Question 1

Is blockchain safe?

Accepted Answer

Yes, in the sense that the ledger itself is extremely difficult to tamper with. Most safety risks in the broader ecosystem come from applications built on top of the chain, like exchanges, wallets, and smart contracts, rather than from the ledger itself. Lending on a permissioned blockchain like Provenance is closer to traditional banking infrastructure than to the unregulated crypto venues that make headlines.

Question 2

Why does blockchain matter for a loan?

Accepted Answer

The infrastructure a loan rides on determines how fast, how cheaply, and how transparently it can be originated, sold, and serviced. Loans that are blockchain-native or tokenized at origination can be sold to investors without leaving the chain and tracked in real time. Title to the asset and transfers can also be recorded immutably from inception, which obviates the need for things like title insurance, which imposes additional costs and intermediaries in the traditional financial system. For a borrower, that typically shows up as a faster closing and a simpler process. For investors, it shows up as continuous visibility into the asset.

What is blockchain? How it works and why it matters for your money

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What is blockchain? How it works and why it matters for your money

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