ABLE: BRINGING DECENTRALIZATION TO FINANCIAL SERVICES

flezy (40)in #finance • 6 years ago

To free ourselves from financial systems such as the traditional banking system, Ponzi schemes etc, we truly need a decentralized blockchain-based platform. How does decentralization come to play? A complete decentralized system will ensure all the unfriendly activities occurring on centralized systems are taken care of. A study has shown that the existing cryptocurrency banking platform is still yet to solve some of this issues owing to the fact they are not fully utilizing the feature of blockchain technology, which is the decentralized nature, thus operating a centralized platform.
A project like ABLE aims to resolve these issues, thus building a better and stronger cryptocurrency based finance and wealth management services, where all assets (cryptocurrency) will be managed through smart contracts, in the long run satisfying both demand and supply.

THE PURPOSE OF ABLE PROJECT

Problems:
The ABLE project aims to present a solution to the problems associated with the current banking services;
a. The old method of lending-deposit spread used by the traditional banks,
b. Centralized and nontransparent nature of the current cryptocurrency banking services.

The old method of lending-deposit spread used by the traditional banks: The lending-deposit spread model being used by the traditional banks simply means the banks leveraging on the difference between lending and deposit interest rate. With this model, the bank stands as the middleman between the parties (depositors and borrowers), thus having the opportunity to receive the deposit from depositors at a low rate, and lending to borrowers at a high rate. Their profit lies in the difference.
Centralized and nontransparent nature of the current cryptocurrency banking services: High-interest rate in this system has proven to be unsustainable. A combination of this high-interest rate with centralized services offered by this system exposes managers to risk and the central servers prone to cyber intrusion.
There are two major types of this services;
a. SALT (Loan Broker Risk): This banking service system loans money in fiat currency while using cryptocurrency as collateral.
b. Ponzi-Scheme: This is a cryptocurrency deposit service paying high deposit interest rate which has been proven to be highly unsustainable.

Solution:
The solution brought by the ABLE project will enable users to experience diverse banking services.
ABLE project solves this issues by creating a matching scheme that directly links investors and borrower. This occurs in a peer-to-peer manner with no middlemen, thus removing lending spreads as well, in the long run leading to the interest being a mutual agreement between players in the free market, which in turns becomes the market interest rate.
The overall result is;
a. Investors receive a higher interest rate,
b. Borrowers lend at lower rates,
c. Cyber intrusion and exposure of managers to risk are eliminated since investing and lending are carried out with the aid of smart contracts.

ATTRIBUTES OF ABLE ECOSYSTEM

ABLE project decentralized exchange (DEX): This decentralized exchange will support smart contracts of various cryptocurrencies. Through this, various cryptocurrencies will be traded thus leading to the development of wealth management and finance smart contracts, while risks associated with centralized exchanges are removed.
ABLE account: This provides a single platform for;
a. Banking: Investing, lending, salary etc.
b. Investments: ICO and Fund smart contracts.
c. Micropayment: Third-party services, credit/debit card etc.
Finance: Comprising of;
a. Investment-loan peer-to-peer engine: This connects depositors and borrowers directly as well as removing lending-deposit spread through decentralization.
b. Salary smart contract: Credit rating system and payment of salary made possible.
Wealth management: Comprising of;
a. ICO Investment smart contracts: This Investment platform is based on ABLE account.
b. Mutual funds smart contracts: This financial Investment is based on ABLE's DEX.

ABLE TOKEN ECONOMICS

The ABLE project will be implemented on Ethereum blockchain, prior to when the ABLE main net will go live.
ABLE project currency comprises of;
a. ABLE Coin: For payment of service charge for using the ABLE system. It has a total supply of 25,000,000,000 with validation nodes operating on a Proof-of-Stake basis.
b. ABLE Dollar: Use for Interest payment, having a total supply of 1,000,000,000.

CONCLUSION

The ABLE project aims to build a reliable financial system through the Implementation of decentralized blockchain technology to financial and wealth management, which is achieved through the direct connection between depositors and borrowers. The ABLE project will build a DEX, thereby growing to a platform where smart contracts will be developed for finance and wealth management services.
ABLE also aims to contribute its quota into the much anticipated fourth industrial revolution by applying blockchain technology to financial services thereby resulting in depositing, making investments as well as using cryptocurrency in real life.

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