About
The ABLE project will create a solution to problems with traditional bank lending-deposit spreads, and nontransparent and centralized cryptocurrency financial services, basing the solution on the transparency and reliability of a blockchain system. The ABLE project is the cryptocurrency-specific financial solution that provides cryptocurrency financial products through person-to-person loanmatching systems and decentralized exchanges.
The ABLE project will create a platform that enables cryptocurrency based financial activities to center around the ABLE account, emanating from the fact that banking activities are carried out primarily through bank accounts. Users propose loan interest rates through a matching system, eliminating the lending-deposit spread by directly connecting users on a peer-to-peer basis.
The ABLE project supports decentralized exchanges and provides decentralized cryptocurrency wealth management services through smart contracts. Ultimately the project aims to evolve into the ABLE Ecosystem through its integration with external systems, including simple payments.
The ABLE project has been proposed to provide an alternative to banks’ conventional lending deposit spread structure, and to solve problems with initial cryptocurrency banking services.
Banks have a business model based on a lending-deposit spread (i.e., the difference between lending and deposit interest rates), in which the bank acts as an intermediary between depositors and borrowers. This structure allows banks to receive deposits at low interest rates and lend money at high rates, profiting from the difference.
Existing cryptocurrency-based banking services are provided through a centralized structure.
The combination of unsustainably high interest rates and centralized services renders banks directly vulnerable to managers’ moral hazard and the hacking of central servers. The lack of integrated solutions in the crypto market withholds users from experiencing diverse banking services.
CASE STUDY OF LOAN BROKER RISK: SALT
SALT is a banking service cryptocurrency solution that lends money in fiat currency backed by cryptocurrency as collateral. Using the multi-signature technology that only allows a withdrawal with the signatures of both intermediaries and borrowers, this solution alleviates intermediary risk and thus distinguishes itself from existing solutions. However, the SALT structure stipulates that without signatures, users cannot receive ownership of cryptocurrencies in return.
PONZI-SCHEME TYPE CRYPTOCURRENCY DEPOSITS
There are cryptocurrency deposit services in the form of Ponzi schemes that pay unsustainably high deposit interest rates. These services attracted customers by providing interest rates as high as 10% per month in the six months following launch.
CONCLUSION FROM ANALYSIS OF CASE STUDIES OF CRYPTOCURRENCY BANKING SERVICES
Cryptocurrency banking services are still in their infancy and do not have established business models. Most attempts to solve their problems have separated deposits from loans. This mechanism was not sustainable under the weight of high deposit rates and failed to solve the intermediary-risk problem caused by centralization.
The ABLE project aims to create a solution to existing problems and a better system through the investing-lending matching engine and various financial services that provide account-based links between investors and borrowers
Since the ABLE system architecture is layered, and levels of access vary depending on the layer, all respective layers and components communicate through standard-based ABLE APIs. The respective APIs are divided into public API, protected API, and private API, and levels of access to respective APIs are divided into users and the ABLE system.
REQUEST_DEPOSIT(COIN TYPE, AMOUNT)
Used when users deposit cryptocurrency money. Deposits are made based on the type and the amount of coins deposited.
REQUEST_WITHDRAW(COIN TYPE, DESTINATION ADDRESS, AMOUNT)
Used when users withdraw cryptocurrency money. Withdrawals are made based on the type ofcryptocurrency withdrawn, the address of cryptocurrency to receive, and the amount of coins.
REQUEST_TRANSFER(SOURCE COIN TYPE, DESTINATION COIN TYPE,
DESTINATION ADDRESS, AMOUNT)
Used when users transfer cryptocurrency money between accounts. Transfers are made based on the type of cryptocurrency transferred, the address to transfer cryptocurrency to, and the amount of coins. Exchange between different cryptocurrencies will be made at the exchange rates and service charges set by the ABLE system.
REQUEST_SMARTCONTRACT(COIN TYPE, PRODUCT ADDRESS, AMOUNT,
PARAMETERS)
Used when users apply for financial products. Request for financial products is made based on the type of cryptocurrency sent, the address of the smart contract for chosen products, and quantities.
START_SMARTCONTRACT (COIN TYPE, SOURCE ADDRESS, SMARTCONTRACT ADDRESS, AMOUNT, PARAMETERS)
When users request financial products, it sends the type and the amount of coins requested for the smart contract in question. When the smart contract expires or Stop_Fund occurs, End_Fund will be executed.
STOP_SMARTCONTRACT (COIN TYPE, SOURCE ADDRESS, SMARTCONTRACT
ADDRESS)
When users cancel financial products, the coins put into the product will be returned through smart contracts. Interim payments will be made under the agreement for the product.
END_SMARTCONTRACT (COIN TYPE, DESTINATION ADDRESS, AMOUNT)
When smart contracts expire or are terminated, the result will be sent based on the type of products to the account of users who requested the products.
EXCHANGE_COIN(SOURCE COIN TYPE, DESTINATION COIN TYPE, AMOUNT,
SOURCE ADDRESS, DESTINATION ADDRESS)
Used for transfer of cryptocurrency between accounts or used to exchange cryptocurrency when smart contracts expire.
SET_SMARTCONTRACT(SMARTCONTRACT NAME, SMARTCONTRACT
DESCRIPTION, SMARTCONTRACT ADDRESS)
Used when registering financial product smart contracts designed with the ABLE system. The product thus registered is made accessible to users through the application layer.
DELETE_SMARTCONTRACT(SMARTCONTRACT NAME)
Used to delete any expired financial product smart contracts.
CONCLUSION
The ultimate goal of ABLE is to provide users with a great user experience, while simultaneously allocating value to ABLE through all the benefits described above. In finance, the project aims to create a systematic ecosystem and develop a better user-accessible system by applying blockchain technology to any area deemed necessary. ABLE intends to integrate into one system all the financial solutions currently dispersed across the blockchain market, by offering a solution to existing banks’ problems, and an alternative to centralized deposit-lending systems.
The P2P investing-lending system, which is the core of the ABLE project, is particularly significant because it creates personalized accounts for cryptocurrency assets. Existing micropayment and fund solutions suffer from numerous shortcomings due to the lack of an integrated account, and users have substantial trouble using those solutions.
Additional solutions will be created in the integrated system to provide various services to users through their account designed for them.The ABLE project aims to improve accessibility for the general public to easily use institutionalgrade products with low service charges and high returns on investments, as well as low lending
rates, by utilizing the benefits of blockchain technology. Personal accounts will enable users to receive transparent services difficult to earn through personal wallets.
For more information, Please contact us below :
Website : https://www.able-project.io/
Author By: yanifitri20
