SCALLOP AND ITS USE CASES
In the traditional financial system, the participating parties rely on banks, brokerages, or other financial organizations for financial structures. Moreover, centralized entities have complete control over the entire financial system. These issues act as buffers that impact the transaction speed and cost leading to dissatisfaction among the parties in the financial system.
The introduction of the first-generation blockchain with cryptocurrencies showed the possibility of an alternate financial infrastructure. With blockchain technology, people could transact without any third-party or middleman, acting as the validating agent. However, Ethereum is the pioneer that introduced the world to the DeFi.
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.
The innovations in Defi applications are promising to transform the way we look at money forever. These solutions are yet to enter the daily lives of mainstream users thus leaving Scallop with enormous potential for user growth and adoption across all global markets. Therefore, our mission at Scallop is to provide these mass markets access to our innovative applications and bring Defi into the mainstream.
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.
Defi comes with various benefits such as programmability, immutability, interoperability, transparency and self-custody. With over 1.7billion in the world unbanked, the Defi platforms can be the needed solution the financial industry has ever needed.
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 ;
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.
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 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 are some of the leading pushers of synthetic assets for the crypto community as they provide a wide range of solutions.
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.
Unlike other regular crypto exchanges, the defi exchanges do not operate custodial wallets. Instead, the platform’s users connect through web3 browser extensions like Binance Chain wallet, and MetaMask. One can then straight away start exchanging cryptos once connected.
Other Use Cases
Some use cases for the SCLP token are given below:
- For receiving trading bonus payments.
- 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.
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.