SocialPolis Coin: Decoding the project (Part 1/7).
Five Blockchain applications that transform Finance and the SPL Coin financial impact.
Nowadays, there is so much noise about Blockchain and its applications to real economy — and not unjustifiably. Blockchain is a simple but tremendously powerful idea that appeared for the first time in the form of Bitcoin, a pee-to-peer electronic cash system launched by Satoshi Nakamoto in 2009 “based on a cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without any need for a trusted third party”. This text will present the five major Blockchain applications able to transform the world of finance as we know it. Furthermore, we will take a closer look at the financial impact of SocialPolis Coin project, a mature Blockchain solution to operate as a sophisticated yet alternative financing method fpr Social Economy Development and Sustainability projects.
What is Blockchain?
Blockchain is basically a database that is validated by a wider community instead of a central authority. More specifically, it is about a collection of records that this large number of computers is retained without the need of a bank or a government to oversee it. Each “block” represents a number of transactional records and the “chain” component links them all together with a hash function. Once a record is created, it is confirmed by a distributed network of computers and paired up with the previous entry in the chain, creating a chain of blocks, or a blockchain. No individual has any authority over its history or the capacity to make alterations in the prior chain.
What’s the difference with Blockchain?
Business transactions can often get complicated and are vulnerable to errors, fraud and inefficiency. Blockchain suggests a rather different way those transactions are being recorded and verified and eventually how networks are designed and structured.
Within the traditional financial system, each participant has his own, separate ledger which in some cases is a different version of another’s participant view. Being a single, shared, tamper-evident ledger, Blockchain homogenizes the view of the truth among its members. Another major inefficiency of the validation process is the exaggerated reliance on intermediaries that are required to verify each step of the transaction’s route. Blockchain reduces complexity once all parties must consent before a new transaction is added on the block allowing all participants to see all details of a transaction end-to-end.
Five major Financial Use Cases of Blockchain
Blockchain can primarily speed up and simplify cross-border payments, reducing costs drastically cutting out many of the traditional middlemen. Furthermore, besides the ability for guaranteed and real time cross-borders transactions, the remittance costs can lower from 5–20% to 2–3% of the total amount.
Share trading is another key financial area adequately impacted by the evolution of Blockchain. Purchasing and selling stocks and shares has always involved many middlemen such as brokers and stock exchange itself. The shared ledger with the above mentioned features accelerates the settlement process, allows for greater trade accuracy and eliminated third parties.
The so-called Smart Contracts is one of the most promising applications of Blockchain tech, as they can automatically execute commercial transactions and agreements, enforcing at the same time the obligations of all parties without the added middlemen’ cost.
Moreover, Blockchain may help online identity management to become less time-consuming and costly, complying at the same time with Know Your Customer (KYC) regulations of financial institutions.
Last, balanced and personalized loyalty and rewards programs can be developed on the Blockchain technology which can be used in the financial sector to enhance e.g. regulatory compliance.
The financial impact of SocialPolis Coin Project
SocialPolis Coin seeks to grasp the financial opportunity of the emerging social and sustainability development economy. SocialPolis Coin aims to become the global safe-haven cryptocurrency enabling a technological disruption in the Social Economy, Solidarity and Sustainable Development Economy Sectors.
The SPL Coin will support the development and operation of two innovative tools initiatives:
1. The SocialPolis Fund, which will be the catalyst for the development of new ideas for entrepreneurship in the social economy
2. An electronic commerce marketplace for social and sustainable economy products and services
The motivation of SPL Coin is to provide support to the Humanitarian Aid and Solidarity Market, to national and international volunteer work and the societal Coops and Enterprises, and to foster several developmental projects. The SPL Coin proposes a stable technical solution ready for implementation into real economy.