By way of background, QASH and the Liquid platform project began in Q2 of 2017 as an effort to tackle one of the largest problems facing the Crypto markets — liquidity.
As the team delved deeper into the problem, it became clear that solving this dilemma wasn’t just about providing a bigger balance sheet. To be sure, any solution had to address the issues associated with connecting up liquidity silos, but there were other equally important factors holding back liquidity growth. The solution had to address issues around credit provision, counterparty risk, regulatory requirements, and information leakage. The more we evaluated the problem, the clearer it became that an ERC 20 token alone would not provide sufficient functionality. Thus, was born the concept of the QASH blockchain.
The QASH blockchain will serve as the backbone and the platform for QUOINE to develop its banking and financial services geared towards the new Crypto economy and in line with QUOINE’s goal of the democratization of finance. This following describes some high-level characteristics.
The QASH blockchain will be built to natively support Decentralized Distributed Execution and to a great extent will be tailored to financial services, but not limited to them. As briefly discussed in the following sections, QUOINE is incorporating features and services based on best-of-breed blockchain technologies to provide an unparalleled level of versatility. The following are some of the key features of the QASH blockchain:
- Intelligent Agents (aka Smart Contracts) — Easy scripting embedded in blocks or stationed/distributed across nodes. This will allow for the building of Programmable Assets and for features such as time-locks and others.
- Support for Erlang, Python, C++ and other programming languages (Go, Ruby). This will allow for development of sophisticated decentralized applications on the platform such as virtual asset exchanges, credit services, settlement services/distributed counterparty risk such as Continuous Linked Settlement, and other banking services, as this will serve as the base for QUOINE’s banking platform.
- QUOINE will look to the community and partners to develop virtual machines in support for other programming languages. Building support for well-known programming languages will allow the wider developer community to contribute to [d]apps development from day 1, as opposed to creating a new programming language (see Ethereum’s Solidity) which comes with a learning curve.
- Multi Asset and Decentralized Asset Transfers — with QASH being the native Cryptocurrency.
- Several 100,000 Transactions per second — speed is essential and we plan for high-throughput to be available.
- Consensus Algorithm = Proof of Stake. Forgers, not Miners. QASH is “pre-forged” with 1,000,000,000 QASH in existence.
- Semi-Permissioned Distributed Nodes based on KYC, AML and other controls. Anybody can generate/forge blocks as long as compliance with KYC/AML and other regulatory policies are fulfilled. This will be controlled natively on the platform.
- Forgers participating in the validation network will be rewarded in QASH ONLY. QASH will serve as the fuel that will power the distributed execution services (Virtual Machines) and to pay for other native services such as asset transfers.
- External Events Awareness will allow services running on the platform to interact with external events via specialized interfaces. This feature is essential to building financial applications and products on the platform.
- Most/all other decentralized platforms (Ethereum and others) do not provide support for external events as far as the author is aware, limiting their usability in real world financial applications.
- At least one other exchange has tried and does not appear to have been entirely successful at building a decentralized market maker due to various issues including limitations with current smart contract technology.
- Enhanced Scalability will ameliorate current concerns regarding Bitcoin and Ethereum Blockchain limitations.
Serving as a bridge between Fintech and traditional finance, additional envisioned QASH Blockchain functionality includes:
- Seamless currency conversion (Fully exchange linked).
- Opt-in KYC (Traditional finance/compliance-officer friendly).
- Blockchain based Continuous Linked Settlement (Settlement of positions across liquidity providers).
- Multi-asset ledger for special-purpose value-stable assets (e.g. tokenized fiat used for settlement).
- An opt-in socialized loss mechanism (distributed insurance).
- Decentralized, trustless and non-custodial exchange-linked wallet — the user retains control and custody of their assets but a portion is locked up for settlement.
- Decentralized trustless lending. Lenders retains control and custody of their assets but the portion loaned is locked up for the term of contract
- Credit Scoring (already available in the existing platform).
- Trading Algos (already available in the existing platform).
We hope to position the QASH Blockchain to represent the next-generation architecture in Blockchain technology.