Bill Bardhydt wanted solve the problem of mobile money transfers for long time and he may have found the suitable solution with the help of Abra. Bill Bardhydt wanted to realize the idea of letting everyone to transfer his or her funds through mobile number. Bill Bardhydt spoke at recent American Blockchains and Cryptocurrencies event about why Bitcoin become the missing part in his quest for the Whatsapp of funds transfer.
Everybody knows that Bitcoin has the opportunity to remove third parties from online money transfers, or at least replace them with a decentralized group of miners who could not still user’s funds. This is become the main thing that makes Bitcoin useful for Abra’s goal.
Bardhydt said at the recent blockchain technology conference:
“I primarily set that if there was any method that you simply might solve the matter of moving funds between 2 phone numbers in the world, you essentially ought to eliminate all middlemen from the transaction. I noticed what I needed was a model that allowed 2 individuals to share a cryptocurrency between them with no middlemen. That’s very hard, particularly if the cryptocurrency must be dollars on one side of the transaction and euros or another currency on the opposite side.”
Of course, Bitcoin allows money transfers with no intermediary, but the main issue of this cryptocurrency is the volatility, which is closely connected with the basic bitcoin asset. The main part of people does not want to watch the current bitcoin price before they are transferring money.
Bardhydt told how he fined the solution of this problem:
“I primarily invented this idea of a digital dollar: what we call at Abra, synthetic currency. A synthetic currency is essentially the virtual equivalent of hedged gold. If I will give you $100, in theory I may hand you $100 price of gold. However, of course, if you could not sell the gold promptly, you may taking volatility danger on the price of gold. I may hand you some kind of contract for difference or put choice on the gold that may eliminate the downside risk to you. A contract for difference would remove the danger in each directions. Everyone may agree that I was handing you $100, in spite of the fact that no paper currency was given to you.”
In recent days, Abra has discovered the way to complete the contract for difference-denominated trade without requiring the user to know how work any of this parts. Every phone contains a non-public key hooked up to some bitcoins in a smart contract qualified to the worth of any currency supported by Abra. Therefore, Abra has indicated that their smart contracts can work in a suburbanized manner. Bardhydt told that the corporate could disclose how the system works at a technical level during a series of web-blog posts.
The counterparties who wants to sty in the long position of these contracts can chiefly be ready to earn interest on their bitcoin holdings with none counterparty risk. Bill Bardhydt said that they stay bound to get the same principle back at the end of the trade. Using this synthetic currency, Bardhydt thinks he has finally created a system for real P2P payments denominated in dollars. The Abra application can act straight with the blockchain technology, which suggests there is no determinable. “Because the fundamental quality are often attached in fiat, I don’t need to expose any of the support of the Bitcoin to customers,” noted Bardhydt.
Abra is not a steward of funds, which drops the possible regulative needs that would be set their development. Abra does not have the power to reverse a dealings or seize a user’s funds, although they’re subpoenaed by a court. “The non-public key is on the phone,” mentioned Bill Bardhydt.
Moreover, Abra permits anyone with a telephone number to transfer money to the other everyone with a telephone number in the world, but there is still the difficulty of obtaining cash onto the application in the 1st place. Customers who have bank accounts are can add money through ACH, SEPA, credit cards and different traditional payment systems.
The individual cashiers can sell their cryptocurrencies for money from using the Abra application. All in all, this application is look like Uber for money payments.