Developing the blockchain of the global financial system
- - What do we believe?
Blockchain use case #1 is the Crypto Global Financial System:
— decentralized enough to be reliable
— regulatory complaint to prevent crime
— running a non-volatile coin to store value
— w/o inflationist miner rewards to keep assets in excess of liabilities
— ruled by smart contracts to build financial applications
— upgradable to become green (PoS), scalable (Sharding) and secure in the long run (Post-Quantum Hashing)
“It seems inevitable that each country will rush to mint its own blockchain-based digital currency … as we want a global blockchain standard.”
— Stablecoins: What They Are and Why They Are Inevitable
There are several vectors (Davos trends, rise of the stablecoins reaching $5B USD market cap, China, Sweden, Singapore, South Africa CBDCs and 70% of central banks with focus on blockchain, DeFi) heading to a new global cryptoeconomy. The technical requirements for a blockchain to run it are not met on any current framework. Probably Ethereum is one of the best solutions on the map as regarded by ConsenSys CEO Joseph Lubin, but its features and philosophy are not yet enough to handle global finances.
This is why we are developing LydianElectrum, a new concept having the required vision and functionality to be a firm candidate to accomplish this massive task.
2.- What is LydianElectrum?
LydianElectrum (LE) is an Ethereum distribution designed to operate CryptoEuro stablecoin as the native coin and standard token (ERC-20) simultaneously. It improves Ethereum by escaping from volatility, inflation, halving/difficulty bombs, initial offerings and airdrops. Major LydianElectrum aspiration is to develop the solid monetary system we need to build a reliable global financial future.
“Decentralized Finance (DeFi) is a term that is being used to describe the world of financial services that are increasingly being offered through decentralized platforms.”
- How is Ethereum Leading the Decentralized Finance Revolution?
It is by standing upon the shoulders of giants that LydianElectrum might become the de facto standard to develop Central Bank Digital Currencies (CBDC) and Global Payment Solutions, because it inherits Ethereum best features such as being open-source, blockchain-based, decentralized software platform used as a cryptocurrency ledger and it enables Smart Contracts and Distributed Applications (ÐApps) to be built and run without any downtime, fraud, control, or interference from a third party.
Some important developments are required to add to Ethereum in order to make its native coin stable, regulated and interoperable while keeping it decentralized. Issuance processes (mint/destroy) to be performed through a master Smart Contract, syncing native coin with the ERC-20 token standard, pluggable KYC contracts are the LE unique features not available on Ethereum current code neither on future expectations.
For example, have you ever needed to send an amount of stablecoins to a Smart Contract? That’s a very regular practice when depositing for an escrow, but it is not possible to do it on Ethereum as an atomic transaction. It requires setting a previous ERC-20 allowance for the contract and as a second tier to call the contract method for depositing. On LydianElectrum any wallet can pay for a CryptoEuro deposit with an atomic transaction, because the stablecoin is the very native cryptocurrency. So LydianElectrum is the Ethereum blockchain to operate stablecoins natively.
Why LydianElectrum is not yet-another-Ethereum-distro? This is not about trying to improve Ethereum, but to explore a entirely new field beyond, that Ethereum is not meant for. LE distro has focused on FIAT crypto-decentralization, while Ethereum master branch is aligned to paying gas operations with a volatile cryptocurrency (Ether).
Further details on LE architecture can be found at https://bit.ly/2oCac8k
3.- To do list:
— upgrade code to latest Ethereum version (currently is a fork of go-ethereum v1.9.0)
— analyze PoS and Sharding implications to LydianElectrum
— prototype borderless contracts to comply with international regulations
— develop a pluggable Post-Quantum alternative to ECIES cryptography
— get up and running a worldwide 1,000 miners testnet network
— launch a customized open source blockchain explorer
“To allow for better scaling, the ETH 2 blockchain will be broken into pieces called shards”
- Ethereum 2.0 Has Made Some Critical Advances
4.- Building a community:
We are building an active community of volunteer contributors. Start to collaborate by deploying a LE node (check out bullet #5).
We think the developer team of a distro to settle the monetary backgrounds of the future cryptoeconomy shouldn’t be centralized into a place, a company or a country. A decentralized international CryptoValley community is essential to assert the core system is what we expect it to be, and get it developed in a collaborative public manner.
Ethereum, and LydianElectrum as well, are public open source and freely available, but this is not enough to trust the code. It takes expert knowledge and different points of view to analyze, review and understand what is actually doing a blockchain node when performing an EVM transaction, how the native coin is moved from point A to point B, and verify the most sensible processes (money issuance, KYC/AML/CTF policies) are really smart contract driven, guaranteeing a greater degree of security to all parties involved.
LydianElectrum as a distribution is made of a decentralized developer core team, active testing and maintenance, advisory governance. As a blockchain distribution it comprises an forked-Ethereum kernel, open sourced tools and libraries, documentation, and a block explorer.
The community around LE is aligned with the following 3 fundamental goals:
- Get volatility out of the equation as a core feature
- Wallet regulations through KYC + SSI (Self-Sovereign Identity)
- Minery and data storage Geoblocking Regulation compliance (such as EU 2018/302)
5.- How to deploy a node:
Source and instructions available at the git
6.- Contact us
Whether you are a blockchain adviser or developer interested in participate on this vision, send us your thoughts at juan@marketpay.io
7.- About the authors:
- Francisco Aréchaga
MSc Telecom Engineer and MBA ESADE. He is now part of the directorial team in Socialpay, a software company for escrow and split payments. Its blockchain division has launched several ICOs and solutions such as cryptovoting, cryptoticketing or cryptocards. - Juan Ignacio Pérez Sacristán
Theoretical Physicist with background on spin-glass simulation and parallel supercomputing was also an Internet entrepreneur with more than 50 projects (such as an A.I. autonomous newspaper, or a real-time search engine).
8.- About LydianVentures
We are a Innovation Builder and Lab leading the new cryptoeconomy by applying blockchain as a sustainable and disruptive technology. Since the outbreak of Ethereum platform we have been developing DApps and Backends on Blockchains (Ethereum, RSK) on ICO projects, Supply Chain PoCs, Intellectual Property over ERC-721 standard, Voting with asymmetric cryptography and Identity check with ERC-725/735.
“To control or not to control, that’s the question: Crypto is controlled by the users, everyday consumers, people like me and you- people that aren’t trying to control the economic state of the world.”
- Stablecoins. A few Questions you may have, Answered.
9.- References:
- Consensys & CBDCs: https://cdn2.hubspot.net/hubfs/4795067/Enterprise/ConsenSys-CBDC-White-Paper_final_2020-01-20.pdf
- Davos & blockchain: https://www.linkedin.com/posts/semanticwebarchitect_crypto-thoughts-from-davos-encouraging-activity-6628198164405071872-mOIy
- Ethereum: https://ethereum.org/
- LydianElectrum Architecture: https://bit.ly/2oCac8k
- LydianVentures: https://lydianventures.com/
- PoW: https://en.wikipedia.org/wiki/Proof_of_stake
- Sharding: https://en.wikipedia.org/wiki/Shard_(database_architecture)
- Post-Qauntum Cryptography: https://en.wikipedia.org/wiki/Post-quantum_cryptography
