FUSION - connecting blockchains to propel the Internet of Values

okipeter (52)in #crypto • 6 years ago (edited)

Introduction:
It is a public fact that the very first blockchain was unveiled in the year 2009. From that moment, blockchains have been a vital tool in bringing about another level of human civilization. The blockchain resolved a lot of issues, prominent being the trust issues people had with centralized organizations, since the blockchain is decentralized. Blockchain is here again with another era of human civilization – albeit, the Internet of Values since the blockchain enables the internet of values.

However, Interoperability, scalability and usability are three issues which various blockchain ecosystems have failed to address, hence the internet of value hasn’t seen much progress.

Fusionand how it intends to change the Cryptofinance sector:
Cryptofinance is the upgraded version of our today’s financial system, and it is built on the Internet of Values, therefore it faces the same issues as the Internet of Value.

However, Fusion is here to address these issues and bring about a revolution in the cryptofinance sector.

Currently, a number of blockchains exist, and these blockchains do not connect with one another. This means that there is no way for exchange of tokens effectively and efficiently. For example, if I want to exchange my steem for bitcoin, I have to use a third party, e.g bitrex to achieve this. Fusion addresses this issue and provides a way for values from each blockchains to be exchanged effectively and efficiently

Fusion aims to establish a public blockchain. Various tokens of different blockchains can be mapped unto this public blockchain, hence, Fusion provides a way for various tokens of various blockchains to interact with each other. This ultimately means that multi-token smart contract can be achieved on the blockchain.

To map different tokens unto the public blockchain, Fusion makes use of distributed network nodes. These nodes provided a way for Fusion to control various tokens’ private keys. With these distributed network nodes provided by the Fusion public blockchain, values on the Internet of Values can be managed effectively and efficiently by smart contracts. With this, Fusion has provided a solution to the interoperability issue.

Fusion also solves the issue of scalability by providing interfaces of tokenization for off-chain assets and data. This is achieved by putting these assets and data under the management of centralized organizations, thus, smart contracts on the blockchains communicate with real world values and data.

Fusion makes use of the distributed network nodes to do distributed parallel computing. This greatly increase the performance of Fusion, hence the usability issue is tackled.

From the preceding paragraphs, we see that Fusion would achieve a financial platform across various blockchains.

Benefits of having a cross financial platform:

A large number of people would be connected around the world to transact business effectively and efficiently at a low cost, since third parties are not present
New business, organizations and industries are certain to spring up due to the cross financial platform
Financial inclusion would be increased for the large number of underbanked consumers out there.

Fusion– how it intends to propel the internet of values:
It is no news that the values on the Internet of Values are token which are represented by various blockchains. However, the process of mapping these values unto the internet of values is known as Tokenization of assets. Tokenization simply means the process of securitization of off chain assets, then these off-chain assets are converted into cryptofinancial assets. This ultimately means that off-chain assets would be represented as on-chain tokens. Through this process, the Internet of Values allows much diverse values to be added unto itself.

These cryptofinancial assets can then be controlled by the Fusion blockchain through their private keys. With this, off chain assets have values on the internet of values and these values can be transferred quickly, effectively and efficiently via the Fusion Blockchain, without any intermediaries.

This ultimately means that, with Fusion blockchain backing the Internet of Values, values would be transferred quickly and easily as we presently transfer information. Also, the values transferred would also include off-chain assets.

How the ability to map chains and transaction logic improve interoperability:

We already know that Fusion makes use of distributed network nodes to map the different tokens unto the public blockchain, and with this, Fusion has control over the tokens’ private keys. Let’s see how this improves interoperability:

Once the tokens have been mapped, this means that interaction is activated beween the tokens. Thus, different tokens can be defined and programmed for Fusion’s Cryptofinancial functions. Fusion’s cryptofinancial functions includes:

Multi-Role:
This is the ability of Fusion’s cryptofinancial smart contract to be able to support different account types, while also been able to define the connection between the multiple users and the multiple smart contracts

Multi-token:
This means that once the different tokens have been mapped unto the Fusion blockchain, the relations between these various tokens can be defined concurrently by a smart contract powered by Fusion

Seperation of usufructs:
Usufructs means that a person A is allowed to use person B’s property to derive profit provided that the property is not injured in any way. In our present traditional smart contracts, this is not possible, as tokens can only be transferred as a whole from one party to another. However with Fusion, it is possible to define multiple users/contractual account in one cryptofinancial smart contract, therefore this smart contract can define accounts of ownership and usage separately.

Seeing the cryptofinancial functions provided by Fusion’s smart contract, it is no wonder as to how the interoperability would be improved with Fusion.

Use-Cases of Fusion:
Mortgage Smart Contract:
A buyer wants to buy a property, but he has only part of the payment, hence he wants a mortgage. Lets see how this is achieved by Fusion using the Mortgage Smart Contract:

The people involved in this contract are as follows:

A property owner wants to sell his property at a set price.
A tokenization company called “TKC” tokenizes the said property as “P1” and provides a bonding service to guarantee that anyone that holds P1 owns the property.
A risk taker, called “RK” is a company that provides loan and takes all risks.
A buyer wants to buy the said property, but he only has part of the set price of “P1”.
Investors exist, that invests in a risk free loan.

Steps involved:

A mortgage smart contract (MSC) is initialized by RK.
The property owner sends P1 to MSC
Buyer sends the part payment he has to MSC.
Investors sends the remaining part of the set price to MSC.
TKC also sends the remaining part of the set price to MSC to guarantee the investment of the various investors.
MSC sends the total set price of the property to the property owner, thus the property doesn’t belong to him anymore.
Buyer gets a value of the total price paid by the investors as a mortgage loan, and P1 is used as a guarantee for the mortgage loan.
Buyer sends a set price which has been determined every month for a specific number of months (which is also determined). If buyer fails to do this, the property can be re-sold, under a condition included in the MSC
The principal and interest paid by buyer is sent to the investors every month.
RK would receive the residue part of the interest payment, as well as interest made out of the money paid by RK placed in the MSC.
After the specific number of months, the MSC sends P1 to the buyer, and then the original money paid by RK is returned back to RK.

There are other use cases of Fusion. Check out:

Benefits of being able to use traditionally bank-operated financial tools in a decentralized manner between cross chain users:
From the discussion so far, it is evident that Fusion enables traditionally bank-operated financial tools in a decentralized manner, and this has a whole lot of benefits, which includes:

Low interest rate
Low cost of transactions
Ability to transact with a large number of people
Risk free, even with the absence of third parties such as banks.
Faster, Effective and efficient transactions

Conclusion:
While growing up, my dad told me stories of the postal system in his town. You see, my dad used to write these letters to my mum, go to the post office to post them, and then, he would wait for a few weeks just to get a reply. He usually ended the stories with the respite he got from the present Internet of Information, where he could send and receive information effectively, efficiently and quickly.

I for one would like to tell my kids the stories of how the Internet of Values brought about another whole level of human civilization through the transfer of values quickly, effectively and efficiently. And with Fusion propelling the Internet of Values, it is certain that I would have good tales to tell them.

The Fusion Team: