Our vision is for self-sovereign groups, bound by their local jurisdiction and regulations, trading P2P programmable financial instruments.
PoE(Proof of Engagement) is the best compound of Proof of Authority and Proof of Stake consensus algorithm. PoE provides the incentives for all of the community around a blockchain to be actively involved and brings higher decentralisation through the combination of Engagement Rewards and Stake than a pure Proof of Stake mechanism. Thanks to PoE, Tgrade gets more secure and strong.
What are the barriers to traditional finance in DeFi?
Regulated institutions need to be able to demonstrate compliance to the rules of their jurisdiction.
The foremost is to recognise that the rules of each regulator in each country is the starting point and is and should remain off-chain.
Onchain self-sovereign governance structures enable the formation of groups who manage themselves to ensure they comply with their local jurisdiction.
The regulation dynamics
There are two opposing views, financial institutions cannot enter the DeFi world due to lack of regulations, and people involved in the blockchain and DeFi world have a liberitarian mind-set who seek to avoid regulations.
How do we reconcile these diverse views; and maintain a decentralised platform, a space for regulated institutions and one for innovation outside of the rules?
Generic framework, local implementation
We build a self-sovereign framework which ensures the principal of decentralisation. Institutions within a given jurisdiction can each a self-sovereign group and ensure they comply with their local regulations. On-chain financial instruments controlled by self-sovereign groups, and on-chain governance complying with corresponding off-chain regulations is the key solution.
The trouble with Ethereum
Ethereum has a large, and loyal developer community, quality and depth of documents, and composability of smart contracts, however it has its own problems such as security, high gas fees and scalability. Ethereum 2.0 will solve these issues but it will be at a minimum a 2 year process, Tgrade is ready now.
A compelling case for Tgrade
Tgrade chain is built with CosmWasm, a smart contract engine, and connect to the inter-blockchain communication(IBC) at the core : We overcome gas volatility, we address scalability with IBC, have drawn lessons in the design of CosmWasm through studying known vulnerabilities of Ethereum smart contracts.
Tgrade is secured by a mechanism to reward engagement from the whole community around the blockchain.
Tgrade infrastructure is run by validators and paid for by transaction fees and commissions, in contrast to traditional finance where each institution invests heavily in maintaining their own infrastructure. There are lower costs for institutions by using Tgrade, and P2P.
Frequently asked questions
The foundation of Tgrade is a robust, secure, fully decentralized platform that offers the ability for self-sovereign groups to form and interact with each other. This is important as it ensures that these groups know who they are interacting with and have certainty of the origin of funds. With this framework and the smart contract platform, there are many opportunities around tokenization and the exchange of value within a regulatory compliant environment.
Proof of Engagement(PoE) is the best of Proof of Authority and Proof of Stake (PoS) consensus algorithm. PoE provides the incentives for all of the community around a blockchain to collaborate. The introduction of Engagement Rewards which can be earned by anyone within the community, and for validators to combine engagement with stake for voting power addresses many of the concerns around PoS. Read more
DeFi aims to be accessible for everyone, allowing them to exchange value through peer-to-peer transactions seamlessly without middleman. DeFi has seen huge growth and is in the low billions by volume. By contrast, traditional markets have volumes of thousands of trillions. Traditional financial institutes cannot enter the blockchain world due to lack of a structure to ensure they can comply with regulations and technology issues like security or scalability.
Every country has their own regulations and it is not feasible for a blockchain to implement all the different rules of every regulator. Tgrade’s self-sovereign framework which ensures decentralization is the answer. Once a self-sovereign group is established, they can then govern who can trade with whom with which instruments. The self-sovereign model is scalable, in that many self-sovereign groups can be created to support regulated institutions and each group can act independently. On the Tgrade chain, you can have financial instruments which can only be traded by the self-sovereign group, and the permissions on the trading venues are managed by the self-sovereign group.
Simple, either you get a precompiled smart contract binary or compile it yourself, then deploy it to Tgrade using the provided client tooling with minimal fees. You can check the details on smart contract deployment here https://docs.cosmwasm.com/getting-started