BANKEX: The Blockchain - Banking Revolution Starts Now

I didn’t get to witness it myself, but if I had to guess, I think onlookers in the early 1990s must be watching the “Internet” with the same kind of awe and excitement, with which people today watch the Blockchain.
It must have been difficult for people then, to predict just how influential this technology would become. Just like them, even we are trying to figure out the implications of this disruptive technology.

The internet changed the way we do almost everything, and this list also includes our banking system. Maybe now it is Blockchain’s turn to overhaul the banking systems for once.
One of the bets blockchain has to do so, is a fintech company started in 2005, which goes by the name BANKEX.

What is BANKEX?

BANKEX is a cryptocurrency financial platform that provides the combination of blockchain technology and Bank-as-a-service to its clients and other financial institutions. They are developing a blockchain infrastructure to aid and improve the incumbent banking structure.

The BANKEX team believes that the current system of using ratings and audits to quantify the risk of loss is inefficient and is causing losses in time and money, with ample evidence of them being wrong in the past. These losses raise the cost of capital and the small businesses or borrowers due to this are deprived of the access to this capital.

The team goes on to say that, if this barrier could be removed, and the market be allowed to evaluate each asset on the basis of the collective wisdom of all the stakeholders, then the increase in the volume of genuine and transparent trade operations could provide more information that can be used by the market to identify the veracity of the asset.
In their own words, they are trying to reduce the uncertainty and distrust in the market

What is their Plan?

BANKEX have developed a product- the Proof-of-Asset-Protocol to do just that. This product solves the issue of non-fungible asset liquidity.
They do this by tokenizing a client asset (primarily on the financial market) and turn the asset into fiat currency for the banks and financial institutions to use, without waiting for the portfolio to gather critical mass. They form a pool of all the repeatable assets and create a marketplace for it, this helps the bank by creating liquidity and the client or asset owners by forming a transparent and predictable cash flow. Smart contracts are used to constantly monitor the state of the asset.

The basic objective of Proof-of-Asset Protocol is to instantly audit the asset and release the capital.

What is asset Tokenization?

Let’s explain this through a story.
Suppose, I have a donut that I want to sell online. The problem with that is that I need to convince the buyers that the donut is fresh and this is where I can use descriptions of the product. By reading the description from trusted parties, a buyer would know if my donut is fresh or not.
But, the problem with this is that sometimes the description maybe ambiguous or may not convey the true value of the donut.
This is where tokenization helps. It adds a financial component to the asset to quantify its risk of loss.
In this process, we are essentially replacing the true value of the asset using a token - an algorithmically generated number. This token represents the information on the blockchain.

In other words, digitization is done to make an asset easy to interpret for the market, due to which its liquidity increases.
But, the added advantage of tokenization over digitization is that a description given may turn out to be false and the real information about the cash flow might be hidden.
Proof-of-Asset Protocol signifies that the cash flows are authentic and that the asset is truly liquid.
The value of the token is determined on the basis of data gathered from the asset. In the case of donut, the value could be determined by the type, frosting, bakery, taste, date of expiry, etc.

About the ICO

The BKX token will be used for transactions on the BANKEX platform.
During the ICO, 500 BKX tokens can be exchanged for 1 ETH. There is an early bird offer in which you can get an additional 50 BKX tokens.
The minimum value for purchasing a token is 0.1 ETH.
The soft cap is set at 20,000,000 BKX tokens, while the hard cap is set at 220,000,000 BKX tokens.
BKX token is available to buy in exchange of ETH, BTC, WAVES, TIME, Litecoin and SOLT.
Tokens not sold during the ICO will be reserved for institutional buyers.

The resources generated through the ICO will be utilized mainly for Research and Development (45%), Inorganic Growth (15%) and B2B marketing (10%) and for legal help and licenses (10%). 10% of the funds generated will be allotted for the Reserved fund.

Opinion

As I said at the beginning of the article, like the internet, blockchain too has the capability to change the way people perceive banking and through their innovations, BANKEX might just be able to do that.
The Proof-of-Asset protocol (PoA) has some real applications in the real world and we already know that smart contracts hold immense promise. This does make the BKX token valuable. BANKEX was also listed as the top 50 fintech startups of the world in 2017.
All of which means, BANKEX wouldn’t be a bad option to invest in.
To understand more about the product and BANKEX, you can read their detailed whitepaper here.
https://BANKEX.com/en/whitepaper.
To Participate in the token sale visit https://bankex.com/
Written by ollivander7
BTT Profile: https://bitcointalk.org/index.php?action=profile;u=1069616