HybridFX enables the creation of digital tokens which are backed by fiat currency. The fiat-backed tokens provide a robust and timeline method of exchanging value while using a fundamental unit of accounting. Blockchain plays an essential role in this technology. It gives an auditable and cryptographically secure global ledger. These asset-backed token issuers and other market participants can benefit from the blockchain technology, along with embedded/in-built consensus systems, to buy/sell in familiar, less volatile currencies and assets.
To ensure stability and to maintain accountability in exchange price, HybridBlock presents a method to maintain a one-to-one reserve ratio between its cryptocurrency token, called HFX, and its associated asset, fiat currency. This method uses Ethereum blockchain, proof of reserves and regular audits by accounting firms to help prove that issued tokens are backed adequately with sufficient reserves at all times.
There exists a vast array of assets globally, fiat currencies for instance, which people freely choose as a transactional medium, a store of value, or an investment. HybridBlock believes that Ethereum blockchain is better than established financial technology systems for transacting, storing and accounting for these assets. Most of the estimates measure global wealth to be around $250 trillion out of which banks or similar financial institutions are holding a major share. Migration of these assets into HybridFX represents a potentially significant shift in how value is transferred and stored.
Almost a decade ago, we were introduced to Bitcoin. Bitcoin created a new class of digital currency, having several points of value. Some of the primary advantages of bitcoin and other similar cryptocurrencies include lower transaction costs, borderless transferability and convertibility, real-time transparency, and trustless ownership and exchange. Many onlookers have pointed out drawbacks to cryptocurrencies too. The one most common explanation for the limited mainstream use of cryptocurrencies being there can be regarded to the volatile price swings. HybridFX is a solution to this volatility, bringing the benefits to cryptocurrencies to main-stream consumers while protecting them from undesirable shifts in value.
HybridBlock’s initiative by presenting a fiat currency backed cryptocurrency can overcome this drawback. It will provide all the benefits of the cryptocurrencies mentioned above, while at the same time overcome the drawback of unpredictable volatility.
(Please note that HFX is not a part of the HYB Token generation event and it will not be offered as part of the current HYB Open Token Sale and could be subject to change. More details including time-line will be provided in a separate and subsequent whitepaper specifically for the HFX project. The HYB Token is not in any way connected to the HFx Token)
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