19 Июня 2019

Our financial system is still fragmented. Is there a solution?

Recently humanity has witnessed the explosive progress of information technologies that have revolutionized many aspects of human life. But the financial sphere remains to a large extent at the level, it was almost a century ago.

This technological dissymmetry cannot go on. Following the Internet of Information, the Internet of Value must come true, where the transfer of value will be performed as rapidly, easily, and cost-effective as the transfer of bits and bytes of data is performed today. The entire global economy, including every actor, will feel the results of the network effect.

But still, the inertia of certain traditional market players, as well as lack of a universal technology hinders the possibility to easily combine into a global network of networks of different value registries, both traditional and new ones.

Even the emergence and further development of innovations like blockchain and cryptocurrencies, which were created with the hope of sorting out precisely this issue, have yet to yield the anticipated results in this respect. The problem here: blockchain-based ecosystems are quite similar to traditional payment ecosystems in terms of lack of interoperability between them. Even the most widely accepted cryptocurrencies are completely incompatible with each other. Not to mention their true technological integration with legacy finance systems.

So, in today’s finance, we have many siloed ecosystems, with a lack of interaction with others. It is almost like the situation where we have a telegraph network, a postal network, a telephone network, and even several local digital networks but all of them are insufficiently connected with one another. One can well use any of those separately, but cannot send an email to a recipient of a traditional postal service, or a telegram will not be able to be delivered directly to a telephone. In fact, this is how it used to be in the exchange of information field before the global internet emerged.

And now we have exactly the same situation in the world of finance with no Internet of Value!

How can we overcome this?

All the value transfer networks need a universal protocol solution that provides an opportunity to interoperate, to lower the integration and operation costs, as well as to be able to sustain the ever growing transactions quantity with no speed or safety trade-offs. Ideally, such a solution should be open-source, support multi-equivalence, have high productivity and effective capacity.

This is the solution that GEO Protocol is delivering. Its technology has the potential to become an equivalent of TCP/IP for the Internet of Value.

GEO Protocol interconnects various isolated networks of value into the global Internet of Value

GEO is an open-source and highly scalable value transfer protocol for cost-effective and simple transfer of value. GEO Protocol solves the existing problem of siloed networks by creating a universal infrastructural layer. Local consensus and the lack of a common ledger let GEO overcome network capacity, speed, and transaction cost limitations that the blockchain industry is experiencing today. The ability to digitize any non-digital assets in GEO (including their logistics) opens up completely new opportunities for all network participants.

GEO Protocol provides a full atomicity of cross-chain operations, letting complex multi-hop transactions with several assets. Also, the protocol implements post-quantum cryptography for long-term sustainability and protection from existing as well as prospective threats.

GEO’s lightweight node is optimized in terms of computing and network resources consumption, so it can be installed on any device, including mobile.

All that makes GEO Protocol potentially a very promising candidate for the role of universal protocol for the future Internet of Value.