Thesis of Wisnu Uriawan


Subject:
Trustworthiness for Personal Lending on Blockchain

Summary:

In emerging countries, traditional lenders burden people with high interests and long payback period. Another option for people is to deal with financial institutions, like a bank [1]. However, obtaining a loan is very difficult for many people, who must demonstrate that they are in possession of assets that could be used as collateral [2].

Financial institutions indeed impose some conditions for grading lending, which depend on the expected risk they foresee. High risk will conduct to high conditions and more collateral.

 

Blockchain proposes a disruptive platform technology to support lending operations [3]. Blockchain ledgers are indeed very good candidates for recording all transactions occurring among the participating entities, which can either be individuals or organizations [4]. Smart contracts indeed provide a very efficient technology to manage the transactions with reliability, security, and scalability [5].

 

In particular, peer-to-peer (P2P) lending can thus be made possible between individuals in a very simple and reliable way. Several countries like China and United Kingdom, have successfully implemented such a system, which is especially suitable for Small and Medium Enterprises (SMEs) and individuals[6].

 


Advisor: Lionel Brunie
Coadvisor: Youakim Badr, Omar Hasan