I often have a few friends I have known for many years who come to borrow money every now and then. If I don't lend it, our long-standing relationship makes it hard to say no; if I do lend it, I know in my heart that I probably won't get it back.
Every time I lend money, I feel this way. If I don’t lend it, it will be nearly impossible to maintain our relationship; if I do lend it, asking for it back will also be difficult.
Throughout the borrowing process, nothing has ever protected me. There are no IOUs, no repayment agreements, no records clearly stating how much was borrowed, when it should be paid back, or what happens if it isn’t.
The EthSign mechanism of @SignOfficial directly addresses this scenario. When friends borrow money, they can sign an on-chain loan agreement using EthSign, with the loan amount, repayment time, and both signatures all recorded on the blockchain.
The timestamp solidifies that neither party can later say, "I don’t remember this happening." The key point is that this record does not need to be maintained by personal relationships; the evidence on the chain is unrelated to emotions—if it’s paid back, it’s paid back; if it’s not, it’s not.
More importantly, having an on-chain loan record makes asking for money no longer a matter of being unfriendly, but rather according to our initial agreement. If the other party does not pay it back, they are in breach of contract, not you being stingy.
This separates the borrowing relationship from emotional coercion, protecting not just the money, but your autonomy in this relationship.
Of course, friends who are willing to sign an on-chain loan agreement are often those who originally intended to repay the money. Those who truly want to default would not agree to sign this limitation and need to think it through.
But at least at the moment of signing, both parties' attitudes toward this money have already clarified the issue.