About SINTEZ in simple words.
SINTEZ is unorthodox, in this case, meaning that it differs greatly from other blockchain projects. The main difference is in the key idea to gather ‘your whole economy’ in one place which in turn leads to a wide range of other simple and self-evident ideas and solutions…
“HOW??”, you may say! “I’ve read the whitepaper, and I do not understand anything!” (I have received feedback to this effect!)
Indeed, it is heavy going trying to grasp the complexities of the system as a functioning whole straight away. To make my point, take Einstein’s idea, the Special Theory of Relativity, the whole theory stems from the fact that the speed of light is the same in different frames of reference. If you are not familiar with this theory, you can take a book and read about it. Is everything clear to you when you have finished? Probably not, but in time, you will understand.
I am not trying to suggest that SINTEZ is anything like as complex to understand as the Special Theory of Relativity, however, what I want to do, is just describe the SINTEZ project in simpler terms by sticking to the main concepts and what is essential to understanding how it all works; so that in time you will come to understand.
As was said above, the main idea of the platform itself is to gather everything in one place. The Bank, the Managing Company, and so on. This is just for the convenience of having everything in the same place. For example, you can take money and invest it at once or buy something without relying on other third-party services and platforms. You don’t have to pay additional commissions or wait a long time for money to be transferred from one system to another, or indeed, risk transactions failing to be transferred at all… In addition, such combinations make it possible to create instruments that are impossible elsewhere, that is to say, different components enhance each other when they work together resulting in lower commissions and in the appearance of new opportunities for users. We believe that any perceived negatives resulting from the complexity of our system are more than outweighed by the advantages.
Some terms used in the SINTEZ environment are likely to be familiar to everyone such as Banks, Exchanges, Markets, and some of them even exist as decentralised solutions. However, what people don’t normally understand which is vital, is that there are two fundamental components of SINTEZ, Coin and Smart Investing (SINT), and that these are our competitive advantage over other similar systems.
Our currency, Coin, is a stablecoin. Coin is also a cryptocurrency with a special property: the exchange rate does not vary much over time; hence the term stablecoin. Let’s consider why this is important? Imagine that you have taken out a loan in Bitcoins and need to make monthly repayments in Bitcoins. If you earn the money to make the repayments in a fiat currency and Bitcoin’s value doubles every month then it won’t be long before you go bankrupt… Bitcoin can also fall significantly, so it is not suitable for being held in reserve. You can only invest in Bitcoin at great risk, in other words, you must be prepared to wait for a recovery should Bitcoin’s value fall (which could take months or indeed years) or potentially lose money thus Bitcoin is not suitable for use in situations where you might need convenient access to your money at any given moment (like when you decide to go shopping) so Bitcoin cannot be thought of as money in the conventional sense because it lacks stability.
The popular Poloniex crypto-exchange uses Tether’s USDT stablecoin to carry out settlements. The reason is simple: people have dollars and dollars are used to back USDT (meaning you can easily exchange USDT to USD if you wish). Dollars are backed by the American economy and government so it follows that USDTs are backed by the American economy by means of the dollar. However there is a disadvantage: the issuance is centralized therefore everything is dependant on one company (Tether). Tether controls how many USDTs will be issued and how many dollars will be deposited as backing for the said USDTs. It is possible that Tether may decide not to deposit any dollars at all in which case all your USDTs will depreciate one fine day…
Coin on the other hand is a different animal. Its issuance is decentralized and transparent, which prevents the risk of Coin collapsing suddenly or going down in value dramatically. Makerdao’s Dai is similar to Coin. Its issuance is decentralized and fiat currencies are not purchased directly as backing, rather an intermediary mechanism has been created that binds the value of Dai to the SDR (Special Drawing Right). The SDR is the IMF’s international reserve asset designed to supplement its member countries’ official reserves. The SDR can be thought of as a kind of currency that can be exchanged freely for usable currencies. Its value is based on a ‘basket’ of five major currencies (USD,EURO,GBP,RMB and the Japanese Yen). The target price of Dai will always be in terms of the SDR thus creating a broader stability than that of Tether’s link to the one currency, namely the dollar. Dai is therefore backed by a set of fiat currencies and is created by borrowing (CDPs, Collateralised Debt Positions) on its Maker platform. The stability of the price is controlled by modifying incentives for borrowing and holding Dai thereby controlling the total supply of Dai in response to market forces. The price is further controlled by the liquidation of CDP’s when the underlying collateral falls too low.
The principle used by the IMF to choose the economies to back the SDR is heavily politically charged and nontransparent, and no one knows what Dai will be backed by in the future. We designed Coin to take a step further forward. We have chosen all of the world’s large currencies to make our own (synthetic) basket of currencies to reflect the global economy as both security for Coin and the target for its stable price. In this aspect Coin is backed by the whole world’s economy, that is, by the greatest possible value.
However, this is not the main aspect of Coin. The big deal about Coin is that it exists within the SINTEZ system. This allows your Coins to accumulate from all the money flows within the system. Users of the system will buy, invest, accumulate and use Coin for all money transactions. This will create demand for Coin. This demand is satisfied by traders selling Coin. The bigger the demand the smaller the bid offer spread becomes. This in turn leads to liquidity (the ability to buy and sell without losses). This is a vital function of money. SINTEZ synthesizes this property and this is one of Coin’s unique advantages. No other coin can do this. Currently, other decentralised stablecoins are illiquid and therefore cannot serve as money in the same way. If you have ever used e-money, you will, no doubt, have come to realise that it can be quite a problem to buy this money, there are huge commissions everywhere, and you have to hunt for the best deal… If you have used e-money in the course of your business activities, you will know it to be a question of great importance. So, you need Coin, and Coin needs SINTEZ. There is no other sensible way!
Smart Investing (SINT)
Imagine that you want to buy Swiss cheese of a particular brand. You need this specific brand and nothing else. You arrive at a shop and find there is a choice of 2 different varieties of Swiss cheese but not the one you need. What do you do? Do you take what is available or do you go to a supermarket? You must have this brand so you decided to go to the supermarket. There are a huge number of shelves at the supermarket all containing whatever you can think of. Unfortunately, it is now like finding a needle in a haystack. So what is needed? You can follow the signs over the aisles or you need to ask a member of staff who may say something like, “The dairy department is over there, please follow me”, you are then guided to the dairy department, and you hear them say, “The cheese shelves are over here”, and finally, having found the cheeses, you can alphabetically locate your required brand.
The situation with investing is the same. Every person or organization have their own individual needs in the form of their own attitudes to anticipated profit and risk patterns (the so-called “risk profile”). You too, dear reader, also have them. These preferences depend on many things — your well-being, your income and expenses, your goals and tasks, your plans, your state of mind and of course, your wife who will eat you alive if the drawdown is greater than 15%! These characteristics define the ‘Swiss cheese’ that you need and how will you search for that product? You may go to an investment company where they will offer you 10 excellent strategies to choose from. This situation equates to the shop where you would be lucky to even find something similar to the cheese you want. If you don’t like these options, you can go to etoro. There are many different strategies on this platform, but how are you going to find exactly what you need? Likes and comments about good sausages and apples will not help you understand where the cheeses can be found. You still need a guide. Someone who will be able to take you past a million choices of different goods efficiently, right to that coveted one…
Enter Smart Investing (SINT). SINT is a very good investment management system for finding an investment product that you need. It understands you and your attitudes and creates a combination of investments which in itself is a new product. The final output should be suitable for you!
SINT isn’t just a supermarket where there are many different goods and it isn’t just a guide (or “calculator”) that will quickly find your ‘cheese’ for you and hand it to you on a platter. SINT is also the production (SYNTHESIS!) of new products from combinations of the existing ones. Such combinations are infinitely many already. Somewhat like in a fast food shop where you can assemble a personalised sandwich by choosing from different ingredients, SINT offers the same structure. This isn’t just a set of different strategies that come with the system together with the traders who implement them. This is also an infinite variety of all sorts of ready-to-eat dishes, which are also cooked on the spot from fresh ingredients! For example, when you go to a store you don’t have to just buy your Swiss cheese alone, you can also have it as a part of a salad, your favorite one that your mother prepares. So why bother her once again if you can have exactly this kind of salad made to order from fresh ingredients right here and now?? Maybe there is something else that you haven’t tasted yet, which will find your “bliss point”?!
This is, the main idea behind SINT (Smart Investing). The formation of such a market equipped with a processing system where sellers of professional management services will be able to supply them to their customers not only as individual investment products, but already included in a package of strategic combinations, thus giving them a huge range of investment choices that will satisfy all kinds of preferences. A market where investors will be able to purchase whatever they like without difficulty. Naturally, such a “supermarket” will be preferred by investors, attracting the bulk of their funds. Finally, it should be noted that all investing is done in Coins. This means that there is minimal exchange risk and that growth estimates of investments are as comprehensible and transparent as possible. You will be able to use a simple interface to buy coins or use Smart Investing to make the best investment products for yourself.
In addition to all this, there are also other possible ways to integrate SINT components into the SINTEZ platform. This is what I will be writing about in my next articles.
SINTEZ — we synthesize the future!
Project Website: https://sintez.global
ICO Website: https://sintez.global/ico
Whitepaper in English: https://sintez.global/sintez_whitepaper_eng.pdf