THELOGICALINDIAN - Distributed derivatives belvedere Velocity went alive this anniversary with a artefact audience adaptation The simple acute arrangement invites users to brainstorm on amount for Ethereums built-in badge ether
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Velocity Making ‘Financial Building Blocks’
Velocity‘s aim is to accommodate a blockchain-based acute arrangement another to absolute derivatives, congenital on Ethereum. The demo version currently runs on Ethereum’s testnet.
Chief artist Vignesh Sundaresan adumbrated area the banking industry could use his products:
Velocity presented its admirers afore an admirers at the contempo International Blockchain Week in Shanghai. The accident ran accordingly to Ethereum’s own anniversary industry appointment Devcon2.
Derivatives and Predictions Are Great Smart Contract Use Cases
Derivatives are additionally agnate to “prediction markets,” admitting authoritative issues generally anticipate companies application this specific term. The approach goes that users will bet added money on a added acceptable outcome, giving a clearer adumbration of what will happen.
Existing anticipation and derivatives markets are accepted accoutrement for advertence asset prices, acceptable sports and acclamation results, and alike ball awards. While not always accurate, they tend to be added so than assessment acclamation and able pundits.
Blockchain-based platforms with no third-party allowance house, such as Ethereum, are a accepted belvedere for developers attractive to agitate the banking and allowance industries.
These acute affairs still rely, however, on a third-party antecedent of advice (a.k.a. an “oracle”) to verify the outcome.
Velocity’s affirmation is a simple advantage contract, based on an ether amount feed. As able-bodied as admiration ether price, it may additionally barometer accepted affect surrounding Ethereum.
Ether, Ethereum’s built-in currency, has a bazaar cap over $1 billion, authoritative it the second-most admired cryptocurrency afterwards bitcoin.
Potentially Lucrative Market
Sundaresan said the OTC derivatives bazaar is account over $16 abundance in the US alone. “And in the cryptocurrency industry there is now a trend appear allowance trading,” he added.
To admission the audience contract, users charge accept Ethereum’s Metamask Chrome browser plugin. Velocity hopes that giving bodies hands-on acute arrangement acquaintance will get them acclimated to the idea. Once accustomed, they’ll be acquisitive to try added avant-garde affairs in future.
Are you smart-contract curious? What’s your assessment on Velocity and added agnate platforms? Let us know.
Images via Shutterstock, Velocity
