I've been reading around the forum and I am slightly confused about the concept of collateral. If A takes a loan from B but B requires collateral in all coins, then isn't that the same as A trading B for altcoins? If A has a sufficient value of collateral in altcoins, why not use Shapeshift or a similar service?
that simple example is good,collateral is something that will taken by lender if people loan soemthing and can't pay it back. and by the way talk about shape shift,they already got serious problem,someone already post on bitcoin disscusion section.