Kinesis - Blockchain Bridge To Banking

The blockchain has been a revolutionary game changer. From freedom of allocation of value to things of personal interest, to monetizing medical data and being rewarded for sharing valuable content. We now see it being used both as a security and a utility commodity.

The downside to cryptocurrency seems to be its very use... Or rather non-use. Many people buy into cryptocurrency currency for different reasons other than decentralization. While some buy for trade purposes (darknet, using Bitcoin/Ethereum to buy other currencies) a large number buy as speculators (buy low, sell high). They expect a bubble such as Bitcoin or Verge exhibited to propel them into the millionaires club. But is a currency that people don't use worth millions? This is the problem cryptocurrency faces now. For crypto to be seen as a viable alternative to fiat it has to showcase its everyday use case in as many ways as fiat and then some to prove superiority. How will this happen when investors or holders refuse to spend?

Kinesis aims to change this detrimental behaviour by engaging investors and rewarding them for actually using the currency absent the fear of missing out.

What is Kinesis?

Kinesis is a blockchain platform that bridges fiat banking, gold and silver markets and financial services with the immutability and freedom of cryptocurrency.

Let's look at their introduction video

Kinesis aims to function as a hybrid between the conventional gold-backed currency and the limitless and unhindered disruptive community-backed cryptocurrency. This combination utilises the best features of both conventional and crypto currency while simultaneously solving the problems that plague both of them!

How Will Kinesis Stimulate Use?

Kinesis directly allocates crypto with physical gold and silver on a 1:1 value basis. This means users get two types of coins KAU(kinesis gold) and KAG(Kinesis silver). Both will be launched in November 2018.
This held value is then invested in a "multifaceted yield system" that rewards the owners for participation.

Bullion can also be deposited in exchange for proportional KAU and KAG tokens. Kinesis uses ABX Quality Assurance Framework to make sure the bullion quality is up to standard.

How Will Users Utilise Kinesis?

Kinesis offers users a debit card, which is linked to their cryptocurrency wallet. They can use the card like any normal debit card and the proportional value of their payment is automatically converted. Users can even use their kinesis card to withdraw from an ATM!
1 KAU coin is worth 1g gold and 1 KAG coin is worth 10g silver. Finally you too can own some gold!

How Does The "Yield" Come About?

Different people in the Kinesis ecosystem get rewarded in different ways.

• Minters
  By converting your fiat or physical bullion holdings to KAU or KAG coins, you become a Minter and receive 5% share of the transaction fees of your created coins when you use them.
• Depositors
  When you deposit and use Kinesis from your wallet you receive 5% share of the transaction fees
• Holders
  Kinesis holders receive a 15% share of transaction fees. This is paid monthly.
• Recruiters
  Kinesis also rewards you for your referrals to the ecosystem.

For detailed explanations refer to Kinesis Blueprint Pages 31-36

What Problems Does Kinesis Solve?

• Crypto Price Volatility
  This is the biggest problem that cryptocurrency faces. Many people dread the thought of investing their money today and waking up tomorrow to see a downward trend in price. Kinesis solves this by backing the cryptocurrency with physical gold and silver which are the most STABLE stores of value hence greatly limiting volatility. The physical backing keeps the prices relatively stable and prevents heavy swings that normal cryptocurrency are known for.
• Difficulty In Getting Bullion
  Have you ever tried to buy some gold or silver? Sure we would all love too but there are just too many obstacles. From the fear of buying fakes, to being cheated by sellers to cost of shipping and even cost of security, you will agree it's quite a tedious process that discourages potential investors. With Kinesis you can buy/own gold and silver in little bits and rest assured that you needn't worry about fees and risks. Also when you choose to sell, it's with a few clicks. No middleman, no stress.
• No Yield On Precious Metals
  Normally, when people, organisations or governments have their holdings in gold or silver, the metal marginally gains or loses value. However the holders constantly pay costs for the safe keeping of their precious metals. They don't gain anything from having ownership of these holdings. Kinesis aims to reward these owners with yield on their holdings. This yield will be based on passive and active participation.
• Slow Transaction Speed and High Fees
  If you are fairly knowledgeable or active in the crypto world you will know that about 95% of the tokens or "coins" in existence are based on the Ethereum blockchain. Apart from the fact that it is very unscalable, ethereum is already overloaded and so transactions take long to go through. This has resulted in high fees for "fast-tracking" transactions. This is very undesirable to users. Kinesis solves this by using its own blockchain which was forked off the Stellar Blockchain. It boasts superior speed and customised percentage-based transactions fees to stimulate everyday use.

Key Functions of Kinesis Monetary Ecosystem

Kinesis has key features that set it ahead of all alternatives.

• Kinesis Currency Exchange
  This is the wholesale market where currency is minted and connected globally with traders using Allocated Bullion Exchange (ABX)
• Kinesis Blockchain Network
  This refers to kinesis custom blockchain on which everything runs.
• Kinesis Blockchain Exchange
  Kinesis allows swift currency exchanges to always ensure liquidity.
• Kinesis Financial Network
  The kinesis platform allows mobile access and use of holder assets in every day tasks and transactions such as purchases and payment of bills.

The Kinesis System

User Case Scenario

James and his business partners have decided to take their business overseas. They have amassed some wealth but now government restrictions hinder the transfer of the money.
James is in a dilemma until a friend tells him about kinesis. Using kinesis, James is able to purchase gold bullion and securely safeguard his company's assets before travelling halfway across the world.
With their holdings now virtually on the internet and with the kinesis debit card, transactions can be made online and physical withdrawals can be made from the companies account via ATMs.

User Case Scenario 2

Linda is an open-minded person who is interested in cryptocurrency. Her job doesn't pay much but she saves little every month to buy some crypto in hopes of a miracle one day. Being an avid reader of crypto news she discovers kinesis. Linda soon starts converting her entire paycheck to KAU tokens and uses the Kinesis debit card to pay her bills. Why? While the bank simply charges her for transactions and for keeping her money, kinesis actually rewards her with its yield system. Now she gains passive income for holding kinesis tokens and for spending them.

Kinesis Velocity Token

Kinesis Velocity Token (KVT) is the utility token that powers the Kinesis ecosystem. It is an ERC20 token. KVT is a staking token (funding) used to get the project up and running. While KAU & KAG are used for spending, sending or selling, the KVT is held for its high yield. Think of it as Investment into the project. The yield is paid in KAU and KAG tokens. You can read about how this works in the kinesis blueprint

KVT ITO

Kinesis has launched its public initial token offering. Presale(at a discount) ends on the 10th of September. Their ITO plan is as follows

Kinesis Velocity Token ITO
They have also presented a comprehensive roadmap

Final Thoughts

Rather than drive a wedge between the gold-backed method and cryptocurrency, Kinesis utilises the strengths of both financial systems to bring a revolutionary monetary and banking system for the optimum benefit of well valued customers. Kinesis is customer friendly and technologically capable of transcending the way financial systems work.

To learn more about this project, you can visit their website or read their Whitepaper here if you want the technical explanation. You can also quickly peruse their One pager for a simplified introduction.

The Kinesis team is always willing to answer questions and you can reach them on any of their social media accounts.

BitcoinTalk | Twitter | Medium | YouTube | Telegram | LinkedIn | GitHub.

Kinesis is also on STEEMIT!
Feel free to visit their blog @kinesis.money

Tweet of post: https://twitter.com/U3uuu/status/1036699101260341248?s=19

DISCLAMER: The information contained within this post shall not be taken as financial advice. I am not a financial advisor and none of your investing should be carried out based on any information presented here. You can lose all of your money by not investing wisely. The above information is for educational and entertainment purposes only. Endeavour to do your own research”

All images were derived from whitepaper.

This is a submission for the @originalworks contest here

kinesis2018
kinesistwitter