Blockchain technology has made it possible for forward-leaning developers to create solutions that eliminate third party entities in virtually every industry. Cryptocurrency has been successful in creating a highly effective alternative to traditional fiat currency, but the next area targeted by blockchain technology appears to be the lending industry.
The unique nature of smart contracts makes it possible to lend capital directly between contract participants without the need for lawyers or external auditors. The potential benefits of blockchain based lending platforms are obvious, but the initial coin offering space has recently been flooded with platforms that use the term “lending” in a confusing manner.
Blockchain based lending platforms are focused on facilitating truly peer-to-peer lending, eliminating the need for banks and third party financial institutions. Many “lending ICOs”, however, appear to be focused on peer-to-peer lending, but actually only allow users to lend money to the platform in similar manner to a high yield investment program. These platforms are best avoided.
True peer-to-peer lending platforms, however, offer significant disruptive potential. In this article, we’ll take a look at the Gelios blockchain lending platform and find out what it offers to help you determine whether it’s worth participating in the upcoming Gelios ICO.
What Is Gelios?
Gelios is a new blockchain based lending platform that promises the first absolutely customizable lending service with global coverage. The Gelios platform appears to be focused on true peer-to-peer lending and is not a high yield investment program in disguise.
The creators of the Gelios platform state that Gelios has the goal of creating a service through which users from all around the world are able to raise capital, which will ultimately increase global prosperity and reduce poverty.
Gelios has aimed for basic functionality to begin with, starting with a matching mechanism that facilitates the convergence of creditors and borrowers. This unique mechanism will also assist with the process involved with both parties reaching an agreement on the period of the loan, interest rate, validation procedure, and identification.
Gelios offers users custom risk-analytics that make it possible to analyze all transactions in the blockchain, allowing for the creation of detailed risk models that can be presented to lenders. All the statistics of risk-algorithms are implemented directly on the blockchain.
Users of Gelios are also able to select form a Know Your Customer marketplace and select an identification process that best suits the country lenders are focused on. One of the most interesting features of the Gelios platform is a white-label personal area that makes it possible for lenders to connect Gelios to their website and provide lending services from a unique domain name and label.
Gelios also offers a CPA market, as well as a collection market that offers soft collection tools for customers that are late in payments. The Gelios integrates volatility hedging, and is governed entirely by smart contracts.
The Gelios platform is one of the most interesting peer-to-peer lending platforms to hit the initial coin offering ecosystem recently. To date, there are no specifics on the Gelios ICO, although it is possible to read the Gelios white paper on the Gelios website or sign up for email newsletter updates.