By Ivan Zone (Zdanov)
Hi. Let me first briefly introduce myself. I’m a co-founder and CEO of an enterprise blockchain project called Bloxable. Our mission is to solve the $200+ trillion debt markets with blockchain and smart contracts solutions. (shameless plug: visit us here)
A lot has been said about the global financial crisis of 2007–2008 since its passing. Some of the subsequent content has been good and relevant, and some lacking in insight as well as foresight. I am not here to rehash everything that went bad in the crisis or to reevaluate every measure that could have prevented all or some of the negative effects of the crisis. My goal in this blog post and the subsequent posts to follow is to imagine what could have happened had blockchain and smart contracts technologies been readily available in 2008. We will look at the ways in which these technologies could have prevented and completely eliminated most of the disasters that happened 10 years ago, saving over $22 trillion for the US economy alone. Upon conclusion of this analysis, we will apply lessons learned in a potential not-too-far distant future financial crisis scenario.
Blockchain, Bitcoin and crypto communities often reference the global financial crisis as one of the main catalysts for the subsequent loss of public confidence in the then prevalent financial systems and the resultant creation and growth of Bitcoin and other decentralized currencies and projects. Our team at Bloxable is on a mission to solve the very core of what went wrong in the financial crisis by tackling the origination, servicing and securitization of loans. We believe that using open ledger technologies to fundamentally revolutionize the $200+ trillion debt markets will achieve unprecedented advantages for our society and is an important mission to pursue.
This blog series will be broken into four parts:
Part I will highlight in detail how each step of the loan origination, servicing and securitization processes can be automated and made more efficient, transparent and secure with open ledger technologies.
> Loan Origination on Blockchain
> Benefits of Using Open Ledger Technologies for Loan Servicing
> Loan Securitization Using Smart Contracts
> Structured Finance Deal on Open Ledger
> Trading of Structured Finance Products on Blockchain
Part II will highlight the benefits of blockchain and smart contracts solutions for some of the main players involved in the debt origination process. We will show how lenders, borrowers, ratings agencies and governmental agencies would benefit from blockchain technologies.
> Blockchain Technology Benefits for Lenders
> Smart Contract Benefits for Borrowers
> Blockchain Advantages for Rating Agencies
> Blockchain Benefits for Market Data Providers
> Blockchain Benefits for Government Agencies
Part III will replay the global financial crisis in detail, following the timeline of the unraveling of the financial system. We will do so while suspending reality and imagining that blockchain and smart contracts solutions are easily available in 2007–2008. I am confident you will be pleasantly surprised to see how this hypothetical scenario would have unfolded.
> How Blockchain could have prevented the 2008 Crisis
> Blockchain Transparency Can Avert Financial Crisis
> Blockchain Mortgage Lending In the Shadow of 2008 Crisis
> How Blockchain Can Improve the Financial System
> Blockchain Could Have Helped Contain the 2008 Crisis
Part IV will evaluate a potential financial disaster scenario in the not-too-distant future by taking some of the current economic trends to their logical conclusions. We will apply blockchain and smart contracts solutions to said scenario to highlight some of the remedies inherent in decentralized, open ledger systems.
> How Blockchain Can Remove the Fundamental Problem in the Financial Markets
> Smart Contracts Can Help us Avoid the Next Financial Crisis
> Regulators Can Use Blockchain to Avoid another Crisis
To read the first article in Part I about about loan origination on blockchain, click here.
