P2P blockchain-based lending platforms, Lendoit x Starbase for “socializing loss”
The P2P lending market
P2P lending platforms have existed for quite a while now, and have an expected growth rate of 50% each year until 2020 according to several researches. The centralized way banks and other institutional bodies currently handle loans all over the world leave no choice to the masses but to look for alternatives. This problem is escalating, pushing a lot of companies in the race for providing alternatives.
So far many have tried but many issues remain. Lendoit wants to solve the two principal issues:
(1) these companies are offering Fiat money loans, making themselves subject to regulation and thus remaining centralized, and (2) being regulated and dealing with Fiat requires these companies to operate under a certain jurisdiction only, preventing them from arbitrating the different interest around the globe in favour of the loan parties.
Enters the Blockchain: using cryptocurrencies we can allow two people anywhere on the globe to interact without the need for an intermediate, making them find the sweet spot between the different interest rates in their country. For example, imagine a person from Brazil, where the annual interest rate can reach 60%, wants to borrow money from a person in Japan where the annual yield might be 1%. If we will let them negotiate the terms themselves eventually they will reach an agreement around 30% which offers both parties an extremely beneficial deal.
https://blog.starbase.co/p2p-blockchain-based-lending-platforms-lendoit-x-starbase-for-socializing-loss-fe4d0252688b