TradeConnect has been a multi-asset blockchain-basedexchange that allows investors to invest on a larger range of financial products such as cryptocurrencies, equities, FX, commodities and more as the case maybe.
TradeConnect is a like a tornado that will disrupt a financial market that has dominated for a long time by banks, prime brokers and large funds, creating a great opportunity to become the leading multi-asset blockchain-based trading networks to trade on a wide scale of financial products not found on traditional crypto exchanges. This network that was formerly and initially focused on the retail trading sector, will now be expanded into the institutional and corporate derivative trading markets, and also to a larger range of other financial sectors. Now this trading solution can enable a client to be able to trade on any financial product with any counterparty using the public blockchain – agnostic of platform or broker. The Value of the Foreign Exchange (FX) markets, stock, futures, commodities and OTC derivatives markets Rode at over US$542 trillion in the six months of January to July 2017. The arrival of the blockchain has created one the first major opportunities to shake these markets since the introduction of electronic trading in the 1980s.
The big show problem
Over the years, global financial markets have been dominated by banks and other financial institutions, some of which lacks 100% transparency, have bad influences on global asset prices, and can impose unfair charges on the unsuspecting masses. But, with the arrival of new technology, this means we can now deliver greater transparency and equality for all market participants, (big and small, beginners and professionals). But, we've also noticed that established financial players have failed to take the opportunities that have been made available in the blockchain technology, and still some still use a centralized order book to control prices and trading.
Other limitations have been:
• ●lack of transparency/clarity in price-making and trade execution
• ●settlement of trades and funds can take longer time to process compared to seconds on the blockchain network.
• ●lack of flexibility and good customer relations in transferring trades
OUR BIG SOLUTION
We seek to create a cutting-edge new multi-asset trading network which will disrupt wrong processes and democratize trading for all and sundry. And this network which we project will be called The TradeConnect. This network brings a platform where individuals and institutions can trade directly with one another on a balanced playing field with lower and affordable costs for all. Trades will now be automatically settled on the blockchain, with recording and execution conducted off-chain to deliver the fastest service possible. To raise these funds to design and develop our network, we are launching an ICO of ThinkCoin, which is a custom of a new digital token that will underpin trading on the network. The ThinkMarkets group - which includes TradeInterceptors, ThinkPrime, ThinkAffiliates and ThinkInvest has melanged its knowledge and resources to create the TradeConnect project. Together, they bring together decades of global experience in financial products, excellent customer service and a large pool of tens of thousands of users around the globe.
The Coming of ThinkForex
ThinkForex was launched in the year 2010 in New Zealand, with the goal of improving the forex trading experience by delivering industry-leading technology to the international trading community.
Having being recognised for itsindustry-leading customer service, the TradeConnect network is positioned to bring forthsignificant and lasting changes to the trading of financial products by creating the first true multi-asset blockchain based trading network bringing individuals together, prime brokers, corporations and brokers on an even playing field. We also plan to combine transactions made on and off the blockchain, which will allow us to settle contracts faster than conventional trading and benefit from the trust inherent in distributed ledger technology.
Now, Trading is currently conducted with little transparency, where large prime brokers, banks and institutions control the flow of information and maintain full control over both the set prices and it's settlement process.
The time has come to change this by decentralizing the world to trading and democratizing it with the TradeConnect network.
How derivatives work
At its heart a derivative trade is a contract between one party and another. They agree that one will ‘win’ and one will ‘lose’ in the event that the price of an underlying product either increases or decreases.
The underlying product ranges from individual shares, indices, foreign exchange, commodities, metals, and many other financial assets. Basically, derivatives could be based on almost anything two parties are willing to agree to base their trade on.
The contract is tied to the value of theproduct in question and may never be physically delivered because the contract could be cash-settled online instead. Such derivative as thesecontracts can range from the very simple to the extremely complicated ones, but the good news is they share the same important characteristics: traders can buy and sell contracts tied to them, aiding them to trade short term or long term. TradeConnect’s plan is to disrupt this marketplace using the latest trading technology and we also intend to develop a multi-asset blockchain-based trading network. To reach the speeds of execution and settlement modern markets expect, the network will combine blockchain-based smart contracts with off-chain transactions.
This solution will benefit from:
• the trust, integrity and visibility of the blockchain ledger
• its ability to hold and settle funds on the blockchain
• the greater speed of using off-chain processing
• A consortium-based private ledger visible to only participants in the network combined with the public blockchain
TradeConnect removes dependence on brokers and other intermediaries and helps direct trading between two or more participants. Your money stays in your control, with funds for trades committed to the blockchain waiting execution and settlement of the trading contract. Settlement and payment of contract can be near-immediate, with no delays and no fees for transferring funds.
Tokens and cryptocurrencies
TradeConnect will in its beginnings support the most liquid cryptocurrencies as collateral, based on their market size and how much market liquidity is available.
The wallet will initially support Bitcoin, BitCoin Cash, Ethereum, Dash, Monero, LiteCoin, ThinkCoin (TCO)
These cryptoassets will be secured by partnering with BitGo, which has a robust institutional custody offering with a more advanced security and treasury controls. BitGo has a powerful API that will allow us to develop various internal controls for signing and auditing of transactions.
How TradeConnect Will Work
There are three factors that can determine the success of the TradeConnect network:
• the number of those participating in the network,
• speed transactions confirmations
• maintenance of enough liquidity.
A New Approach to Blockchain
Just like any network, blockchain has its own limitations that could make delivering these guarantors of success difficult. If we assume each trade is given as a smart contract on the blockchain, a significant number of ethereum transactions would be required regardless of whether each trade is then accepted by a counterparty. This approach could cause some significant delays across the whole ecosystem and cause times of transacaction to significant increase
A simple trade would require two ethereum transactions:
• A Market Maker offering their trade
• A Counterparty accepting the offer
This would therefore result in the minimum transaction time being equal to the time to mine two blocks: in practice, tens of seconds. We will solve the latency of the public blockchain with various hybrid approaches below.
To overcome challenges, we propose a system of creating and initially storing trading contracts off-chain on the TradeConnect network to settle the majority of the price-making and liquidity-matching transactions near-instantly. Once these transactions are settled off-chain, the profit and loss are aggregated as one bulk transaction onto the ethereum blockchain and then netted out.
Before trading begins, the participants are requested to lock an amount into an ethereum trading contract.
The parties can then only trade their account balance. A Market Maker creates off-chain trades to offer to other participants and signs it with their private key. Counterparties who decide to accept the offer to trade would sign the off-chain contract with their private keys, and the contract to trade is generated.
The contract would then be determined by an oracle - such as an independent price feed - to determine the
Outcome of the trade.
The result is finally made and submitted to the blockchain along with the transaction, and payment
The Risks
Security, fund raising, token value amongst others is part of the risks faced in the blockchain.
Future developments
Introducing wallets
Before this stage, exploration ofsoft wallets would have to take place. These would be applications, rather than hardware, that will act as our users’ primary portal into the crypto world.
Improving Scalability - In improving traders scalability, we introduce stuffs such as state channels, shards,and plasma chain
Offline transactions which are just the beginning of the technological evolution of the TradeConnect network.
Further steps, including state channels, shards and plasma chains will enable better scalability, with multiple transactions being settled with one transaction on the blockchain.
Honestly the whole network could run on a separate plasma chain and we believe that within three years these systems will be sufficiently mature to handle institutional tradings, marketing and investments.
Team and Advisors
Investment geniuses have sat down to think out innovative ideas that have been used in drawing out plans for this project. These ideas are ingenuous and a major backbone of the structure of this paper.
Conclusion
There are many opportunities that can be used to explore partnerships with other companies to add both hot and cold cryptocurrency wallets to the offering: these are storage solutions, where cryptocurrencies can be safely ‘stored’ and 'kept'on devices with or without access to the internet. With time, more options would arise which would be the deciding lot for the future of the entire industry.
Useful links
WEBSITE: https://www.thinkcoin.io
WHITEPAPER : https://docsend.com/view/qgyaq2y
TELEGRAM: https://t.me/thinkcointoken
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MEDIUM: https://medium.com/thinkcointoken
LINKEDIN: https://www.linkedin.com/company/thinkcointoken
INSTAGRAM :https://www.instagram.com/thinkcoin/
BITCOINTALK: https://bitcointalk.org/index.php?topic=3077146.0
MAIL: info@thinkcoin.io
WRITER: ambition1
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