Liqueneq's blockchain bank payments handle millions of transactions per second

The Swiss startup Liquineq has developed a bank transfer platform that uses blockchain for security and scale to millions of transactions per second for both commercial and consumer purposes. This could bring the technological advantages of blockchain into the traditional banking system.

Cryptocurrencies like Bitcoin and Ethereum are safe because they use the decentralized blockchain public register, but they take a long time to settle transactions, making them less ideal for banks to use. But Zug, the Liquineq based in Switzerland, has started from the beginning as a payment platform and has been recognized as such by the Swiss supervisory authority on the Swiss financial markets.

Liquineq believes it can stop banking transactions by processing transactions within a matter of seconds securely and securely, eliminating long delays in the verification of money transfers. Specifically, Liquineq is a financial platform based on multi-level blockchain authorized, optimized to address the inefficiencies of the existing banking system. Use different techniques and levels to address speed and security problems.

But instead of replacing banks, Liquineq will use local banking partners to manage solutions with local currency and funds held by the partner bank. You can make the almost instant transfer of wallet-to-wallet funds transfer – locally and globally.

"Liquineq allows financial institutions to transition, virtually without risk and capital investment, from a capital business and operating operations based on model mainframe for an ultra-low-cost-to-go-go operating model that is the ultimate goal of Liquineq's blockchain architecture, "said Moti Birger, CEO of Liquineq, in a statement.

Above: Moti Birger, CEO of Liquineq.

Image Credit: Liquineq

Liquineq said it can handle multiple currencies contained in the same portfolio, comply with anti-money laundering regulations (AML) and "know your customer" (KYC), provide a mobile -centric application with API (application programming interfaces) and desktop support and provides advanced security.

"We are doing end-to-end banking transactions that comply with multi-level blockchain regulations without interrupting anything like today," said Ari B irger, head of Liquineq's alliances, in an interview with VentureBeat. "We increase revenue for banks and move on to automated compliance without the need for capital expenditures."

The problem with the modern banking sector

Above: Liquineq can be used to automate safeguards against money laundering.

Liquineq

Have you ever wondered why banks charge a lot of taxes? Today it is expensive to open a bank account, of the order of $ 200 or $ 300, and it costs $ 20 to $ 30 per account each month to keep the accounts. The reason is that it is very costly to fight fraud, wait for money in transit and face things like cyber attacks. Numerous bank chain command officials need a lot of customer approvals.

Liquineq enables peer-to-peer payment services in real time and the exchange of value between legal currencies and other asset classes, both internally and across borders, with

Liquineq is responsible for the slow performance of blockchain, revocation of stolen or lost tokens without bifurcation of blockchain and use of its Liquideum tokens as a means of global payment in a way that solves the problem. serious compliance problems faced by most cryptocurrencies and many blockchain solutions. For example, the volatile prices of Bitcoin and Ethereum and the slow processing of transactions make them shoddy for trade

Customers can set up and fund an account at a bank using Liquineq in just a few minutes by downloading the Liquineq mobile wallet and answering some questions easy. Debit cards can also be linked to the wallet, allowing immediate access to funds deposited with a bank.

Liquineq's global and local tokenisation infrastructure has been designed from the ground up for performance, safety and compliance. More than 25 independent patent applications have been archived and the company's unique blockchain architecture is scalable to millions of transactions per second.

This is significantly faster than the current Bitcoin and Ethereum, which currently support less than 10 transactions per second. Liquineq fully respects the new general data protection legislation (GDPR), unlike the current SWIFT standard and other platforms.

"I expect Liquineq AG, with the support of its consultants who have extensive experience in Visa, PayPal and the Federal Reserve, to drive radical changes in the way payments and banking work all over the world", said the advisor to Liquineq Gordon Werkema, former chief operating officer and director of payment strategy at the Federal Reserve in Chicago.

Liquineq & # 39; s The team and advisory board are composed of familiar figures in central and commercial banking systems (US Federal Reserve, Visa, PayPal), as well as experienced executives with fintech security systems and security systems.

Above: Liquineq can replace lost or dissolved tokens.

Image Credit: Liquineq

"The real achievements will not come from the current blockchain solutions, they will come from companies such as Liquineq which provides global payment and banking solutions and Liquineq is building the new money highway," said Daniela Mielke, former vice president of PayPal and responsible for the global strategy of Visa, in a statement.

Liquineq addresses customers as central banks, banks and other financial institutions that have a legal license to hold money in a country.

Liquineq differs from rival Ripple currency because it has been created as a banking platform as a service, an end-to-end banking solution that allows banks to switch from the intensive use of capital banking services to pay as banking. he hopes to make the 3.5 billion people who have no bank accounts today.

If you lose a wallet, Liquineq can revoke the tokens in it, since it is a fully licensed blockchain solution, with proof of trust rather than proof of work (which is very slow). The blockchain will be controlled by independent authorities such as independent auditors, banking supervisors and others. Individual portfolios are saved on the blockchain.

If your wallet is lost or stolen, you can ask for the contents of the wallet to be frozen on the blockchain. There is a legal process by which the contents of the portfolio can be returned to the rightful owner.

As far as speed is concerned, the company can handle 10,000 transactions per second before implementing sharding or splitting it into different computer clusters. Sharding will speed up to 50,000 transactions per second. With the deployment in 200 countries, this will increase transactions per second to a few million, Berger said.

Liquineq is currently demonstrating an open source portfolio, but the company prefers to be integrated with existing portfolios. Later this year Liquineq plans to launch a first coin offer (ICO), aimed at individual investors with a high net worth.

Obtaining more technicians

  Liquineq has a team of experienced executives and consultants.

Above: Liquineq has a team of expert managers and consultants.

Image Credit: Liquineq

I asked how Liquineq is similar or different from the new Hedera Hashgraph. Both use authorized models, rather than public blockchain models like Ethereum or Bitcoin, which use proprietary technology. They do not rely on sideband messaging to increase performance, and both rely on the basic data structure and design for speed. Both support multiple networks to scale to more transactions per second.

But Liquineq has the approval of the Swiss government as a "payment token", not a utility or security token. That is, it is a means of making payments, not an investment. Liquineq is based on the open source ERC-20 code, with integrated AML and KYC. But Liquineq demarcates the blockchain and stores dormant blockchain data locally, requiring only the current active blockchain to be sent between the nodes to operate, which increases both node speed and recovery.

Hashgraph nodes receive the entire Hashgraph data structure and perform verification procedures on to determine if their transaction has been committed. With Hashgraph, as the number of nodes increases, the bandwidth required to participate increases proportionately, said Liquineq.

Demarcating the blockchain allows Liquineq to bring a new online node in a few seconds, as it only requires the active blockchain for the entire historical data blockchain over time. It also means that the amount of data sent between the nodes does not increase over time and slows down the system.

A limited number of nodes work on the next block and an algorithm decides in advance who "wins" the next block, with fallbacks. This algorithm is fast and requires very few resources. Liquineq uses a multilevel blockchain model with a unified address structure from day one. This allows independent financial and currency operating areas

Liquineq creates fragments within each local blockchain network. The more nodes added, the better the performance. Global performance can reach millions of transactions per second. A new node that joins the network can synchronize and load the entire transactional load in a few seconds and can be placed anywhere.

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