Disrupting Traditional Models

We love tech and its potential to improve and advance the way we live and work. Below is a piece Blockchain Australia published on how Lodex and BLOCKLOAN are reshaping the traditional credit model. Read on to find out more!

One of the most highly-anticipated and enthusiastically embraced applications of blockchain technology is its ability to facilitate disintermediated lending. The advent of distributed ledgers and networks that don’t rely on traditional permissions dramatically reduces the cost of establishing trust between disparate entities. The proven maturity of blockchain technology has the ability to connect people seeking capital directly with those willing to lend it.

Blockchain-based lending has the capacity to facilitate fundamental shifts in access to credit for the estimated two billion unbanked adults globally, but it’s not just developing nations that are set to reap the benefits.

Lodex is currently working with Lakeba Group to build a blockchain-based credit infrastructure (name BLOCKLOAN). This comprises a highly-secure digital wallet, and debit card as well as global retail lending and margin lending protocols. The system has been designed with an eye to connecting lenders with borrowers efficiently and securely and to remove barriers to traditional lending.

Market research indicates that alternative lending will grow globally at a rate of more than 53% between 2017 and 2025. BLOCKLOAN has been designed to solve a fundamental global credit access problem by securely connecting borrowers with lenders directly and enabling them to establish the trust required to facilitate transactions.

“Lodex was created to simplify and empower people via access to unique data and technology. With more than 50,000 members and over $400 million in loans auctioned within a twelve month period, we are contributing to what we see as a new model for the financial services industry,” said Michael Phillipou, BLOCKLOAN and Lodex co-founder and co-CEO.

Building the Blockchain Ecosystem

As a business working to accelerate the uptake of blockchain technologies across Australian organisations, Lakeba has invested heavily in the developing space. The Lakeba Future Hub is backed by a consortium of technology, law, taxation and educational firms, with a focus on accelerating blockchain adoption to stimulate economic growth.

“Blockchain technology has facilitated an evolution of trust that has opened the door to new and exciting opportunities in the financial sector and beyond,” said Darren Younger, Chief Growth Officer, Lakeba and Head of Lakeba’s Future Hub.

“With Lakeba’s focus on accelerating blockchain development across all industries, the banking and finance industry is the most obvious sector to take advantage of this momentum. Our partnership with Lodex in developing the BLOCKLOAN platform will facilitate a decentralised, transparent, low-cost way of lending and borrowing through cash and cryptocurrencies,” continues Younger.

BLOCKLOAN employs smart contract pools that reduce the need for lenders to bid on every loan, instead executing according to specific criteria and providing a degree of flexibility and peace of mind for both parties. BLOCKLOAN is designed to provide highly-secure crypto wallets and an everyday debit card that offers users access to funds in real-time. Digital wallet and exchanges are able to supply the liquidity for fiat conversions, offering a frictionless experience for consumers.

The equities margin lending industry has been identifiedas a key opportunity for the provision of crypto-basedloans and Blockloan has been designed to provide a bridgebetween traditional fiat and emerging crypto-basedeconomies. Margin lending provides the owner of equityshares the ability to obtain credit against the market value of the shares, effectively allowing the shareholder to access credit without selling the shares. Typically, thisindustry has been a fiat-based form of financing, howeverBlockloan has identified that with the growth of cryptocurrencies there is an opportunity to develop a crypto-equity shares margin lending model that allows investors to enter the crypto market by leveraging their existing equity portfolio.

“By embracing sophisticated, secure and pioneering technology, coupled with our proven understanding of global financial markets, our solution is revolutionary and able to help solve the very real challenge of democratic access to credit,” says Bill Kalpouzanis, BLOCKLOAN and Lodex co- founder and co-CEO.


Article originally published by Blockchain Australia, read the magazine here