Introduction
Cryptocurrency is something that has excited the world since its recognition. The cryptocurrency industry has changed the way people look at economy now, mainly because of the underlying technology that powers it – blockchain. The decentralized nature of storing the verified data has been attracting many applications, and there are many instances where it has been leveraged innovatively. But the greatest and most widely accepted application of blockchain still remains cryptocurrency. Despite being present for almost a decade, the crypto industry is still in its development stages, with most of its usability and application being discovered and researched upon, now. The world is slowly adapting to the crypto revolution, by trying to incorporate ordinary fiat currency applications in the crypto dimension.
Lendingblock – the first of its kind lending platform
Lendingblock is a lending platform meant solely for the safe and transparent lending and borrowing of crypto assets. Lendingblock aims to make the presence of crypto assets felt in the security lending industry by creating a collateral based lending system, operated upon by smart contracts. The lenders can receive interest for the principle amount they have loaned, and all these payments are initiated and controlled by smart contracts. The collateral is set after following certain criteria decided by various factors, like the volatility of the collateral asset, the principle amount and the term of loan.
Why only crypto? Why can't fiat currency be lent and borrowed, hence making the lending system much more efficient, quicker and fool proof? Think Lendingblock, think!
Lenders and Borrowers
Lenders and borrowers are the 2 primary sets of users in the platform. By definition, the lenders are individuals or entities who are willing to stake an amount with the collateral as the security. The lenders have the capability to accept only certain types of assets as collateral, and they can register various lending plans listing the principal amount they are willing to stake and the loan time, for how long they are going to stake the amount. They earn interest for the amount they stake, in specified intervals, which are systematically and accurately monitored by a smart contract.
The borrowers are the group of users who are looking to acquire some crypto assets from the platform, for various uses. Borrowers can list the principal amount they require and the loan period, and matching loan plans from individual lenders or groups of lenders are shown from which they can choose the right plan. The results which does not match with the collateral type the borrowers have listed are automatically omitted.
Defining and setting collateral
The collateral is a security that is defined when the transaction between a lender and a borrower is decided. The collateral is an asset that gives the assurance to the lender that the borrower should return the loan, failing which the collateral shall be given to the lender. In the Lendingblock platform, a collateral may be any crypto asset, and the amount of collateral required is calculated using a Value-at-Risk model. This includes certain calculation involving the volatility of the principal/collateral asset pair (for example, BTC/ETH, BTC/XRP, ETH/XRP, etc.), the principal amount, the confidence level (however, it is mentioned nowhere how confidence is going to be valued in the initial stages of the platform, i.e. for the first 10 loans that occur in the platform), etc.
When a stage reaches where the borrower is not able to pay back the initial amount, the collateral is liquidated and is distributed to the lender, and if there are more than one lenders, the collateral is distributed in proportion to the amount they staked as the principal. This action is monitored by smart contracts, and hence is fool proof and secure.
The LND Token
The Lendingblock Token (LND) is the native currency for the Lendingblock platform. It is an ERC20 compliant token which is going to act as the central currency for the platform. The LND Token is the only method in which the interest of loans are paid to the lenders. It is also the medium for payment of the transaction fee for using the platform. The users of Lendingblock are encouraged to use LND for these purposes because the use of a common token across the platform will reduce the additional costs incurred by lenders and borrowers for exchanging other currencies to the required currency.
Token Sale Details
The Lendingblock pre-sale is scheduled to take place on 7th April 2018, and will continue till 14th April 2018. The price of a token during this sale is $0.1667 and investors receive 20% tokens as bonus.
The ICO main sale will take place over a week from 15th April to 22nd April, 2018. The price of a token at this time changes to $0.2, and no bonus is offered.
Final verdict
Lendingblock is a great step towards empowering the crypto industry, and enhancing the awareness of public towards the operability and extent of reach of this industry. Lendingblock, over time can create a safe and credible system for lending and borrowing crypto assets, and this just could make way to convince sceptical countries to rethink their crypto strategies, and encourage the use of crypto currencies. Crypto lending could be potentially transform the economy, because of the accurateness and pace of each transaction, and since the transactions are smart contracts, there is virtually zero chance of money wastage or loss because of error. Lendingblock has a bright future, and could be the next big thing in the security lending market.
**Website** - https://lendingblock.com/
**Whitepaper** - https://lendingblock.com/static/media/Whitepaper-English.21b2ed91.pdf
**ANN** - https://bitcointalk.org/index.php?topic=2963328.0
**Telegram** - https://t.me/lendingblock
**Published by** – dannywhelan
**Profile** - https://bitcointalk.org/index.php?action=profile;u=1606458
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