Is borrowing money on the blockchain really possible?

Blockchain technology is now being accepted around the world and is being more widely adopted. At the same time, Thailand has also begun to use blockchain in business to increase convenience and safety, and can greatly reduce the burden and time of managing paper documents.

Is blockchain lending new in Thailand?

Blockchain lending is still very new. And with blockchain technology and cryptocurrencies still in their maturation stages, and news and awareness from various main media channels It is not yet widespread and difficult to find. As a result, lending via blockchain has not received as much attention as it should. Both in various details That is hard to find and the information is still insufficient. Therefore unable to attract various media And how much are the general public interested in borrowing money via blockchain?

Even in 2018, the “Bank of Thailand or BoT” announced a regulatory framework for the peer-to-peer credit transaction system or Peer-to-Peer Lending Platform of the Ministry of Finance, allowing the Peer-to-Peer Lending Platform business Serves as an intermediary in concluding loan contracts between lenders and individual borrowers.

Including in 2019, news came out that “22 Thai and foreign banks Join in creating a 100% electronic letter of guarantee network using blockchain technology.” But no media has actually turned to reporting on blockchain lending. It can be seen that in practice it can be done. There may just be some doubts that still linger in the minds of many people. People who lack awareness of being overlooked by the general public in society will help provide information and reveal. Including the lack of receiving important information such as the future direction of blockchain technology. or the future direction of cryptocurrencies

What is the difference between traditional lending and blockchain lending?

– Borrowing money on a regular basis: You can borrow money when you are 20 years old or older. (Varies according to each country) and must use collateral for the borrower such as house, land, car and must provide personal information of the borrower such as name, address, place of work, evidence of financial accounts, etc. in order to build credibility and support making a contract And there are also various conditions. Many more small parts

– Lending money on the blockchain: You don't have to be 20 years old to get a loan by depositing cryptocurrency coins into various P2P lending platforms such as Bitcoin, Ethereum (different coins may be used). depending on each platform) and the system will use the deposited coins to buy coins on each platform. To be used in borrowing money using Smart Contracts to carry out operations such as verifying the identity of both parties, checking the personal information of both the borrower and the dancer, and it takes only a short time to receive a loan with a deduction of fees. already The platform will seize the assets or coins you deposit as collateral. When do you pay it back? You will get the coins you deposited back.

*How to borrow this money It's just a rough method. It is necessary to study the information completely before making a decision.

It can be seen that borrowing money on the blockchain

– Age is not a condition for borrowing.

– No need to use a lot of information (Some places do not require any personal information at all)

– Reduce the use of paper resources and reduce the burden of expenses for personnel who will carry out the work.

– lower fees and takes much shorter processing time

– Blockchain is also known for its data security. It may even be safer than the current banking system. It's also comfortable. Because you can make loan transactions anywhere, anytime.

Notes on borrowing money on the blockchain

I must say that the P2P lending innovation for borrowing money on the blockchain is It is still in the growing stage and has not yet fully ripened. Although it can now be used, it is still not very popular. Due to many factors such as the amount of information, reliability or the price of digital currency that is constantly fluctuating

But we can't deny it either. that this innovation has the potential to replace the old systems that we are using and are familiar with Only this project is a very big project. And it is necessary to take time to develop both the technology itself and the users who have to adapt to each other.

If blockchain technology and P2P lending systems continue to develop Banks also need to change their old roles or methods in order to adapt to this technology.

There are many articles by academics and experts in various fields of science. It has come out to say that in just the next 5-10 years, blockchain technology will become a part of our daily lives just like the internet can. And if that day comes, blockchain technology will become a part of today's daily life.