ETHLend Creates a Loan Standard “ERC-1068” With ConsenSys

ETHLend has been creating Loan Standard along with ConsenSys since few months and announced about a published draft version for Loan Standard called ERC-1068.

The new ERC loan standard aims to have a flexible and robust backbone for loan applications, which are built on top of the Ethereum network. The standard is quite basic to cover different lending instruments such as peer-to-peer lending, crowdfunding, uncollateralised lending and secured lending.

This different from the common standards used at ETHLend.  When a common standard is used, such as ERC-20 token standard, developers are able to create seamless ecosystem around the standard.

For ERC-1068 it means that there could be in the future different applications such as secondary markets for loans, credit rating systems and decentralized hedge funds.

• The standard allows the implementation of a standard API for loans within smart contracts.
• It provides basic functionalities to fund loan, accept the raised amount, payback the due, and recover the investment by lenders.
• The loan contract can have different optional features, like interest, loan as token, collateral, review borrower behaviour and risk analysis.

ETHLend will be introducing the ERC-1068 on Enterpise Ethereum Alliance (EEA). ETHLend will use the new loan standard working with the R&D departments of financial institutions that are building lending applications on Ethereum.

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