PERSISTENCE: Crypto’s very own Ultron
Persistence is an Interoperable Middleware that powers Debt Marketplaces that match credit facilities with excess capital (lenders) to organizations that need funding (borrowers).
It is a platform that provides the absolute environments for Decentralized Institutional Finance Applications to be established and executed.
The mission of Persistence is to promote uninterrupted exchange of value around the world to hike the speed and performance of cross-border trade and financing.
The reason behind this mission is as follows;
Under the consideration of debt, a bottom line discrepancy exists between the supply and demand of capital globally. There hasn’t been too much development as regards matching of lenders and borrowers.
This has given rise to most sellers incentivizing buyers to make purchases before the buyers may have the funds to buy, leading to an estimate of 80% of businesses globally completing their “billing cycles” within 30–90 days.
This means that sellers have to secure loans from financial institutions or credit facilities with the use of business documents (like invoices) as collateral.
Although this practice assists in the acceleration of commerce and hiking of sales, MSMEs still struggle to secure loans. This is because banks and other credit facilities have become unwilling to lend money to MSMEs due to stringent capital adequacy requirements implemented on financial institutions after the Global Financial Crisis.
Therefore, Persistence leverages some essential characteristics of the Blockchain/ Cryptocurrency ecosystem to achieve its mission:
Mobilization of capital — in an unrestricted, trustless, immediate and continuous manner.
Asset tokenization — by turning ‘Real-world’ Assets such as invoices, letters of credit, bills of lading (representing goods on a ship) into Non-Fungible Tokens (NFTs).
Decentralized Exchange — to promote effortless transaction and exchange of ‘Real-world’ assets against crypto-assets.
Debt marketplaces — making provision for crypto-assets and Real-world assets to be used as collateral to borrow/lend capital.
A real-word asset can comfortably be used as a collateral for business financing immediately it has been tokenized into an NFT.
In fact, the solution offered by Persistence cannot be overemphasized. A multiplying amount of institutional capital and upcoming Stablecoins are seeking ways spawn profit, plus the need for MSMEs traders and businesses to access financing is increasing exponentially and Persistence is well positioned right in the middle them.
In other words, it’s safe to say that Persistence offers solutions to the following problems:
1Sloppiness in the Financial Services industry such as long settlement times which has led to an annual cost of more than $10 Billion (due to this inefficiency) according to a BCG report commissioned by DTCC, lack of transparency and requirement for trust brought about by centralized exchanges etc. failing to transparently declare their holdings and end users being unable to ascertain ‘Proof-of-Solvency’ of a platform, lack of infrastructure and access for MSME investors and businesse.
2Hinderances to the adoption of DeFi such as the use of only Crypto-assets as collateral as opposed to traditional’ finance where ‘real-world’ assets like business documents such as Invoices, Bills of Exchange (like invoices but for international trade) and Bills of Lading (document showing ownership of goods on a ship) can be used as collateral to secure short-term loans. But Stablecoins within the Cryptocurrency ecosystem can only be borrowed by using other Crypto-assets as collateral (usually to leverage up). Another hinderance is the lack of infrastructure around holding Crypto-assets, one can see that SME traders and businesses aren’t in anyway prepared to use Crypto-assets on a regular basis because purchasing Crypto-assets is very crucial to be able to pay for gas, which is likely to be highly variable and costly, and risk management procedures around multisig and private key management are complex. Data Privacy concerns is another hinderance to the adoption of DeFi. When there is a lack of strict SLAs around data access, leakage of data and presence of malicious activity, it becomes difficult for institutions to embrace DeFi.
Moreover, when transactions and application logic are exposed, it plainly advances to obstructions for institutional adoption of Open Finance.
The solutions:
The Persistence architecture and technology stack was instituted while being observant of the problems discussed above and after numerous reps of attempting to solve them.
Moving forward, the Persistence technology stack comprises:
Persistence chain(s) — a network of supreme business unequivocal ‘App-chains’ which contains security made available by the Persistence main-chain and its legion of validators.
Persistence SDK — an all-inclusive suite of plug-and-play modules or sectors to create new or incorporate into existing Exchanges & Marketplaces or forums.
Persistence dApp(s) — finance applications targeted at institutional and retail stakeholders.
Persistence chain(s): It is a platform that provides the absolute environments for Decentralized Institutional Finance Applications to be established and executed and which facilitates matching of entities with surplus capital (lenders) to entities that require capital (borrowers).
The supreme nature of the chains gives room for customizations with respect to hike against security and also addresses privacy deliberation depending on the business demand. Furthermore, the architecture enables dApps to run independently without being perturbed by raised transaction loads being experienced by other dApps on the chain — this becomes compulsory in making a smooth end user experience available and meet up the expectations of institutional users.
Persistence SDK: The Persistence Software Development Kit (SDK) is a set of “A” graded tools or ‘modules’ whose purpose is to model Marketplaces for stress-free exchange of value.
Modules of the SDK can be incorporated into existing applications. As a matter of choice, the modules can be utilized in diverse alterations and mixtures to generate entirely new marketplaces.
Persistence dApp(s): Open Finance dApps (mostly Exchanges & Marketplaces), targeted at pairing borrowers (demand of capital) to lenders and investors (supply of capital), are hosted on app-specific chains in the Persistence ecosystem.
Persistence is focused tapping into both institutional and crypto-native liquidity at the dApp layer in a two-step approach:
First step: Gather the pros of Public Blockchain technology to institutional use-cases (you can call this tapping into institutional liquidity).
Second step: Gather institutional products to crypto-native stakeholders (you can also call this tapping into crypto liquidity).
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