Dharma, found online at Dharma.io, offers a peer-to-peer line of credit at your fingertips. Find out how the platform works today in our Dharma review.
What Is Dharma Labs?
Dharma is a blockchain platform powered by Ethereum smart contracts. The platform is built with the goal of giving users a peer-to-peer line of credit.
Specifically, Dharma is a suite of open source tools that allow users to borrow and lend cryptocurrency from the command line and web browser. It’s also a programmable tool for investing in cryptocurrency debt assets, and a token standard for debt assets.
Ultimately, Dharma wants to make a lending marketplace built on the Ethereum blockchain and Ethereum smart contracts. You can take the testnet CLI for a spin today at Dharma.io.
How Does Dharma Labs Work?
Dharma provides decentralized peer-to-peer lending using Ethereum smart contracts.
Loans in the Dharma Network are stored, processed, and administered by a smart contract on the Ethereum blockchain.
In exchange for a fixed fee, a borrower’s credit-worthiness is assessed by a third party risk assessor, then cryptographically attested to.
That means borrowers and lenders are connected using free, open source software without having to rely on rent-seeking brokers and marketplace lenders.
Together, these technologies allow Dharma to offer the following core features:
- A suite of open source tools for borrowing and lending cryptocurrency from the command line and browser. Dharma was designed to be as easy to use as possible. With just a few lines of code, you can plug a line of credit into a decentralized app or online wallet. Users can have access to a cryptocurrency-based loan in five minutes or less.
- A programmable tool for investing in cryptocurrency debt assets. Dharma makes it easy for developers to build robots that automatically invest in a diversified portfolio of loans. Developers can create a robot outfitted with a hyper-customizable, programmatic set of criteria.
- A token standard for debt assets. When you invest in a loan on the Dharma Network, your stake in the loan is represented by an ERC20 token. Basically, that means your investment is a digital asset like bitcoin, Ether, or any other cryptocurrency.
We’ve just briefly explained how Dharma works. The Dharma whitepaper explains full details about the technology behind the platform and how it works. You can read the whitepaper.
Dharma also has features planned for the future. The company plans to create a collateralization system, a web of trust risk assessment platform, revolving lines of credit, and tranched loan assets, among other features.
Who’s Behind Dharma Labs?
Dharma is led by Founder and CEO Nadav Hollander, a full stack web developer and smart contract engineer. Hollander previously worked at Coinbase and Google and studied Computer Science at Stanford University.
Dharma Labs Conclusion
Dharma is a smart contract technology that facilitates cryptocurrency lending in an easy and accessible way. You can try the testnet CLI at Dharma’s Github page today. Or, visit Dharma.io for more information about the project and its ongoing development.