Cryptopedia
Flash Loans
Flash loans of blockchain technology refer to a type of unsecured loan contract. In this type of contract, the lending and borrowing operations are written into a block. The lender can borrow currency in the form of an unsecured loan and do as he or she pleases. But the loan must be returned within the time specified by the contract. If the lender does not return the currency timely (usually a block issuance period), the lender's borrowing of the currency is judged to be illegal and such behavior is not recorded by the public blockchain, which means the borrowing did not take place.
