Firmo! The Future of bloockchain Infrastructure

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Hello steamians here's an interesting innovation I feel would change the face of the crypto world. Its called firmo. The weekly organized contest by @originalworks has helped me know and have a better understanding of the cryto financial system.

Derivatives
A derivative as defined by Wikipedia in terms of finance is

In finance, a derivative is a contract that derives its value from the performance of an
underlying entity. This underlying entity can be an asset, index, or interest rate , and is
often simply called the " underlying ".
Derivatives can be used for a number ofpurposes, including insuring against price
movements (hedging), increasing exposure to price movements for speculation or getting
access to otherwise hard-to-trade assets or
markets.

I'm sure you didn't understand that, well I was like you until I could break it down in my own words. Basically derivatives are contracts entered into by two parties or persons.
Now this contract specifies its conditions ranging from the dates(time), resulting value(of the traded variables), and the amount under which payments are to be made between parties. The essense of derivatives is to secure the exchange rates of goods traded from one country to another Bearing in mind the different values in national currencies. Now here's an example let's suppose on June 3, 2017, Okonkwo owned 5000 worth of Mr Price shares which values at $100.75 per share. Okonkwo now has a premonition that the value of a Mr Piece shares will drop or decline, he now arranges a future contract to protect the value of his shares. Imabasi who is a speculator predicting a rise in value of Mr Price shares, agrees to a future contract with Okonkwo, dictating that in 1year time Imabasi will buy Okonkwo's shared at the agreed upon value $100.75. Now if okonkwos prediction proves true and the value of shares declines, his investment is protected because Imabasi agreed to buy them at their June 3 value.
If the value increases Imabasi gets greater value on the deal, because he is buying at June 3 price. Now Imabasi has benefited from the futures contract, as compared to waiting till June 3 2018 to buy shares.
This is a typical example and definition of a futures contract derivatives.

Let's move on.

Use of smart contracts for crypto-based derivatives

Smart contracts is basically made up of three main parts with a body called the International Swaps and Derivatives Association (ISDA). This body created the standard for world financial derivatives trading. This "smart contract" is a computer program that can automatically execute the terms if a contract when the " conditions are met", potentially taking a lot of human involvement out of completing a deal. One will need to familiarize with the development of smart contracts to be able to write this contract.

What Firmo Offers

Firmo offers a set of infrastructure/tools tat permits the creation of smart contracts for easy derivatives and calls this process "Smart derivatives" which means easy way of creating smart contracts and derivatives. Using the firmolang infrastructure developers can utilize it in building series of transfers between counterparts at different time intervals.

FirmoLang borrows security features from airplane and train applications which are domain specific and formally verified. This gives it an edge over Solidity which is prone to attacks as seen from various hacks that have occured such as the Parity and the DAO attacks.
This allows more secure transactions and solidity. Also firmo offers standard templates for smart and easy derivatives deployment which enhances faster deployment and contract security.
Firmo protocol is blockchain agnostic and works on most smart contract, blockchain like Ethereum, NeO, QTUM e.t.c. this allows flexible financial institutions the creation of their own crypto-based derivatives.

How it may benefit the overall crytocurrency market

Firmo offers alternative infrastructure for financial contracts which is transparent. The firmo protocol offers an unlimited option swaps. This aids faster and secure deployment of crypto-based derivatives "smart contract". With the accessibility of smart derivatives, developers will be able to deploy elite trading ideas which allows their triad to be hedged from sudden price movement. This process will attract investors, developers, and traders to the crytocurrency market.

Link to original post link google!

Firmo2018