ABLE-The New Era of Crypto Finance

omagash4 (0)(1)in #blockchain • 6 years ago

INTRODUCTION
The fundamental principle of decentralization is to share value among actual participants while eliminating unnecessary intermediaries in a given business model. The matching engine that directly links investors and borrowers on a peer-to-peer basis allows investors and borrowers to share actual value. Whereas in the traditional banking system, banks determine deposit and lending rates as intermediaries, the ABLE investing-lending matching engine allows a variety of investors and borrowers to participate in the process of determining appropriate rates.
The ABLE project, in its initial stages, provides: 1) investing/lending – investing-lending matching engine; 2) payroll and credit score/ loan – cryptocurrency salary- payment service and credit scores to support loans; 3) simplified payment and remittance service – simplified account address service and reserve remittance; and 4) investment – account-based Initial Coin Offering (ICO) investment governed by a smart contract. The project offers an account-based finance experience that encompasses, loans, remittance, payroll, and investment.

Traditional banks serve as intermediaries and profit from differences between deposit and loan markets (lending-deposit spreads). The ABLE project will create a system that enables investors and borrowers to share the value generated by eliminating such intermediaries.
Currently, cryptocurrency banking businesses provide piecemeal services such as high-yield deposits and loans involving intermediary risks. The ABLE project creates a sustainable business model that enables direct account-based linking of users through smart contracts, and through decentralization solves the problems of managers’ moral hazard and the hacking of central servers.
The ultimate goal of ABLE is to provide users with a great user experience, while simultaneously allocating value to ABLE through all the benefits. In finance, the project aims to create a systematic ecosystem and develop a better user-accessible system by applying blockchain technology to any area deemed necessary. ABLE intends to integrate into one system all the financial solutions currently dispersed across the blockchain market, by offering a solution to existing banks’ problems, and an alternative to centralized deposit-lending systems.
The ABLE project has been proposed to provide an alternative to banks’ conventional lending-deposit spread structure, and to solve problems with initial cryptocurrency banking services.

Banks have a business model based on a lending-deposit spread (i.e., the difference between lending and deposit interest rates), in which the bank acts as an intermediary between depositors and borrowers. This structure allows banks to receive deposits at low interest rates and lend money at high rates, profiting from the difference.

The ABLE project primarily aims to apply decentralized blockchain technology to financial and wealth management features; to directly link demand and supply through an account on a peer-to-peer basis; and to establish a reliable system. It aims subsequently to build an in-house decentralized exchange, and then to evolve into a platform on which to develop and use smart contracts for finance and wealth management services.
The decentralization of financial businesses eliminates operational risks that occur during bank operations. Since investors are directly linked to borrowers without banks as their intermediaries, they can use services without being burdened by banks’ operational risks.
Since the existing cryptocurrency banking market tended to focus on either deposits or loans, it was difficult to secure sufficient liquidity and trading volume. However, the market that enables direct linking on a peer-to-peer basis can increase liquidity and trading volume. Generating great amounts of various currency data made available to users, such as cryptocurrency short-term rates, long-term rates, and trading volume, reduces volatility and helps create a stable cryptocurrency market environment.

The ABLE Ecosystem largely comprises the ABLE account and support for third parties providing finance, wealth management, and micropayment services. We will add the decentralized exchange (DEX) feature to store smart contracts based on various cryptocurrencies. Operating on DEX, we will distribute the framework to allow production of wealth management and finance smart contracts, creating an environment where a wide array of product developers can develop financial products. Thus, users can access a variety of financial products, and through API development the ABLE project can evolve into a cryptocurrency finance platform and an ecosystem enabling communication, including micropayment, with outside parties.
Through the ABLE account, we can create a platform that makes a variety of investment products accessible. On the ABLE network, we will create an environment where various smart contracts and Decentralized Applications (DApps) can enable the development of the ABLE Ecosystem.
SMART CONTRACT FOR WEALTH MANAGEMENT
We develop the smart contract frameworks necessary to manage funds, such as trading strategy generators, and portfolio analysis tools. Fund-management service fees will attract investment-product developers and create an ecosystem that will:
Allow creation of a variety of technical indicator-based trading strategies.
Create a systematic wealth management environment by providing smart contracts that enable portfolio construction and performance analysis tools.
FINANCE SMART CONTRACT
While the investing-lending matching engine carries out most loans, demand for various financial services will be met through finance smart contracts that include long-term loans, large-amount loans, P2P loans, secured loans, and credit loans.
Secured loans, and credit loans based on external ABLE data will be carried out through various integration mechanisms, following the development of the ABLE main network.
Initially, ABLE will produce finance smart contracts; then ABLE will gradually provide an environment in which various financial-product developers can produce finance smart contracts based on the finance smart contract framework.
A big portion of financial activities such as credit-card payments, automatic transfers of utility and service charges, and mileage programs will be integrated into the cryptocurrency space.

Extending the scope of practical application based on a variety of partnerships with third-party services, including micropayment, will strengthen the ABLE ecosystem. In the future, a majority of economic activities will be integrated into the cryptocurrency space by cryptocurrency finance.
CONCLUSION
The ABLE project aims to improve accessibility for the general public to easily use institutional-grade products with low service charges and high returns on investments, as well as low lending rates, by utilizing the benefits of blockchain technology.