LendLedger platform, based on blockchain technology and using smart contracts in its work, establishes a connection between the creditor and the debtor through service providers.
All transactions, any operations carried out on the platform are displayed in the network. This makes the lending process safe, transparent and efficient by saving time and paper documentation. The project expresses a sharp disagreement with the modern system of lending, explaining that the system in which one is entitled to control and implement the contractual obligations can not provide a full range of claims of the parties. The LendLedger platform includes four components:
- Data APIs. APIs capture all the data that is transferred between the creditor and the debtor. It is APIs that defines the format of data storage in the blockchain. In the future, Data APIs will be able to process a large amount of data.
- Transaction APIs. They are "building blocks", which are built from the contractual agreements of the parties to the loan.
- Loan Smart Contract Templates. The first time the platform will serve small businesses using template smart-contracts. In the future, expanding the range of impact, the platform will enter into contracts with less common credit situations.
- Loan Digital Asset platform. Internal accounting unit of the contract. The debt of the debtor, which acts as fiat currency.
Lenders use the data provided when issuing credit payments. At the same time, lenders sign agreements directly with borrowers. Data Providers — providers provide data collected by the enterprise to lenders.
Borrowers — the borrower is provided with personal and credit data with the help of suppliers, on the basis of which the latter has the right to apply to creditors for loan terms.
Credit Evaluators — credit appraisers review the borrower's applications and provide legal advice based on the favorable terms of the loan.
Identity Verifiers — authentication will be based on KYC.
Loan Services — lending services carry out the procedure of recovery of funds from the debtor (borrower).
Also, the project developers have indicated that as the growth of the provided system will create new roles for the highest quality conclusion of many contractual agreements.
The company has put forward a number of requirements for users of the platform. Trusted reporting. The level of trust between the lender and the borrower is a very important factor in lending. Thus, none of the parties should have questions about the authenticity of the transaction. Solution: LendLedger introduces mandatory reporting for each transaction.
The stability of the currency. The volatility of funds in credit agreements can play a cruel joke with both the borrower and the lender. Solution: LendLedger will use only stable currency.
Permission to lend. All participants of business relations should be deprived of the risk of poor condition of the transaction. The solution: Platform will take only authorized creditors.
Decentralization. To ensure the quality of credit transactions, only the parties must create conditions, requirements and obligations. Currently, credit card companies cannot provide full freedom of requirements to the participants of business relations. Solution: no central authority authorized to monitor and restrict operations will operate on the platform. The right of access to the network is available to the parties of the loan.
Gautam Ivatury is at the head of the project as a co-founder and CEO of the company. He is an innovator of the developing market since 2002. For many years of activity in the field of financing he held senior positions or was the founder of such well-known enterprises as SKS Microfinance, Gates Foundation, funded CGAP Technology Program, Jipange Kusave, MeraDoctor, and many others. His colleague is Manish Khera. Manish has been working in the banking sector for more than twenty years, in addition to being a co-founder of the project, he holds the post of General Director of Fino PayTech.
LendLedger has worked with 13,000 micro-enterprises in 400 cities in India for a year.