Central banking was established over 150 years ago to ensure stability for the financial system. Since then, it has evolved into a complex system that provides monetary policy, conducts open market operations, supervises payment systems, and regulates financial institutions.
Central banks today also perform several other functions, such as setting reserve requirements for commercial banks, regulating capital markets, and providing payment services to retail customers.
On the other hand Decentralized Finance has become the latest trend in the financial sector and it’s taking off at lightning speed. In short, DeFi is a new way of managing money that allows individuals to access their funds directly through smart contracts without having to rely on trusted third parties such as banks or brokers.
In this article I will show how Alliance Block wants to connect both finance systems to form a big and only one!
What is Alliance block?
Alliance Block is creating a protocol that will bridge Decentralized Finance (DeFi) and Traditional Finance (TradFi) to help unlock the inherent value within each sector and exploit that value for each sector’s needs and goals. The goal is to allow investors to trade all assets on both finance systems.
This could be massive as it would open doors for traditional banks which haven’t been part of DeFi so far.
What are Alliance’s goals?
- Cross Border Regulatory Compliance
Dynamic smart contract logic integrates with existing legal structures and provides regulatory oversight, legal recourse and upgradeability.
- Data Governance and Privacy
All data collected, processed, and disseminated is compliant with General Data Protection Regulation (GDPR) and MiFID II to simultaneously ensure user privacy and transparency of transactions. MiFID II is a legislative framework instituted by the EU to regulate financial markets and improve protections for investors.
Given the sensitivity of user and transactional data in compliant settings, this layer ensures that all data is handled following applicable global privacy laws.
Role Based Access Controls (RBAC) and zero-knowledge proofs ensure that users retain full control over their data at all times and can approve or decline access to the various ecosystem participants.
- Transactions and Workflow
Cross Border Regulatory Compliance layer writes all of the different international jurisdictions regulations into machine logic within the smart contract. Since this is dynamic it means that when countries change its rules, the smart contract code will reflect this change to ensure that all operations are law-compliant at all times.
These changes are confirmed by the aforementioned Proof of Authority nodes which are in this case participating in centralized and decentralized oracles.
All in all no matter where you are, where your legal entity is based and what kind of crypto transaction is being undertaken, it will be automatically pre-authorized to ensure 100% compliance which means there would be no need for time-consuming and expensive lawyers.
Source: Medium Blog
Should I invest in Alliance Block?
– A very ambitious goal
+ Partners (Quant, Amazon AWS, Chainlink, Polygon, Hedera Hashgraph and Binance Smart chain)
+ Institutions spend less money on legal problems
+ Would be good for crypto as “outsiders” will gain more trust in DeFi
+ Opens more opportunities for investors and banks
+ Could form one big market that fights legal problems globally
+ Would guarantee more transparency and trust in banks
Conclusion
Unfortunately there is still a clear line between the decentralized and traditional finance world with crypto investors being viewed as more technical fraudulent individuals. Building a bridge could change this because I believe once banks will participate in the crypto market people will follow.
At the moment banks are still skeptical as there are a lot of uncertainties of security and legal nature. Both are very costly so they wait until there is more clarity that avoids those main risks.
Alliance could help to fight legal problems as all actions are 100% law compliant.
Also I could see companies like Quant or Amazon AWS adding the last necessary ingredients to help Alliance Block become successful. With that being said I will keep my eye on the ALBT token as I see a lot of potential in the long term.
How to buy tokens
1. Click this link to see the ALBT/USDT price chart on Kucoin.
2. Click on Spot -> Market -> Amount
3. You will get the coins for the best price
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Important
Please note that this is not financial advice in any form and investments should only be done after research was made. Also be aware that I didnt add any ALBT so far but might do so in the future. This article only shows my personal opinion and should only be viewed as a presentation not an inductment for investing. Investing is at your own risk!