Blockchain Developer's Guide

Increased fairness

In the United States, there used to be a process known as red lining, where people of certain ethnic groups were denied loans and access to financial services—particularly mortgages. These unfair practices continue to some extent, as the criteria and process for granting loans and the way interest rates are calculated are hidden inside centralized organizations. This phenomenon is not contained within the USA; there are many areas in the world where ethnic, religious, and other biases distort what are meant to be objective decisions. With a smart-contract-based system, the rules would be public and auditable to ensure fairness and accuracy.