BANKING ON BLOCKCHAIN
INTRODUCTION
The secular banking world seems to have done her best, despite a global population of 2Billion people, "Unbanked". These are people, who have refused to embrace banking and wouldn't mind paying some extra cost, to get similar services away from the banking institution. With such extreme decision, it becomes obvious there must be some good reason for that.
CAPVERTO; a blockchain based banking project has made some enquiries concerning such motives and did come up with the following explanations as the rationale behind such:
- Proximity to banking institutions
- Tedious documentation processes in account opening
- Huge collateral and banking history requests to access credits
- Overriding effect of government policies,
- Periodic failure of the banking platform, etc.
These findings prompted the project team to come up with strategies that will not only address the issues raised; but ensure that the unbanked population gets the needed banking experience they need and still be in charge of their banking life. To do this, a decentralized platform was adopted, with the running of the internal functions and the financially denominated transactions, to be mediated by "CAP".
CAP is the utility token primary to the running of the Capverto platform functions. This and more, can be found in our brief review of the Capverto project.
THE CAPVERTO PROJECT
This is a project aimed at providing a decentralized banking solution on blockchain. They hope to leverage on the decentralized platform to provide a banking solution that will appeal to the unbanked; integrating cash denominated assets of the unbanked through the use of Prepaid cards, POS terminals and ATM machines.
According to a party of the smartcontract specifications, one need only to observe the kYC requirements, needed to have a bank account-like feature, which is devoid of identity theft. With such requirement met, the accompanying features of the project will unlock the attendant banking experience, free from the challenges of the usual bank.
WHAT FEATURES, AND HOW DO CAPVERTO HOPE TO IMPLEMENT THEM
The Capverto project is obviously crypto based, and having devised a means to integrate the huge cash of the unbanked, has moved on to deploy the following bank like features;
• PREPAID CARDS
• COPY TRADING
• PEER TO PEER (P2P) LENDING
• CRYPTOCURRENCY INSURANCE
• CRYPTO CURRENCY EXCHANGE
PREPAID CARDS
Just the way banks do provide us with debit and credit cards in our various banks, Capverto will be providing their subscribers, a similar but more utilized prepaid cards for financially related transactions. These cards can be loaded with funds; and can be utilized online, through ATM machines and POS terminals. It comes in 2 categories;
THE PHYSICAL ONES;
Those that can be used with the ATM machines and POS terminals. They are visible and can be felt with a touch.THE VIRTUAL ONES;
Which are digital and online based; can serve as an alternative to cheque issuance and provides cover to the physical cards, when lost.
As an implementation strategy, the prepaid card was made an integral part of the ICO. It comes in four colors namely; Blue, Gold, Platinum and Black, as displayed below:
The cards come in varying costs as portrayed in the above illustration. The blue color goes for $100; the gold color costs, $1,500, while the platinum and black comes strictly on invites. The purchased cards do come with the purchased amount in the primary token called “CAP”; and gets locked from usage for the first six months, before usage. This is aimed at fortifying the CAP’s market value at the exchange.
The usage of the cards, do attract a fee of 2% of the transaction value. This is fair compared to the 2.7% collected by VISA and MASTERCARDS yet; the collected charges still gets back to the platform users in CAP, as cash backs, with a distribution ratio that goes with the card tiers. Cash backs will also be made available for purchases made in specified shops..
COPY TRADING
Just like the Bureau de Change, Crypto trading involves the trading of currencies but in a way tailored to assist newbies make profits. To achieve this, the trade moves of successful crypto traders are copied and replicated by the newbies, for profitable trading.
Making use of this feature will attract 10% charge of the profits made; which will be split equally, between the main trader and the platform. Of the 5% that goes to the platform, half the value will be reinvested in CAP, for trader buybacks; further enhancing the CAP market valuation.
PEER TO PEER (P2P) LENDING
This is a replica of the lending services that banks offers, save that the boring documentations and banking history is waived. All you need to partake is having some crypto assets in your wallets.
The service involves a transfer of crypto based assets between two users of the platform; with the receiver only qualified to borrow to the tune of 50% value of his or her whole crypto assets.
2% of the borrowed sum, will be paid as an interest to the Capverto platform, with another 8% going to the user that gave out his own asset. The tenure for the loan is expected not to exceed 6months, at a stretch; and peradventure the value of the borrowed asset gets below 40% of the original value; the asset will be sold off automatically.
CRYPTOCURRENCY INSURANCE
Every deposits made to a bank is protected by an insurance cover. Every loss incurred through robbery, hacking, etc. will be remedied by the insurance company.
This is what the feature of the cryptocurrency insurance is set to offer, regarding the assets of the platform users. The bad experiences of Mt. Gox, who lost $480Million dollar worth of assets in 2014, and that of Coincheck, who lost more in 2018; is enough lesson for other exchanges to also embrace this feature, offered in partnership with Riskpoint.
To further block further loopholes where such losses can happen outside cyber-attacks, Capverto will be making it compulsory for their users to embrace the KYC requirements with Proof of Address; to avoid threats that have to deal with identity theft. With that, it becomes easier for the insurance feature to thrive.
Other security measures like 2FA, username and password requirements; will also add in fortifying the platform against security threats and financial losses,
THE EXCHANGE
These are digital and online platforms, where cryptocurrencies can be exchanged or traded for another, or for fiats. It is a replica of the Stock exchange in the Fiat world, but more decentralized.
Unlike most Crypto based exchanges, the Capverto exchange has brought in an innovative idea to integrate Cash based fiats into cryptocurrency, through the use of Prepaid cards, POS terminals and the likes. This will remains the masterstroke and will bring a positive effect to the cryptosphere.
CONCLUSION
With the highlighted features, cash based integration into Cryptocurrency, and an increased patronage of the Capverto platform; the project looks set to be headed for the moon. Are you on the flight or will you be left out of the next ethereum revolution. Join hands to get the unbanked, banking again.
You can do this by taking part in the ongoing Initial Coin Offering, and enjoy the numerous benefits attached.
The price for 1 CAP token at the ICO is currently pegged at $2.3 dollars, with possible bonus aimed at meeting the hardcap of 171,375,000 CAP sales. Bitcoin, Ethereum, LITECOIN, Bitcoin Cash and Fiat, are the accepted currencies for the purchases.
Try making the needed hay, while the sun shines!!!
Thanks
valnd
https://bitcointalk.org/index.php?action=profile;u=1420329
Ether add: 0x182333cbe7Ae660d00d8975f20Ec8b54299cb917
REFERENCES
Website: https://capverto.com/landing
Whitepaper:https://capverto.com/landing#whitePaper
Telegram: https://web.telegram.org/#/im?p=@CAPVERTOOFFICAL
Facebook: https://web.facebook.com/CAPVERTO/
Twitter: https://twitter.com/capverto
Medium: https://medium.com/capverto
Linkedin: https://www.linkedin.com/company/capverto
Bitcointalk: https://bitcointalk.org/index.php?topic=2042235.0