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Etherecash — The new type of loan

The Etherecash platform works over a blockchain which is a peer-to-peer network where lending occurs independently of a bank or a central authority. However, this is not where the Etherecash functionality is limited.https://www.etherecash.io/

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Etherecash — The new type of loan

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  1. Blockchain Backed Lending Systems Are Here toStay The Etherecash platform is leading the charge for a handful of pioneering tech companies looking to bring decentralized peer-to-peer lendingto the blockchain ecosystem. The idea of putting traditional lending apparatuses on the blockchain is still considered a radical move. Like all bold ideas, blockchain backed lending is not without its detractors. With little to no history to draw upon, commentators and prospective investors alike have every right to feel skeptical of borrowing and lending on the blockchain. However, a brief recap of just a few of the extraordinary benefits of this new lending model should be more than enough to allay any investor’sfears. A Blessing for Small Businesses Though some critics assert that blockchain lending lacks a clear client base, decentralized lending platforms are being heralded as a life saver by small and medium sized businesses. By allowing struggling entrepreneurs to avoid the costly and restrictive rigmaroles of obtaining a loan with traditional institutions, blockchain backed lending services will deliver much-needed capital directly into the hands of those who can put it to bestuse. Make no mistake, while often overlooked, small and medium sized businesses are the lynchpin of the global economy. “[T]hey hire more people, pay more taxes, strengthen their local communities and eventually propel the growth of the economy. However, [small and medium sized businesses]… are the most underbanked business category worldwide,” reports Eugene Green, CEO of WishFinance. Like Etherecash, Wish Finance is working to empower small and medium sized businesses by providing them with a streamlined alternative to traditional loan markets. While Wish Finance is slotted to provide blockchain backed lending services to residents of Singapore and Hong Kong alone, the Etherecash platform is much more ambitious. Etherecashis rolling out fully prepared to provide payment and lending services to residents of anyblockchain compatible nation — setting it up for unrivaled international marketpenetration. Cryptographically Secure & FraudFree Perhaps the most common criticism of blockchain backed lending platformsis that they can’t possibly protect lenders from default or fraud. Nothing could be further from the truth! Just like Etherecash, the Denver based blockchain lending platform SALT uses a borrower’s digital assets — Bitcoin, Ether, or any other cryptocurrency — as collateral. What’s more, a cryptographically secure smart contract ensures that those collateral assets are tamper proof for the duration of the loan without any need for any third-party authority. Not only does thiscut

  2. costs, it suggests that blockchain backed loans will prove more secure than traditional lending models. A recent Forbes article noted that because of their relatively low cost to transfer, store, and liquidate, blockchain based assets actually make for an ideal form of collateral. Because of their unique qualities blockchain based assets are also likely to offer far more competitive interest rates to borrowers and lendersalike. Some Reassuring Facts &Figures Having addressed a few of the most common concerns with blockchain backed lending platforms—andintroducedmore thanafewof their unprecedentedstrengths—itsonlyfitting to close out with a few reassuring statistics. Experts currently estimate that blockchain based payment and lending systems could reduce bank infrastructure costs by 30% while providing savings of anywhere from $8–12 billion USD. What’s more, its estimated that roughly 90% of major North American banks are already exploring ways to incorporate blockchain into their own lendingservices.

  3. If nothing else, the attention major financial institutions are giving to blockchain based lending suggests something of its fundamentally feasibility and value. As Jeremy Epstein, CEO of Never Stop Marketing relates, “there is friction in the existing [lending] market and Blockchain tech helps remove the friction from intermediary-laden processes.” At present, the Etherecash platform stands at the forefront of blockchain backed lending, a pioneering stance that investors shouldn’t hesitate toback.

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