Decentralized Capital issues fiat-backed digital assets on the Ethereum blockchain

Rage Review : Decentralized Capital is a new service company that uses stable, government-backed crypto assets to connect the traditional world with the decentralized world. It is also one of the companies that showcased its products at the Shanghai Blockchain International Week Demo Day in September. The funding services they provide to traditional banks are based on the Ethereum network, using a multi-signature majority confirmation method to ensure funding security, simplifying the operational process while ensuring maximum system security.

Translation: Annie_Xu

DC (Decentralized Capital) is a new service that allows users to put dollars, euros and other government-backed currencies on or off the Ethereum network. It will showcase its products at the Demo Day of Shanghai Blockchain International Week on September 22 this year.

Users can trade with DC assets to gain access to products and services provided by the Ethereum network, with the speed and security of the network; but in a way that users are more familiar with and is not subject to the price speculation inherent in cryptocurrencies.

Crypto Capital is a private fiat banking platform that supports various cryptocurrency blockchains. This new service interacts with the international banking system through Crypto Capital. Crypto Capital provides KYC/AML services (Know Your Customer/Anti-Money Laundering) and can provide fund custody and licensing for user accounts in the traditional banking system.

Alex Wearn, CEO of DC, said:

“For decentralized technologies to realize their full potential, they need to be connected to the traditional financial world by trusted third parties. Our mission is to build that connection.”

“Currently, clients can purchase DC assets in two ways: through an account with our banking provider Crypto Capital or directly through a Bitcoin deposit into the company’s network.”

“Once we receive a deposit, we issue DC assets to individuals. They can use these assets anywhere on the Ethereum blockchain without having to go through additional AML/KYC processes. Each deposit held by Crypto Capital and banks around the world is categorized by currency and country of origin.”

DC's smart contracts follow the token standards set by the Ethereum Foundation to achieve interoperability. Assets that meet these standards can easily be recognized by other smart contract services on Ethereum.

DC also uses a two-thirds multi-signature method to create assets or coins; to prevent some employees or individuals from attempting to mint coins without authorization. In addition, the architecture of this system ensures that private keys are not stored on the Ethereum blockchain or on servers visible to hackers.

“We sign the contract and then put it on the running Ethereum blockchain, creating assets in the process of transferring the contract information. This is another layer of security to ensure that no one can get access to our keys.”

Wearn used the example of a bet on the outcome of the Trump vs. Clinton election locked in a smart contract to explain how ether price fluctuations can protect against volatility risk.

"If they denominated the transaction in ether, its current value would be different from what it was in November, which creates risks for everyone involved."

“Price fluctuations affect all kinds of transactions, including custody or deposit services. If you are going to lock up a certain amount of funds and denominate the value in cryptocurrency, then this undermines the purpose of the deposit to a certain extent. And depending on the asset exchange rate, there are different ways of speculating.”

He also noted that people want items to be valued in the currency of the place where they live.

“If you’re in Europe, you want to use the euro. That’s the currency you use to express costs, labor, materials. You pay taxes in it, and you want your income to be equal to what you spend in the real world, even if it’s from a blockchain-based service.”