Dan Ariely Speaks About The Potential of Building New Credit Models With Blockchain

The financial needs of every business are unique.

Even two identical pizza shops can have completely different credit and financing needs depending on where they are located. For example, Shop A might be in the center of heavy foot traffic next to the mall, while Shop B could be in a part of town that is visited much less often.

The unfortunate reality of the way in which banks and lending institutions have set up credit and loans today does not allow for much flexibility. They don’t allow for consideration of each client’s individual financial needs.

For example, imagine if interest rates for pizza shops are based on 90 day re-payment terms. Pizza Shop A at the higher traffic intersection might only need the credit for 7 days because they can sell through their ingredients much faster, but our current financial system forces them to overpay interest to the bank based on a cookie-cutter loan that is really meant for Pizza Shop B.

Behavioral economics expert, Dan Ariely, explains this phenomenon in the video below.

With blockchain technology, individuals can easily lend to businesses that they want to support, while also benefiting from their success.


The CLN Network uses cryptocurrencies to offer a decentralized network of tools and services that support community payment systems and enable the consumption of goods, provision of credit and other financial services within the community.

Want to learn more about the CLN Network and how the model works? Visit our website or read the whitepaper.