Question: What comes to your mind when you encounter (if it is your first time) the word Fintech? Well, Fintech is short for Financial technology, a fairly young and upcoming industry in the world of finance. Primarily, they operate as banks only that their operations are based online, and offer higher interest rates and lower handling fees for your funds.
Fiat banks are still the major users of technology, but Fintech uses technology for financial service offering, thereby changing the way financial institution interact with their clients. Fintech services cut across multiple business products in the finance industry such as lending, financial advice, investment and portfolio management and payment.
Approximately $350 trillion in global assets are held and traded within the confines of fiat banking system. However, the limitation of lack of liquidity, transparency, and accountability between centralized financial institutions and their customers, limits the efficiency of the capital markets. This is where Fintech comes in. CommerceBlock is a public blockchain infrastructure company that allows anyone to build and use financial products and services historically reserved for commercial banking customers. This allows global economic trading activities to be conducted in a secure, private, and efficient manner on the public blockchain.
The CommerceBlock network is providing a platform that offers a combination of trust minimal trade, decentralized contract execution, on-chain derivatives, and asset-backed token issuance to the public blockchain. Being the first Fintech platform on the public blockchain, CommerceBlock’s products will provide a suite tools that will enable virtually anyone to build and use services that construct contracts, manage trade flows, engage in multiparty dispute resolution, issue assets, and hedge currency risk. The platform will be decentralized meaning that developers and end users will be able to manage all stages of a business interaction and fulfill their contractual obligations by utilizing the CommerceBlock Platform.
The platform will be built in the Ethereum blockchain with the CommerceBlock network issuing CommerceBlock Tokens (CBT) during its ICO to be tracked on the Ethereum blockchain using ERC20 smart contracts. During the tokensale, this November 2017, 40% of the total token supply of 1,000,000,000 CBT will be on sale. The tokens can be bought for both Bitcoin and Ether. The other 30% of the total token supply will be allocated to the company and the remaining will be held by the company’s partners. The revenue to be raised during the token sale is expected to reach $25 million, where 50% will be used for software development, 20% for operations, 15% for marketing and the other 15% for Open source community development.