search
Only on Eduzaurus

IUNO - Ecosystem For Decentralized Banking

Download essay Need help with essay?
Need help with writing assignment?
73
writers online
to help you with essay
Download PDF

The stage had long been set for distributed banking; services that will help even the unbanked have access to financial services on the go. Many platforms had tilted towards decentralized banking but a greater majority of these were yet to forge permanent infrastructure that will move such to the fore. All around the world today, larger portion of the population are disgruntled with traditional finance model and though many still make use of such, about 40% are yet to pitch tents with any financial platform. This does not mean these people do not actually have access to banking service; they rather find its use hard. Equally, the United States has its fair share of the problem as 27% of its citizens are cut off from banking. Current model demands users transacting through centralized authorities; a development that has its downsides. Hence, there exists great line demarcating the banked from the under banked.

This makes even distribution of services impossible as more persons derive benefits than others. The blockchain, a disruptor and threat to centralized status quo had been in the public domain for ten years and a new use case is in the offing. Though in-roads have been made to decentralize banking, the solution coming from IUNO’s stable might perhaps, be permanent approach to existing downsides. What is IUNO? Aside fostering blockchain banking, the platform is highly interested in meeting pain points and helping the literally stigmatized population have access to funds without necessarily having much to do with intermediary institutions such as banks. IUNO believes that more drives are being made for blockchain adoption and a large industry as banking will play great roles to that end. Lending and other financing will be conducted without middlemen interference.

Essay due? We'll write it for you!

Any subject

Min. 3-hour delivery

Pay if satisfied

Get your price

More than a Payment System

It is common practice among decentralized platforms to release coins/tokens during their ICOs. This had led to thousands of cryptographic coins littering the space with many having limited functionality. IUNO is not entirely interested in placing itself in spotlight as payment solution but rather channels its functionality to serve as unifying platform for all decentralized transactions. This approach is welcome development as it would integrate payment solutions in addition to banking service.

Two-Way Currency

IUNO also has its unique token – ABT. The token has dual functionality; serving as a crypto coin and a fiat currency. There is massive suppression and stiff regulations that have hampered growth of cryptographic currencies. Though onlookers might see it as a nice trend meant to limit adoption of currencies that might pose problems in future, the reverse is actually the case. Banks and governments are afraid of crypto success because their interest rates placed on loans in addition to other income channels will be closed. Hence, when a user stores his funds in digital wallets instead of bank accounts, banks will have limited access to funds thereby leading to their closure. IUNO is in tune with these trends and had already out measures in place against future sway of currencies. Its token is fiat-backed making it possible to port to either the fiat community when cryptographic currencies are accepted or remain in the digital sphere when the tide turns against it. At the moment, the token is expected to start off with the USD and proceed to integrate other fiat currencies.

IUNO’s Products

The platform had promised to introduce a new protocol, banking-as-a-service. In the meantime, it had started off operations with three distinct features. The first is the payment gateway. Though 60% of the world population is banked, there are some others that don’t enjoy full luxury that comes with it. To this set of people, IUNO has a payment gateway that lets them have access to debit and credit cards. Some industries have also being blacklisted because of perceived risks associate therein. Industries such as gambling and adult contents do not have much access to banking services especially having credit and debit cards. These industries contribute over $214 billion USD to credit card transactions but are still faced by high commissions. IUNO solves this by allowing them access to cards and also reducing transaction costs.

Stable Coin

IUNO’s token is perhaps one out of few stable coins in the crypto market. The token will not suffer lapses as others because of its hinge on fiat equivalents. The asset-backed token is first delegated to the USD on a 1: 1 exchange ratio. The blockchain will be used in leveraging transactions and reducing conventional risks. Peer TransactionsOne amazing feature of the blockchain is end-user interaction without intermediaries. Same scenario plays out on IUNO. There is a wallet that harmonizes many currencies and also offers banking services such as loans, transfers and deposits. Transactions conducted here are free and users are allowed to transact among themselves without any centralized platform calling the shots.

Disclaimer

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. You can order our professional work here.

We use cookies to offer you the best experience. By continuing to use this website, you consent to our Cookies policy.

background

Want to get a custom essay from scratch?

Do not miss your deadline waiting for inspiration!

Our writers will handle essay of any difficulty in no time.