Infra
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This document proposes a blockchain-based model for the financial ecosystem that addresses scalability issues with existing blockchain solutions. It suggests that each entity maintains its own ledger rather than sharing a single global ledger. Transactions are executed through a peer-to-peer network between trusted gateways like banks, allowing for fast settlement, auditability, and no built-in currency while maintaining privacy and complying with regulations.
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Infra
- 1. Blockchain based model for financial ecosystem (INFRA) Pavel Kravchenko, PhD
- 2. Why FinTech is interested in blockchain technology? • fast settlement • undeniability • easy audit • standard set of protocols • open-source
- 3. Why Bitcoin/Ripple/Ethereum is not an option? • Poo scalability of a single ledger • Low speed of transaction validation • High trust to anonymous validators • Absence of anonymity & KYC/AML • Low privacy of trading positions • Built-in coin is undesirable
- 4. 1) each entity has its own ledger(s) 2) there is no global shared ledger at all 3) there is no global consensus 4) no designated validators (gateway = validator) 5) consensus is reached only between parties that involved in the transaction 6) no built-in coin! Solution principles
- 5. Ledger structure Customers keep ledgers on their devices Banks maintain copy of customers’ ledgers
- 6. Ledger replication Regulators share ledgers with banks
- 8. Transactions are distributed inside trusted p2p network between gateways (banks). Each bank decides whom to trust.
- 10. Exchange process