Introduction

Flash Chain is a cryptocurrency protocol that systematizes the Flash Credit system on Binance Smart Chain. Flash Protocol allows you to borrow and lend money with minimal interest without collateral. As can be seen in the history of economics, people had just discovered the Americas in the era of finance 2.0 and new trade routes had emerged. Since these new trade routes were located on the vast oceans, people were faced with the robbery activities of pirates while taking their precious metals/money by ship. To solve this problem, a few smart traders created a primitive banking system. To explain with examples, this system worked as follows;

A European trader named Bob will go from Europe to the Americas to buy 1000 gold goods. He doesn't want to take the risk this gold by ship. So he takes his gold to Jack, a European banker. Jack buys these gold coins from Bob at 5% interest and gives Bob a 1000 gold bill in return. (this is a primitive method of issuing checks and is the ancestor of paper money) Bob gets on his ship and goes to America, and with the banknote in his hand, he gets 900 gold from any banker, again at 5% interest. Thus, instead of buying more cargo and protection and spending money to protect himself from pirates, Bob only pays 10% interest on his principal, thus ensuring a safe intercontinental transfer of his gold.

Currently, humanity is experiencing finance 5.0 with the crypto money revolution, and in this new financial era, the primitive borrowing / lending method is still used. Until the Flash Loan system appeared. So what is this Flash Loan;