New Loan System Based on Smart Contract

Abstract

The traditional lending system has problems such as the need to establish a trust foundation, the third-party trust media to participate in transactions, and the inevitable breach of contract behavior. The combination of smart contracts and blockchain technology has become a breakthrough point in solving the problem of lending systems. Taking the application of smart contract in the loan system as an example, this paper uses the blockchain as the storage characteristic of the distributed database, decentralizes and stably stores the smart contract on the blockchain for the purpose of directly controlling the transaction assets and their transfer. Through the rational design and application of intelligent contracts, the coded enforcement of the transaction process in the lending system is promoted, and the problems of insufficient supervision ability and low loan efficiency in the transaction process are improved. It also shows that there is a great space for innovation and practical prospects for the reasonable combination of smart contracts and blockchains.