CRYPTO-BACKED peer-to-peer lending platform ETHLend has partnered with a technology provider to help record and store transactions more securely.
ETHLend, founded by Finland-based Stani Kulechov, is a P2P lending platform funding business and personal loans in the Ethereum digital currency.
Transactions using digital currency are typically stored on a central database called the blockchain, but its size means transactions can be slower and there are fears that it could be hacked.
Instead, ETHLend has teamed up with technology firm Enigma, which has built a second-layer ‘off-chain’ network that still records the transactions but encrypts them so the data can’t be accessed.
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“Helping create decentralised solutions for lending and credit is one of the strongest use cases for the Enigma privacy protocol,” Can Kisagun, co-founder of Enigma, said.
“We’re excited to work with the dynamic ETHLend team to help them grow their revolutionary platform and together build the future of decentralised lending.”
ETHLend funds business and personal loans in the Ethereum digital currency.
Borrowers post other digital currencies as collateral as well as paying interest on the loans.
The platform also ran an initial coin offering last year, creating a tradeable LEND token that can be used to pay transaction fees.
ETHLend funded more than 120 loans two weeks after first launching in the middle of December 2017, worth more than 500ETH.
“Enigma’s protocol will enable private loans to add more privacy for lenders and borrowers,” Kulechov said.
“This would be tremendously useful in the business-to-business and business-to-consumer lending markets, which ETHLend is aiming to disrupt. We’re looking forward to working with Enigma’s talented team and technology to achieve our vision.”
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