SCALLOP AND ITS USE CASES

What is Scallop?

Scallop is the world’s first regulated Decentralised Finance (Defi) banking application, allowing both retail and institutional participants to seamlessly access the benefits of decentralised ecosystems, with the convenience of traditional bank accounts.

Decentralised Finance Technology

Decentralised finance (Defi) is an alternative from the traditional, centralised financial system enabled by public blockchain technology to provide all kinds of financial services. Defi technology has a wide range of financial instruments ranging from borrowing and lending platforms to tokenised and stablecoins.

Scallop’s Use Cases

Defi has disrupted the traditional financial industry. Other than the regular financial practices, it has also innovated various financial concepts like synthetic assets never seen before in the industry. Here are some of the top scallop use cases ;

Asset management

One of the leading pros of using Scallop is complete control over one’s assets. Scallop allows one to manage their assets as they determine the buying, selling and transferring of their digital assets. Full control allows earning interest from these assets as well.

Compliance and KYT

The traditional financial system has looked to solve money laundering and terrorism financing through the Know Your Customer(KYC) protocols. However, these work counter to customer privacy guidelines. Scallop on the other hand, focuses on the Know Your Transaction (KYT) protocol. It focuses more on the nature of the transactions than the person behind the transactions. This helps in real-time transaction monitoring hence protecting against fraud and other financial irregularities.

Data and analytics

The transparency in scallop protocols allows access to all network data and transaction activities. The data is then analysed to make informed business decisions, discover new financial opportunities, and risk management.

Insurance

The insurance industry has been struggling with various concerns such as cumbersome paperwork, bureaucratic claim procedures and outdated auditing systems. Insurance companies can use smart contracts to automate most processes. This allows scallop to operate as the leading financial solution.

Synthetic assets

Synthetic assets are a combination of cryptocurrencies and traditional derivative assets. That is to say, they are tokenised derivatives. In traditional finance, derivatives allow one to trade an asset without having to own them. The trade gets to gain from the price fluctuations of a stock or bond they don’t own. Synthetic assets improve the tokenised derivatives by introducing them into the blockchain technology and creating a token for them.

Defi Exchanges

Defi exchanges (DEX) is a type of defi application that allows users to stake, insure themselves against risks, trade cryptocurrencies and earn interest from savings in accounts.

Other Use Cases

Some use cases for the SCLP token are given below:

  • To pay Monthly management fee.
  • To pay Institutional management fee.
  • To pay Bank transfer fee.
  • To pay Loading & Unloading Fee.
  • ATM fee.
  • To pay Token hosting fee.

Conclusion

With a fast rising adoption of cryptocurrency globally Scallop network prepares people for a future where cryptocurrencies are an accepted part of everyday life. Simple, secure and progressive, scallop’s platform intends to provide many opportunities to help users realise the potential of the digital space and bring cryptocurrency transactions into the real world. To attest to this, Scallop Learn has been launched. Scallop Learn is an educational platform for crypto users of all knowledge levels.

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