Introducing Firmo - Finincial Infrastructure For Crypto Economy

Introducing Firmo - Financial Infrastructure For Crypto Economy
Hello Everyone
Welcome to @roshan77 blog. Today in this post I will write aboutFirmo which is going to bring the evolution in the financial system of crypto space. I will try to describe about the
Firmo,its advantages and how it will change the financial system in crypto space.
What is Firmo?
Firmo will enable financial companies like the crypto exchange to offer secured decentralized derivatives to their clients. It's already patnered with Ethereum, and soon they will partner with QTUM, Cardano, Neo, and others. In the world of finance, it will bring different components of a smart contract like trustless and transparent nature.

Firmo is in the process of creating an alternative infrastructure for financial contracts [which is/will be] transparent, fair and trustless. In our view, the application of financial services is a particularly interesting use case for distributed ledgers. Financial assets are abstract products, deriving their value from the ongoing price-discovery mechanism on the markets. Indeed, financial operations are essentially a series of transfers of value between counterparties, at selected time intervals, governed by certain conditions. Arguably, the majority of financial processes in today's markets lend themselves to disintermediation and automation in smart contracts or representation of value through tokenization.

You can watch this quick introduction video in their official youtube channel

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what is a Derivative
Derivatives have multi-purpose in Firmo like providing access to a market, ensuring against price movements and increasing exposures to risk. Derivative acts as a catch-all term for bonds, stocks, and mutual fund. They are also the intangible investment. Another fact about derivative is from the price performance of underlying entity their value is derived.

Some of the most common derivatives are
a. Future
Its also known as a future contract. It's agreement to trade something at the specific time in future. The price will also be predetermined.
b. Option
An option is a contract which is created between the trader of the assets. Which will enable the holder of asset question the option but not the obligation to buy or sell .
c. Swap
Swap is the contract to exchange the financial instrument. There will be two financial instruments in swaps, one of them will be fixed, and another will be variable. With the help of swap two parties can exchange the financial instruments.

Dr. Omiri Ross Explained Why He Started Firmo Click here to watch video

Financial instruments are the big players in the world of finance. Right now clients can take part in company finance in the form of purchasing tokens. The price is volatile, and the buy-sell orders determine it. The main problem behind this is lack of financial tools.

According to their reports from the researchers from University Of Singapore about 45% of Ethereum contracts are not secured. But in Firmo network verified programming language is utilized to deploy smart deals. This technology will eliminate the vulnerabilities of Ethereum. It will be able to remove weaknesses by bypassing solidity and compiling directly.

Firmo Protocol
The Firmo Protocol helps the user or business to create smart derivative which is secured and automated. A smart derivative is created by using the FirmoLang programming language. Firmolang is domain specific programming language. There are four different group of the process in Firmo Protocol Stack.

Image: Firmo Protocol Stack

Who will get benefits from Firmo?
Utilizing the firmo protocol anyone can create financial instruments or smart derivatives so that it will be helpful to everyone. For the individual like us, it can be beneficial to trade the position after we entered to a smart derivative. A financial institution can also utilize the Firmo Protocol to eliminate automatic clearing process and intermediaries. This will help the financial institution to reduce the cost and expand their service. Cryptocurrency Exchanges can also get benefit using Firmo. They can provide secure derivative product to their customers.
Team
Firmo Team is full of experienced and highly professional individuals. Dr. Omri Ross is the
CEO & FOUNDER of Firmo. He is a serial entrepreneur and blockchain technology expert.
His team looks very well and their passion for blockchain and financial technology can bring a big evolution in this field.
You can watch his interview in Cryptospace conference 2017 moscow Here

Image: Firmo Team

Reference & Important link related to Firmo

Firmo Website
Firmo Technicalpaper
Telegram
Facebook

All imagesare used from their website Firmo

This article is submitted for the contest by @originalworks
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