The 5th and final article from contributing writer, Andrea, from his series looking at the potential impacts of blockchain technology on modern banking practices.

The worlds of the consumer, of financial institutions, and the blockchain are slowly converging.

Where banks and lenders underwrite loans based on a system of credit reporting, blockchain technology opens up the possibility of peer-to-peer loans providing a faster and more secure loan process.

EthLend, a decentralized peer-to-peer lending application based on Ethereum, raised $16.2M via ICO

When you fill out an application for a bank loan, the bank has to evaluate the risk that you won’t pay them back. They do this by looking at many complex factors and, using this information, banks define fees and interest collected on loans.

Credits: ECB

This centralized system is complex and hostile to consumers. Alternative lending using blockchain technology can offer a cheaper, more efficient and securer way of making personal loans.

So, based on a decentralized registry of historical payments, consumers could apply for loans on a global credit score.


EthLend, a decentralized peer-to-peer lending application based on Ethereum, raised $16.2M via ICO.

How it works? when a customer issues a loan request, a smart contract is created with the loan amount, interest rate, and time frame. The borrower puts up tokens of EthLend as collateral. If the loan isn’t paid in time, the lender receives tokens as collateral.

Disruption doesn’t happen in a day

Blockchain technology is still in its initial phases. At this point, blockchain technology can either replace the entire banking system or help traditional financial institutions to innovate into a more efficient future.

Anyway, the simple fact about the blockchain is that it is a technology that will transform the banking industry.

Don’t miss all my previous articles about blockchain technologies and its impacts, here on

1. Blockchain and payments
2. Blockchain and fundraising
3. Blockchain and security
4. Blockchain and banks

I'm an HX designer with a passion for the financial and crypto fields. I'm focused on innovative stuff and want to share what I learn. Feel free to reach me on