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tommorisonwebdesign (OP)
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October 09, 2015, 10:37:12 PM
Last edit: March 02, 2016, 01:13:38 AM by tommorisonwebdesign |
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I am currently working on a lending platform that is less open as Bitcointalk and provides less leverage to scammers like BTCJam. The site will offer escrow service, as well as having more strict rules than BTCJam. For example, BTCJam does not have a rule about collateral as Bitcointalk does. In addition, I plan on programming in options to sell debts if they are left unpaid. For example, a lender in Europe who made a loan to a user based in the USA could sell their loan to another user who is more local to the lender and collect the loan. I hope to solve as much as I possibly can provide a service that has enough precautions in place to prevent as much scamming as possible. I am developing the website using the CakePHP framework. The only issues I have with the website is to make it a trusted P2P Bitcoin lending site. I figure that if I am able to interest trusted escrows from other websites to get involved with my project. I could program in a fee structure in where the lender putting up their collateral has to pay the escrow's fee. Given the site's community-based orientation. I am anticipating it will take a while until the site gets enough trusted users before it becomes a usable site. From what I outlined, do you have any suggestions to my project? I want to outdo BTCJam, and I would appreciate any feedback in regards to implementing the scamming deterrents outlined above. EDIT Site demo: http://cake-tmwdca.rhcloud.com/Also due to the recent escrow scams scene on this site (3/1/2016) I will be coding in a built in escrow service. Hopefully, when I'm done with my other projects, I can resume building this project. I've already been PM'd by other Bitcoiners wanting to partner with me. |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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achow101
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October 09, 2015, 10:41:50 PM |
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What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
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tommorisonwebdesign (OP)
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October 09, 2015, 10:47:22 PM |
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What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
Anything that is easily liquidize-able would be accepted as valid collateral. For example, a Steam account with a lot of games is easy to collect by the website's escrow than say an electric guitar which would have to be physically shipped to the escrow. The more easy the collateral could be sold in the event of a default, the more likely the loan will be funded in the first place. If it is digital collateral, the escrow would simply acquire the digital good (eg. obtain username and password). |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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achow101
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October 10, 2015, 02:07:04 AM |
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What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
Anything that is easily liquidize-able would be accepted as valid collateral. For example, a Steam account with a lot of games is easy to collect by the website's escrow than say an electric guitar which would have to be physically shipped to the escrow. The more easy the collateral could be sold in the event of a default, the more likely the loan will be funded in the first place. If it is digital collateral, the escrow would simply acquire the digital good (eg. obtain username and password). The problem with those accounts is that they can easily claim the account was hacked and the site's support will reset the account for them. That is why the lending section here doesn't typically accept such accounts as collateral. |
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tommorisonwebdesign (OP)
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October 10, 2015, 03:07:21 AM |
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What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
Anything that is easily liquidize-able would be accepted as valid collateral. For example, a Steam account with a lot of games is easy to collect by the website's escrow than say an electric guitar which would have to be physically shipped to the escrow. The more easy the collateral could be sold in the event of a default, the more likely the loan will be funded in the first place. If it is digital collateral, the escrow would simply acquire the digital good (eg. obtain username and password). The problem with those accounts is that they can easily claim the account was hacked and the site's support will reset the account for them. That is why the lending section here doesn't typically accept such accounts as collateral. The final details as to what would be considered valid collateral is still yet to be determined. Bitcointalk.org accounts would be accepted as collateral as well. |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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achow101
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October 10, 2015, 03:19:25 AM |
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The final details as to what would be considered valid collateral is still yet to be determined. Bitcointalk.org accounts would be accepted as collateral as well.
ok. Your title says that this is trustless lending, but I don't see how that is the case. It looks like lenders and lendees need to trust a trusted escrow to escrow the collateral. How is that trustless? Or is it trustless because they don't need to trust you for the loans and loan security? |
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tommorisonwebdesign (OP)
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October 10, 2015, 04:16:07 AM |
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The final details as to what would be considered valid collateral is still yet to be determined. Bitcointalk.org accounts would be accepted as collateral as well.
ok. Your title says that this is trustless lending, but I don't see how that is the case. It looks like lenders and lendees need to trust a trusted escrow to escrow the collateral. How is that trustless? Or is it trustless because they don't need to trust you for the loans and loan security? Yeah. The website title comes from the fact that the users do not need to trust me for the loan security. |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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melisande
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October 10, 2015, 06:39:23 AM |
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Trusted P2P Bitcoin lending site rules does not make the loan system secure but the method of giving it out does, the less rule the more customer however method and type of collateral could strengthen the system.
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tommorisonwebdesign (OP)
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October 22, 2015, 12:22:12 AM |
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I meant to have a rough website up and running for you guys to see what I currently have but Cake does not sit with shared hosts. I will hopefully have it up in a couple of hours, running on a cloudserver.
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Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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avatar_kiyoshi
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October 22, 2015, 06:02:11 AM |
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Nice to see if there are lending site with have secure system for lender-party, like guys above me said, the collateral is equal as amount which want to borrow, and use a trusted escrow.
Anyway how about the interest? It's like lending system in this forum? where people want to borrow some amount and offer a % interest, and If you interested, you can make a deal?
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tommorisonwebdesign (OP)
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October 22, 2015, 06:11:18 AM |
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Nice to see if there are lending site with have secure system for lender-party, like guys above me said, the collateral is equal as amount which want to borrow, and use a trusted escrow.
Anyway how about the interest? It's like lending system in this forum? where people want to borrow some amount and offer a % interest, and If you interested, you can make a deal?
I'm in the works of finalizing the entire site process but basically a user can currently register on the site and deposit some funds to invest into the site. The lenders submit their request for loans to the website and offer collaterial that is greater than the funds being borrowed. The lender would pay a fee for using the site as well as interest paid to the user funding the loan. I am considering implementing a fee for investors making large amounts of money. It will be a lot like this forum. |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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tommorisonwebdesign (OP)
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October 31, 2015, 10:54:09 PM
Last edit: November 01, 2015, 01:28:17 AM by tommorisonwebdesign |
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I have uploaded a demonstration of my project at http://cake-tmwdca.rhcloud.com/. Tell me how this is. I have not added any Bitcoin stuff yet. Edit i notice the nav links are broken. I will have this fixed by tomorrow. |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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crazyivan
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November 01, 2015, 07:19:33 AM |
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It all comes down to the ability to strictly enforce collateral if the lender does not pay. This reputation based system is BS.
Banks have been using collateral for hundreds of years. If there was a better way, they would find it by now.
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nydiacaskey01
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December 02, 2015, 01:37:50 AM |
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Site looks pretty neat and simple but I guess since this is just a demo version there are still enhancements to be seen in the future. I'm interested to know how are you going to protect yourself again loan defaulters who uses a reversible collateral? The risk of having an unpaid loan is very high nowadays even if they have a collateral. |
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tommorisonwebdesign (OP)
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December 02, 2015, 01:42:44 AM |
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Site looks pretty neat and simple but I guess since this is just a demo version there are still enhancements to be seen in the future. I'm interested to know how are you going to protect yourself again loan defaulters who uses a reversible collateral? The risk of having an unpaid loan is very high nowadays even if they have a collateral. I would have very strict rules as to what is accepted as valid collateral. I will have to do a bunch of research on my end and find out what collaterals are, what the risk factors are of each factor and go from there. I will moderate the website myself to begin with and offer a paid-moderator position when the business takes off. I still have to look into the interest formulae and fee algorithm but that is what I've got to work on next. |
Signatures? How about learning a skill... I don't care either way. Everybody has to make a living somehow.
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EXtremeAEX
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December 04, 2015, 06:10:11 AM |
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Hmmm, so lets say for amounts like 50 BTC as seen commonly on BTCJam, could more than one investor help with the funding? The current idea would be much safer than BTCJam, but for larger amounts like this, it would be quite difficult to split, unless the person asking for the loan have the collateral worth more than the loan and easily to distribute among the other investors.
On top of that, I suppose the site owner would be holding on to the collateral until either the person returns the loan or it forfeits, so I guess thats a matter of trust too. Are you planning to make this a site for all, just like BTCJam? It would be quite difficult to handle all these things, but people would switch to this if everything is fine and trustworthy.
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crazyivan
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December 04, 2015, 07:52:22 AM |
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This is probably the only field where traditional commercial sector did it right. You simply CANT trust people without valid collateral and escrow. So yes, I ll be bookmarking this thread.
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eternalgloom
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December 06, 2015, 04:17:23 AM |
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Site looks pretty neat and simple but I guess since this is just a demo version there are still enhancements to be seen in the future. I'm interested to know how are you going to protect yourself again loan defaulters who uses a reversible collateral? The risk of having an unpaid loan is very high nowadays even if they have a collateral. I would have very strict rules as to what is accepted as valid collateral. I will have to do a bunch of research on my end and find out what collaterals are, what the risk factors are of each factor and go from there. I will moderate the website myself to begin with and offer a paid-moderator position when the business takes off. I still have to look into the interest formulae and fee algorithm but that is what I've got to work on next. Would you only allow loans to take place with the use of collateral or do you plan on allowing loans without it as well? I could see it being significantly less popular if you had to make use of collateral (sadly)... |
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gurre
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December 06, 2015, 04:29:04 AM |
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I personally think that your idea is sucks. Bitcoin loans is pretty bad business and if you think about the halfing in next year? how the hell you think that you can keep scammers away and you would make some profits from this.
I think this idea is worth 10 dollars and not worth even a try.
Maybe you need to think some another possibilities to use your skills.
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