At INLOCK, we believe in the democracy of finance. Why would we need an intermediate party, like a bank, when we need a solution to our financial problem? With no unnecessary costs like huge buildings, a crowd of employees, and bureaucracy, we can offer cheaper and more efficient DeFi solutions for all members of our P2P platform.

No need for a third party

Peer-to-peer – or P2P – is an efficient way to connect people who want a loan to those who wish to lend their money for profit. In the traditional banking system, the loan is based on the terms and conditions provided by the bank, possibly even altered by the bank later, within the legal framework. While at INLOCK, the transactions are fixed in contracts that cannot be modified after signing them. To ensure the closed system behind these contracts, we use blockchain technology.

Defi compass

DeFi applications for the future

Decentralized Finance (DeFi) applications are vital to understanding our blockchain-based fintech solutions. Using DeFi, not only the loan amount and collateral are stored on the blockchain, but also the entire loan agreement and collateral management process is executed in a decentralized way. The importance of DeFi is growing, even Nasdaq created is the DeFiX index to track the value of fully blockchain-based peer-to-peer finance solutions.

To guarantee the repayment of the loan and the interest, traditional P2P solutions use credit-line checks and manage the risks with higher interest rates and sprayed loans. To secure the loan, the crypto ecosystem has introduced a huge innovation in this field by the means offered by DeFi.

Blockchain-based P2P lending: a short or long term solution?

Actually, both, as eliminating the third party from the process has advantages in both the short and long term. P2P has a strong future, and as a short-term solution, it offers the possibility of not having to make lifelong bondage. At INLOCK, our Managed Lending option is a great example: it brings a great annual interest rate, but, as it is paid in weekly terms, it can be stopped at any time. Those who opt for a longer period can even benefit from the possibility of compound interest.

As much as P2P is a future-proof and user-friendly solution, the way we think about our finances must be changed to accept the advantages of these kinds of fintech solutions. A long way to go – but we are confident to go along. Join us!