“Advent of the Oracle DeFi’s First Financial Services”
When consumers make online transactions, the Payment Gateway(PG) companies firstly pay the transaction costs to the sellers with traditional financial assets and later get the costs back with the transaction costs and fees from the consumer.
E-commerce has changed economic life functioning regardless of times and places and by the development of e-commerce, Payment Gateway(PG) companies has emerged as intermediaries that connect consumers and sellers by improving reliabilities and speeds during transactions.
Payment Gateway(PG) companies were established to solve the following problems:
Consumer’s inconvenience of entering their own card information, passwords, accounts, mobile phone numbers, etc. directly.
Fraud issue by an unidentified seller.
Sellers can trust the consumer through Payment Gateway(PG) companies and this is the same from the consumer’s point of view on sellers. In addition, while improving the shortbacks that come from limitations of times and places in the real economy, PG companies also solves the inconvenience of inserting every data whenever consumers make trades. However, with the advent of Defi, P2P transactions without intermediaries have raised questions about the role of intermediaries.
Non-custodial assets have no basis for values or deposits yet, so they have difficulty for actual use as currencies in payments and transactions. However, thanks to the synthetic assets which is the synthesis of non-custodial assets and custodial assets, payments and transactions through Non-custodial assets will be available and Payment Gateway(PG) companies’ functions will become different when the actual Defi economy is established.
If so, what will replace the role as intermediaries for synthetic asset transactions? The answer to this question is following: Payment Gateway Pool.
Payment Gateway(PG) pool is a new blockchain fintech platform that chainifies and connects cross-chain networks of Defi and open banking networks of traditional finance. When requests of non-custodial asset tokens’ payments occur, Payment Gateway(PG) pool immediately sends non-custodial asset tokens while processing the payments by prepared reserve funds which are custodial assets.
By doing so Non-custodial assets get following advantages : reliabilities and stabilities of non-custodial assets for transactions will be qualified and no limitations of speeds, times, and spaces. It also emphasizes basis for the values of neuron assets called custodial assets, allowing intermediaries to intermediate decentralized transactions between consumers and sellers.
For example, consumer B pays 10 AAA tokens to buy breads at a bakery. One AAA token costs KRW 100 and the breads cost KRW 1,000. If seller A receives only cash, but not tokens, 10 AAA tokens must be exchanged to KRW 1,000 which is custodial asset, when they are being paid to seller A. For encashing tokens, consumers send 10 AAA tokens to blockchain fintech platform, the Payment Gateway(PG) pool. After receiving 10 AAA tokens, Payment Gateway(PG) pool automatically transfers KRW 1,000 to seller A’s traditional financial accounts from the reserve fund for the payment, through the open banking chain network.
As from the previous example, the Payment Gateway(PG) pool does not directly exchanges token assets into fiat currencies, but serves as a new payment hidden layer that exchanges two different assets without an intermediary only for payment purposes.
This will be a new attempt to decentralize payment service of traditional finance. In addition, as oracle Defis’ first financial service that replace the role as payment service provider (Payement Gateway, PG) by smart contracts, we will transform various traditional financial services (insurances, logistics, real estates, etc.) into Defi service form.
The CenterPrime project uses a Hyperledger private chain to share an open banking API to apps, connecting centralized finance to decentralized finance. Also making smart pairing data for loan, remittance, exchange, payment, and exchange rate information possible to be included in fintech oracle networks.