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It has been more than 10 years since the cryptocurrency and blockchain emerged into the market. No doubt the initial use of the blockchain was limited to mining, storing and exchanging cryptocurrencies; over time, researchers have found many other applications as well.
After more than 10 years of its existence, the popularity of blockchain development is still intact and in fact, has increased. The concept of smart contracts and peer-to-peer lending is something that is being emphasized upon.
However, with the numerous peer-to-peer lending platforms that exist in the market, choosing a reliable one is not an easy task. Instead, it takes many points into consideration before one can opt for the most suitable p2p lending platform.
After reading this article, the reader will be able to make a smart choice while choosing the ideal p2p lending platform for cryptocurrency.
Blockchain, Peer-To-Peer Lending and Smart Contracts
The modern uses of blockchain technology that includes cryptocurrencies and then the peer-to-peer lending platform are quite promising in resolving the inherent limitations of the traditional lending systems.
Experts reveal that there is a high probability that the p2p lending platform will establish its own economic system, also called the blockchain economy.
In order to understand the blockchain economy, the reader must know the concept of self-executing smart contracts that follows a set of predefined rules.
Understanding Smart Contracts
A smart contract is a self-executing computer program that enacts on the occurrence of relevant events that are embedded in the system. It aims to eliminate the series of intermediaries, reduce cost, and secure the transaction network.
A prime example of a machine operating on the principle of smart contracts if the vending machine. The concept of smart contracts was first referred to in the early 1990s by a cryptographer known as Nick Szabo.
Though initially it had limited applications, the concept of smart contract has gradually evolved and mainstream into many business operations.
Smart contracts play a vital role in facilitating a p2p lending platform. Induced with the crypto wallet, smart contracts follow predetermined protocols before initiating any transaction. Also, in case if the borrower fails to pay any scheduled installment.
Choosing The Best Cryptocurrency Lending Platform
Choosing the best p2p lending platform is not as easy as it sounds. Instead, it takes a lot of market research and expert supervision to deploy an effective p2p lending platform.
This section of the article will help you understand the critical perspective of the cryptocurrency development services to look after. Make sure you do not miss any of it.
It is the most basic but one of the most important aspects to look at. Interest rates are something that is subjective and not objective. It means, depending on the role you play, the interest rate should be altered.
If in case you are a lender, then emphasizing on the high-interest rate will earn you higher profits and keep the crypto lending blockchain solution smoothly operating. However, if you are playing the opposite role, i.e. of a borrower, then lower the rate of interest, the cost-efficient is the process.
It is important to conduct a background check to know about how secure the platform is.
Moreover, verify whether there have been instances of intervention in the past. In most cases, the crypto lending platforms do highlight the security measures that are adopted that help gain customer trust and prove the platform’s robustness.
Bitcoins and Ethereum are the most popular cryptocurrencies that are trending in the market. However, there are many other currencies apart from the ones that are mentioned above that are taken into consideration. Scrolling through the homepage of a reliable cryptocurrency lending platform will help the user figure out the currencies that the platform deals in.
The flexibility that a crypto lending platform offers is something of utmost importance while the customer engages in any transaction. Many aspects are related to determining the extent of the flexibility of the platform.
The tenure of the loan, mode and pattern of repayment and penalty imposed if in case the customer fails to repay any installment or relevant event is something that makes up the flexibility.
There are certain crypto lending platforms that are bound to operate in specific regions. Users should thoroughly conduct research about the crypto lending platforms that are operating in the region.
Also, it should be ensured whether the user is able to register on the platform of his choice or is there only a limited p2p lending platform that operates in the region.
All the points that have been mentioned above are important for the customers to go through before making their decision on what crypto lending platform to partner with.
Popular P2P Lending Platforms
Refer to the p2p lending platforms that are mentioned below to get a highlight of what the market has to offer to its customers when it comes to lending and borrowing.
CoinLoan is a crypto lending platform that is based in Estonia. The platform started its journey in 2018, however, since then it has gained tremendous popularity. What makes it appealing is the fact that it hosts an easy lending procedure that is secured with the bank-grade security, hence making it a reliable platform.
It is to be noted that the platform not only facilitates transactions with cryptocurrencies but also supports fiat currencies and stablecoins.
To have a better understanding of the platform, it is important to know its operational concept. A borrower is asked to deposit collateral, i.e. a predetermined amount of the cryptocurrency before the loan is sanctioned. The extent of transparency that it offers further adds to its reliability.
The platform complies with the EU financial law that makes it legitimate.
It is a fintech platform. The platform is about lending crypto, fiat and stablecoin loans. Having a flexible LTV rate, i.e. 90%, 70%, and 50% it can be called a highly versatile p2p lending platform. This means that the customer is eligible for a higher loan amount for a smaller deposit.
What makes it unique from other crypto lending platforms is the fact that it has partnered with banks instead of neglecting them, which eventually allows it to store the customers’ fiat funds in the trusted banks in Europe ensuring safety.
The functioning of the above-mentioned brands revolves around blockchain solutions. This makes it clear that no matter what peer-to-peer lending platform inspires the lender or borrower, cryptocurrency development services are the foundation technology for all.
There are many companies that focus on blockchain development; however, figuring out the ideal one can be a challenging task.
To make the process easier for you, we have highlighted the potential of one of the best blockchain development companies in the next section. Refer to it for a better understanding of how opting for BR Softech Pvt. Ltd. can flourish the fortune of the p2p lending platform both for the customers and the lenders.
Why BR Softech Pvt. Ltd.?
Knowing about the p2p lending platforms is one thing; however, it takes a lot of efforts to create an effective p2p lending platform. Not only the development company should host a number of professional developers, but they should also have the due experience that is required with the modern yet complex technology like the blockchain.
Amongst the many software development companies that exist in the market, there are only quite a few that excels with the complexity that the blockchain offers.
BR Softech Pvt. Ltd. is amongst those few software development companies that are providing their services amidst the pandemic of COVID-19. With more than 250 full-time employees that are working to cater to the business needs and software requirements of the startups as well as existing companies, the company is active in providing front-end as well as the back-end services.
Moreover, the company has an experience of more than 10 years in the field of software development that makes it one of the oldest operating companies. Also, the company covers a range of more than 38 countries that makes it widely available no matter where the requirements are!
If you are looking forward to investing in cryptocurrency development services, considering BR Softech Pvt. Ltd. can be an optimal choice.
Not only this article is helpful for understanding the basic concepts of blockchain technology, but also it features a detailed overview of the best p2p lending platforms that are available for cryptocurrency.
No doubt the peer to peer lending platforms are flourishing at a rapid pace, there are certainly some improvisations that are expected to appear in the near future.
However, by looking at the present scenario where the blockchain is penetrating the mechanism of financial institutions and private lenders, investing in blockchain solutions can be a lucrative business strategy to unleash the business capabilities like never before.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2010 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, mobile/ software development and other digital marketing services intending to deliver outstanding digital outcomes.