This article is part of a series where we introduce Rayls. If you want to start from the beginning you can go to the first article.
The Institutional EVM Public Chain
Ask any institution today: what is the preferred institutional public blockchain? You will get a different answer every time.
This is because there is no clear leader on the institutional public blockchain space yet.
Polygon is liked by clients in some regions of the world because of first mover advantage. Base is liked in other regions because of it’s connection to Coinbase, a regulated entity. Others prefer Avalanche for its research work. But the truth is that none of these offer anything of substance that would cater to financial institutions specific requirements.
In Rayls, not only do we rely on an in-house team that has built and ran banking systems and operations, we have been working closely with major financial institutions designing Rayls for over 2 years. We have seen first-hand the challenges that financial institutions face when trying to use blockchains. Some examples include:
- Prohibitively expensive transaction fees, especially in use cases that require several transactions
- The security and compliance risks posed by anonymity in transactions
- The absence of practical privacy solutions for sensitive transactions
- Regulatory and compliance risks due to the decentralized nature of blockchain operations.
There are permissioned blockchain systems such as Corda, Fabric and Besu and they allow institutions to create their very own feeless chains, but these end up creating isolated islands that don’t easily allow for interoperability with public blockchains.
The world needs a trusted public blockchain that can be used by everyone — from retail crypto users to regulated financial institutions. A blockchain that becomes the go-to place for financial institutions to explore all of the latent use cases, from Tokenization and Real World Assets (RWA) to DeFi and tapping into new markets and liquidity pools.
The Rayls Public Chain is made for everyone
The Rayls Public Chain operates as an Ethereum Sidechain, employing its token, PTY, for transaction fees while maintaining a vital link to Ethereum for enhanced security and seamless interoperability.
Notably, Rayls Public Chain introduces unique features designed for institutional use, including:
1. Mandatory KYC for all accounts, ensuring transactions are only initiated by verified entities, facilitated by approved KYC partners.
2. The establishment of Value Exchange Networks (VENs), privacy-enabled sub-networks that ensure privacy of transactions and balances, and interoperability within the financial ecosystem.
3. The utilization of PTY for transaction fees, a non-tradable token pegged to a constant dollar value, simplifying the fee structure.
How to use the Rayls Public Chain?
Rayls Public Chain can be used just like any other public chain: Most users can simply connect using Metamask. The only difference is that before users can send a transaction, they will need to pass KYC using on of the approved KYC providers.
Other types of connections to the Rayls Public Chain include Subnets and Privacy Ledgers. Subnets are allowed to send private transactions through the Rayls Public Chain, whereas directly connected Privacy Ledgers aren’t able to do so.
Privacy is one of the main features of Rayls. Financial Institutions can transact privately within Subnets and across Subnets. For example, Bank A in Country 1 can transact privately with Bank B in Country 1 and also with Bank C in Country 2.
Crucially, private transactions are only available to Subnet participants. Anyone connecting directly into the Rayls Public Chain (for example retail users) are not allowed to transact privately. By only allowing regulated institutions to transact privately in the system, Rayls ensures that the system remains compliant and secure.
Rayls Public Chain: An Aggregator of Innovation and Liquidity
Since the Rayls Public Chain connects all the Rayls Subnets together, it can be thought of as an aggregation layer for the Subnets and their participants.
For example, a swapping dApp (such as Uniswap) can exist in the Rayls Public Chain allowing Subnet participants to Swap tokens and assets seamlessly. If the participant is a Bank, for example, the client of the bank can swap tokens directly from the bank’s App, without even realising that the swap in fact occurred in a DApp deployed in the Rayls Public Chain.
More use cases for aggregation will be added to the network over time, so that Rayls Public Chain will become an aggregator of Subnets, users and liquidity.
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For dApp developers aiming to leverage the vast user base and liquidity of global financial institutions, Rayls presents an unparalleled opportunity.
Check out the other articles in this Series
