In the last couple of articles, we've been discussing the architecture and technology of Quoine's Liquid platform. We've looked at different features and services that Liquid offers. We've learnt that in addition to being a financially empowering decentralized exchange platform, Quoine is also regulation compliant. Now let us look at the applications of Liquids mechanisms in real life case studies.
Jenny The Expert Trader (Netting Of Positions)
Jenny has been trading cryptocurrency for 5 years. While she makes a decent profit, the process is very tasking. She has to remain logged in on about 6 exchanges at the same time and is constantly switching tabs to monitor the markets she trades. This wears her down and she decides to quit.
Jenny is introduced to Liquid and the advanced dashboard solves all her monitoring problems. Jenny is now able to customize a multi-exchange feed display on her account. The Liquid dashboard allows her access to the World Order Book from which she can not only see the price differences across exchanges, but can also buy from the cheapest option even when she doesn't have an account on that particular exchange!
Jenny now makes more profit with less stress.
Emily The Purchaser (Direct Market Access)
Emily is a technology lover from Japan. She comes across a blockchain phone called Finney. Emily wants to buy Finney but discovers it can only be bought using a particular cryptcurrency called Sirin. Emily goes to her exchange site but can't find Sirin on the sites ledger. She is frustrated till she finds out about Quoine's Liquid Platform.
After registering on Liquid, Emily is thrilled to discover that Sirin is listed on Liquid's Multi Order Market Book. Now she faces another hurdle. Sirin is being sold for BTC, but she only has Yen. She puts in her buy order Sirin/Yen and Liquid's Smart Order Routing automatically matches her with a sell order of Sirin/BTC. The Liquid Cross Currency Conversion Engine then does a background Forex exchange exchanging Yen for USD
Sirin/Yen is converted to Sirin/USD
The USD is now used to buy BTC
Sirin/USD is converted to Sirin/BTC
The BTC is used to buy the Sirin.
The seller then receives BTC, while Emily receives Sirin.
Trade successfully executed.
Tunde the Novice Trader (Credit Services)
Tunde is a newbie trader. He has heard many positive stories and finally decided to jump in. Tunde lacks the trading skills and he lacks capital. Tunde signed up on Liquid when it launched and participated in the ICO. He was awarded some QASH tokens. Tunde gets a hot tip from one of the crypto forums he follows. Coin XYG is soon to announce a partnership with a big company. Tunde identifies the opportunity of an upward price spike.
Using Liquid's Prime Brokerage, Tunde is able to get a crypto loan by using his Qash as collateral. A smart contract locks Tunde's Qash and Tunde receives some BTC. Tunde uses it to buy coin XYG. The partnership is announced and coin XYG rises to 9 times its former value. Tunde then sells and repays his loan. The user-friendly dashboard allows even the newest novice to easily take advantage of financial opportunities and make profit.
XYZ Corporation (Fiat Conversion)
Case 1. MOVING FIAT
James and Harvey started a logistics company in New York. After some time they discover a business opportunity in a developing country in Africa and decide to open a branch there. The problem they now face is how to transfer money over there to begin construction of their company building. The investment amount they wish to move over there is large and the governments of both countries would limit their transfers.
Harvey discovers Liquid and realizes that sending the money via crypto solves the problem. They buy a lot of Bitcoin and wish to sell to traders in the country of their investment. One trader alone is unable to handle the sell order, but Liquid allows various traders from around the world to buy up all the Bitcoin and the FX exchange mechanism converts the foreign currencies to the local currency that Harvey and James need. They are then able to commence operations.
Case 2. INTEGRATED PAYMENTS SYSTEM IN A COMPANY FROM INTERNATIONAL CLIENT
Barbara and Felix open an art gallery to display their works and after setting up their website, they receive a lot of positive reviews. It's not long before admirers start asking for the prices of their paintings and requesting to buy them.
The problem? Barbara and Felix are in South Africa and most of the interested buyers are in far-away Europe and Asia. International fiat transfers will take too long to process coupled with the fees incurred.
Felix discovers Quoine and they decide to integrate a crypto-payment option for their clientele using Liquid(Quoinex services) for fiat-crypto payments. They use a Quoine Account wallet as it has advantages over other conventional exchange wallets. With the Quoine wallet they are able to accept payments in pretty much any crypto that their clients wish to pay in. This greatly boosts their business.
Eddy (Reduction of Counter-Party Risk)
Eddy and his friend Sam are both looking to go into crypto trading. Eddy is skeptical because he has heard stories about exchanges disappearing with investors money. Sam rushes to create an account on exchange A. Eddy does his research and chooses to register on Quoine (Liquid). When Sam realizes he can't trade all the coins he wants on exchange A, he also opens accounts on exchanges B, C, D and E.
Sam doesn't realize it, but by opening many accounts he has left himself susceptible to mishap.
Both Eddy and Sam want to buy a coin called XYZ from exchange D. Sam has an account on exchange D so he transfers some of his capital there in order to trade comfortably. Eddy uses the Quoine Liquid World Book to trade on exchange D without having an account there. One day Exchange D is suddenly shut down by the owners and all the traders on exchange D lose their holdings. Sam is affected but Eddy is not because his holdings are not in exchange D.
Quoine is a legitimate and licensed company and have no desire to be malicious especially when they are being regulated by the strict Japan Financial Services Agency.
In the next article we will discuss Quoine's competitive advantage over other exchange platforms.
If you would like to learn more about this lovely project you can join their telegram group, or follow any of their social media accounts
Telegram | Twitter | Facebook | Instagram | Medium
LIQUID also has its own dedicated channels through which you can better connect and participate within the community.
Liquid Telegram | Liquid Twitter | Liquid Facebook | Liquid Steemit | Liquid Instagram | Liquid Youtube | Liquid LinkedIn | Liquid Reddit
You can also visit any of these links for interesting information about the project
Project Website: https://quoine.com/#products
Products & Services: https://www.liquid.com
Project Token: https://coinmarketcap.com/currencies/qash/
Quoine Team: https://quoine.com/#mission
RELATED ARTICLES
https://www.investinblockchain.com/liquid-platform-launch/
https://www.businessinsider.sg/daostack-announces-new-gen-exchange-listing-on-liquid-by-quoine-2/
https://bitcoinexchangeguide.com/quoine-crypto-companys-liquid-ico-platform-adds-new-features/
DISCLAIMER: The information contained within this post shall not be taken as financial advice. I am not a financial advisor and none of your investing should be carried out based on any information presented here. You can lose all of your money by not investing wisely. The above information is for educational and entertainment purposes only. Kindly Endeavor to DO YOUR OWN RESEARCH.