What is PersistenceOne? One of the biggest concerns that people face today is the increasing financial debt of many countries. A lot of people are concerned with how long this debt can continue to last until the financial systems finally collapse. To solve this issue, Persistence aims to facilitate the seamless exchange of value around the world. By doing so, it will increase the speed and efficiency of cross-border trade to further close the $1.6 trillion financing gap.
Now what exactly is the problem?
One of the main issues that PersistenceOne hopes to solve is the inefficient structure of the financial system. As many of you may know, utilizing traditional financial systems often takes 2-3 business days for cross-border payments. According to a BCG report, the annual cost of this inefficiency costs more than $10 billion USD! Another issue that exists in the platform is the lack of transparency and the requirement for trust. Most platforms like centralized exchanges, marketplaces, platforms, and even e-walets do not disclose their holdings. This means no end users can ascertain “Proof of Solvency” of a platform. Therefore, this trust is often established with other third party verifiers like auditors. Lastly, the lack of infrastructure and access for MSME investors and businesses serves as another issue. Many high-yielding opportunities are also unavailable to most MSME investors and businesses.
Why haven't other platforms attempted to solve this issue?
In the real-world, you can use real-world assets collateral to help obtain short-term financing. Within the crypto-ecosystem you can only borrow stablecoins by placing other cryptoassets as collateral (often leveraged up). But one issue with cryptoassets is that SME traders and businesses are still incapable of using cryptos on a regular basis. Most of the time users would have to pay for gas which would be expensive and also requires additional knowledge towards the system. And lastly, there still remains a lot of uncertainty with cryptos making it extremely complicated. Having mentioned all that, data is also an essential issue. The leakage of data and malicious activities also hinder the development of DeFi making it extremely hard for other platforms to attempt at solving this issue.
So how can PersistenceOne solve these issues?
Persistence is an interoperable middleware that provides a sovereign environment for DeFi applications to be developed and operated. The technology of Persistence was created with acknowledgement of all the issues faced currently in the DeFi space. The Persistence technology stack consists of three components:
PersistenceOne Chain(s) – network of sovereign business specific “app-chains” with security provided by Persistence’s main-chain and validators
The PersistenceOne SDK – comprehensive suite of plug-and-play modules to create new or integrate into Exchanges & Marketplaces
PersistenceOne dApps – finance applications focused on retail and institutional stakeholders
These three components of PersistenceOne allow the hosting of Open Finance dApps (exchanges & marketplaces). The sovereign nature of the platform allows for easy customization allowing the maximization of speed, security, as well as privacy. Moreover, the structure of the platform allows for dApps to run independently which means that it will not be affected by increased transaction loads. This smooth end user experience is imperative to the overall success of Persistence.
Persistence’s platform allows the matching of lenders to borrowers, creating a Debt Marketplace. To achieve this, Persistence leverages a few key features from the Blockchain and cryptocurrency ecosystem:
- Movement of Capital: Trustless, borderless, instant, and round-the-clock manner.
- Asset Tokenization: Allows the tokenizing of ‘Real-World’ assets such as invoices, letters of credit, bills of lending using NFTs.
- Decentralized Exchange: Facilitates the trading and exchange of crypto assets to ‘Real-World’ assets.
- Debt Marketplaces: Allows the use of crypto assets and ‘Real-World’ assets to be used as collateral for borrowing/lending.
With the ever increasing need for MSMEs traders and businesses to access financing, Persistence’s solution has never been clearer. Moreover, the growing institutional capital and emerging stablecoins will need a space for easy movement of capital. Persistence is the key to a more efficient global capital allocation.
The Persistence Structure
Now after all that, how does the Persistence structure work? Persistence has a main chain which is permissionless and runs on delegated Proof of Stake (PoS) based Byzantine Fault Tolerant (BZT) Tendermint consensus engine. The main chain has several important usages including:
Security: The main chain is secured by a distributed set of validators and the native Persistence token, $XRPT. The main chain can also secure app-chains via shared security.
Interoperability: The main chain will be interoperable with other chains via Interchain Communication Protocols.
Governance: The main chain will act as the fundamental platform for governance.
Validator Incentivization Mechanism: The (dis)incentivization for validators operate on the app-chain level and takes place on the main-chain level.
Asset Ownership and Exchange: The main-chain maintains asset ownership data and also facilitates asset ownership exchange for all of the app-chains.
To supports its main chain, there are also several app-chains. So the app-chains run specific applications that are on the platform. A few functions of the app-chains includes:
Security: Security on the app-chains are shareable or independent of the main-chain.
Governance: Decisions regarding certain parameters will occur on the app-chain.
Storage of Assets (using NFTs): NFTs will be stored in app-chains to prevent an impact of performance on other chains.
One of the most important stakeholders of the Persistence ecosystem are the validators. The validators are carefully curated by a set of globally diversified KYC’ed validators with enterprise-grade architecture. In order to be a validator in the ecosystem, it requires the following guidelines:
Good Reputation: Socially enforced good behavior
High Assets under Delegation: Financially enforce good behavior
Physical Servers with Hardware Security Modules: To ensures security as validators are dealing with high-value transactions
Open-source Code and Community Contributions: Have had contributions to the Cosmos ecosystem
The Persistence Software Development Kit (SDK) is a set of standardized tools or modules used for exchange to model the Marketplace. Moreover, the modules of the SDK can be integrated into existing applications and create new combinations to create entirely new marketplaces.
The dApps on the Persistence platform has an important role in matching lenders to borrowers. Persistence hopes to tap both institutional and crypto-native liquidity at the dApp level using a two step approach:
Hence, the dApp ecosystem of Persistence is comprised of :
- Third Party Applications
- In-House Liquidity Aggregation Persistence dApp
Persistence truly believes in the vertical integration of dApp layer as a way of capturing value for the Persistence token. Learn more about the vertical integration process here.
As of right now, Comdex and IXO Foundation are major users of the Persistence technology. However, the team behind Persistence are strong believers that the industry needs a strong go-to market. The team will work with a large array of governments and businesses to fully implement the technology around the world. Moreover, the platform will also drive engagement with startups and developers through its many community initiatives.
The Persistence platform provides a unique experience for users and serves as a possible platform for mass adoption in the future. So, with the ever increasing financial debt, it won’t be long for users to realize the benefits of the Persistence platform.
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