VENA NETWORK: THE OUTSTANDING FINANCIAL PLATFORM BASED ON BLOCKCHAIN TECHNOLOGY

flezy (40)in #blockchain • 6 years ago

INTRODUCING BLOCKCHAIN TECHNOLOGY AND THE CURRENT ISSUES

The amazing features of blockchain technology which makes it stand out areDecentralization and Use of Smart Contracts.
Blockchain technology came into existence through Bitcoin, thus the reason Bitcoin is called the first generation of blockchain technology. Bitcoin Introduced the use of transaction ledger which makes it possible for users to transact with each other on a peer-to-peer basis, through this way, reducing unnecessary costs as no Intermediary is involved. Decentralization made possible by Bitcoin makes it possible for users to protect their personal data.
The second generation of blockchain technology, Ethereum Introduced the use of smart contracts which makes it possible for transactions of various kinds to be processed effortlessly at the same time ensuring agreement between transacting parties is upheld.
Ever since then, many cryptocurrencies have come to limelight with each bringing a unique solution to the issues in the crypto space and the world at large; thus, blockchain technology has found application in the financial systems, healthcare systems, gaming, sports etc, and one of such blockchain project with the aim of revolutionizing the financial system is VENA NETWORK.

The question one might ask is; why Vena Network in the financial system?
In simple terms, Vena Network was created by a team of experts so as to solve the issues in digital assets financing and exchange network as well as enhancing it.

What then is the nature of digital assets financing and exchange network, that needs Vena Network?
A study has shown that the digital economy is growing tremendously with the forecast showing it to contribute about $13.6 billion to the global gross domestic product by 2020. Owing to the rapid growth of the digital economy, online payments are also growing directly proportional to it and as such blockchain thus, cryptocurrency stands a better chance to meet the high demands of the digital economy, this is where Vena Network comes to play.
As earlier stated, with blockchain technology, there is trust, reliability, transparency, decentralization, immutability etc. Owing to the peer-to-peer system of the transaction within blockchain, it ensures no Intermediary of any kind while upholding users information, thus making blockchain a suitable system for the promotion of efficient value interaction and lower transaction costs.

The current issues which Vena Network aims to tackle and enhance is;

The transaction occurring between fiat and cryptocurrency. A study has shown that in many regions of the world when users tend to transact or exchange fiat to cryptocurrency and vice versa, they are met with difficulties such as high charges or costs. The negative effect of this is, it posses as a barrier to the growth and wide adoption of cryptocurrencies.
Current OTC transactions of cryptocurrency and fiat are filled with risks. A study has shown that in most countries of the world today, users who wish to transact cryptocurrency and fiat via centralized OTC trading platforms are exposed to risks because such platforms are not regulated. Since they are not regulated, the users in question are at the mercy of the owners of such platform as their funds and private information isn't protected, and also the owners can manipulate the transaction price to suit their personal desires.
USDT has proven not to be efficient: Centralized exchanges use USDT as a digital substitute of USD for the transaction but there have been issues with USD which is issued by Tether (USDT), issues such as Tether going bankrupt, banks freezing Tether funds and host of others.
Lack of decentralized services where crypto holders can effectively borrow fiat and pledge cryptocurrency as collateral.
Debt financing in public offering is plagued with non-transparency.

VENA NETWORK: THE WAY OUT

Vena Network is a blockchain project with the aim of building a decentralized digital assets financing and exchange network, thus ensuring all users transact or deal on a peer-to-peer basis without the need for Intermediary.
Vena Network also aims to empower users to carry out;
a. Peer-to-peer cryptocurrency lending,
b. OTC trading.
The result of these will be transactions can be carried out irrespective of location anytime, any day, therefore, leading to a free exchange between crypto and fiat.
The debt-based assets, on the other hand, can be enhanced by mapping the assets into generic tokens and then issuing it publicly, through these attracting investors of all kinds.

Vena Network achieves these through its Protocol which has two distinctive layers;

The Basic Protocol Layer which comprises registration, configuration, routing and management of financial businesses.
The Assets Protocol Layer which is based on the underlying assets thus completing users financial and business desires.

Uniqueness Of Vena Network

All operations within Vena Network are free from human errors, fraud etc as it is controlled by smart contracts. Smart contracts are used to uphold the transaction agreement between transacting parties.
Support transactions between cryptocurrency and fiat as well as a collateral loan.
Vena Network users will have certain benefits such as benefits associated with the development of a cryptocurrency marketplace. They will also realize asset financing at the same time exchanging in an efficient, safe and cost-effective process.
Vena Network users will be free from all forms of risks such as cryptocurrency price fluctuation and dubious financial middlemen.
Vena Network aims to build a decentralized commerce network achieved with the aid of a tokenized economy model. While its users are equipped with decentralized identity authentication, thus making it possible for them to carry out cryptocurrency and fiat related transactions.
To mitigate the risk of refund, Vena Network will only support irreversible fiat currency while on the other hand, supporting cryptocurrencies such as BTC, ETH, EOS, BCH etc.

CONCLUSION

Vena Network is an open source blockchain project aiming to build a robust cryptocurrency ecosystem for its community members. Vena Network is a product of Vena Foundation, a non-profit organisation based in Singapore with the aim of ensuring;
a. Safety and transparency of fundraising,
b. Development of business Innovation so as to assist startup,
c. Decentralized governance and overall sustainability of Vena Network project.

The token of the platform is known as VENA, it is an ERC20 token built on Ethereum blockchain. VENA will have issuance supply of 1 billion while every year, a certain amount of token will be issued which will be in correlation to the operation state of Vena Network. VENA is used for the establishment of Vena Node, for paying of OTC trade charges etc.