Tag Archive for: fintech

Data Transfer Technologies

Digital technologies have propelled our every communication and transaction into a new era of interconnection where data is transmitted rapidly from one part of the globe to another. In that same manner, electronic transactions are gradually replacing the need for tangible bills. Indeed, money has become increasingly virtual and synonymous with mere data transmission, especially with the emergence and expansion of the digital economy.

Having become mainstream nearly around the world, these data transfer technologies now require an expansion of their availed infrastructures, enabling users to move value in a safer, more accessible and utmost convenient manner.

Globally, people are seeking improvements in the current financial system. According to a study conducted in 2015 by Accenture gathering 2000 senior decision-makers around 15 countries, their use of analytics and Cloud-based infrastructure had increased by 34% and 30%, respectively, and in doing so, their primary concerns were security and keeping pace with digital advancements. In another more recent study, because of the surge of digital network use during our global crisis, masses ask for easy access, fast delivery and increased security for everything from bill payments to sending money to loved ones without going to a financial institution.

These necessities have driven the development of online banking and other electronic payment systems; many will show up in web searches. Money, assets, and wealth have been changing, and the next generation of financial instruments and vehicles will likely be built using something like regulated blockchain technology that enforces laws and protects people from fraud.

Meanwhile, a simple internet search will show that banks are starting to adopt blockchain technology globally. Having already proven its effectiveness and given its global demand, the time has come to expand upon its initial design and avail it to the world. In that respect, we believe that our project, VTBCommunity (VTB), cannot only achieve this task but provide other innovative financial opportunities.

VTB is designed to advance the digital money infrastructure by offering a stable and predictable growth asset. It is more straightforward, user-friendly and renders a rich end-user experience while lessening the often-cumbersome cost burden otherwise charged by the current financial systems and some alternatives.

More specifically, the VTB system is based on methodically increasing the asset value, thus progressively increasing users’ net worthwhile charging a fixed fee within the VTB system. This enables an expanded purchasing power to meet their goods and services requirements. Although its inherent vision may seem somewhat utopian, or as some may think, “too good to be true,” the fact is that its design is meant to transform the financial system’s past four to five decades of macroeconomics (since Simon Kuznets won the 1972 Nobel Prize in Economics) into something new. Take inflation, for instance, even with its annual fluctuations, the cost of living has continuously risen, and this year, 2021, has seen the highest yet (macrotrends.net). In terms of perspective, the CPI inflation calculator estimated that the purchasing power of US$1.00 in 2000 had decreased to 0.60 cents in 2021[1]. That being true, one could also say that similar assets to VTBC already exist, such as “Risk-free Bonds” typically seen as United States Treasury Bonds, but the ROI is far from sufficient to help anyone become financially comfortable let alone independent.

[1] https://www.in2013dollars.com/us/inflation/2000?amount=1

How is it remedied?

Let’s face it, whatever increase in wages employees have received or sales generated by most Small to Medium Enterprises (SME), their bottom line has flattened due to an equal or sometimes higher inflation rate simultaneously applied on goods and services for at least the last 20 years. This decreased buying power dwindles most people’s potential to live within their means. Home prices, for example, have become unaffordable to most, while the cost of food, another basic need, has substantially risen due to a high rate of inflation across many countries. Unfortunately, this never-ending cycle in a financial system serving its ends, not humankind’s, can only lead to an increasing lack and poorer societies.

The question that begs an answer is, “Why is this happening?”—followed by perhaps an even more important one, “How is it remedied?”. This project has considered these questions and found a way to transform them into remedies. Simply put, the refined and efficient solution is to take the rising cost of living and apply it to a system that works for the VTB users (community members) instead of against them. In this way, such community members can buy goods and services, food, housing, etc., in a safe, secure, and abundant manner using a new infrastructure built on blockchain.

Most debates about money are philosophical, but the real question is, “Are people willing to adopt positive changes?” or “What are they willing to accept in exchange for labor and or products?”. Recently, people in prominent positions are now accepting Bitcoin for their wages. Realizing that fiat money is only backed by debt, would everyone be willing to continue using it, even at a loss? Or would they happily switch to a medium of exchange based on growth and abundance? A brilliant person once said about finance and banking, “These are man-made rules; they are not natural laws, such as gravity.”

It means that humans can create any exchange system for their goods and services. VTB has created a system that will generate abundance for its users and holders.

In short, the VTB contribution to the digital money ecosystem is integrated into existing technologies utilizing a “layer-2” methodology using a sidechain pattern to ensure uncompromised security and stability. Moreover, this innovative system utilizes Ethereum and IPFS technologies to back up its data with transparency. In this manner, VTB provides a secure environment. For those already acquainted with cryptocurrencies, it is similar to an NFT where a token can be seen in a decentralized environment by accessing IPFS addresses through Etherscan. This transformation to the next level of digital money, assets and wealth was inspired by the now renowned giants, such as Bitcoin and Ethereum. Now is a time for the next generation of cryptocurrencies to meet the financial demand of the world with projects like VTBCommunity.

VTB Protocol Assertions

1. Equitability

This system was designed to benefit all its users (VTBC purchasers) equitably. It would be senseless to build a community otherwise, whereby solely the first members and/or owners would receive benefits. According to its mission, no matter what holding position one VTB member holds in the community, they receive the same benefits, as long as VTBCs are in their possession.

2. Redistribution

The sale of the asset reserve is redistributed to all asset holders, as per VTB’s distribution mechanism. The initially minted VTBC are sold to all community members, who then received the proceeds of future reserve sales on a reoccurring basis (thirty days). This distribution mechanism is done by sending Ethereum, or any other integrated cryptocurrency, to all members based on the percentage of VTBC value held, by the member, at the end of each 30 days, which is certainly an Anti-ICO mentality.

3. Growth

The VTBC value will always increase using an algorithm to that effect. This algorithm can be improved upon based on informal assessments and their interpretations by professionals. To that effect, the VTB team has been working with a professional mathematician (Ph.D.) to help refine this algorithm. Even if the algorithm may be altered occasionally, it will do so under strict guidelines, ensuring that it benefits the community and meeting applicable governing laws.

4. Primary Asset (VTBC)

The primary VTBC asset is not peer-to-peer transferred. This is meant to protect the enforcement of the algorithm within the protocol. If there was a means to transfer VTBC directly, attempts to circumvent the pricing algorithm would certainly be made.

5. Secondary Asset (VTBT)

  • Must be fully backed by the primary asset.
  • Can be peer-to-peer transferred.
  • Does not participate in the value increase algorithm.

The secondary asset is entirely backed by the primary asset in the protocol coding. This standard is meant to ensure that users can convert back to VTBC at any time to take advantage of its hourly value increase.

Unlike the primary asset, the secondary VTBT can be transferred peer-to-peer. This is done using methods similar to ERC20 functions, such as “Transfer”.

It should be noted that VTBTs should be quickly converted back to VTBCs to take full advantage of its incremented value increase, not available to VTBTs.

6. Future Assertion

  • Governance token.
  • Governance incentives based on action.

Some others may be added only if they are in the community’s best interest. Out of those considered, two have been visited:

  • To fully decentralize the project with democratic governance using governance tokens or some other mechanism. This type of democracy enables users to vote on changes to the white paper and, naturally, the runtime (smart contract).
  • The incentivization of democracy.

These future assertions include creating a governance mechanism and related voting incentives. As it may, several projects have had to substantially change their overall protocol because they expected token holders to participate in the democracy; however, a meager turnout prevented changes from occurring initially. To remedy this potentiality, the VTB team will use incentivization along with the governance mechanism to encourage participation in the democracy from its onset. Careful consideration will be given to advancing the democratic and incentivization systems so that they may benefit the community.

Let it be known that the system operates under rules strictly followed by and binding to the VTB project. Any change to it must benefit the community.

VTB Mechanics

This section covers the VTBC behind-the-scenes mechanism and the details of its functions concretely, not only conceptually. To begin with, there are two tokens: one increases with time and use, while the other is a tradable token similar to an ERC20. The remainder of this section provides more information on the VTBC and VTBT tokens:

VTBC

VTBC uses fundamental mathematics to increase its value according to usage and time. As previously mentioned, this increase offers stability and predictable growth that can be relied upon for wealth-generating financial projects, including savings, cash advances, insurance, and utilities. The user accepts VTBC (through VTBT) as payment for goods or services and others. In other words, VTBC users and holders receive a continuous value increase while holding or using the asset. The transaction-based increase is calculated on the actual VTBC liquidity vs. injected value in the system. For example, the resulting price increase will be slight if the value of the VTBC sales (from the sell order book) is much higher than that of the current transaction purchase value. Conversely, the correlated increase will be more significant if the current purchase value exceeds the total sell order book. This offset serves to balance the injected liquidity in the system and the hourly value increase. This time-based increase has been set as a minimum to ensure that the asset’s value increases based on the curve described below. If the transaction-based increase value is equal to or greater than the scheduled time-based increase, the latter’s growth will not be triggered. The value increases calculation will be further explained in subsequent sections.

VTBT

VTBT is valued at par with the US dollar regarding VTBC. At this time, VTBT can only be converted into VTBC. Our team may add a full Ethereum-based ERC20; meanwhile, a substrate-based token with similar features to the ERC20 is used.


The distribution mechanism is unique in the industry. Most projects use the sale of the tokens in an ICO fashion. Even if funding projects is essential and ICOs typically provide funding for these projects, in some cases, they can be scams, whereby the project creators walk away with millions of dollars. Instead of asking for money upfront with an ICO, the Foundation has opted to operate by simply tying the project’s success to its community. Consequently, as money is injected into the system as ETH, the project can sell some of the pre-allocated VTBC to fund any ongoing development. At the same time, the initial VTBC buyers are rewarded through a continuous redistribution of ETHs and VTBCs. Eventually, ETH will stop being redistributed in this manner because the initial token reserve will be depleted, but while the supply lasts, VTBC holders will gain in multiple ways.

This value control algorithm provides users with a predictable price, thus improving their financial plans and, in the meantime, allowing the VTBC assets to perhaps the member’s economic standing.

VTB Blockchain and Democratic Policy

The VTB project has chosen to employ blockchain technology for various reasons. The challenge was to deliver transparency and auditability, only delivered by public blockchains. Therefore, since none of the current public blockchains met the Foundations criteria, the Foundation built a custom blockchain for all the project’s requirements that will come in stages. The custom blockchain is a layer-2 sidechain system, the information contained therein is neither auditable nor seen by anyone outside the community. Conflicting with the project’s core values of being transparent and democratic, the team had to find a method to reasonably go from sidechain and non-transparent to fully transparent and democratic. After investigating several options, reading other white papers, and learning from some icons in the industry, it can be achieved in steps. Designing a blockchain and releasing it “into the wild” takes courage, time, and countless trials before success is completed. Several key questions were asked, such as “How to protect the community and keep the project operational?”. Truth be known, most blockchains spend years in development. Finally, between an upgradable blockchain where nodes periodically report to public entities such as IPFS, the project’s core values achieved the first step: it would deliver transparency, auditability, and accountability. Following these phases, a Foundation was founded in Gibraltar to legally enforce identification requirements and accountability to the blockchain’s changes, upgrades, and operation during its infancy.

Ultimately, the Foundation is the technology owner and has a legal guardian who upholds and enforces this white paper’s advancement. Meaning that the Council Members of the Foundation are required by law to follow the rules. In this manner, no one can change the blockchain without the transparent vote of the Council and the approval of the Guardian. This is the first step in becoming a true democracy, which requires time and careful planning. Until then, the Foundation Councilors use legal tools and frameworks to protect the community and add new features and pivots as needed. The blockchain will be upgraded in a multi-signature pattern, and its keys will be held and executed by the Council members.

As the project increasingly moves towards decentralized democratic operations, the vote will be handed over to the community in some voting token or directly through the VTBC asset. This vision is still in its early conceptual phase. A consensus will also be reached as to the future of the VTB blockchain, whether it should become public for anyone to run a node or possibly connect it into an already existing blockchain consensus system, such as Polkadot.

As we move towards these subsequent phases, interested parties may connect to our various channels: