Peer to Peer Money Lending Using Blockchain

Abstract

In recent times, the fusion of blockchain technology and peer-to-peer lending has emerged as a transformative force in finance. This synergy offers a decentralized and transparent alternative to conventional lending, empowering individuals and businesses to access credit directly. While promising greater inclusivity, this approach also confronts challenges like trust issues and borrower risk assessment. To confront these hurdles, this paper aims to harness blockchain and machine learning to forge a more secure and efficient peer-to-peer lending ecosystem. The paper pioneers an innovative paradigm in peer-to-peer lending, merging blockchain technology and advanced machine learning algorithms. It seeks to deploy blockchain based smart contracts to streamline lending transactions, cutting out intermediaries and bolstering security. Additionally, it aims to integrate machine learning for robust borrower authentication and risk evaluation. By leveraging extensive borrower data and historical patterns, the system intends to generate reliable credit scores, facilitating informed lending decisions and risk mitigation.