieve, there is always a risk.

The main keys to a platform that works better than available competitors would be like:

1) decentralization and censorship-free p2p BTC lending platform;

2) Automated collateralized loans;

3) automation of escrows as good as possible.

As far as I can see, the projects that went that far are Bitsquare and BitHalo/BlackHalo.

But they're not fully working for that function yet...  :-\

You have to have some new and fresh ideas to attract new users on the lending market. And that is not easy, there are already so many lending platforms already. You have to find the balance between protecting investors from scamers and also trying to keep borrowers privacy. But if you have the good will and enough funds to invest go for it.

There are some problems with id identification, the first is that many in the bitcoin community will not like to go through it and that will limit the possible market and the second is that is very easy with Photoshop to manipulate images.

I think you should make it. It is always good to have more places for people to turn to for loamds and for lenders to create business and nice passive income. I think you need to have more secirty then just a half of fame and shame though.

The urge to earn passive incomes turns the urge to slap the shit of borrowers real quick considering the amount of scams they face for every satoshi they try to get back with rate of interest.I've invested some money in getline lending service since 6 months and I never got the money back,all I get is ROI per day I think which is 0.00001 aka fuckin worthless.Can't even withdraw the invested money neither do anything with the interests.It's all a scam my dear friend.

This thing will be kinda hard to manage right..?
All legal work needed...damn

Idea is good but there are many factors why you can't release it. Picture with ID to identify person, won't make anything big. Privacy is protected when you are using bitcoin and if anyone won't return loan, you can't complain he/she. In this situation, loans made with banks accounts is better but at the same time it's not good way-out. If you'll give person 200$ loan and than it won't be returned, I think you can't complain him because he/she hasn't putted anything but you can add them in black list for future. It's very hard job and don't worths headache.

Good Day, this idea is not new, it has existed for many hundreds of years... the idea is interesting but still it is the principle of Bank loans or loans from moneylenders and entails debt ... As it was many years ago before the advent of cyber currency and even banks.

I note that there already wrote about the fact that this idea is real, but if each loan or loan to provide any collateral, as was done in my entire life, even when people took each other in debt, but leave at least a horse  ;) or pig, for example  ::) now it can be a car or a property ( for example ) ...