BANKEX Proof-of-Asset Protocol: Financial Market Evolution

· November 10, 2017 · 12:30 pm

There are two Protocols that are widely used today: Proof-of-Work and Proof-of-Stake, – they are perfect for cryptocurrencies. However, with the growing demand for improving the liquidity of assets, yet avoiding the cumbersome process bounded by the rules and regulations of the traditional stock market, a new measure has paved the way for evolution. BANKEX is proud to present their Proof-of-Asset protocol. This technology enables information to be passed on in real time directly into the blockchain.

[Note: This is a sponsored article.]

What is BANKEX Proof-of-Asset Protocol?

By exploiting the technologies of the Internet of Things (IoT) and Artificial Intelligence (AI) BANKEX is building its Internet of Assets (IoA) on the foundation of Bank-as-a-Service (BaaS). The BANKEX team is aimed at delivering a Proof-of -Asset (PoA) protocol which will be considered an industry standard for creating new decentralized capital markets in various business sectors.

BANKEX PoA protocol will be available for third-party fintech providers, such as AI and IoT labs, traditional financial institutions and most importantly a wide variety of asset owners.

BANKEX technology is set to changing the way ordinary transactions are carried out by making them clearer, faster and much more reliable.

Asset Tokenization

Tokenization is the process of protecting sensitive data by replacing it with an algorithmically generated number called a token, much like a website domain is a representation of an IP address on the internet, a token is a representation of information on the blockchain.  By processing this information BANKEX PoA can perform actions that would usually require a third party for verification. Simply put – tokenization of assets is basically the process of passing on the rights to an asset into the blockchain and making it globally available. BANKEX tokens carry both functions: utility and security while serving as a gateway to the platform they are also backed by real-world assets.

Currently, financial markets are faced with several problems that lead to lower liquidity of assets, here are just a few that BANKEX attempts to fix:

  1. Numerous asset owners – this creates barriers to effective communication, making it harder to reach common ground.
  2. High dispersion of an asset – this results in blurred understanding of cash flow, that is generated by every single asset.
  3. Long period to launch projects and achieve desirable liquidity.
  4. Inability to enter the financial market and attract sufficient investments for non-public companies.
  5. Complicated process of tracking the lifecycle of an asset up to generation of cash flow.
  6. High legal and accounting expenditures caused by asset transfers when early investors sell their assets at peak profitability.
  7. Complexity of asset withdrawal if the terms of contract are not fulfilled.

In order to tokenize an asset, the company needs to ensure that said asset generates cash flow.