Blockchain-Powered Platform for Microloans and Lending Solutions

Abstract

This paper outlines the design and development of a blockchain-based microloan platform that transforms traditional microfinance systems by offering small loans through a decentralized, transparent, and secure system. The platform utilizes Ethereum smart contracts running on a local Ganache blockchain to manage loan transactions and MetaMask for user authentication and secure digital signatures. The frontend is developed using React.js, ensuring an optimized and user-friendly interface, while MongoDB serves as the backend database for storing user profiles and loan data. This paper details the system architecture, smart contract design, blockchain interactions, and database schema while addressing blockchain scalability, security, and user adoption challenges. By describing the loan application, ranking, repayment, and wallet functionalities, this study demonstrates how blockchain enhances trust in microloan services by eliminating reliance on intermediaries.