Design Smart Contract Based on Blockchain for Peer-to-Peer Lending Platform

Abstract

Technology advancement generates new opportunities to make current business flow simpler and efficient, especially in P2P lending business model. Many companies create online digital platforms to promote new customer experience as marketplace or mediator between lender and borrower to make it easier to interact with each other's. Often transactions that happen inside the platform is not transparent that many lenders accidentally lend their money to problematic borrowers, resulting the lender cannot get their money on time. The purpose of this research is to design a smart contract system in marketplace lending using blockchain technology. The lack of lender control and trust in P2P lending platforms to select the right borrowers can be overcome by implementing blockchain systems and smart contracts. The findings of the field study and literature review show that not only blockchain and smart contracts can provide lenders with better information when selecting borrowers to carry out various transparent transactions, but also speed up the lending business process itself. In the blockchain system, all historical data is stored and thus can improve the process of checking data in the system. Implementing a blockchain and smart contract system on a P2P lending platform can increase trust, reduce delays and be more transparent.