The Vena Network works as a platform with two primary functions: to serve as an exchange for tokenized assets and for lending. The Vena Protocol aims at becoming an open standard in the area of financing global digital assets and exchange. Their system is using a decentralized cryptocurrency ecosystem but with improved properties of transparency, security and trustlessness. These important features are realized by using blockchain technology.
Vena has incorporated all the basic pillars of market economy and market competition from the very beginning. There are three basic parts of the Vena Network: a fundamental protocol layer, an agreement layer, and a Luoshi Node. The first layer is a basic layer designed to perform some basic tasks, like registration, configuration, and routing. The first layer enables the agreement layer to hold the actual financial contracts controlled by using smart contracts.
The Luoshi nodes serve as crucial points for tokenization of tangible objects and asset financing. Each Luoshi node has to be certified in its local area for loan operation. It abides by the laws of the state where it is located. The nodes will be able to share orders between each other, matching transactions and making sure there is enough liquidity in the market once the network is fully functional.
The Vena Network is an open source platform with fairly generic architecture and a software development kit (SDK). This design will enable writing and implementing smart contracts in the form of well defined rules for various types of financial activities. Vena will enable lending, trading, asset issuance, wealth management, OTC, exchanges of cryptocurrencies, and other types of financial products. The Vena protocol will include a library of standard smart contracts, including collateral loans, debts, transaction contracts, and decentralized applications. The protocol is secure and free of charge, designed not to favor any party in the system.
The underlying VENA token will be used as an incentive for fair and neutral functioning of the network. One of the aspects of this network will be the ability to make cross chain transactions, connecting their users to other blockchains of similar type.
Vena will function like a DAO type blockchain, which means that consensus on the network will be achieved by decentralized autonomous organization. It will make sure that the protocol is secure and compatible and take care of updates and upgrades.
The team is very representative with vast experience in the areas of blockchain technology development and financial risk management. Their ultimate goal is to release the final working product by the second quarter of 2019 with more than 50 dealers on the platform. In the meantime the team plans to launch global operations in China, Canada, Australia, Russia and in the U.S. They also have plans to start the Vena exchange, software development kit, and test the ecosystem with more than 20 dealers.
The first application of the Vena protocol will be in the areas of collateral lending and OTC trading. Their exchange will deal with both fiat and crypto currencies. The alpha platform with the first Singapore node is currently being tested by about 100 users.
If you are interested in this project, our suggestion is to take a look at their whitepaper linked below. It contains a very detailed record of their platform and a precise description of every facet of their ambitious project.
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