A Peer-to-Peer Lending Platform with Smart Legal Contract Management.
At Covenant, we are currently working on a Proof of Concept for handling contract management processes of Smart Legal Contracts. Specifically, we have chosen for loan agreements. As an added functionality, users will be able to manage the loans defined in the contract. They will be able to view their status and handle the (re)payments.
Contract Management
Users will be able to do general contract management processes, like drafting, renegotiating, and signing on the platform. The Smart Legal Contracts and their Signatures are stored on a combination of private and public ledgers, assuring data integrity while respecting privacy.
These contracts can be created with an intuitive editor. The editor will guide you through a series of forums in order to extract key contract parameters. At the end of the process, users will be able to review, edit, and download the contract, before sending it to the signatories.
Once signed and active, users will be able to view a timeline and real-time status of contract actions. A visual flowchart will display the current that of the contract and its clauses. Stakeholders can be informed automatically on the execution of smart contracts or key events through multiple channels.
Loan Management
Signed contracts will activate the related loan in the dashboard. Users will be able to check their loan’s statistics like principal amount, interest and repayment status. The dashboard will include payment functions that allow investors to send their fund and borrowers to repay their loan. The payments can be done both in cryptocurrency (Ether) and fiat currency. For payments in fiat currency, we will use the payment processor Mollie.
User Profile
A lending platform requires good KYC practices. Thus, Digital Identity is one of the platform’s pillars. In Belgium, itsme is a Federated Identity Provider growing in popularity. It has recently also released a tool for Digital Signatures, another major pillar of functionality.
A true lending platform also calculates the credit score of the borrowers. However, in this Proof of Concept, we have decided to neglect this functionality in order to focus on the most important features: Contract Management for Smart Legal Contracts and interaction with the Blockchain.
In the next article, we will cover the User Experience and Usability of the demo. In meantime, we are always open for a good conversation: contact us.
