As crypto continues moving forward,
bridging the gap between the traditional world and the blockchain world
becomes increasingly important.
We watched as companies, such as Coinbase and Kraken,
have built successful on-ramps for retail investors
while going on to become some of the most valuable companies in the crypto industry.
Today, we're looking at a project that is building the bridge between traditional investors and decentralized finance.
This could be huge.
Let's get it.
Welcome to BitBoy Crypto!
My name is Ben.
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In this video, we're going to be talking about AllianceBlock,
a project you may not have heard about,
but if you haven't heard about AllianceBlock,
it's a layer 2 blockchain agnostic protocol.
It's going to change the game when it comes to both DeFi and traditional finance or CeFi as it's known.
If you didn't know, traditional finance is still where the real money is
because of its overt regulations keeping the little guy out in most cases,
but also protecting them.
It's a double-edged sword in some ways.
However, unlike crypto, it keeps the bad actors out for the most part.
In the past several months,
the DeFi space has exploded in total locked value, or TVL,
to around $13 billion at the time of this recording.
DeFi is taking back control,
allowing users to use smart contracts
to do various traditional finance-related actions
and some that aren't possible with modern day finance
like large return yield farming.
While $13 billion is a lot of money,
it's nothing in comparison to the value locked in traditional finance,
estimated to be in the trillions.
As Luke Lombe, a strategic advisor for AllianceBlock, put it in a Medium article,
"All those billions don't look as shiny when stacked alongside the trillions in TradFi.
If blockchain and DeFi are really going to dethrone TradFi,
it needs a few more zeros in the balance sheet,
and that is only going to happen if significant funds are diverted from TradFi to DeFi."
And by TradFi, we're talking about traditional finance.
I think "Trade-Fi" sounds better than "Trad-Fi".
But I couldn't agree more.
And we share the same thoughts that real DeFi projects are gamechangers for the world,
and they may soon be bigger than all of crypto in the future,
while the scams will wither away and the market will adapt and learn to avoid them.
Lombe goes on to state that AllianceBlock is building a next generation capital market infrastructure
to become the future of investment banking,
disrupting all of the typical trade and facilitation methods
like clearing, custody and settlement,
security services,
data and info management,
regulation,
compliance,
and much more.
So, how does AllianceBlock help bridge the gap between DeFi and traditional finance?
AllianceBlock aims to achieve its goal by making all digital assets bankable and all of crypto accessible
to regulated financial entities,
such as global banks, private banks, wealth managers and funds.
AllianceBlock achieves this through the creation of a decentralized blockchain agnostic layer 2 protocol
that automates the process of converting any digital asset or crypto product into a bankable asset
with an internationally recognized Individual Securities Identification Number or ISIN.
An ISIN is used to track the holdings of institutional investors.
The format is consistent across markets worldwide.
It can be assigned to most forms of securities,
including equity shares, debt instruments, derivatives, commodities and currencies.
Lombe says in his Medium article that
"By assigning an ISIN to digital and/or crypto assets and wrapping them in a note or certificate,
regulated institutions and their clients will be able to simply, safely and legally trade any crypto product."
The network that will complete this function is called the Prometheus Protocol,
a comprehensive layer 2 architecture that facilitates cross-border capital market transactions
all in a regulated and compliant way.
Last year, AllianceBlock released one of its first products deemed the 'Wisdom of Crowds' app,
the initial phase of AllianceBlock Augmented Collective Intelligence Framework,
according to its Medium.
The app judges users based off of 8 levels of reputation.
You start as a shrimp,
and grow into a crab,
octopus,
fish,
dolphin,
shark,
orca,
all the way to a whale.
This app works as a game to challenge users' knowledge of cryptocurrency and blockchain projects.
AllianceBlock is also killing it with partnerships,
just recently partnering with blockchain data analytics company Covalent
to enrich its data ecosystem for decentralized capital markets,
while AllianceBlock will also leverage Chainlink's oracles
for pulling in real-world data into its platform.
Now, if that's not enough,
and it never is,
AlianceBlock has also partnered with blockchain projects AIKON,
Orion Protocol,
RAMP DEFI,
Quant and Holochain.
The team is also leveraging existing legacy financial entities and marketplace partnerships as well,
which remain unannounced.
AllianceBlock has also partnered with CertiK,
a leading provider of cyber security with the aim of ensuring the highest security standards
for the AllianceBlock application.
So, now, let's talk about the tokenomics of AllianceBlock's ALBT, a multifunctional token.
According to AllianceBlock's Medium, its token will be utilized by users, institutions and data providers.
Everyone will pay in ALBT to issue new structured products,
offer datasets and live data,
and launch investment opportunities
on its platform.
Additionally, every transaction on AllianceBlock will have at least part of its fees paid in ALBT,
ensuring there is always constant demand for the token
while gradually removing ALBT from circulation.
AllianceBlock Foundation will further act to stimulate the growth of its ecosystem to effectively balance token demand and supply.
This will include buying back tokens when the price is decreasing,
monitoring current token distribution and market sentiment
to adjust the ALBT distribution strategy
and stimulating the network by distributing fees where needed.
AllianceBlock will also permanently remove and burn up to 50% of the fees collected by transactions completed under the AllianceBlock Protocol.
Every single quarter, this will be done.
Now, if that wasn't enough burning of the supply,
AllianceBlock BV, the parent firm behind the company, will further use at least 10% of its revenue to burn even more ALBT tokens,
with the potential for this to increase up to 25%,
according to the project's Medium page.
Oh! But I know you, guys.
You're like me.
And I know you guys really like a good steak,
but one thing you like even more is staking.
Well, AllianceBlock offers a lucrative staking reward system,
which sees holders of institutional nodes, data nodes and service nodes rewarded
for locking up their ALBT tokens.
But if you can't shell out that much skrilla, don't worry.
Regular participants can instead delegate their stake to pre-existing nodes,
similar to Cardano.
According to the team, the aim here is to reach a staked asset ratio of 60% of tokens locked up
and provide participants with a stable yield of around 7-9% per year.
AllianceBlock also has its own liquidity mining product.
The AllianceBlock Liquidity Mining Product allows users to provide liquidity
through a number of different protocols,
starting with Uniswap,
and stake their liquidity pool tokens for a reward in ALBT,
and later in the future, an additional reward from AllianceBlock strategic partners.
So, there are many ways to earn with this one, guys.
AllianceBlock is connecting regulated capital institutions with DeFi infrastructure
via its globally compliant decentralized capital market.
They're aiming to make all digital assets and crypto products, investable, bankable, fungible and accessible to the entire regulated finance industry.
You don't want to miss AllianceBlock.
This company has been around for 2 years, building and developing behind the scenes.
As I've said earlier, the partnerships are monstrous,
with more and more with each passing day, several of these still under wraps.
And I've said before, like a broken record,
DeFi is the future.
But let me know what you guys think down below in the comments.
That's all I got.
Be blessed.
BitBoy out.