LaLa World Integrates Blockchain to Change The Future of Financial Ecosystem
The blockchain technology is an undeniably brilliant innovation as far as the world of fintech is concerned. Blockchain is a radically different way of keeping track of a set of information. Instead of storing information at a central location, the algorithm distributes data to various nodes across its network. The brilliance of the concept is contained in the fact that these data nodes don’t store users personal information from any of those transactions, and the only record kept is that of the transaction itself. It makes the medium a potentially powerful accelerant of shared economy, as it gives the assets based on the blockchain the ability to know their ownership.
Despite its increasing reliance on technology, the banking sector still remains untouched by any major digital disruption that have transformed other sectors with their application. Although most customers look forward to simpler banking methods, most banks are burdened by book-keeping, legacy systems and processing. Blockchain can potentially drive simple and efficient processes by establishing new financial services infrastructure, and is potentially the technology that lays the foundation of next generation fintech. The basic advantage of a distributed database over a centralized database is that there is no requirement of reconciliations since every stakeholder has access to the required records.
LaLa World aims to empower the underbanked sections of the society with advanced financial services directly delivered to them, without any involvement of third parties/intermediaries. Most people from this section would be having their first brush with such services, hence making it even more important that these services are subjected to transparency and public auditability, making them the key principles regarding implementation of this concept. Constant tracking of the evolution of blockchain platforms is necessary, so that the ones with flexible Smart contracts and secured for peer to peer Smart contracts could be chosen as the platform for issuance of new tokens and trade. Through analysis of various platforms and possible solutions, it was decided to build this platform on the basis of the Hyperledger blockchain, with the digital tokens being based on Ethereum’s technology. The possibilities that Hyperledger brings to the table are far more than others.
The Hyperledger system being governed by Linux Foundation, is arguably superior to the Bitcoin system. There is a broader understanding of consensus when it comes to Hyperledger, thus allowing for multiple approaches and flexibility. Coupled with tokens based on Ethereum’s technology, it enables code execution in a decentralized way. All this allows property on the blockchain to not only hold value but also be bound by implementation of rules, according to which the value can be transferred. There is no trust fixed on a central server, instead there is an algorithm and an output of the system. It allows for creation of digital tokens that can represent property and membership proof. They are compatible with any wallet and flexible with exchanges that use standard coin programming interface. There is freedom to have a fixed or a fluctuating number of tokens in circulation based on predetermined rules.
Smart contracts are pieces of code stored in the network. They define the conditions and rules on which all parties agree. The actions described in the contract can be executed, assuming required conditions are met. Since every computer system acts as a node, the concept assures no single ownership of entity and has no single point of failure. Execution of required actions will get desired results. This gives assurance that the outcome will be correct. As is understandable, a central, intermediary authority can be removed from this new system for the exchange of financial services, and the Hyperledger blockchain system with contributions from Ethereum’s technology, can provide the basis for transactions and remittances at the core layer.
LaLa platform will mainly revolve around its LaLa Wallet, that offers a variety of services with all your financial necessities at a central point, giving you complete control over your funds. Working with Hyperledger and customized application developers, some aspects which are being considered are management of Smart contracts, database access and storage, with Machine Learning, Artificial Intelligence and Internet of Things. This enables LaLa to create a gamechanger in the form of a brand new P2P financial infrastructure based on trust, immutability, transparency and traceability in transactions.
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