Smart contracts and blockchain

As the dust continues to settle in China over the peer to peer lending industry crash, one has to wonder what could have prevented it, and what WILL prevent it from happening again moving forward. Two words that have to go hand in hand moving forward are regulation and trust.

Every new industry has hiccups and bumps in the road. China was, unfortunately, the first one to really face a significant crash given the fact that it grew to be the largest P2P lending country in the world currently. By no mean is $200B a small number in any industry, but overall the personal loan industry worldwide is north of $40T.

The 2008 financial crisis caused American household to lose $16T in net worth to provide some perspective.

This truly is just a bump in the road. After 2008, you can see the overall turnaround in the stock market when the proper corrections were made and moving forward we believe blockchain could be the correction in the P2P lending space to trigger the same turnaround. It can be used to protect the platform and the customer from one another. Smart contracts and blockchain are a revolution that can help every industry build trust and protect investors, lenders, and shareholder from one another without a central authority that can be compromised.