FIRMO, a smart way to do financial transaction

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INTRODUCTION
I remember my reaction when I heard about Bitcoin, how naïve I was to the idea of a crypto-currency, how I so strongly felt Bitcoin wouldn’t achieve any significant achievements. How wrong I was. Today, Bitcoin is still here, and it introduced the idea of a decentralized, digital currency, which has paved way for the acceptance of a decentralized monetary system. What about Ethereum? Ethereum brought the idea of extending this decentralized monetary system introduced by Bitcoin to support smart contracts on blockchain, albeit through the use of a Virtual Machine. Now FIRMO is here to introduce secure and automated financial contracts, otherwise known as SMART CONTRACTS, without the tiring involvement of trusted third parties to boost the development of a decentralized economy.

I wouldn’t want anyone to be like that naïve young me that didn’t see the potentials of Bitcoin, so this is to open up our eyes to the amazing opportunities FIRMO poses to the idea of a decentralized economy.

THE FIRMO PROTOCOL
The Firmo protocol, which is built with the domain language, FirmoLang, consists of these steps.

• Step 1: Target User/Group: this is the stage in which user groups that the financial contract is being written for are assigned.

• Step 2: Custom/Pre-Set: in this stage, either a standard snippet of code is chosen from the library or a custom code can be implemented.

• Step 3: Compilation/Execution: this is the last stage. In this stage, the code is launched onto the Ethereum blockchain, allowing any existing tokenized project to utilize the newly developed tools.

THE FIRMOLANG AND IT’S SECURITY
A programming language is considered Turing complete, when it is able to simulate a Turing Machine. However, smart contracts created using Turing Complete languages almost always contain vulnerabilities. Infact, research shows that 45% of the Smart Contracts examined from a set of over 19,000 contracts deployed on the Ethereum Mainnet contained a subset of known exploits or vulnerabilities. This has brought about criticisms of decentralized infrastructure, and this has raised concerns among investors.

I for one know that I trust my service provider to resolve any issue that arise from mistakes that happen in conventional financial markets. However, when mistakes occur in the construction of smart contracts, resolving issues is a very complicated process. And this is where FIRMO comes into play, to avoid these mistakes.

FIRMO is creating a transparent, fair and trustless infrastructure for financial contracts, called the FirmoLang. FirmoLang has been designed to be simple and secure. FirmoLang is formally verified, allowing tools for proof assistance at compile-time. In my view, this is the most efficient way to produce secure code. It is on the insight that all financial instruments are reducible to the same triad of events that FirmoLang is built on.

It is a known fact that no system can be completely fault tolerant, however financial contracts must execute in secure environments, if the system is to be considered trustworthy. FirmoLang provides this secure environment. FirmoLang is designed for zero redundancies, expressing only the absolutely necessary functions for financial contracts. FirmoLang is verified with the Coq proof assistant formally. This Formal verification means that Firmo protocol can run a static causal check of a smart derivative, exposing any vulnerabilities or faults , before a contract is submitted to the blockchain.

• HOW DOES FIRMOLANG ACHIEVE THIS SECURITY?
  Like my mother used to say, “simplicity is security”. The FirmoLang is made to produce a clear cut and un-mistakable representation of contractions, in order to enable their automatic validation, execution, and analysis activities that are collectively known as contract lifecycle management. Domain specific languages have several advantages over broad purpose, Turing-complete programming languages. I for one, believe that security should be achieved, so even though, the narrow scope of the syntax made for FirmoLang may not suit complex expressions, FirmoLang enables a stable and secure environment for versatile and exotic financial contracts, and to me, this is enough reason for me to choose FirmoLang. And with the upcoming open-source release, developers, regardless of their experience, will be able to formulate exotic smart derivatives out-of-the-box.

With this security, I have no fear whatsoever using FirmoLang to create smart contracts. And I am very sure you feel the same way also.

ZERO COVERAGE AND IT'S PERKS
As a user of the Firmo Protocol, I can execute smart derivatives with little or no collateral, otherwise known as Zero Coverage. When I want to execute a smart derivative on permissioned infrastructure, I can use the Firmo Protocol’s Zero coverage. Take for instance, I want to execute a smart derivative with a party I trust with my life, I can simply use the Firmo Protocol’s Zero coverage.

The use of Firmo Protocol’s Zero coverage means, faster and more efficient execution.

FIRMO PROTOCOL’S SMART DERIVATIVES & IT’S ADVANTAGES
It is no news that most financial processes today are open to disintermediation and automation in smart contracts or representation of value through tokenization.

With the Firmo protocol, I can create smart derivatives. Smart derivative is a secure type of smart financial contract, it offers products such as futures, loans, options and swaps. However, smart derivative is not just limited to those products. It should be noted that, Smart derivatives are non-fungible and can be traded on any regulated exchange which supports the Firmo Protocol (The Firmo Protocol is made to operate with different selection of external liquidity providers and exchanges).

With Firmo Protocol, I or my business can create secure and automated smart derivatives through the use of the domain specific programming language, known as FirmoLang. Once my financial contract has been created using FirmoLang, the financial contact can then be complied using the Ethereum Virtual Machine (EVM).

The Firmo Protocol Stack consists of 4 general groups of processes, as set out below:

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If I am using an ERC20 format to tokenize an asset class, I can use the Firmo Protocol to create secure smart derivatives or any other financial instruments. However, I must use the proprietary programming language; FirmoLang. I am sure you can already deduce that FirmoLang is a versatile programming language with a very broad scope of applications. Obviously, I see no other reason why the Firmo Protocol shouldn’t be your choice for cryptocurrency exchanges, to create secure and automated financial contracts on distributed infrastructure.

• COMPOSITION OF A SMART DERIVATIVE
  Smart derivatives are formulated in the formally verified language, FirmoLang. Initially, Firmo will offer two solutions for users to engage with the Protocol:

• A. Deployment of Template Contracts: In collaboration with partnering exchanges or other platforms, Firmo will offer a set of template contracts. The template contract will be written in FirmoLang and customized to the service offered by the partner institution. In some cases this might be future contracts, in other it might be forward contracts for peer-to-peer loans or even prediction markets.

• B. Deployment of Customized Contracts: as a user, the Firmo Protocol allows me to formulate customized smart derivatives in FirmoLang. This can be done by navigating to the console in the user interface. Here, technically if I am an adept user, I can inspect the code or create customized contracts whenever needed. This is an added advantage as an investor.

• HOW CAN I USE THE FIRMO PROTOCOL’S SMART DERIVATIVES?

• A. Individual Users: as an individual user, I can enter into smart derivative contracts and I can also trade my positions to third parties on secondary markets.

• B. Cryptocurrency Exchanges: if I am a customer of any cryptocurrency exchange, the cryptocurrency exchange can offer me secure derivative products. The Cryptocurrency exchanges can also act as a clearing institution or counterparty in any given smart derivative contract.

• C. Financial Institutions: as traditional financial institutions, I can use the Firmo Protocol to achieve significant reductions in costs that may arise from clearing and settlement of derivatives.

• ADVANTAGES OF SMART DERIVATIVES
  With Smart Derivatives I and my company can secure a price point over a certain period of time. This is useful for me, especially if my company depend on a specific material, the price of which may rise or fall.

Smart Derivatives would also be very important among traders, in the sense that, if they believe a certain asset will rise in value, obviously they can secure the current price point and benefit from the price discrepancy that is bound to arise.

THE FIRMO TEAM
The Firmo team is a team that is extremely qualified. It is led by Dr. Omri Ross, who specializes in blockchain technology and fintech. The Firmo Team is well prepared to take on a project of this magnitude. The development team is loaded with experienced veterans. An example are, Ariel Laub and Gury Traub, who have released 9 educational games. This shows the level of expertise revolving in the Firmo Team.

For more information, check out:
Firmo Website
Firmo Technical Paper
Firmo Reddit
Firmo Twitter
Firmo Facebook

This is a contest sponsored by @originalworks. Here is the link to the post https://steemit.com/crypto/@originalworks/200-steem-40-bonuses-sponsored-writing-contest-firmo

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