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Loans are an important concept, that's true. Do blockchains inherently prevent loans? I'm not sure, I think Ethereum smart contracts enable the concept of loans

Loans are an important concept, that's true. Do blockchains inherently prevent loans? I'm not sure, I think Ethereum smart contracts enable the concept of loans. The 3rd party here is the contract itself, as I understand it.

cuteboy19 5y ago
Blockchain "loans" are fully collateralised and sometimes even require upto 4x the collateral than the loan itself. This is not useful in the vast majority of cases
lottin 5y ago
If I lend you 1 ETH, I have no means to make you pay me back. Smart contracts can't do that either. A smart contract cannot seize 1 ETH from your wallet and send it back to my wallet. Blockchains are designed specifically to prevent that.
- carlosdp 5y ago
  That's not true, you can definitely do this with a smart contract blockchain like Ethereum, and there are plenty of loan protocols already that do this in production with $ billions in assets transacted. No one can steal your ETH from your wallet, but they can liquidate your staked collateral held by the smart contract.
  - lottin 5y ago
    If the collateral is "held by a smart contract" it means your buying power hasn't changed and you haven't financed anything.