Topic: How to connect cryptocurrencies to banks... - page 2. (Read 524 times)

1. Of course, the cryptocurrency anonymity is a great advantage.
But lately we have been witnessing a tightening of tracking cash flows.
And I would not be surprised if in the near future large cryptocurrency exchanges require confirmed cryptocurrency transfers, that is, signed ones.
So I think we will come to this sooner or later.
2. At this stage there is no better alternative for introducing a single standard than Ethereum wrapped tokens.
Perhaps soon we will see other options, but so far this is not.

Of course, such a future is not very pleasant for us.
And yet we must accept what is happening.

at1. There is this old saying, "registration is the first step to confiscation"
       The moment we loose anonymity factor, will be our last. There will be nothing that could stop them.
       What was electronically given, can be physically taken away because nothing is secret. We saw just that already.  
at2. No one can force people to leave btc blockchain behind and use some other instead.
       Voluntary switch could happen only if the technology offered, display tremendous improvement (still doubtful)
       in all aspects (look above). Such loop simply can not be broken, sooner delegitimization brings the market down.  

Nevertheless nice post, professionally presented.

You don't. It's not going to work. The banking system and cryptocurrencies are contradictive to each other when it comes to the fees, anonymity/privacy, security etc.

It might work in the short term like with debit cards that use crypto etc. but for the long term, It's not helping and will eventually fail.

these damn rumors are useless trash, banks researched on IT transfer of encripted money since decades, and improved that technology

banks dont love getting the financial system that made them kings in their state being destroyed before their eyes.

i however am happy that i dont have to argue around with them anymore

There are already rumors that bitcoins were created by the Bank which I doubt though. You know, rumors are rumors. You do not want to waster your energy there.

the only way banks ever want to get crypto connected to them is by simply creating their own coin to take goods and services from the economy.

regards

How to connect cryptocurrencies to banks?


Recently, more and more articles and information about cryptocurrency have appeared
on the Internet and in the press.
We are told about its advantages, properties, usability.
Nevertheless, the cryptocurrency is almost never used as a payment.
Banks and payment systems are in no hurry to use cryptocurrency.

Let's see how the banks and the SWIFT system interact:


Used diagram by John Hemminger from the Chelsea AllIson
article: “What is SWIFT?”

It seems that everything is simple, everything is verified, it is possible to carry
out the movement of cryptocurrency.

So why is this not happening?
What prevents cryptocurrency to be used as a means of payment?

When we come to the bank and replenish our account or transfer money using credit cards,
the person verification procedure is carried out.
And it turns out that anonymity, which is considered one of the main advantages of
cryptocurrency, in this case is its disadvantage.
Anonymity becomes an obstacle to legal cash flow.

Let's take a look at the revised scheme:



How do we solve this problem?
In addition, there are many different cryptocurrencies that have their own blockchain.
That is, we need to develop a single algorithm for existing cryptocurrencies.

We define questions to solve our problem:
1. Anonymity.
2. Single algorithm.

- Let's start with the second question.
At this stage of development, it became possible to use cryptocurrency from various
blockchains in the Ethereum network.
To do this, you need to create a wrapped version of the cryptocurrency in the form of "ERC" token.
There are already options such as WETH, WBCH and WBTC.
We see the possibility of bringing cryptocurrency to a single standard.

- First question.
To solve this problem, we used the standard ERC functions of tokens and added a new function
to the smart contract, with which you can sign a transaction or add the necessary information
to it for any existing ERC token with these properties.
That is, we solve the problem of checking the movement of funds by creating a kind of
gateway in the form of a “ZENITH protocol” to solve it.

Now let's take a look at the obtained solution of the tasks in the form of a schematic image:



We have proposed one of the possible options in order to legalize cryptocurrency.

Our smart contract “ZENITH protocol”

WebSite
Medium

Thanks