A DApp Architecture for Personal Lending on Blockchain

Abstract

A DApp is a software interacting with it through transactions, user communications, store activity, executing smart contracts, and Ethereum-based on the Blockchain. Many banks or financial institution systems were applying this technology to support customer needs, i.e., in the lending system. When proposing a loan from a bank or other financial institution, it’s generally secured or unsecured. A secured loan offers some form of collateral in return and possibly borrow without any collateral to back the loan (unsecured loan). It all depends on the lender’s requirements. The borrowers can pay installments on time or equal to the guarantees provided. The excellent borrowers’ candidate is very influential in lending activities to minimize financial losses and damage their reputation. Most borrowers are rejected because they are unable to pay back the loan. In this paper, we propose a DApp lending architecture design. The architectural design has been adapted to meet borrowers’ and lenders’ requirements, easy to access and use, simple way for the transaction. We present the advantages of DApp lending architecture is customizable with stakeholders’ needs (Borrowers and Lenders side).