Blockchain — The hopes are to eliminate the middleman
When people talk about blockchain the one person that should be worried is the middleman. One thing people should also understand is that the blockchain will exist whether the cryptocurrencies go up or down since it is the underlying software and code that things are built on top of.
In the loan and debt industry, the middleman that have been reaping all the benefits of connecting borrowers and lenders are bankers. Like all things in the world their “fee” gets priced into the loan and causes a higher interest rate, origination fees etc.
So with blockchain, the hopes are to eliminate the middleman and get the loans priced where the lender and borrower get better terms. The old way with traditional banks isn’t working so small businesses and students are looking elsewhere. It is safe to say, however, that a blockchain solution is yet to be found as well. Even though it is pretty obvious that this technology will help P2P lending industry, it’s still in the early stages, kind of like dial-up internet back during the internet revolution
We here at Alchemy are working to create a P2P lending version that will improve the current solution from the slow dial-up, to the fast and wireless internet version we are all used to nowadays.
