Incubated by award-winning fintech startup Hydrogen, Hydro Blockchain has a bold goal: to create a new decentralized global financial system built upon the blockchain technology. And the first step is the efficient integration of blockchain technology within a company’s ecosystem, enabling private financial systems to leverage distributed ledger technology. The idea is that this will allow a closed system to interact with a public blockchain.
Additionally, Hydro Blockchain provides a secure and encrypted environment for this interaction without the need for intermediary structures or middlemen. Considering the influence and reach of the centralized financial system, their aim for widespread integration and use of the blockchain technology is an audacious one. But it’s definitely worth a try.
Understanding the Hydro Blockchain Concept
A decentralized global economy through widespread blockchain technology may seem improbable. But Hydro Blockchain is undaunted. By creating solutions for business that allows private financial ecosystem and hydro ecosystem to interface, Hydro Blockchain’s open-source blockchain projects can simplify an otherwise complex financial system:
- The Hydro Blockchain Ecosystem can be easily stacked on top of existing and new systems, making it easier to create a robust, secure, and decentralized ecosystem. Hydro Blockchain uses the ubiquitous Ethereum as the base platform where the Hydro tokens are created.
- The second layer comprises Hydro Blockchain Protocols. The Hydro Blockchain Protocols is a suite of easily callable smart contracts that are focused on identity and security processes. The smart contracts include Snowflake (data encryption), Ice (document verification), Tide (payment processing), Mist (Artificial intelligence and Big Data), Hail (token system), and Raindrop (authentication).
- Hydro Blockchain’s passionate community of developers in 150 countries has swelled to 10,000 members. With open-source blockchain projects developed by a global community, Hydro Blockchain’s growth is, therefore, unstoppable. With this global organic growth, Hydro Blockchain is contributing to further decentralization and more widespread adoption of the blockchain and cryptocurrency.
- Hydro Blockchain’s dApps store (decentralized app store) has built a catalog of open-source blockchain projects application. Some of the apps are peer-to-peer apps that can be downloaded for free.
Centralized Financial System: All Eggs in One Basket
At present, the currency is the primary medium of exchange for goods and services in the world. As a centralized system of money, the government and global financial organizations, therefore, define and control the currency. A centralized financial system has spawned several deep-rooted challenges and risks.
Some of these problems include the prevailing financial illiteracy, high transactions costs, and slow and inefficient processes. In addition, a large chunk of the population does not have access to banks and financial institutions. According to the World Bank’s Global FinDex Data Base for 2017, about 1.7 billion adults globally remain “unbanked”. But the most significant threat that a centralized financial structure poses on the global economy is the mounting systemic risk. With the power concentrated in one place, one financial crisis can snowball and decimate the entire financial system. (For example, the European Debt Crisis of 2009.)
Hydro Blockchain’s Vision: Financial Inclusion for Everyone
Undeniably, the global banking system hosts a wealth of problems (pun intended). Costly and slow financial services, under-banked population, and a growing distrust of consumers towards the banking industry – are just a few of these challenges.
Hydro Blockchain’s vision of financial inclusion means accessible and more efficient financial services. People experience easier transactions as they gain more access to banking services and trades. The simplicity and ease of doing business encourages more people to participate in commerce. With more people participating in building the economy, financial literacy of the population will improve.
With all the problems and risk of a centralized financial system, Hydro Blockchain’s proposition of a transparent and decentralized economic structure just might be the answer we are looking for.