Traditional financial services fail to serve an overwhelming segment of the global economy. Billions of unbanked adults lack even the most basic of financial privileges, including modern necessities like borrowing and saving. Furthermore, fiscal markets are plagued by a host of antiquated practices and stringent regulations that cause numerous costly inefficiencies.
U.CASH, an emerging blockchain startup, has developed a seamless platform to solve for many of these points of friction. Built on top of an ecosystem of retail service providers, known as converters, they are able to provide consumers peer to peer access to all of the benefits of a full-stack traditional financial services provider, including “sending and receiving funds, bill payments, loan repayments, etc,” all without ever needing to actually enter a traditional financial services establishment.
The U.CASH network is powered by state-of-the-art blockchain technology that provides best-in-class security and accessibility features. Their clever application of blockchain will offer a “globally accessible service using a non-custodial business model.” This allows U.CASH to supersede barriers and build an efficient, frictionless framework for growing their business.
More specifically, after iterating over a number of token-based solutions, their team combined ideas from multiple blockchain implementations to “offer a targeted, fully functional base layer that can be used to empower the network.” They quickly came to realize, after testing out existing networks like Ethereum and Bitcoin, that “the niche market requirements of building a distributed financial services network requires a custom built blockchain platform that utilized all available technologies.”
U.CASH uses smart contracts, “operating as computer protocols that initiate, facilitate, verify, and/or enforce the negotiation and performance of a contract,” to secure transactions within the ecosystem. These contracts often “emulate the logic of contractual clauses and as such can be a digital representation of real-world deals and standards of doing businesses rooted entirely in the technological realm with use cases that have not been seen before.”
The U.CASH Token (UCASH) fuels the broader marketplace, as it can be used to pay for services in both online and retail transactions. All of the interactional information is automatically logged and encrypted into a cryptographically secured blockchain ledger that protects against the threat of hacking and corruption.
As the currency solidifies, participants within the network will be able to take UCASH in exchange for different types of services. Importantly, they execute this token without relying on any outside party or separate entity who may have misaligned priorities or incentives.
The distribution of these UCASH tokens will be during a multi-stage IBO and continue through a normal bounty. An IBO, otherwise known as an ‘Initial Bounty Offering,’ differs from ICOs, in that users acquire network tokens by completing bounties. This streamlines incentives throughout nodes in the system. Users will be able to hold their UCASH coins in their highly secured digital wallet. The keys to this wallet will be held entirely in control by the end user. Once a transaction is created via the platform, the funds are automatically converted into UCASH and subsequently loaded into a multi-signature (MultiSig) address wallet.
U.CASH uses 2-of-3 multi-signature address wallets to hold funds while in transition. 2-of-3 multi-signature addresses require two private-key signatures to move funds from – both a user’s and the recipient’s (or converter, partner provider, etc.).” This ensures that only the parties subject to the transaction have access to the funds at any point.
All of the benefits of the platform have been architected in such a way to overcome borders and obstacles of internationalization. In other words, “the U.CASH network is accessible to any consumer with a stable internet connection.” As a result, the platform is able to not only provide for first-world citizens, but also the largely underserved population of low-income, low-earning markets. For perhaps the first time in history, we will see a truly global, fully accessible financial services product.
U.CASH’s early success has largely hinged upon the development of their budding peer-to-peer network of retail services who “provide conversion services from fiat assets to digital cash (including Bitcoin and other popular digital currencies).” These retail converters charge a “small service fee to cover costs of these transactions.”
While small financial entities typically fail to overcome high regulatory and maintenance costs, converters, backed by U.CASH’s growing peer-to-peer network, will have access to a “platform for money and digital cash equivalent, Universal Cash, management, which includes all necessary modules for an unbank including distributed smart-contracts, mobile and online applications, and bank-grade security infrastructure.”
U.CASH has also developed an extremely powerful, complementary mobile application to service their ecosystem. This app lets users “convert their balances between various digital currencies, pay their bills, instantly send money worldwide, apply for loans from other converters, do mobile top-ups, and much more.” To accomplish this at scale, their team has partnered with a number of incumbent “financial payment processors, telecommunications service providers, bill payment services and retail money service businesses.”
In addition, users can easily navigate to participating converters via the mobile application’s GPS navigation system. Their platform also provides a rewarding “Loyalty Cash” system that awards users in UCASH for spending currency.