Unleashing a New Era in Finance: How Enterprise-Graded Blockchains (EGB) are Changing the Game
Blockchain technology, hailed as the cornerstone of digital transformation, promises a revolution across diverse economic sectors. However, its adoption within traditional financial markets has been sluggish, largely attributed to a lack of layer-1 blockchain technology capable of addressing regulatory concerns while ensuring secure, fast, efficient, and scalable transactions.
Enterprise Graded Blockchains (EGB) — a groundbreaking class of blockchain networks designed specifically for enterprises. Developed by Coreum, EGB networks provide the necessary infrastructure and tools for enterprises of all sizes to build and run decentralized applications, heralding a new era of financial innovation. Let’s delve deeper into how EGB, particularly Coreum, can disrupt the financial landscape and facilitate financial institutions' widespread adoption of blockchain technology.
Breaking New Ground: Enterprise-Graded Blockchains (EGB)
EGB networks, as introduced by Coreum, represent a significant leap in the blockchain space, effectively bridging the gap between regulatory compliance, security, scalability, and enterprise-grade capabilities. These networks incorporate a suite of critical features, including ISO20022 compliance, real-time settlements, optional on-chain KYC, triple-entry accounting, and smart contracts, to name a few. Such a repertoire of attributes caters to various financial use cases, encompassing commercial banking, payments, risk management, trade & supply chain finance, capital markets, and regulatory compliance.
EGB networks usher in a novel solution in a regulatory environment, often stifling new technology adoption. By offering optional KYC features that comply with AML regulatory frameworks while allowing default anonymous transactions when non-financial enterprises and DeFi protocols use the system, EGB networks bridge the divide between regulatory compliance and privacy.
Coreum: Catalyzing Global Mass Adoption
Coreum, a 3rd-generation layer-1 enterprise-grade blockchain, stands out among EGB networks with a capacity to support up to 7,000 transactions per second. It promises superior throughput, cost-effective fees, and unparalleled scalability, augmented by ISO20022 compatibility, IBC interoperability, and Smart Tokens. Coreum’s WASM-based smart contracts cater to a diverse range of use cases, with its low-latency, PoS network driving secure and rapid applications.
Coreum holds the potential to help financial institutions realize substantial savings in infrastructure, transaction, and administrative costs. It also aims to disinter-mediate the digital transfer of financial assets, reduce the role of central counter-parties, and enhance trust, accuracy, and resilience in financial ecosystems.
Coreum’s unique offerings, such as the optional KYC feature, can dismantle the barriers hindering the mass adoption of blockchain within traditional financial markets.
EGB Networks: The Disruptive Force in Financial Markets
EGB networks are poised to revolutionize various sectors in the financial markets.
- Commercial Banking: EGB networks could introduce competitive products and services, enable real-time loan funding, and automate servicing through smart contracts. Additionally, they could improve liquidity management and pave the way for new business models.
- Payments: EGB networks could revolutionize the payments landscape by facilitating real-time micropayments, wholesale payments, P2P payments, and streamlining payment processing.
- Risk Management, Trade & Supply Chain Finance, and Capital Markets: EGB networks could automate compliance activities, enhance transparency in factoring, facilitate real-time multiparty tracking, and reduce counterparty risk. They could also make capital market operations more efficient by enabling faster settlements and reducing the need for intermediaries.
The Road Ahead: Embracing EGB Networks
The financial sector is at the precipice of a new era, with enterprise-graded blockchains like Coreum promising to redefine traditional paradigms. While it’s still early days, the potential benefits and the momentum in this space suggest that it is only a matter of time before more institutions embrace EGB networks. As we move forward, we can expect a profound transformation in financial systems, making them more secure, efficient, and compliant, opening the way for inclusive, accessible, and sustainable global finance.
In the face of this shift, financial institutions must assess how they can effectively incorporate EGB networks into their operations and seize the opportunities they present. Only then can they truly tap into the potential of blockchain and make a significant stride toward digital transformation. By leveraging EGB networks like Coreum, we are set to witness a wave of innovation that will redefine the global financial ecosystem.
Article by Bob Ras, Co-Creator of Coreum.