INTRODUCTION
Smart contracts are digital self executing contracts that enables anyone to exchange money, shares or other items of value in a transparent way. Smart contracts will only execute itself when the terms of the deal are satisfied.[1].
Smart contracts eliminates the need for an escrow to mediate a deal. Two or more parties who don't know each other can engage in a transparent deal. These includes derivatives such as futures, loans and swaps. While smart contracts are a powerful transaction engine researchers have found that today's 45% of contracts written in Solidity [Ethereum's Programming Language] have security vulnerabilities[2]. The vulnerability of smart contracts in the block chain industry is a treat to the future of the block chain economy. Hence the reason why the Firmo team came up with the idea of Firmo Protocol which enables users to create smart derivatives. This is a secure type of smart financial contract, offering products including futures, loans and swaps[3]
WHAT IS FIRMO.
Firmo is a company that has created a solution to secure smart contracts in the block chain industry. Firmo has built a decentralized platform called Firmo Protocol on the ethereum block chain which intends to help secure all smart contracts that are written in the Firmo verified language called FirmoLang.
Firmo Protocol is a decentralized platform that would enable users to create smart derivatives which includes futures and swaps written in FirmoLang. Firmo Lang is formerly verified with coq proof assistant which means that the Firmo Protocol can run a check on all smart derivatives created by users ensuring it is safe and secure before its been submitted to the blockchain. This whole process is totally automated and its purely digital. It removes the need for a third party to mediate deals. This is a great and exiting news to the block chain industry as this would totally decentralize futures market contracts, enabling users to create futures which are totally secure and safe for short term, medium term and long term purposes. This would also allow for multiple automated crypto currency swaps.
How will the added security features help cryptocurrencies
The security features of FirmoLang which involves checking derivatives for vulnerability or faults before it is submitted on the block chain would totally revolutionize the cryptocurrency industry. This would attract more investors into cryptocurrency as the security of investments would be guaranteed. The normal traditional fiat industry is huge in terms of derivatives and this is because of the high security of shares, bonds and other forms of investments. The Firmo Protocol also provides users with what is termed Zero Coverage which means users would not need collaterals to create derivatives on the platform. This is the first of its kind in the industry.
** How can an introduction of derivatives to tokenized assets help investors**
Firmo is working to create a decentralized platform that would enable the secure execution of smart contracts, Particularly in the realm of financial derivatives. This is a great news for investors and crypto traders as this would enable them create secure smart derivatives on exchanges and other platforms that supports the Firmo Protocol for short term and long term purposes to check their losses due to the highly volatile nature of crypto currencies. It would help secure assets and help to create stop losses.
CONCLUSION
The Firmo Protocol is indeed a great project and would revolutionize the block chain industry. The ability to create secure derivatives would not only help current investors in the industry, it would also attract more investors to crypto currency as this would ensure assets are properly secured and managed appropriately with a fear of been hacked. The block chain industry is evolving and its gradually taking over the world. Projects like this are the pillars that would finally launch the industry to dominate the world's economy.
To learn more about this project join their telegram group and the tea m are eagerly waiting to answer your questions just as they did mine. Got to know about this project from the @originalworks sponsored contest.
References
firmo2018