Decentralized loan collateralization.

[cbeast]

I've been thinking about a way to mitigate lending risk through an expanding web of m-of-n transactions and historical analysis. I think it will work, but will still require collateral. Why not offer collateral to be used by someone that needs it? If you have a time-share, a sports car, or maybe a boat, it can be lent out to someone that is part of a collateralized lending web of trust. This is similar to other ideas out there, but the main difference is that removes some of the trust. Open Transactions might be a good way to implement this.

[TeslaUa]

The hardest thing is to enforce the repossession in the case of default as far as I can see. All the rest is basically already in place.

[MPOE-PR]

What's the incentive for someone to provide others with money (collateral is money) for free?

[cbeast]

What's the incentive for someone to provide others with money (collateral is money) for free?

Good question. This would be more than just putting up an asset for collateral. This way, you don't have a bank getting stuck with something they don't want if the loan defaults. Sure, there would be consideration for the use of the collateral as well. Meh, this would probably end up becoming a club type organization.

[Gilberto]

I've been thinking about a way to mitigate lending risk through an expanding web of m-of-n transactions and historical analysis. I think it will work, but will still require collateral. Why not offer collateral to be used by someone that needs it? If you have a time-share, a sports car, or maybe a boat, it can be lent out to someone that is part of a collateralized lending web of trust. This is similar to other ideas out there, but the main difference is that removes some of the trust. Open Transactions might be a good way to implement this.

Here is what I've been thinking, say I wanted to issue my own coin which I want to use to give credit to anyone who buys it like it's a gift card. The people buying it don't know whether or not I will redeem so they ask for me to put collateral down so they can get a refund if necessary.

How much collateral do you think it would take though if I wanted to do something like this? How is the amount of collateral determined and what would be fair?

This is an interesting topic that I have been thinking about lately.

I have a poll here for anyone else who has thought about it https://bitcointalk.org/index.php?topic=482452.msg5307384#msg5307384