I read that you will use the blockchain as a Financial Settlement Layer. How will you do it?
One of the major advantages that blockchains confer is an efficient and transparent settlement of transactions (including contracts) with strong immutability and transparency. The improved settlement of transactions whether they be between cryptocurrencies or financial assets is naturally an objective of enhancing financial systems and removing cumbersome transaction costs.
For point-of-sale retail transactions, settlement on the back end with a payment network such as Visa can take a couple of days despite the transaction still processing in real-time between the customer and merchant. On Wall Street, trading execution happens instantly, but the settlement on the back end can also take a couple of days, commonly referred to as T + 2.
Blockchains provide fast and automated settlement across a decentralized P2P network. Rent-seeking intermediaries are removed from the process and trade parameters can be coded into smart contracts that perform automated settlement upon expiration of contracts. An opportune market for blockchains to make a significant impact is the derivatives market, estimated to be worth
$544 trillion.
Decentralized, peer-to-peer (P2P) exchanges are emerging as a future infrastructure for financial marketplaces.
Level01 is a decentralized and P2P exchange focusing on the derivatives market and allows options contracts to be traded without brokers or intermediaries.
