Topic: Trustless Lending - an alternative to BTCJam (Read 2668 times)
Edited original post, added link and note about escrow service.
or maybe you can make a option to with loans,
example 1,
- I will loan 10 bitcoins with todays exchange rate with 24 months loan time. 24 months is a long time and we don`t know how bitcoin value is in 24 months, so when bitcoin price goes to 2000 dollars none of the lenders will pay back?
example 2,
- I will give a loan to users but this can be based in USA dollars or euros not bitcoins.
My 10 btc loan would be about 3800 dollars for 24 month and not based in bitcoins with this loan seekers don`t get in troubles if bitcoin price goes to 2000 dollars and lenders are happy when they get their wished interest in dollars or euros.
get my point? something you need to think also....
example 1,
- I will loan 10 bitcoins with todays exchange rate with 24 months loan time. 24 months is a long time and we don`t know how bitcoin value is in 24 months, so when bitcoin price goes to 2000 dollars none of the lenders will pay back?
example 2,
- I will give a loan to users but this can be based in USA dollars or euros not bitcoins.
My 10 btc loan would be about 3800 dollars for 24 month and not based in bitcoins with this loan seekers don`t get in troubles if bitcoin price goes to 2000 dollars and lenders are happy when they get their wished interest in dollars or euros.
get my point? something you need to think also....
I personally think that your idea is sucks. Bitcoin loans is pretty bad business and if you think about the halfing in next year? how the hell you think that you can keep scammers away and you would make some profits from this.
I think this idea is worth 10 dollars and not worth even a try.
Maybe you need to think some another possibilities to use your skills.
I think this idea is worth 10 dollars and not worth even a try.
Maybe you need to think some another possibilities to use your skills.
I have launched a demo version of this site at http://cake-tmwdca.rhcloud.com/
Site looks pretty neat and simple but I guess since this is just a demo version there are still enhancements to be seen in the future. I'm interested to know how are you going to protect yourself again loan defaulters who uses a reversible collateral? The risk of having an unpaid loan is very high nowadays even if they have a collateral.
I could see it being significantly less popular if you had to make use of collateral (sadly)...
This is probably the only field where traditional commercial sector did it right. You simply CANT trust people without valid collateral and escrow. So yes, I ll be bookmarking this thread.
Hmmm, so lets say for amounts like 50 BTC as seen commonly on BTCJam, could more than one investor help with the funding? The current idea would be much safer than BTCJam, but for larger amounts like this, it would be quite difficult to split, unless the person asking for the loan have the collateral worth more than the loan and easily to distribute among the other investors.
On top of that, I suppose the site owner would be holding on to the collateral until either the person returns the loan or it forfeits, so I guess thats a matter of trust too. Are you planning to make this a site for all, just like BTCJam? It would be quite difficult to handle all these things, but people would switch to this if everything is fine and trustworthy.
On top of that, I suppose the site owner would be holding on to the collateral until either the person returns the loan or it forfeits, so I guess thats a matter of trust too. Are you planning to make this a site for all, just like BTCJam? It would be quite difficult to handle all these things, but people would switch to this if everything is fine and trustworthy.
I have launched a demo version of this site at http://cake-tmwdca.rhcloud.com/
Site looks pretty neat and simple but I guess since this is just a demo version there are still enhancements to be seen in the future. I'm interested to know how are you going to protect yourself again loan defaulters who uses a reversible collateral? The risk of having an unpaid loan is very high nowadays even if they have a collateral.
I have launched a demo version of this site at http://cake-tmwdca.rhcloud.com/
Site looks pretty neat and simple but I guess since this is just a demo version there are still enhancements to be seen in the future. I'm interested to know how are you going to protect yourself again loan defaulters who uses a reversible collateral? The risk of having an unpaid loan is very high nowadays even if they have a collateral.
I have launched a demo version of this site at http://cake-tmwdca.rhcloud.com/
It all comes down to the ability to strictly enforce collateral if the lender does not pay. This reputation based system is BS.
Banks have been using collateral for hundreds of years. If there was a better way, they would find it by now.
Banks have been using collateral for hundreds of years. If there was a better way, they would find it by now.
I have uploaded a demonstration of my project at http://cake-tmwdca.rhcloud.com/. Tell me how this is. I have not added any Bitcoin stuff yet.
Edit i notice the nav links are broken. I will have this fixed by tomorrow.
Edit i notice the nav links are broken. I will have this fixed by tomorrow.
Nice to see if there are lending site with have secure system for lender-party, like guys above me said, the collateral is equal as amount which want to borrow, and use a trusted escrow.
Anyway how about the interest? It's like lending system in this forum? where people want to borrow some amount and offer a % interest, and If you interested, you can make a deal?
Anyway how about the interest? It's like lending system in this forum? where people want to borrow some amount and offer a % interest, and If you interested, you can make a deal?
I'm in the works of finalizing the entire site process but basically a user can currently register on the site and deposit some funds to invest into the site. The lenders submit their request for loans to the website and offer collaterial that is greater than the funds being borrowed. The lender would pay a fee for using the site as well as interest paid to the user funding the loan. I am considering implementing a fee for investors making large amounts of money. It will be a lot like this forum.
Nice to see if there are lending site with have secure system for lender-party, like guys above me said, the collateral is equal as amount which want to borrow, and use a trusted escrow.
Anyway how about the interest? It's like lending system in this forum? where people want to borrow some amount and offer a % interest, and If you interested, you can make a deal?
Anyway how about the interest? It's like lending system in this forum? where people want to borrow some amount and offer a % interest, and If you interested, you can make a deal?
I meant to have a rough website up and running for you guys to see what I currently have but Cake does not sit with shared hosts. I will hopefully have it up in a couple of hours, running on a cloudserver.
Trusted P2P Bitcoin lending site rules does not make the loan system secure but the method of giving it out does, the less rule the more customer however method and type of collateral could strengthen the system.
The final details as to what would be considered valid collateral is still yet to be determined. Bitcointalk.org accounts would be accepted as collateral as well.
ok.Your title says that this is trustless lending, but I don't see how that is the case. It looks like lenders and lendees need to trust a trusted escrow to escrow the collateral. How is that trustless? Or is it trustless because they don't need to trust you for the loans and loan security?
The final details as to what would be considered valid collateral is still yet to be determined. Bitcointalk.org accounts would be accepted as collateral as well.
ok.Your title says that this is trustless lending, but I don't see how that is the case. It looks like lenders and lendees need to trust a trusted escrow to escrow the collateral. How is that trustless? Or is it trustless because they don't need to trust you for the loans and loan security?
What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
Anything that is easily liquidize-able would be accepted as valid collateral. For example, a Steam account with a lot of games is easy to collect by the website's escrow than say an electric guitar which would have to be physically shipped to the escrow. The more easy the collateral could be sold in the event of a default, the more likely the loan will be funded in the first place. If it is digital collateral, the escrow would simply acquire the digital good (eg. obtain username and password).What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
Anything that is easily liquidize-able would be accepted as valid collateral. For example, a Steam account with a lot of games is easy to collect by the website's escrow than say an electric guitar which would have to be physically shipped to the escrow. The more easy the collateral could be sold in the event of a default, the more likely the loan will be funded in the first place. If it is digital collateral, the escrow would simply acquire the digital good (eg. obtain username and password).What would be considered a valid collateral? And how will that collateral be held in escrow while the loan is still active?
Anything that is easily liquidize-able would be accepted as valid collateral. For example, a Steam account with a lot of games is easy to collect by the website's escrow than say an electric guitar which would have to be physically shipped to the escrow. The more easy the collateral could be sold in the event of a default, the more likely the loan will be funded in the first place. If it is digital collateral, the escrow would simply acquire the digital good (eg. obtain username and password). Jump to: