An investor tossed a question up in our telegram and it seems a wise idea to attempt an answer here on the blog to help better explanation and serve the readers with the similar question in their minds. The question stated…
Could you please elaborate hedging as a patent pending technology?
Can you explain more about this patent pending technology of hedging?
Context
The fluctuation in addition to the volatility of the coins in the crypto market are arguably the most irritating factors the blockchain users consistently come across. Boon Tech’s hedging technology (with patent rights) promises a lot to deal with these factors.
In the case of any job platform featuring jobs with $100 or less, just as we have on Boon, the role of the hedging technology becomes highly significant to keep from crypto-fluctuation effects, otherwise, nobody will opt for the blockchain.
Boon anticipates the market downslide, and almost a huge majority of other projects anticipate the rise in the Ether price.
Examples
Step 1. The entrepreneur posts the project on Boon
Step 2. Skilled professionals place their bids on the project
Step 3. The entrepreneur will make a selection from the available bidders e.g. to set up a website or work on a comprehensive web design which lasts for a couple of weeks or even more
Step 4. The entrepreneur deposits money, say $2k to his Boon escrow
Step 5. The selected bidder completes the job in a couple of weeks
Here comes the problem that you can’t escape from the fluctuating Ether value. There has to a difference in the value at the time of the project acceptance and the value by the time of the project completion. You can’t deny the possibility of the fluctuation in the value of Boon Coin or Ether. If the Ether value downslides, the professional working on the project wouldn’t receive the promised $2k.
Boon solves the issue by hedging Ether or Boon to Boon Dollars. Boon Dollars are pegged to the $US. What happens is that Boon converts the deposited amount, $2000 in this case, into the Boon Dollar, right at the start of the project. By the project end, the professional will receive the money in the form or Boon Dollar or Ether currency, as per the current market value. The solution helps both, the professional as well as the employer.
So Boon Hedging eliminates the risk of losing money which happens in the case of crypto-fluctuation. The conversion of the Ether currency to the Boon Dollar is called hedging. This is an in-house technology involving Boon tech-experts and some external APIs.
The ideal scenario is the pegging of the Boon Dollar to the US$ value for the US$ is still the world’s most stable currency. The pegging with the US$ makes it fairly easier for the users at Boon to calculate the currency value. Ether currency, for instance, ETH or BTC feature values in decimals and it becomes harder to relate with alternative currencies.
Hedging only benefits if you have the patent rights. The patent rights are currently pending so how wiser is it to anticipate that the patent will be awarded in the coming few months?
Hedging is at work already and we’ve implemented it at Boon. The application for patent becomes effective as soon as the feature is implemented. The approval of the patent will be highly appreciable, and we are positively confident of the approval, for nobody else has yet applied for the patent or at least it hasn’t yet come to our knowledge.
