how do people repay the loan and what is keeping track? Does the loan fill automatically or dies the lender have the choice to fill a request.
People would repay the loan through the LendWallet application. The network is keeping track in a blockchain, similar to how the BTC network works.
When the borrower makes a payment, the network tree that was built during the filling of the loan application would just be activated in reverse. The borrower would make an X BTC payment, and then the wallet app would fraction this out to all of the loaners.
The loan is filled based on your account settings in your LendWallet. You can setup your LendWallet such that you'll only lend out 1 satoshi. You can setup your lendwallet so you originate all loans on the network that have an interest of 25%. You can setup your lendwallet so that you put in 5% of your available lendwallet ballance only if 50% of the network is already in.
This can be simplified by creating different risk profile settings.
High risk, maximum yield: Originate all loans
High risk, high reward: Originate all loans with an APR of more than 25%
......
Lowest Risk: claim 1 satoshi of any available loan
These would all be in some settings menu.
Also, the borrower sets the APR in the loan application, similar to whats going on in available BTC lending services.
This is certainly an innovative idea. Tracking down dead beats might be an issue that will have to be resolved but stuff like this is great for bitcoin.
Yes, tracking down deadbeats is always an issue. The idea is that if the network is large enough, the influence of deadbeats would be countered by the influence of good borrowers.
Also, this DLP can create a scenario in which a particular borrower builds a reputation, and they can essentially vouch for others by being the ones that put out the loan application for borrowers with less history.
(also in this DLP blockchain is some type of credit history - how many successful loans you've paid off etc).
So say Jane build a good credit history. She can then make some extra coin by locally advertising her credit history, and then people can come to her and try to get her to vouch for them. So say Bill comes to Jane. She puts a loan application out on the network, under her name, for Bill. She can either mention this in the loan application or not - doesn't matter. But now Jane has a vested interested in making sure Bill pays, because now her credit line is at stake. She could even go through the trouble of getting some notarized legal paperwork agreement between Bill and herself, stating that if Bill doesn't pay, then there's some collateral she can claim rights to. Essentially, Jane becomes her own type of bank.
Where are the devs?
