Re:Ethereum Isn't Fun Anymore
by nostrademons on Monday February 22, 2021 @01:20PM
(#26228106)
Flash loans aren't really; nobody will lend you money against zero collateral that you pay back instantaneously after a transaction, because in the traditional banking system there's always a risk of default and a transaction cost for enforcing your rights in case of default. With a flash loan the whole transaction fails if at the end of the transaction you don't have sufficient funds to pay it back, while you're guaranteed payback if it succeeds.
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Re:Ethereum Isn't Fun Anymore
by gamblor956 on Monday February 22, 2021 @01:54PM
(#26228726)
A flash loan is a loan you pay back immediately...
So you're right, this isn't a thing that exists today outside of crypto because it's not needed outside of crypto. Someone who can pay a loan back as part of the same transaction in which the loan is issued is not a default risk, and in the real world you just don't bother with the loan: you just pay for the underlying transaction directly.