Hello Steemians! Today participated in this @originalworks contest full of expectations and excited by the growth and support in blockchain technology

Today FIRMO is working on something really interesting and that will potentially cause the growth of derivatives based on cryptocurrencies

What is a derivative?

Derivatives by nature are contracts that give a handshake today (on the futures price of a product) This is useful for companies that depend on a specific material, whose price can go up or down. But the transaction would occur in the future based on the actual price of the product in the future. An important use case for derivatives is to cover the risk of future price volatility that we believe is very important.

Its price is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.

It sounds very easy, but it is not, it is not so simple to write such intelligent contracts and commit them to the chain of blocks. You should be familiar with the development of smart contracts to draft the contract.

FIRMO Solution

FIRMO offers a set of tools and infrastructure that will allow the easy creation of intelligent contracts for derivatives and Firmo developed its own language called FirmoLang, which is very focused on the creation of intelligent derivatives.

FIRMOLANG is based on the idea that all financial instruments are adaptable to the same series of events, a series of transfers of value between people, at intervals of time fixed by both parties, governed by a set of conditions such as the price in the

market and the future.

This is important because if a language is built with only one set of rules, then it will be much safer.

The FIRMO protocol will work in most block chains of intelligent contracts such as Ethereum, NEO, QTUM and EOS. FirmoLang is easy from the user's point of view, allows greater flexibility for exchanges and financial institutions wishing to create their own derivatives based on cryptography.

When derivatives become more accessible, investors will be able to implement more sophisticated trading strategies to allow their operations to be hedged against the sudden movement of prices.

FIRMO also offers person-to-person services (such as loans) and prediction markets. It also supports different guarantee structures, based on the need of the provider and the borrower.

Adaptaded from https://www.firmo.network/resources/FIRMO_TechnicalPaper.pdf

More info.

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