Decentralized Privacy Enhanced Digital Lending Framework

Abstract

Translate Article

Digital lending platforms have been instrumental in processing loans faster and more efficiently by ensuring borrower verification through different channels. Thereby enhancing customer experience. The ecosystem is designed to collect applicants data from government data repositories, which is shared with untrusted third parties to assess the applicant's creditworthiness. This raises privacy concerns over borrowers data, consisting of bank statements, occupation information, and assets, which must be secure and private. Further, these platforms are designed with centralized control, which increases the risk of a single point of failure. Hence, there is a need to design a secure and efficient decentralized privacy-enhanced framework for the lending process. This paper proposes a blockchain-powered decentralized framework with functional encryption to ensure the privacy of data exchanged between borrowers/lenders and authority for verifying creditworthiness. The proposed solution is developed over the Ethereum platform. Further, computation analysis and performance analysis are discussed briefly.