Bitlend (A Bitcoin Lending Application)

A decentralized peer-to-peer Bitcoin loan platform where users can request, fund, and manage BTC loans securely—without banks or intermediaries.

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🧠 Inspiration

The project was inspired by the need to provide decentralized, trustless, peer-to-peer Bitcoin loans. Traditional finance often requires intermediaries, KYC processes, and high fees. Bitlend aims to eliminate these barriers and make borrowing and lending Bitcoin permissionless and global.

💡 What it does

   Bitlend is a decentralized application (DApp) that enables users to:
• Lend Bitcoin and earn interest.
• Borrow Bitcoin by providing collateral.
• Interact with smart contracts to automate the loan process.
• Operate trustlessly without a centralized authority.

🔧 How we built it

  The project was built using:
• Bitcoin Testnet for simulating real BTC transactions.
    •      Smart contract
• Web3.js / Ethers.js for blockchain interaction.
• React.js for the frontend UI.

🧗 Challenges we ran into • Integrating BTC with a smart contract platform (Bitcoin is not natively smart-contract-friendly). • Ensuring trustless collateral handling. • Managing cross-chain interoperability. • UI/UX issues related to wallet connection and transaction confirmation. • Dealing with network confirmation delays on the Bitcoin testnet.

🏆 Accomplishments that we’re proud of • Successfully created a working P2P BTC loan demo. • Integrated smart contracts for loan escrow and repayment logic. • Enabled real-time loan status updates on the frontend. • Built an intuitive interface for borrowing/lending BTC.

📚 What we learned • Deep understanding of Bitcoin testnet and UTXO mechanics. • The complexity of bridging BTC with smart contract platforms. • Better architecture practices for decentralized lending platforms. • Improved frontend skills for Web3 apps.

🚀 What’s next for BTC Loan Dapp • Integration with the Bitcoin mainnet. • Implementing decentralized identity (DID) and credit scoring. • Expanding to support other crypto assets like ETH or stablecoins. • Mobile wallet compatibility. • Enhanced security audits and test coverage. • Community governance via a native token.

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