Tokenlend — crypto funds in real economy

The Problem With The Traditional Banking System

In the traditional banking system, secured loans have been a cause of concern for both — the loan seekers and the investors. The loan seekers have to go through the long drawn and tedious process of documentation before they can avail the loan. One slight fault in the documents, and the entire loan process gets disrupted. Even with all these documentations, the loan seekers run the risk of getting rejected for their application. International investors have also complaint about the lack of a universal, decentralized currency for the loan transactions, which results in an uneven margin of interest they receive on their investments. The government intrusion with their complex taxation policies have made the entire process of loan transactions complicated and ineffective. In the world, where international business transactions have become a norm, there is no reason for loan seekers and contributors to operate under an archaic, red-tape ridden system.

Tokenlend: The Solution

Tokenlend has come forward as the solution to all these problems. Being a blockchain technology based system, Tokenlend provides a decentralized platform for all the loan transactions. The loan seekers no longer have to worry about going through the complicated documentation process to get their loans sanctioned.

The democratic nature of the blockchain technology makes it possible for anyone to get loans against a particular mortgage. Tokenlend has made the loan market accessible for all; beyond international boundaries and socio-political constraints. For international contributors, safety of their investment is a major issue. Since Tokenlend uses smart contracts for the transactions, the contributor’s investment remains secure with the platform.

The contributors can enjoy even profits against their investments as the platform functions in a universal currency, solving the problem of uneven margins of interest. In this article, we will take a comprehensive look at how Tokenlend makes the loan market universally accessible with fewer risks and higher profits.

How Tokenlend functions?

Tokenlend works as a reliable decentralized ecosystem for all loan transactions. The key advantages of this loan transaction system are:

• It provides an open market for all loan seekers.
• A smoothness in loan transaction by reducing the obstacle of red tapism and complicated taxation policies.
• Contributors receive consistent return on investments through smart contracts.
• The safety and reliability of a completely decentralized system.

Let’s take an in-depth look at these advantages through the perspective of both loan seekers and contributors.

1. Initial Coin Offering

The entire process begins with the Initial Coin Offering campaign where the TLN Tokens will be put out for sale. The users who buy these tokens will receive an exclusive membership on the Tokenlend P2P platform. Using this membership, users will have the power to invest funds from their account into any of the available loan listed on the Tokenlend P2P platform. Not only that, the token holders will also receive a fixed share of the company’s profits from all its operations including lending, currency conversion, funds withdrawal, loan listing, etc. The fact that the token holders receive fixed profits on a regular basis makes it ideal for the users to buy the tokens. The Initial Coin Offering campaign sparks of processes that ensure a smooth and legitimate loan transaction.

Side Note: The TLN Tokens can also be traded outside of the Tokenlend platform as they are ERC-20 Tokens, which means they have an inherent value on exchanges. This gives the users a flexibility to use the TLN Tokens according to their will.

2. Creating the Tokenlend P2P platform

In the second stage, the loan originators will provide opportunities for users to invest and receive a consistent return on investment. In this stage, Tokenlend only accepts loan opportunities from trusted EU loan originators. This decentralized legal entity provides a sense of safety and trust in the whole transaction.

In addition to this, Tokenlend professionals validate the information received by the loan originators by checking their personal details, pledge information, appraisals, and LTV ratio. Tokenlend has a stringent loan selection criteria, and only the loans that can meet this criteria will be listed on the platform. In the system of loan transactions, a sense of trust is essential. For legitimate loan seekers, the Tokenlend loan selection criteria will be hassle free and smooth; nothing more than a slight formality. No lengthy documents will be required for the same. The criteria only ensures that the loan transaction process starts off in a legitimate and reliable manner.

In the end of this process, the loan smart contracts are created and the loans are published onto the platform.

3. Loan Participation Notes(LPN)

In the third stage, the users purchase the Loan Participation Notes for a particular loan. The purchasing is done through Lend Coins (TLN Tokens) that are offered in the ICO stage(see above.) The users can transfer a desired amount of TLN to a loan address. The LPN is instantly linked to the user’s Ethereum wallet address as the beneficiary of the interest payments.

After that, the Loan Smart Contract generates the LPN Contract with a principal value, same as the amount transferred by the user. In the Tokenlend system a personal repayment schedule is also created based on the loan terms.

This makes it easier for the user to invest in a loan, and the loan seekers receive the investments based on their credibility and loan terms.

4. Repayment

Finally, the time comes for the loan originator to send interest payments or principal repayments according to the smart contract schedule. After the last transaction by the loan originator is completed, the LPN contract closes the repayment schedule, and sends the interest along with the remaining TLN principal to the associated amount. After this, the loan is considered close.

The users receive their desired profits, and the loan seekers transaction is completed without the intrusion of middlemen or government bodies. The legitimacy provided by smart contracts and Tokenlend professionals makes the process smooth, secure and fool-proof.

Key features of Tokenlend

1. Decentralized Architecture

Over the last couple of years, the European P2P lending market has been growing at a significant rate, and business analysts believe that major European nations will greatly benefit from these common lending platforms.

Tokenlend is the frontrunner in providing a universally accessible, decentralized lending platform. In the international finance landscape, users are looking to invest on proposals that guarantee a consistent return on investments. On the other hand, loan seekers look for platforms with a simple and user-friendly system to get loans for their businesses. The problem lies in getting these two parties under the same roof, so to speak.

Tokenlend does exactly that — providing an effective platform to bring the contributors and loan seekers together for their mutual benefit.

For the loan originators, the P2P lending platform is a modern and effective alternative to the traditional banking system. Only ignorance can be the reason for loan seekers to still look towards government bodies and financial institutions for loans.

The blockchain technology has made the loan lending system an ideal one; just like it has done with all the other financial domains.

2. Secondary Market

One of the main features of Tokenlend is the existence of an LPN market, that will enable the users to trade ongoing investments for immediate liquidity. The users can convert their cryptocurrency into fiat currency any time they like. This means that the Tokenlend P2P lending market acts as a great investment opportunity for users across the globe. The fact that there is virtually no risk involved(due to Ethereum smart contracts and the legal decentralized system), and the guarantee of fixed profit margin makes it a win/win for the contributors.

3. User friendly System

Tokenlend provides a user friendly system for loan transactions. Due to the blockchain technology, the need for excessive documents, unnecessary middlemen, and government intrusion has been negated. This has benefited both the loan originator and the contributors. To carry out the loan transaction, all they have to do is follow the simple process mentioned above and they are sorted.

Smart contracts

Smart contract is a self executing Ethereum based system that makes the Tokenlend platform credible. Using smart contracts, the transaction happens in an automated form when there’s a consensus between the parties involved in the transaction. For example, if a user were to contribute a certain amount to a loan originator, the user will receive the return on the amount regularly under the smart contract. The loan originator can be a part of the smart contract only if they are eligible for the transaction.

This means that the smart contact serves as a trust factor between the two parties. The smart contract has been created in such a way that no party can breach the contract, even if they wanted to.

Advantages of Smart Contracts:

• Smart Contracts are built on digital coding environment.
• Ethereum is the most powerful cryptocurrency which is linked with Smart Contracts.
• Smart contracts are self-executing agreements.
• While traditional agreements face breach and violations, Smart Contracts form agreements which are secured and free from infringement.

Difference between Smart Contract and Traditional Contracts

The easiest method to understand Smart Contracts is by comparing it to the technology similar to that used in a vending machine. With the smart contracts, all you need to do is simply transfer a cryptocurrency to the vending machine. Your Escrow account directly attaches to the cryptocurrency which is transferred to the system. Smart Contracts specifies transparent rules which rolls around the agreement.T he biggest difference between a traditional contract and smart contract is that smart contracts enforce the stated obligations.

• Tokens-The Tokens are managed by Smart Contracts.These are the fundable amenities which comes with the authentication of Ethereum Blockchain Network.
• ERC-20-The ERC-20 is again a well-built interface which guarantees flexibility and authenticity between tokens.The ERC-20 is the division of Ethereum tokens.

Why You Should Contribute to TokenLend ICO

Real estate investments are tangible investments while funds and bonds are intangible ones. The problem with intangible investment is that it most certainly suffers from depreciation. Secured real estate investments provides the advantage of appreciation with time. TokenLend only deals with secured real estate investments. Loan seekers or investors should contribute to TokenLend ICO because of the following reasons.

1. Contributors will be able to check status of their funds with their ESCROW accounts.
2. TokenLend ICO investors will avail more liquidity.
3. The individuals will get Immediate access to the “Tokens” having capital growth potentials.
4. All the investors are part of the community.
5. Contributors get an edge to deploy capital.
6. Returns on investments in ICOs could be 100%.
7. Contributors will always have the an alternative financial asset.
8. Real-Estate is a tangible investment, the contributors can check the capital growth.

How to Invest

TokenLend gives the ability to easily borrow money in the form of ether from any possible location, including the remote locations with a dearth of banking facilities. Individuals using the cryptocurrency platform will be able to enter into Ether based transactions. It means that an ETH account is more than enough to make secure transactions.

Investment in TokenLend Platform is easy and involves the following steps.

• A new loan is added to the dashboard by the loan originator.
• A Loan Smart Contract is created once the loan details are verified by the platform personnel.
• In succession of the above the Loan Participation Notes are purchased for a specified loan amount.
• Then the TLN amount is transferred to the Loan Address.
• An LPN contract along with a principal value equivalent to the TLN amount is generated by the Smart Contract.
• The transferred TLN amount carried out by the users is accompanied by a repayment schedule which is created on the basis of timestamp of the LPN and the term of loan.
• The LPNs are now joined to the ETH wallets of the users for further interest payments.
• Now the amount of TLN that users receive is directly transferred to the account of the Loan Originator.
• The loan originator transfers the repayments and interest to the platform. The interest payments are done as per the Loan Smart Contract schedule.
• As the LPN contract ends according to the repayment schedule, the TLN principal amount along with the interests is delivered.
• When the Loan amount is fulfilled, the ETH wallet linked to the LPN is removed. The LPN contract is now considered accomplished.

Conclusion

The loan originators generally offer 10–15% rate of interest to the borrower seeking real estate loans. Moreover they are flexible enough to accept funds from a source offering 5–8% rate of interest. This is when TokenLend comes in front and takes a lead offering a secure link between both the parties involved. Subsequently the TokenLend Platform users have the freedom to freely access contribution opportunities. On the other hand the Loan originators have the right to access various economical funds also. TokenLend ecosystem is devised to offer flexible fund investment opportunities both for originators and investors.Based on the exact worth of Loan portfolio, pricing and fees will be determined. The idea is to make the Loan ecosystem possible for all individuals, lenders and contributors.

TokenLend ICO Official