Let’s talk about everybody’s favorite topic: Money.
As we all know, money never sleeps — it wants to flow, change hands and most importantly, turn into more money. The search for ways of growing capital as passively as possible with as little risk as possible has always been the holy grail of the financial sector, and has expectedly grown to represent a multi-trillion dollar global industry nowadays, ranging from banking reserve interest and government bonds all the way to hedge funds and investment banking. One can even argue that the majority of modern economic activity is driven by massive whales in search of precious ROI.
Unfortunately and quite ironically, while the industries in question are absolutely enormous, they fail to simultaneously adhere to the 3 core characteristics that are necessary to create ideal conditions for instilling investor confidence and seamlessly attracting very large flows of capital.
We can clearly identify those as:
1. Attribution and Fund Availability. For anyone to place their hard earned money in the hands of a third party, an iron clad guarantee is needed that said funds will always be available for retrieval by their owner upon demand (even if a longer term investment is entered into such as a multi-year bond program, said bonds can always be re-sold and the funds claimed), and that ownership can always be proven and never forged — this is known as attribution. This is a major issue in today’s world as while enhanced security is offered to depositors in the form of identification, biometrics and security questions, identity theft is prevalent and these measures aren’t bullet proof. Fund availability has also proven difficult in the past as banks are still subject to robbery, insurance failure, insolvency, bankruptcy, and others. Banks are known to have been bailed in and out, meaning that private bank accounts have been used to cover bank debts. As it stands, no one can place absolute trust in the traditional financial sector given its current state.
2. Financial Privacy. The need for it is fairly straightforward — without absolute privacy and with enough scrutiny, your funds are susceptible to observation. Your balances, statements, transactions, dates, buyers, vendors, etc are all visible for anyone who wishes to get access. Would you allow your competition to review, copy and abuse your customer list, asset portfolio and hedging strategies if you could help it? While the financial sector attempts to provide its clients with financial privacy, bank secrecy is fading, corporations sell user data to 3rd parties and major DB hacks happen more often than anyone cares to admit. Just imagine the impact that such a vulnerability would have on large players with sizable assets and transaction volume.
3. Inherent Trustlessness. Anyone who’s ever dealt with the financial system knows that trust is an integral part of it. For any transaction to take place, trust needs to be established between buyer and seller, client and vendor, customer and merchant, sender and receiver, etc. This is required in order to prevent fraud, enforce terms and prevent either party from committing to more than they own (double spend). This channel of trust must be overseen, facilitated and vouched for by a more established and better trusted entity, leading to centralization. If for whatever reason said trust is broken, the entire system breaks down. Would you allow an unknown party to manage a large portfolio for you? Would you make a large purchase without confirming the seller’s reputation? Would you deposit millions into an interest-bearing account without knowing who runs the bank? What if everything checked out but the rules of the game changed? We all witnessed the terrifying result of the 2008 global credit crisis and what it meant for investors and depositors.
Without satisfying all 3 aforementioned conditions, the major players can’t be expected to naturally flock in. Currently, those players need to at best settle for what the lackluster setup that system has to offer, which inhibits growth for everyone involved. For a multi-trillion dollar industry, this becomes a multi-trillion dollar problem — a problem that is finally about be solved.
Enter: PoSW. Proof-Of-Stake Wallet is a revolutionary digital currency and growth-oriented financial ecosystem. While digital currencies have already been introduced into the game (Bitcoin, Ethereum, Dash, etc), PoSW will usher a new era of capital growth using its ground breaking and soon to be released Trustless Proof-Of-Stake (TPoS) technology. TPoS allows any fund owner to delegate the duty of growing their funds to any interest generating service provider (typically served via Masternodes on the network) without having to relinquish control over your funds.
Think of it as putting your money inside of a virtual bank that cannot fail, get robbed, go bankrupt, become insolvent or shut down, with you being able to withdraw or move 100% of your funds at any time, day or night, no questions asked and no withdrawal limits imposed. Sounds like magic, doesn’t it? TPoS takes on the robust infrastructure introduced by Bitcoin — the Blockchain — and adds an extra layer on top. That layer is the delegation layer. While with Bitcoin (and any other digital currency in existence) a user would have to send their money to said service provider in order to grow their funds, TPoS allows users to delegate their funds.
With PoSW you don’t send over your money, you send over the right to grow your money, temporarily, until you find someone who offers a better service. This is the very essence of the free market.
So how does PoSW fare against the 3 principles outlined above?
1. PoSW is fundamentally private. The PoSW network utilizes a technology called Stealth Mode, meaning that a user can choose to send funds to a recipient without any traces. Sender and recipient details are hidden and obfuscated, making it impossible to track your movements.
2. PoSW provides attribution and is always on. Using a dedicated blockchain, PoSW records each user’s balance and stores it forever, until they choose to move it around. The PoSW network is cryptographically secure, meaning that no one can access anyone’s funds unless they have their private key (unique password) and is fully decentralized, meaning isn’t owned by any party who can choose to arbitrarily change the rules.
3. PoSW is trustless. Unlike any other financial system or digital currency, PoSW is the only solution that allows a user to delegate the right to grow their funds without needing to actually hand over custody over them. This is ground breaking technology and cannot be found anywhere else. In the future, PoSW will also allow users to delegate growth rights over external assets, such as other digital currencies. This elevates it from being a currency to an entire ecosystem in its own right.
As the finance world faces more and more challenges with financial secrecy, solvency failures, identity thefts, trust breakdowns and other systemic issues, major players will turn their attention to digital currencies and specifically to the one solution that adds the necessary layer on top — PoSW.
Economically speaking, PoSW’s current network valuation is rated at $6 million as of writing this. This is a drop in the lake that is the digital currency space, that is currently evaluated at $220 billion, which is in turn a drop in the ocean that is the global financial system, with valuation in the hundreds of trillions of dollars. To accommodate the incoming transaction volume and capital influx, PoSW’s valuation will need to grow to match, if only to provide the needed liquidity to support future monumental moves. This is similar to Ripple’s network token (XRP), which is currently valued at $8 billion as it needs to support banking transaction volume.
These are still the early days, but we can state with certainty that the PoSW’s TPoS will rock the boat, and it’s long overdue.
For more information about the PoSW project, please visit us at http://posw.io
