Lendoit as a P2P Lending System That Solves The System’s Core Problems

Lending system has always been bothered by a centralized intermediary whose interest system is more often than not unsatisfying to both lenders and borrowers. Lendoit as a P2P lending platform offers decentralized system that removes the need of an intermediary and ensures fair play and mutual benefits between lenders and borrowers.
Why Should You Abandon Centralized Lending System?
Admit it, loaning has become the core fuel for nearly all business activities since the ancient time. Loaning is a mutually beneficial transaction in which lenders reap profit from interests and borrowers can kick-start and develop their business with the acquired loan money. Loaning system eventually involves an intermediary, which accepts deposits from lenders and offers loan to borrowers by creating credits. This intermediary system soon evolves into banking system, in which banks secure transaction between lenders and ensure that the transaction is properly regulated.

Despite the financial stability offered by banks, banking system does have its cons as well. To begin with, banks gain profit from interests, so a portion of money that the lender lends to the borrowers will go to the bank. Banking operation greatly affects the financial stability of a country, so the government deems it necessary to enact strict banking regulation that controls such operation. Because every country has its own banking regulation, banks normally can only provide loaning service within the border of the country where they are located. It is almost impossible for lenders to lend their money to foreign borrowers and vice versa. Finally, the centralized nature of banking system makes the loaning system very much inflexible and sometimes repressive.

Why Does Decentralized P2P Lending System Matter?
Unlike banks, which are highly centralized and confined within the border of a country, P2P loaning system is a fully decentralized platform on which lenders and borrowers can perform more direct transaction without compromising its security. This platform neither accepts deposits nor creates credits for borrowers. Its function is to make sure that the transaction that occurs between lenders and borrowers is based on verifiable trust. Like banks, this platform attempts to make sure that the transaction between lenders and borrowers is safe and secure, but unlike banks, it doesn’t generate income from interest and it offers better flexibility and freedom in its loaning system, especially because it allows lenders and borrowers from different countries to do transaction with each other. A P2P loaning platform generates income from fees and commissions provided by users.

What Is Special about Lendoit?
Peer-to-peer loaning system is not a new practice. It has been around since approximately one decade ago with many players, the most notable of which include Zopa, Lending Club and Prosper, already finding opportunity to grow and expand in the field. The emergence of peer-to-peer loaning system can be attributed to the development and popularity of of peer-to-peer activities that occurred at that time. The direct sharing between file owners in P2P file sharing network, for instance, seems to be applicable in making the transaction between lenders and borrowers more direct.

With already many players in P2P landing system, how does Lendoit distinguish itself? Despite the pervasiveness of P2P loaning platforms since more than 10 years ago, many players don’t actually play a pure P2P system. Lending Club, for instance, still relies on Web Bank to discharge requested loans. Most of those platforms still rely on bank and are thus confined by country border. Lendoit is a revolutionary platform as it—to start with—runs a pure P2P loaning system with no bank or third-party banking institution involved.

How Does Lendoit Run Its System without Involving Bank?
Lendoit relies on Smart Contracts and Blockchain technologies to ensure secure, trusted and risk-free transaction. This is the primary factor that distinguishes Lendoit from the rest in the P2P loaning environment. With these two technologies, Lendoit can act as an intermediary that is very much unlike a bank.

Smart Contracts technology eliminates the need of a bank-like intermediary in P2P loaning transaction. With this technology, lenders can make sure that they lend their money to people with affirmed reputation and credibility. Smart Contracts technology stores and assesses people’s credit-related data including score, history, and everything that lenders require to assess the reliability of borrowers and to determine interest rate. Smart contract system also includes a handy mechanism to cover losses in the event of loan default.

Lendoit also relies on Blockchain technology, a revolutionary technology that basically allows lenders and borrowers from around the world to interact with one another and to do transaction with complete freedom. This is beneficial not only because it enables business expansion beyond country borders, but also because it allows lenders and borrowers to bypass interest rate difference restriction. For instance, in Japan, the interest rate is 1%, which is good for borrowers but troubling for lenders as the latter cannot reap as much as possible profit from their deposit. In Brazil, the interest rate is 50%. With Blockchain technology, the open-border feature allows lenders and borrowers to determine the interest rate they prefer the most.

Lendoit Loaning Procedure
The procedure is quite simple on the lender side as it only involves reverse auction in which lenders compete with one another to get connected with eligible borrowers. It is called reverse auction because in this event, the winning bidder is the one who offers the lowest interest rate. This is good for both lenders and borrowers because the former are free to offer their proposed interest rate that they deem profitable for them and because the latter ultimately have a chance to choose a loan with reasonably low interest rate.

On the borrower side, the procedure is a little bit complicated, but it is still considered much simpler than bank loan procedure. Borrowers start by opening a Lendoit account on Lendoit platform. Afterwards, they are required to submit necessary documents that become proofs for their credibility. Lendoit, with professional assistance, will then process the submitted documents to build the borrowers’ smart contracts. The entire process usually takes less than 5 hours.

Lendoit Team
  • Ori Erez, Co-Founder & CEO
  • Vlad Amirov, Co-Founder & CTO
  • Yoav Pinkas, Co-Founder & COO
  • Avi Ben David, Co-Founder & President
  • Federico Hoyer, Community Manager
  • Shahar Peter, Marketing & Community Manager
  • Vadim Voznesenski, R&D Manager
  • Maxim Nagibin, UI/UX Expert
  • Eddy Travia, CEO & Co-founder of London-listed Coinsilium Group (accelerator of blockchain startups)
  • Michael Terpin, Founder and CEO of Transform Group, Coinovate (a cryptocurrency consulting and development company) CoinAgenda event
  • Dr. Ugochukwu Ugbor, A mentor and an accomplished professional with over seventeen years of international experience
  • Richard Titus, Founder of multiple start-ups and digital agencies including; Prompt.ly, Razorfish & Schematic
  • Jure Soklic, CO-Founder and CEO / Hive project. Jure is an executive and consultant with extensive experience in the international financial industry
  • Ram Avissar, Community and Marketing Director / CoinDash
  • Gilad Ben-Ami, Gilad Ben Ami, brings to the table an extensive experience in tax planning with special expertise in international tax planning
For detailed Team Members descriptions please check out: Lendoit Team or Join Telegram to communicate with #LOAN team!


Quick Links
  Official Websitehttps://lendoit.com

Author: CryptoSmile
ETH Address: 0x434E3209c1e7915E0becDe6d58411D05D8ff4dA8



I am Blogger, freelancer, internet marketing who loved to reading and writing in a personal blog

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