Legacy financial institutions have generally taken a hands-off approach when it comes to cryptocurrencies due to their lack of transparency and promotion of anonymity. ivyKoin is looking to break down those barriers through its unique transfer of KYC (know your customer) and KYT (know your transaction) data via their blockchain network.
Legacy Systems Need a Hero
With trillions of dollars being transferred on an international scale daily and the growth trajectory of cryptocurrencies, a solution is needed to introduce clean cryptocurrency transactions to existing payments systems. The continuous issue that legacy systems seem to face is balancing between the demand for digital asset transfers and non-negotiable issues with anonymity that are commonplace in the cryptocurrency space.
Banks have recently gone so far as to block transfers related to cryptocurrency in order to protect themselves due to the potential for illegal or fraudulent activity to be associated with the cryptocurrency in question. ivyKoin is looking to break those barriers by introducing more robust compliance systems to traditional cryptocurrency payments and transfers. To achieve this, ivyKoin has developed a system that attaches important identity-related metadata right on cryptocurrency transactions.
KYC Baked In
One of the main focus-areas of ivyKoin’s mission is to associate relevant KYC and KYT data to cryptocurrency transactions in order to easily integrate with existing legacy systems. The associated data would be inclusive of (but not limited to) attributes such as an individual’s name and address, and the transactional details including the recipient’s information.
Part of ivyKoin’s token utility is the unique ability to voluntarily deanonymize transaction data in order to comply with the requirements set forth by the engaged financial institution for cryptocurrency transfers. It is through this feature that individuals can release their information to the extent of their choosing in order to bridge that important gap in the system. The potential growth trajectory for cryptocurrencies will only be enhanced by these forms of cooperation.
Cripple the Ripple
Cryptocurrency heavyweight Ripple and their XRP asset also seek to work with legacy financial institutions. However, a few of ivyKoin’s unique functionalities provide advantages over Ripple.
A common critique of Ripple’s network is the fact that its consensus system generally relies upon a quorum that is centrally controlled by Ripple’s servers. This is in direct contrast to ivyKoin which uses a decentralized transaction validation system which is, and will forever be publicly auditable.
Ripple also doesn’t have compliance attributes included in its system – a feature which ivyKoin’s entire mission is built upon.
Another common critique of Ripple is that its supply is heavily centralized due to it being minted instantly and distributed through sales directly from the company. At the current time, Ripple still holds almost 7 billion XRP and has 55 billion locked up in an escrow for future sales. The remaining 39 billion is in the hands of both the public and large businesses.
During ivyKoin’s token sale, 40% of tokens are being sold to the public immediately and will have a distinct form of utility upon release. With XRP’s current market cap sitting at an astounding $44 billion, there is plenty of market share for ivyKoin to grab in this competitive space.
Proven Teams Build Polished Products
It definitely takes a team with a successful track record to embark upon an undertaking such as ivyKoin. The Head of Financial Institution Partnerships at ivyKoin, Gary Fan, is a banking executive who has held numerous roles including the Senior Vice President of Strategy and the Head of Consumer Lending for CTBC USA, a subsidiary of a larger $100 billion global bank located in Los Angeles, California.
ivyKoin’s CTO, Michael Beck is both a business strategist and technologist with over two decades spent as an enterprise architect. He also holds multiple patents in the field of InfoSec and rights management. Following them is a team that includes former CEOs, engineers, and marketing experts.
ivyKoin successfully closed their pre-sale due to an immense amount of investor demand. For more information about ivyKoin, visit their website and check out their white paper. To reach the team directly with any questions, make sure to check out their Telegram channel.
Do you think ivyKoin’s mission of bridging legacy financial systems to the cryptocurrency world will be successful? Do you think ivyKoin has what it takes to dethrone Ripple when it comes to working with the banks? Let us know in the comments below.
Images courtesy of ivyKoin, Ripple, and Pixabay