Transmission concept of International Fiat transfer & Crypto conversion.
Rapid capitalization growth of the crypto-currency market, the appearance of new types of digital currencies and the huge cash flows of the modern international transfers sphere of fiat currencies require secure and fundamentally new efficient ways of converting such currencies and transferring them.
Currently all proposed solutions of traditional payment systems cannot simultaneously provide low transaction costs and fast speed of transactions. It will either be a low transaction cost that will take about a week, or it will be fast enough but with outrageous fees.
The vast majority of new investors in the crypto-currency market that are buying and selling digital currencies with fiat are forced to pay incommensurably high commissions over 5%.
Combining the advantages of blockchain technology and the essence of the payment process, the Transmission team proposed a new payment architecture for international transfers of fiat currencies and the conversion of crypto assets into fiat.
Transmission network architecture is built upon complete decentralization of solving currency payments and transfers.
The system core, in this case to ensure the integrity and speed of transactions, includes a new concept of its fiscal agent, who is ultimately the node (nodes) responsible for the implementation of operations.
The Financial agent may be any individual or organization temporarily possessing free fiat or cryptographic means that agrees with the rules of the network protocol and with the rules of making transactions in the Transmission network.
Financial agents essentially perform the functions of “miners” for the financial ecosystem of the transmission network, wherein all of the network transactions associated with the “input” and “output” of the fiat currency in exchange transactions can be replaced by local internal transfers of the system’s client and its fiscal agent.
The financial agent of the system is rewarded for performing the functions of the system node.
The use of internal transfers allows the exclusion of all other transaction costs except for the fee (interest) of the system itself, which is transferred to the account of the fiscal agent that in fact finances the transaction with the fiat currency.
And the basic concept of the idea is that money does not leave the country, or even the city. In every country, in every city there is always someone who is looking to sell, and there is always someone who is looking to buy. So the concept of Transmission protocol is based on the fact that the necessary currencies for conversions and transfers are already present and available to other participants of the transaction.
The Transmission model is similar to the UBER business model.
Uber does not have any cab drivers, it does not own an auto park with lots of taxis. Uber created a P2P network, where its independent agents in needed locations execute the delivery orders.
This principle of network operation allows to make calculations on terms significantly more competitive than most existing systems in the market at the moment, with fees for the client of the system not exceeding 1% of the transaction size.
The chosen network model allows to maximize the effective use of P2P architecture capabilities, decentralizing the transaction process, providing a balance of interests of the fiscal agents and the end users.
The terms of paying (the fee size) fiscal agents directly affect the degree of their interest, yet an important fact must be noted: scaling the transmission network and increasing its number of agents/nodes will in direct dependence lead to higher agent means turnover and faster growth in profitability of their activities.
Involving new (or additional) agents in the transmission network will allow:
- To increase the overall liquidity and territorial coverage of the network;
- To increase the speed of performing transactions and to reduce the period of capital turnover of its fiscal agents.
For example, given the period/term of capital turnover in a week (and transactions fees at a rate of 1%) the expected annual income of the Financial agent can amount to 52% of the invested capital (67% with the reinvestment of the collected revenues), and with the reduction of this period to 3–4 days it will grow to more than 100%. In other words, $1000 that are temporarily invested for use as a financial node of the transmission network within 1 year are guaranteed to increase to more than $2000.