Cryptocurrency is a digital currency used for making secure and instant financial transaction anywhere in the world. It is a decentralized network, not issued or under control of any bank or government-it’s managed by the users. It is improving the financial transaction the way email improved communication by making it fast and cheap, bitcoin is an upgrade to existing payments methods which were not designed for the internet era.
It’s safe to say that technology is life in this present century. Technology is been used by all sectors to innovate. Cryptocurrency is the future of financial transaction all over the world. In the coming years, more cryptocurrency will emerge.
The success that Bitcoin has enjoyed over the years have been due to the stability and liquidity it has enjoyed in the financial market, and for the currency to be sustained this must be maintained. Although it is a digital currency, it also shares some characteristics with the FIAT currency. Boon tech has designed Boon Dollars (BD) which is expected to bring much-needed stability and liquidity into the cryptosystem.
Obtaining Stability with Boon Coin
Boon tech plan to obtain stability in their platform by obtaining patent-pending technology.
Boon dollar was developed by Boon tech in order for it to be used in the same way as convertible notes. .Convertible notes can be described as short-term debt instruments, the price of which will be determined in the future for converting into ownership.
The difference between blockchain based token and convertible note is a very large one. The former represents the ownership in the community while the latter is a debt denominated in terms of other commodity or currency.
Convertible token owners have the leverage to convert token at the fair market price with a minimum notice. Reliable price, rules to prevent abuse, and liquidity are the major requirements for creating Boon Dollars. When there is token-convertible-dollars the blockchains can grow their network. It also results in maximizing the return for token holders.
Gaining Liquidity with Boon Coin
Boon dollars allows to easily convert them at market price into dollars immediately, but that does not suggest it’ll be a dependable replacement for a dollar. The liquidity of property may be boosted whilst the conversion between Boon Coin and Boon dollars which takes place simultaneously.
Blockchain has to find ways to prevent abuse, which will end up lowering the quality of the convertible dollars. Rewards are given to liquidity vendors to atone for the high-quality loss.
Steps Boon Tech take to prevent Liquidity troubles
Boon Tech curated a patent machine mechanism to reduce liquidity through hedging the cryptocurrency in opposition to the most stable and reliable currency in the globe which is the US dollars.
Boon Tech is a Blockchain powered platform in which everyone can hire a seller or freelancer to do any kind of jobs. Whilst a person uses the platform to hire a seller from the platform, he’ll first deposit the amount for the task. Boon platform immediately converts this money into USD equivalent using a couple of API calls and a patent technology to gain this. External API is Coinbase API and GDAX API.
When the cryptocurrency is converted into Boon dollars, that’s pegged to USD. While the seller completes the activity, Boon dollars may be transformed into both USD or any cryptocurrency the seller choose from.
Carriers of liquidity play the essential role in leaving the market extraordinarily liquid for final market contributors to trade in. Liquidity carriers buy and sells Boon Coin. Liquidity giver is the consumer who use the platform for hiring or supplying service for employers. Customers can earn rewards from both activities. Consistent performance is expected from users both as a freelancer and an employer to be eligible to earn rewards. Read more…