It sounds good, but isn’t it too risky? As i understood, this system is under no one’s control, even the law can’t help lenders, if borrower refuse to pay 
That’s why interest rates are higher, in order to maximise lender's profits. Risk/profit ratio must be interesting to investors
That's all very well, but is there any way to mitigate the risks? It will be awesome, if there are any!
Yep, I know one of such ways. There is a professional scoring procedure of borrowers, before their loan requests get published, it’s like a reputation in the «lending world». This system allows lenders to choose a reliable borrower, therefore reduce their risks.
Also, there is one more way! Lender could get part of his investments from a compensation fund, that was created by a system.
but let's try 
