A Blockchain for Central and Investment Banks the Company Compound presents your new Whitepaper
Compound’s new whitepaper outlines plans to scale and design a blockchain that is no longer Ethereum based. Among other things, you want to be ready for the influx of central and investment banks.
On Thursday, December 17th, Compound published a new white paper. A redesign of the blockchain should enable scaling and adaptation to the growing requirements of the crypto ecosystem. A start date was not announced. The new design is currently being put to the test in a test network.
Above all, one would like to remove the limitations of Compound, which is currently based on Ethereum, with an independent blockchain. These limitations include high transaction fees and the inability to interact with assets on other blockchains.
They also want assets on the new compound blockchain not only to be limited to other blockchains, but also to support assets of central banks (such as a central bank digital currency) and investment banks. Compound wants to play an important role in the global arms race of central banks.
Centralized digital currencies, such as CBDCs or JPMorgan’s currency, require stricter regulatory conditions. Compound aims to meet these conditions for more restricted assets.
Compound plans new cryptocurrency CASH
Even if a new, stand-alone blockchain is created from the compound, it will retain the COMP token. Once the blockchain is live, the token comes with a significant number of new powers.
In addition, a new cryptocurrency called CASH will be introduced. With this you pay for transactions in the network, among other things. CASH, like the stablecoin DAI, arises as a claim against a security deposit included on the compound chain and is linked to the US dollar. Like many parameters, this coupling can also be changed by voting with COMP owners. This voting system is called proof-on-authority.
The new blockchain of the DeFi project will be compatible with Ethereum from the start. Future compatible blockchains will be chosen by COMP owners. The only requirement is that they support smart contracts. The necessary smart contracts for moving assets between compound and other blockchains are called “Starports”.
Users should be able to offer any kind of asset on the compound chain. Once an asset is uploaded to Compound Chain, it is available for loan to others. It is up to the users whether they want to borrow it or not. The COMP price reacted to the announcement on December 16 with a jump to the US $ 180 mark, but was only able to hold the level for a short time. At the time of going to press, COMP is trading at USD 148 – almost 25 percent higher than 30 days ago