[Bitcoin] What is ‘Vulcan’, a Global Adoption of Digital Money Program
According to Bloq’ website, On 14th of November, Bloq, PwC Australia and Netki “have launched a new fintech business platform called ‘Vulcan Digital Asset’.
Vulcan will provide digital currency wallets, international payment processing and investment and trading service, and will soon offer point-of-sale and merchant services and the ability to create and support native digital currencies and rewards based systems.”
But, in concrete, what is and why is so important?
Vulcan tries to create a cryptocurrency system completely integrated with Financial World. Basically, it is a multisig wallet (the Bitcoin Address start with “3”) with 3 signatures:
- One signature of the BTC Owner
- One signature of the Financial Institution (who manage and provide services available)
- One signature used to resolve disputes (there will be some third part dedicated to this)
Why is Vulcan so important?
Vulcan (in case everything went smoothly) will allow several “Financial Instruments” (like Winklevoss ETF) that now are not possible due to a lack of permissions. This will open the financial world to Bitcoin: it could be used in pension funds, banks could offer Bitcoin like investment tool.
This scenario is possible because Vulcan will try to create a “regulated system” where anti-money laundering rules and Know-Your-Costumer rules are respected.
Vulcan WILL NOT offer any kind of off-chain payment way: every transaction will be on the regular BTC blockchain (so it has nothing to do with actual Hard Fork diatribe).
What are the possible benefits that Vulcan could take to Bitcoin?
Vulcan (standing to information available now), should create a regulated, safe and easy-to-use Bitcoin system, where even who doesn’t know NOTHING about BTC (ex: your grandparents) could take part. This will create a great bitcoin demand, with a significant price growth, and an exponential increase in daily transactions number. The “wild” part of bitcoin, the part that every one of us loves, will not be affected by Vulcan.
An important fact is that “Vulcan Transactions” (like said before COMPLETELY ON CHAIN) will be bigger than normal transactions due the 3 signatures included. So, in case Vulcan became operative, we’ll have tons of new transactions, even bigger than now. In case Vulcan see the light before a block size resolution this could be a problem, because the unconfirmed transactions queue will continue to grow, making the bitcoin network slow and expensive. Remember that, if Vulcan could implement Bitcoin, it could easily implement every one of the cryptocurrency out there, maybe those who don’t have scalability problems (Ether, Ripple etc.).
Vulcan should see the light in late 2017, in Australia. Let’s see what will be.
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