Microlending in cryptocurrency involves providing small loans using digital currencies. It is designed to give individuals or small businesses access to funds that they might not qualify for through traditional banks. Borrowers can receive microloans to meet their immediate financial needs, such as funding a startup, covering emergency expenses, or investing in personal projects. These loans are typically offered on platforms that use blockchain technology, which enhances transparency and security.Lenders can participate by providing funds and earning interest on the loans. Due to the decentralized nature of these platforms, lenders may face lower overhead costs and can potentially earn higher returns compared to conventional investment methods.Microlending in this space also promotes financial inclusion by reaching underserved populations who lack access to traditional banking systems. Smart contracts are often employed to automate the lending process, ensuring transactions are executed fairly and efficiently. This model supports a peer-to-peer lending ecosystem, creating opportunities for both borrowers and lenders.