Blockchain technology is conquering the world. Cryptocurrencies have seen an unprecedented investment boom in 2017. While cryptocurrency market capitalization peaked at $ 800 billion and saw a correction to $ 131 billion in December 2018, adoption is increasing to a fast pace.
The technology in which a distributed ledger was able to securely record transactions anonymously gave us Bitcoin, the largest cryptocurrency in the world. Following the use cases, the Ethereum project team developed smart blockchain contracts.
Smart contracts allow the possibility of creating code-written contracts that do not require a central authority to perform securely. With the governance incorporated in the code, a project can automate the decision-making process through voting, possess a participation in the process and use the Smart Contracts that form the structure of the organization. Using Smart Contracts, projects are building decentralized autonomous organizations (DAOs) that can function independently as an organization with a board of directors, a chief executive officer and a staff. Smart contracts are disrupting many industries and the banking sector is one of the industries that are experiencing breakdowns.
Blockchain Bank: a revolution in the banking sector
The functions of a bank – loan, deposit, treasury, investment advice, business intelligence, regulatory compliance, payments and remittances – will be interrupted by Smart Contracts on Blockchain. Many projects are working on this platform. Let's have a look at one of the most promising projects – FOTON Bank – which is led by a passionate team that is full of technology and vertical experts. With the support of their credible advisory board, this project is one of the favorites in the race to disrupt the sacred grail of banks. The FOTON team is led by Andrey Pashkevich, who has over ten years of experience in the finance industry and has the merit of working with Credit Europe Bank – a large organization with over 4000 people and an annual turnover of $ 1.5 billion – to help them develop their banking and payment systems.
FOTON focuses on the creation of a solid autonomous banking system in which customers can use various services using the Fiat and Criptovaluta accounts. It aims to create a secure environment within the legal framework that follows AML / KYC standards and provides a savings and credit account. All this will be done without an intermediary sitting in the bank to make decisions on interest rates and other important financial factors without consulting the market. With a decentralized exchange and loan tool, taxes and interests will be determined by the forces of the free market.
Why a blockchain bank?
The traditional banking system suffers from inertia and archaic thought. In addition to the application of new technologies to increase efficiency, there has not been much real innovation in this area. It is plagued by various problems:
Regulation is one of the main obstacles when it comes to the banking sector. The guidelines of the regulator are rigid and are not always in the best interest of the customers.
The limitations are applied to the user's own funds when it comes to transfers, use and credit. The time taken to process transactions and sanction credit is another factor that makes the system very inefficient.
Privacy concerns are rightly raised when it comes to dealing with traditional banks. Officers at the lowest level often have access to customer credit history, credit card statements. This access is like peeking into a person's lifestyle. This was accepted as there was no alternative to banks in the past. But this is about to change now.
– FOTON BANK (@foton_bank) December 14, 2018
The control of the user on their account and on their own funds is another cause for concern. Banks and regulators can block accounts, stop transfers and intercept financial information, which means they have control over user funds and accounts.
Banking services are only available during working hours and not on public holidays. The old system required a physical visit to the bank to make transactions. With the Internet that has changed. But the service is not available 24 × 7, which means that users can access and use their funds whenever they wish.
The dependence on authority has been seen as a positive thing in the last century. Central banks and regulators, however, have lost public confidence. Interest rate and guarantee decisions can affect each individual and the economy as a whole. With the decentralized banking platform, you can leave these decisions to stakeholders or market forces to determine fair value.
High costs and taxes mean that the customer ends up paying an inefficient system from their pockets. Banks require tens of thousands of employees to do what an integrated Smart Contract code can handle. This means that the commissions are much less on a blockchain bank like FOTON.
Functions of a blockchain bank:
Savings accounts and credit
FOTON aims to provide savings and a credit account with separate options for personal and business accounts. Corporate accounts have the characteristics that can compete with a bank account service.
Both of these accounts may have an embedded anonymity or may be completely transparent complete with regulatory and tax oversight by compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML).
FOTON will also issue a virtual card that can be used to make payments just like a credit card. With Near Field Technology (NFC) enabled cards that use an HCE (host card emulation), users can pay on any POS terminal just like a regular plastic card.
Cryptocurrency and Fiat exchange
FOTON will create a cryptographic exchange on the Ethereum blockchain while creating Stablecoins and a user payment network by collaborating with the world's major payment processors such as Visa, MasterCard and UnionPay.
FOTON aims to provide cheaper payments in multiple currencies – Fiat and Crypto – with the lowest possible rates.
Acquisition and processing
This service is similar to Paypal or Alipay. Banks depend on traditional methods of acquisition and processing that are slow and expensive. On the FOTON platform, users will receive discounts up to 40% on standard commission.
The mobile application of FOTON offers an easy way to manage the funds, exchange them and invest them in various Fiat and Criptovalute. A state-of-the-art user interface makes it easy for everyone.
Benefits for interested parties
Technology could be a miracle, but it has to translate into real benefits for users. All stakeholders must benefit in some way. Only then is it possible to adopt a broad technology. Let's see how a decentralized banking platform like FOTON can benefit various stakeholders.
This is the most important group of stakeholders. Bank customers range from paid people with few transactions and predictable repetitive behavior to companies with varying needs like the colors of a rainbow.
Some of the biggest advantages that the FOTON platform can offer customers are low rates, lower interest rates on loans, ownership and control of funds, faster processing, global coverage, security of a distributed ledger, biometric signing, asset recovery, loyalty programs, billing systems, and a set of distributed apps or DApps that can be built on an open platform like FOTON. These benefits will be available to individual users and companies.
FOTON also provides for the introduction of distributed autonomous investment funds (DAIF) in which users will be able to create investment buckets in which investments will be decided autonomously by Smart Contract voting systems.
The intelligent exchange on the FOTON platform will also provide a guarantee deposit service. This is a great facilitator of peer-to-peer transactions. Combined with best security practices, this platform can facilitate transactions and create a reliable business environment.
In addition to all the features and services that users get, companies will also benefit from the agility of the banking platform, 24 × 7 availability, the ability to operate globally without going through the various regulatory and payment circuits.
Companies will also have a way to manage payroll accounts, automated commercial trading and unlimited access to their funds whenever they want to invest them. With the funds secured in one place, the working capital requirements can be borrowed, as the excess funds are invested in any Fiat or Cryptocurrency with an easy one-stop conversion.
It is an investor's dream to participate in the construction of a technological product that can change the sector. And the banking sector is the mother of all industries. It is an initial phase of the FOTON plan and the development of the product and the launch of the platform will certainly make the investment more valuable.
FOTON of ICO will provide the funds to support the big team to build technology, product platforms and a level of service. The next ICO will be a sale of 5,000,000,000 FTN tokens for a price of $ 0.01 per token. The Pre-ICO will be launched on 25 December 2018 and the main ICO event will take place in February or March.
A banking revolution is long overdue. A promising platform like FOTON may seem like a dream for most individuals and businesses, but it is not far from being realized. It can be seen as an important element in the new future. A decentralized banking platform could be the basis on which various innovative products are built and tested with the large existing user base full of enthusiasts and early adopters. With this in mind, the platform should not only be seen as the technology that will upset the banking system, but also that of inspiring and supporting the new wave of innovations in the financial and banking sectors.
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