Peer to peer crowdfunding is a unique method of debt financing which enables businesses and individuals to lend and/or borrow from each other using an internet-based platform, without involving a bank or any other financial entity. By removing the intermediaries, users can ensure higher yields, but at the same time, it increases the probability of several risks like liquidity risk, credit risk, money laundering, platform risk, conflict of interest, and of course, fraud & hacking. This is where Jeno Creatives helps you the best with their advance blockchain based solutions. There is no doubt that blockchain has the potential to eliminate or at least, reduce the risks of peer to peer lending. Moreover, it offers effective regulatory measures to address these risks.
Blockchain acts as a natural ally for peer to peer crowdfunding since it ensures safe and secure transactions, directly between the parties. Wondering how? Well, the technology enables the recording and sharing of data in a chronological fashion, within a decentralized database. Moreover, it ensures seamless synchronization across a network of multiple data stores.
The potential of the blockchain technology to reduce the risks of peer to peer crowdfunding is endless. Right from fraud and money laundering to cyber-attacks, blockchain can prevent all these since the technology allows transactions to take place directly between the parties, without the involvement of any intermediaries.