BANKNETWhitepaper
TABLE OF CONTENTS
1 INTRODUCTION
9 MISSION STATEMENT
10 BANKNET BUSINESS MODEL
13 ABOUT THE BST TOKEN
17 INCORPORATED TECHNOLOGY
21 PROBLEMS AND BANKNET'S SOLUTIONS
39 ROADMAP
40 BKU TOKEN DISTRIBUTION AND ALLOCATION
41 BANKNET'S PUBLIC POLICY AND CORPORATE BYLAW
42 OFFERING PRICE AND SCHEDULE:
43 COMPLIANCE AND SECURITY OF THE BANKNET PLATFORM:
44 DISCLAIMER
Introduction:
Banknet is treading on the path of crafting an Ethereum governed ecosystem which will apply
blockchain technologies to three of the most prominent industries – banking, insurance and real
estate - noting that they are under the influence of several shortcomings which can be done away
with by incorporating innovation. This way Banknet will be tapping into a market filled with
upcoming opportunities.
Banking
The term “banking” has existed for as long as we can remember. However, the most impactful
shortcoming of this industry was that, that it is known for its “classic” methods – which was being
used ever since the industry’s inception. Since digitization is on the rise – this industry could not
elude utilizing artificial intelligence or innovative technology which is helping other industries
boom. Since it was time, this industry embraced innovation to alleviate the possibility of human
error to occur as well as reduce the amount of paperwork that requires handling.
It has been found that every third person in the world is making use of Financial Technology –
which is indicative of the fact that this industry will slowly have a grasp on the global scenario,
without any doubt. According to the Global FinTech Survey conducted by PwC in the year 2017,
FinTech companies are aiming to bring about changes in the market by relying on emerging
technologies. Around 50% of the large companies in this industry are aiming to invest in the
blockchain. Additionally, the report stated that by the year 2020 – 77% of these companies will be
integrating their operations with the blockchain technology. On the other hand, the FinTech
Adoption Index 2017 study stated that 50% of the 22000 people – hailing from 20 different
countries – use FinTech services to make payments and transfers of the sort while 65% said they
will do so in the future. Owing to the data observed so far, it can be safely concluded that digital
currency sounds like a safe alternative to make use of.
Our way of operation in the Banking industry:
While the world saw the wave of globalization, it – also – observed an increase in the relations
forged amongst the international entities and a digital currency would be accessible by all and can
be transferred with ease. This has led to the advent of Banknet’s financial platform which has been
integrated with the use of blockchain not only because of how safe it is but also because of the
speed and the efficiency with which these transactions occur. Thus, ensuring that while it renders
the traditional services - time is being saved. The operations would be smart contracts driven –
which is one of the most interesting elements of the said technology because it would automatically
fulfil the obligations that have been stipulated by its user. The decentralized operations of this
technology act as an aid for keeping all fraudulent and criminal operations at bay.
Financial Services:
The year 2018 witnessed cryptocurrencies taking over the globe at the speed of lightening owing to
the potential that it holds. An incessant number of people flocked towards it in the hope that they
would be able to invest in it. People have good reason to do so because cryptocurrencies have a
robust design which can allow them to become an applicable currency. As it can be observed,
cryptocurrency has a first mover advantage because it is going to bring about a technological
transformation in the conventional financial system.
With the many opportunities that these digital currencies have been offering, one of them is that
they have the ability to be accepted as a commodity. Like gold, the cryptocurrencies have become a
prominent player in the commodity market. What makes them even better is that a mechanism to
directly purchase them online has been set up which allows the users to deal in them without any
hassles.
How is Banknet going to operate in this segment?
Having assessed the opportunities available in the financial services segment, Banknet has decided
to come with two portals which make use of cryptocurrencies and these would include:
- Cryptocurrencies exchange: a cryptocurrency exchange allows its users to trade in these digital
currencies in exchange for fiat money or other similar cryptocurrencies. Banknet decided to come
up with an initiative of the sorts in the first place because it has understood that the cryptocurrency
market is available round the clock and will allow individuals to indulge on exchanges without
having to interact with an intermediary.
Thus, Banknet’s cryptocurrencies exchange platform is going to tread on a development plan which
is going to involve -
a. Future contract trading: Our platform is going to allow users to trade by stipulating future
contracts which they decide to agree upon by analyzing the market stability.
b. Trading within the whole network: Banknet is going to tie up with several other trading platforms
so that the individuals making use of our network can make transactions exceeding the bandwidth
of the platform.
c. Over-the-Counter: Banknet will also create an intermediary service platform which is going to
facilitate individuals with B2C and C2C trading models.
d. A new era of trading: Employing blockchain in our functioning, it goes without saying that
security, efficiency and stability are the attributes that individuals would be able to benefit from.
e. Easy access: Our platform will be accessible on all sorts of operating systems which includes
Android, iOS, Mac, windows etc.
Also, our platform assures that the customers benefit from the use of exchange in terms of the
processing speed so that they can implement concurrent transactions all at once. Moreover, the
underlying technology to this platform adjusts in accordance with the load it faces at a particular
moment in order to render a smooth experience to our customers. Along with this, since Banknet
extends the option of wide network trading – it will allow the users to match the market depth of the
other major exchanges which will lead to an increase in the liquidity. While rendering all these
benefits, Banknet has ensured that a security mechanism is developed in the system. Thus, a multi-
layer system architecture has been put into place.
- Crypto lending platform:
Banknet’s lending platform is likely to become the customer’s go-to if they are looking to leverage
their crypto holding for cash in forms of loans. In this manner, without selling your blockchain
assets, you can obtain money to spend easily.
The question now is- How does it work?
No matter what the purpose is for borrowing money, the users will be able to acquire quick money
against their cryptocurrencies in no time. Banknet has floated this service in the market owing to the
needs that people have. The members can choose to pay their loans off at any point of time without
having to incur any additional cost; thus, eliminating the scope of prepayment penalties. Since the
platform has especially been crafted for the users – Banket assures that it will not consist of any
origination fees or closing costs.
Unlike conventional lenders, Banknet’s services are a step ahead. It has developed a simple portal
which is going to support transparency instead of adding on to the costs that the clientele is to incur.
Also, it understands that a majority of the financial institutions avoid entering the blockchain
market because of the challenges that they are likely to face in the operation of this contemporary
measure. Thus, Banknet is going to help these institutions to loan out currencies to the people who
hold assets on the blockchain network; thus, allowing the establishments to work in accordance
with their stipulated business models. While understanding the apprehensions of these institutions,
Banknet has done its best in assuring compliance and security in order to lend against the said assets
which is based on the use of the blockchain technology.
Once the members who have applied for loans are qualified in accordance with the set rules, they
can select the size and type of loan in addition with the amount of time for which they need a loan.
Thereafter, the members are connected with the qualified lender. The lenders are going to benefit
from the interest they are to accrue from the overcollateralized assets.
Thus, Banknet’s platform has been crafted to support the lending of any type of currency, not
leaving out the trending digital currencies.
Insurance
Thus far, it has been observed that the insurance industry has not been met with any remarkable
changes. Having understood the niche that remains to be filled, 86% of the insurers are of the view
that innovation must occur in the industry so that it remains competitive1. It is about time that the
insurance industry moves away from being paper driven.
Ever since emerging technologies have begun to take over the market, the vision of widening the
InsurTech market has come closer to become real. Once the development has been completed, the
future will make the dream of being insured a button away owing to the internet penetration rate
1 Accenture. (2019).The Rise of Insuretech.
which stands at 53.7%2 and this will lead to insurance becoming ubiquitous in our lives. It will be
available whenever you are in need of it – to protect anything of value or an event that you are
afraid of. Despite the fact that the data would be available widely, it would be secured in all forms.
Given insurance companies are still on their way to digitization – once they adopt this innovation
completely, they would be able to disrupt the market while decimating the costs that the companies
have to bear. This would also allow the insurers to focus on other segments of their operations
which includes product development and portfolio management – this, in turn, is going to lead to
positive consequences for their customers. According to Accenture, despite the fact that the banking
service had the "first mover" advantage of leveraging FinTech, the insurance companies are going
to benefit the most out of this.
What is Banknet going to do?
Comprehension of the Insurtech industry led Banknet to develop an ecosystem which is going to
benefit both the insurers and the insurance distributors and allow them to interact freely. "Smart
insurance" is going to help reduce the hassles of the insurance industry while reducing the costs and
inefficiencies of the market. Banknet's platform will be the main source for all the transactions to
take place, smoothly, using Smart Contracts which will be entailed with the required rules and
regulations with regard to ensuring.
Real Estate Industry
The real estate industry has existed ever since the advent of the global economy. As soon as the
cities began to proliferate, the number of real estate transactions have increased – this led the
industry to become one of the most lucrative, economically. The data obtained from Savills Global
Research Report Trends in Global Real Estate Market in 2016 said that the total market
capitalization of the real estate industry, in a global scenario, was estimated to be around USD 217
trillion and this works out to be nearly 3 times of where the global GDP stands today. This indicates
that it would be best to invest in this segment.
2 Global internet user penetration 2021 | Statistic. (2019).
How Banknet will operate in the real estate segment?
Banknet is going to categorize individual properties as tokens. Once this is done the properties can
be traded on the decentralized exchange administered as units on the “BKR” platform – developed
upon smart contracts and Ethereum. It will be capable of conferring various benefits to its users
which includes the transfer of ownership with ease, decimate the inefficiencies of the taxation
system in this industry, reduce the complexities that have been endowed upon the international
transactions and reducing the interference of the middlemen. This will make all the records of the
real estate market available – digitally.
Banknet’s Mission Statement
Banknet’s statement of mission is to bring a substantial change and empower the financial and real
estate industry by making use of the most advanced and innovative technologies like fintech and
blockchain. We aim to achieve our goals by combining the business models that are well tested
and proven, along with developing platforms and exchanges which are based on blockchain
technology as well as ethereum smart contracts.
With this, Banknet has also established a goal with which it aims to make its token a well-
recognized cryptocurrency to trade in while garnering the trust of users from all over the world. Our
management operates with a belief that the goals that we have set forward for our company would
be realized as soon as we integrate our business model with the advantages the blockchain and
financial technology have got to offer.
Banknet Business Model
Banknet is a decentralized Ethereum based ecosystem that will act as a framework and platform for
the global financial market and the real estate industry. Banknet's innovative and advanced
technology will empower the banking industry in each and every segment, once it has been
introduced. Whether it is global money transfer, fund and assets management, peer-to-peer loan's
platform, the banking sector is bound to become better.
Banknet's Insurtech operation will affect the old fashioned and traditional insurance industry by
leveraging the use of Ethereum smart contract. Banknet would then be able to fight and challenge
the use of fake insurance policies, assess the insurance claims made by the beneficiaries in a jiffy,
and while improving the sector, it would also be able to reduce the overhead costs associated with
managing insurance claims, substantially. Use of Ethereum based smart contracts will assist insurers
to develop better and accurate systems for quoting insurance policies premiums while enabling
them to analyse the risks associated with certain policies.
Banknet's Fundtech and assets management operations will be focused on achieving the highest
levels of returns on investment for both individual customers and businesses. This will be achieved
using advanced algorithm technology for trade and investments execution and by relying upon the
top-rated professional managers to manage funds and assets.
Banknet's revolutionary vision is to turn the banking sector to be a more effective and technology-
driven industry and the roadmap to this vision has already been put into action. It can be observed
that the banks are shutting down their physical facilities and offering most of their services online –
catering to the needs of the customers better. Banknet will tread on the same path while making
major improvements to it by mainly using the advanced blockchain technology and Ethereum smart
contracts that is pending acceptance in the banking industry.
Banknet’s real estate platform BKR is based on blockchain technology which will simplify global
real estate transactions, by using Ethereum smart contract for transactions. Most of the unnecessary
paperwork that leads to the complication of the real estate transactions will be eliminated. Banknet
intends to tokenize the real estate properties to tradeable units and will set up the decentralized
BKEX exchange based on Ethereum smart contract to facilitate trade in the tokenized units. As a
result, massive and overwhelming liquidity will be created in the global real estate markets.
Banknet will independently post a bid and represent international properties on its exchange. The
selection of the properties will be based on standard analysis composed of factors which will be
quantitative, static and dynamic like the generation of cash flow and anticipated yearly ROI.
Banknet’s designated and professional real estate team will be in charge of the platform's operations
and the company will derive its profits by charging commissions paid by the parties to the
transaction performed and executed on Banknet's exchanges/platforms.
An integral part and undivided section of Banknet's terms and conditions demand that users - buyers
and sellers - on the platform will have to pay or accept partial payments in form of the BST or BKU
token as a part of the executed transactional value. Thus at this point, Banknet will demand that
each participant of the transaction will either have to pay or accept 20 per cent of the gross
transaction value in the BST/BKU tokens.
In return, and as part of an extensive rewards/incentive program, each contributor will be rewarded
with a special discount on the market price of properties owned by the Banknet Real Estate Fund.
The reward program at Banknet has been professionally designed and created to achieve two major
goals; firstly, to encourage participants to trade on the Banknet’s platform/exchange; thus, it will not
only help Banknet in deriving profits but will also increase the commissions that the users obtain at
least tenfold. Secondly, the structure of the reward program calls for participants to acquire BKU
and BST tokens at the open market to facilitate the transaction, as a result, each average real estate
transaction will amount to a few hundreds of thousands of US dollars - at the minimum. Thus, the
demand for BKU and BST tokens in the open market will increase substantially in the longer run.
Banknet’s real estate prime properties fund (BKPR)
Banknet real estate division will acquire global real state distress properties from banks, lending
institutions, insurance companies and individuals. Banknet will, also, make use of its financial
resources to acquire prime properties. Thereafter they will be made available on its real estate
platform BKR and then these properties can be accessed globally. Potential buyers of the said
properties will have to pay at least 20 per cent of the property's purchase value with BKU tokens.
Banknet's financial and insurance divisions will provide and guarantee the best and the most
affordable insurance policy for the acquired property and if necessary will offer mortgage-backed
assets at the best rates available in the banking industry.
Business Partnership and Opportunities for Banknet Tokens
Due to the token's unique structure, it is widely anticipated that major online vendors and unlimited
small and medium online operators will accept BKU and BST tokens as a valuable and trusted
method of payment. This will open up several lucrative opportunities as it would enable Banknet to
establish a strategic business partnership with major online operators such as Amazon, Ali Express
and so forth because the BKU and BST tokens are likely to be accepted as solid and stable
currencies.
Making payments with BKU and BST tokens is a precondition for trading on Banknet's real estate
and financial platforms. Using the tokens as a method of payment for insurance premium would
enhance the credibility of the tokens and will pave the way for recognizing BKU and BST tokens as
a well trusted international cryptocurrency.
About the BST token:
Having mentioned the BST token several times in the coin structure, it is required of you to first
understand what the BST is. After the provision of the token, it would serve as the payment gateway
for the Banknet users.
The people trading on the Banknet’s real estate platform and exchange will have to make and accept
the partial payments in BST tokens, in accordance with the terms and conditions of Banknet’s
exchange. In order for the users to pursue a desired real estate property on the Banknet platform, the
users will either have to bid on the open market to obtain the said tokens or approach the BKU
token holders and place a bid for their share of BST holding - because of the limited supply of the
tokens in the market.
Speaking from the insurance perspective of our operations, the users who wish to acquire the most
lucrative insurance policy issued by Banknet are required to contribute a substantial amount of the
premium prescribes under the policy as BKU or BST tokens. Owing to the range the insurance
industry is capable of covering, it has been anticipated that once the Insurtech business model has
been integrated with the blockchain technology – the demand to issue insurance policies that
Banknet is going to witness will be overwhelming. This will result in a ten-fold increase in the
premiums that the insurance policies can fetch.
Overall, the BST token will serve as a globally trusted payment gateway owing to the fast-growing
system of Banknet. The rewards system functional at Banknet will make use of the BST token as
well. Most importantly, with the attention BST is to garner – its price would be determined as per
the price quoted on the international currencies exchange.
Banknet Innovative Token Structure
BKU is a token which is targeted to enhance the value that the token holders derive by creating
sustainable cash flow for its holders by Banknet's rewards distribution programs. The rewards
would be dependent on several factors which include the introduction of five of Banknet’s divisions
to the public via offering and spinning off distribution to BKU token holders, the amount of
confirmed BKU balance in the wallets of the users of Banknet, the sale and distribution of BST
tokens and the burning of unused and oversupplied BKU tokens.
BKU Market Price Stabilization Index (BKIX)
BKU token is uncoditionally pegged from date of issuance to the market value of top ten most
valuable tradable currencies which include: BTC, ETH, XRP, LTC, BCH, EOS, NEO, USDT, BNB
and DASH. Each currency will equally share 10 percent of the basket index. The intrinsic basket
value index (BKIX) is based on each currency’s market value and will be calculated and published
on banknet's website and news releases, monthly.
In the event that BKU adjusted and calculated market price (after taking into consideration the
dividend and distribution made to BKU token holders) is below the market value of the basket
index (as defined), Banknet will provide and contribute additional distribution to BKU token
holders in a form of unused reserved funds, reserved tokens of subsidiaries and own tokens.
Banknet's management reserves the right to change the weight or replace any single currency
consist of BKIX index (if it deems necessary to protect the index value).
BKU - Banknet's newly issued token
BKU token will be issued to the public in the form of a unit. The initiative consists of the right to
own five different currencies which represent the five different divisions of Banknet's global
holdings which are as mentioned:
BKR - An advanced global real estate platform based on the blockchain/smart contract technology
BKS - A global insurance operator based on Fintech technology with a focus on the blockchain
BKN - A global banking and investment platform providing a range of financial services by being
fully integrated with the blockchain technology
BKEX - An advanced cryptocurrency exchange platform based on blockchain/Ethereum smart
contract technology
BKLEND – Advanced crypto lending platform
Banknet is unconditionally committed to introducing its five divisions to the public in a span of 24
months from the first issue date of BKU tokens to the public.
Each BKU token holder will ultimately own five different currencies in addition to BKU tokens
because these currencies are a part of the BKU unit. For instance, if Banknet was to issue
10,000,000 BKR tokens - the real estate platform division currency - to its token holders and if you
are the owner of 1 per cent BKU tokens on the date (which is fixed by Banknet's management) on
which Banknet intends to issue the new coins, you will receive a free bonus distribution of 100,000
newly issued BKR tokens.
Banknet is determined to list and trade on international currency exchanges by accommodating the
use of the newly issued tokens consisting of the BKU unit. The value and price of the currency
(which are ramifications of the BKU) of newly issued tokens, that each BKU token holder is to
receive, will be determined at the offering date to the public and consequently, the price as quoted
will reflect on the various international currency exchanges.
Confirmed BKU Token Balance
Reward distribution is going to be based on the confirmed BKU balance in the owner's wallet. The
rate of reward would be 1 per cent, a month, (12 per cent on an annual basis) of the value of the
confirmed BKU token balance in your secured wallet. The reward would be distributed to the
holders, quarterly and would be in the form of newly issued BST tokens.
Royalty distribution
BKU token holders will be entitled to receive annual royalties from the proceeds of the sale and
distribution of the BST tokens to the public. BST token (when issued) is designated to be the
payment gateway of Banknet's ecosystem. Meanwhile, it would also climb the ladder of becoming a
payment gateway outside Banknet's operations. Individuals, businesses and institutions which will
use Banknet's platforms and exchanges will have to make use of either BST tokens or BKU tokens
as a form of partial payment (by strict terms and conditions of each platform/exchange) for the
transactions (properties, goods or services). As a result, the company anticipates a strong and
sustainable demand for BST and BKU token units to be developed. 25 per cent of the proceed
generated by the total sale of BST tokens will be distributed amongst the BKU token holders as
royalty. At this moment, the management cannot confirm or otherwise estimate the yearly royalty
amount to be received by each BKU token holder, but it can be asserted firmly that the potential
royalty distribution is going to be substantial in amount, once Banknet's divisions commence their
operations.
BKU Burning Tokens Program
Banknet has also come to a decision that it will proceed with burning and cancellation of unused
and oversupplied BKU tokens. The number of tokens to be burned and cancelled and the date of
putting this settlement into action will be publicly announced on Banknet's official website as well
as will be released in the news.
Most Valuable Investors (MVI) Program
All the BKU token holders who have subscribed to BKU token worth at least 8,000 USD at the
Initial Coin Offering and in addition, have at a given point of time (as mentioned) a confirmed value
of 15,000 USD in BKU tokens in their wallet, will be entitled to receive a 12 per cent discount on
purchasing prime real estate property from Banknet's real estate global fund. Additionally, the 12
per cent discount will apply to the premium paid for an insurance policy issued by Insurtech,
Banknet's insurance division. This discount will also run for any banking or financial service fee at
any of Banknet's financial services providers.
In order to simplify our token holder's transactions, all the newly issued currencies will be in the
form of BKU units and will be stored in the token holder's completely secure wallet.
Incorporated Technology:
What is Blockchain?
For as long as we can remember, databases have been centrally managed by organizations for
keeping a track of their transactions. It is a rare occurrence that databases are shared between
individuals because of the security concerns associated. The advent of the blockchain technology
brought about a change in the operations of commerce.
A blockchain can be understood as a shared database which can be accessed by a wide range of
users who agree upon any changes that are to take place. For a new piece of data to become a part
of this database, all the users must come to a consensus about the validity of the change. These
changes are the transactions that occur on this technological platform, which can also be termed as
the "blocks" of this entire chain. All these blocks are cryptographically linked to one another. Given
how these blocks are created, it becomes extremely difficult to change the data stored on them;
however, if any change is to occur on the blockchain – it would be visible to all the users. Since the
code runs on various computers, all at once, the chance of failure occurring is mitigated because of
the absence of a central server.
The way this platform has been crafted allows it to serve as a proof of ownership of any material it
is configured on. When people indulge in transacting on the blockchain platform – they make use of
a public address and a private key. The public address plays a vital role because when it is available
with other users they are enabled to transact the required commodity between them. Whilst a private
key is required to check for the authenticity of a transaction that is to take place.
Advantages of Blockchain:
The blockchain is disrupting various industries because of the role it plays in their operations and
holds certain benefits for them, such as:
1. Increased levels of security: There are various ways in which blockchain is utilized to ensure an
increase in security. Before the occurrence of a transaction – it must be agreed upon by the user so
that it can be recorded further. Once the approval gets through, it is coded and then a link is forged
to the previously recorded blocks. The fact that the code is encrypted is topped with the
characteristic that the information is being stored across a network of computers instead of being
stored on a single server. The latter acts as an aid because the hackers will not be able to lay their
hands over the data pertaining to the transactions. If it is important for the industry to store data,
blockchain has the chance to prevent any sort of frauds to occur.
2. Traceable: Why is blockchain said to be traceable despite the fact that there is no central server
which can be reached to gain access to the data? Allow us to explain this to you. If the industry that
you are a part of has a very complex supply chain to deal with, then you will be familiar with the
fact that how hard it becomes to trace the item back to its origin. This problem is alleviated when
the transactions begin occurring on the blockchain because you end up with a trail of information
regarding the origin of the commodity and all the stops that it has made meanwhile it is on its
journey. This traceability will help you authenticate the journey and will keep all the monetary
frauds at bay.
3. Minimized amount: Paying a lesser amount is a priority for almost all the businesses. Blockchain
mitigates the necessity of middlemen or intermediaries because it is held on a platform where trust
issues do not exist amongst the trading partners. All you have to do is rely on the data that is
presented to you on the blockchain. Furthermore, it comes with an additional benefit of removing
the procedure of documentation in the completion of any trade as it allows access for everyone to a
fixed version of the information.
4. Blockchain and its transparency: Given how blockchain is a distributed ledger, it lets the
transactional history to become easily accessible. All the users of this network are ahold of the same
paperwork instead of having individual copies. Most importantly, this shared version of the
database can only be altered once it has been verified – meaning all the users must agree to the
changes – because if one single transaction is to be altered all the other transactions are supposed to
be altered along with it. This allows an increase in the accuracy of the data that is stored on the
network as compared to all the other processes which entail a lot of bureaucracy.
5. Godspeed and efficient: The fact that there is an increase in the speed because of the
implementation of the blockchain platform in no matter what industry you operate in, indicates that
the efficiency is being compromised. When you compare this procedure to the ones heavy in
paperwork, it becomes indicative of the fact that the whole procedure is going to be time-
consuming. The procedure is also prone to human error and it has also been observed that most
industries require third parties to act as an intermediary in the process. This is everything that the
blockchain does not accommodate – thus increasing the speed and the efficiency with which the
work is being delivered. Also, multiple ledgers need not be maintained because of the single ledger
system. Additionally, the single leger system increase the trust people endow in each other because
they have access to the same information.
What are smart contracts?
Smart contracts are the most interesting and the most important element when it comes to
transacting on the blockchain platform. These contracts can be coded on any blockchain; however,
they are commonly developed on ethereum – yet another cryptocurrency, like the bitcoin, which can
be traded without any hassles - because its development allows unlimited processing capacity.
For all the transactions to go through on a blockchain environment, it requires a “smart contract” to
be executed which entails a set of rules which will allow the various users on the platform to
interact amongst one another. They function like all other contracts, the major difference stands at
the point that the smart contracts are based on a programming code which can be used on a network
of computers. Once the rules mentioned in this contract are met, the said agreement is automatically
put into action. It is because of these contracts that people are able to make use of commerce with
strangers on the internet without having to use a website which plays the role of an authoritarian
third party.
To illustrate how the “smart contracts” function, have a look into the image below:
As it is mentioned that smart contracts are the most interesting part of a blockchain based
transaction – the image below describes how they are capable of standing out and benefitting the
users that rely upon it:
Source: sharetheledger.com
Source: https://blockgeeks.com/guides/smart-contracts/
Problems and Banknet’s Solutions:
Problems of the real estate industry:
1. Involvement of Middlemen
When it comes to real estate, you might be aware of the fact that the involvement of middlemen is
immense. The standard charges that a real estate agent levies add up to a total of six per cent. For
instance, if you want to buy a house that costs $600,000, then the fees for the middlemen would
account for about $36,000. As reported by the National Association of Realtors – nearly eighty per
cent of the people who are interested in buying homes, still take the assistance of an intermediary
and pay the extra fees. Moreover, it is the paperwork which is going to determine whether the
property belongs to you or not. If you have decided to transfer the property to somebody else, you
need the required paperwork and have to change the names that had previously occupied the blanks.
Thereafter, it is necessary for the paper to be notarized to reflect its authenticity. Once this is done,
you need to send the paper to the government so that they can make the required changes in their
database.
Source: https://www.zeromoneyinvestment.com
Do you understand the glitches of this entire procedure? It lacks the contemporary measures that
have evolved to better the functioning of the businesses. Due to this, a precious amount of time and
money is wasted.
Solution:
Until now, the existence of middlemen was necessary for the sole reason that the customers were
unable to access the information and did not have an authentic license which is required for the
transactions to take place. However, with the introduction of blockchain in the field of real estate,
Banknet has created a decentralized portal that is based on Ethereum’s development platform. It
relies on Ethereum blockchain because of the fact that the property records can easily be verified
without the need for middlemen and increases the security in the database multiple folds owing to
the underlying cryptography.
2. Frauds
Given how today’s world has digitized, forging a document does not take too long. Criminals are
able to fake the ownership of a property by altering the names by making use of editing software.
Also, owing to the ease with which the notary stamps can be copied – the rate at which fraud can
occur has increased considerably. This makes the authenticity of documents questionable. The
American Land Title Association has asserted that all the real estate transactions consist of at least
one error which is subject to correction before the title is transferred. This, in turn, leads to
increased costs being incurred by the owners because they have to justify their ownership. To
prevent anything of the sort from occurring, the owners rely upon title insurance – which further
enhances property purchase cost.
Solution:
Once our blockchain solution will tap the real estate market, it will begin to include the history,
location and details about the title of the property holder. As a result, a number of stakeholders
could rely upon this method because tampering the title would require to bring about a change in
the existing data which can only occur once a consensus is run through the many nodes of the
blockchain. Also, the encrypted manner in which the information is stored would make it very
difficult for criminals to commit any crime.
The introduction of blockchain in this industry would also lead to increased speed in transferring
the title; thus, replacing the paper proof with a digital proof is now becoming the go-to.
Additionally, once everything becomes digital – the verification procedure would become a whole
lot simpler.
3. Expensive cross-border transactions:
When it comes to transferring money or paying for a property transaction, the transaction could
become extremely expensive and tedious because of the paperwork that is required to be turned in
as well as the number of people who are involved in the entire procedure. The problem becomes
worse when you are dealing in international transactions. For instance, if a property transaction
involves a buyer from the United Kingdom and the seller is from India – then the number of people
who would be involved in the process would lead to an increase in the transaction cost. The local
bank in the buyer's country would transfer the amount to the head branch of the correspondent bank
in the UK – this money would then be paid to the seller's bank which is situated in India. Finally,
the amount would be transferred to the local bank account which the seller has access to. This
procedure is subject to errors and is not as transparent as the users expect it to be.
Solution:
Source: www.applicature.com
Smart contracts can remedy the situation mentioned above and reduce the inefficiencies down by
various notches. It will also enable a transparent environment wherein the payments procedure
would be carried out.
Blockchain can simplify the overall procedure and provide for a network wherein the two parties
can interact without having to put themselves under a loop in which the interaction with
intermediaries is a mandate. The information that is going to be sent over this common ground is
going to include things like delivery time, foreign exchange rate, transaction fee and all other
requisite data. Additionally, when it would come to settling the procedure down – the process would
be very smooth because both the parties will have access to each other's ledgers by means of this
open network. It must not be forgotten that the method will be free from any errors because it
entails cryptographical verification of all the transfers that are to take place.
4. Scattered information:
The procedure of dealing in real estate is extremely complex because the various steps that the
process is made of are not interlinked. This leads the information to be scattered in various places
which results in duplication of data.
Solution:
Source: www.cointelegraph.com
Blockchain will serve as connective tissue and will connect all these procedures so that they are
accessible at one platform. Thus, all the involved parties will gain access to a database which
consists of the relevant information. Also, the database will be able to record the information in
real-time. While addressing this important issue, the realtors could also make use of predictive
analytics so that smart insights can be drawn from the blockchain data. This would ultimately result
in an increase in the quality of the operations of this industry.
5. Complex search processes:
Brokers, owners and various other stakeholders make use of so many listing platforms to access
information pertaining to properties. The first and the foremost shortcoming of this is - to access its
data, you must subscribe to the platform which requires a very hefty fee. Also, the details are
questionable for they are completely dependent upon the broker’s preferences. On top of this, the
search process is very complicated because of the high probability of its bits and pieces being
spread over various platforms. This delays the overall procedure and leads to low levels of trust
amongst the individuals involved in the procedure.
Solution:
If the listing platform is based upon blockchain, like Banknet’s real estate platform, the data will be
distributed on a peer-to-peer network so that the brokers can exercise control over their data. This
would also enable the data to be accessible freely; thus, leading to an increase in the trust amongst
the people. This platform would be able to provide clear details about the location of the property,
the history of the property’s ownership, the details pertaining to the tenant, how old the property is
and properties available on similar rates. This factor will also introduce affordability into the
picture.
Problems of the insurance industry:
1. Fraud:
From what we have come to understand about fraud, it is indicative of illegal activity and the
scenario gets worse when it comes to the industry as huge as the insurance one. Looking at such
frauds from the perspective of sellers, it is inclusive of selling policies from companies which do
not even exist and fail to submit the premiums back to the clients when they are in need. From the
buyer's side, it includes making use of a false medical history or faking death etc. These ways pave
a path to exploiting the contract an insurance policy stipulates and both the parties – who attempt to
commit this crime – are equally to be blamed.
Solution:
Source: https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=IUW03049USEN
Blockchain has been endowed with the potential of providing a shared ledger across all the people
who operate on its network. Thus, blockchain possesses the potential of eradicating all sorts of
errors while ensuring that the chance of a fraud occurring is diminished by leaps.
A storehouse of data which is decentralized and is available online at the disposal of people – to be
checked at any point of the day – can be relied upon in order to gather information pertaining to the
policies, customers as well as transactions. In this manner, the companies will be able to keep a
track on activities which are being carried out by suspicious stakeholders and the transactions which
are duplicate. This technology also acts as an aid in cross-border payments which rely upon
currencies used as legal tenders in their regions.
In case of reinsurance as well as speciality insurances – the insurers do not have direct contact to
their end clients. This may result in several inefficiencies because of the resultant gap in
communication and thereby leads to poor quality data. However, blockchain can come to the rescue
in such a scenario because verification and validation are the basis on which the blockchain
technology has been crafted.
2. Haphazard management of claims:
One of the most vital components of the insurance industry is the processing of claims. The whole
industry functions upon this step and for as long as we have known this sector, it has been miles
away from making use of technology which has led to several shortcomings and has meant for it to
lag behind in the global scenario since all the others have begun to derive advantage from the use of
technology. Also, it is needless to say how complex the process of managing claims is. The industry
has been manual – for as long as it has existed - and makes use of several systems, at once, this is
the reason that it is not free from errors and this has hampered the relationships a firm is capable of
forging with their customers.
Solution:
However, the advent of blockchain is capable of bringing about some relief in this industry because
of it being efficient, customer-focused as well as transparent. All the said attributes act as catalysts
in increasing the trust amongst the stakeholders.
The claims prevention segment can leverage the use of blockchain to enhance their risk selection
process by integrating external risk and location analytics. Since the technology makes use of a
common ledger, it will allow the insurers as well as the involved third parties to access and update
the applicable information.
The mentioned procedure is a smart contract driven. While it is understood that the data required by
the smart contract to function may lie outside the blockchain network, it is a must for a third party
to be introduced to complete the required loop and carry out an action. This third party is known as
an oracle which is going to help the information reach the blockchain network at a said point of
Source: https://medium.com/crypt-bytes-tech/medicalchain-a-blockchain-for-electronic-health-records-eef181ed14c2
time. Once the smart contract receives the said information – it acts in accordance with that. It is
recommended to make use of a hardware oracle solution which incorporates the use of sensors to
track the events which are going around a certain place and time.
An example to illustrate this statement would be that a sensor would run an alert in case a crash has
occurred and will inform the conveniently located medical teams, garages as well as towing
services about the said crash. This will be enabled using smart contracts which are going to
smoothen the multidimensional procedure.
Thus, the combination of the images retrieved from the satellite, data from the sensors and mobile
technologies with blockchain will ensure that the claims payment and management is eased when a
natural disaster was to occur. Thereby, the data accessed from weather stations could determine the
claims amount and by means of the blockchain, the sharing of data would become effective.
3. Inaccurate risk processing:
A contract that pertains to insurance serves as a guarantee by the insurer that it is liable to pay for
any damages which have been caused owing to the danger that has been covered. The insurance
industry has been predominantly earning by means of creating insurance policies. This allows the
insurers to collect premiums from the clients and thereby proceed to generate profits.
The profitability of an insurer, as we know it, depends on how well they understand the risks which
are associated with what they are promising to insure. The amount charged by an insurer while
creating a policy is an important aspect in which insurance policies function. The premium that the
insurer charges must be enough to cover the claims that are expected in the future to avoid any
circumstance wherein the insurance company ends up paying out more than it has received as
premiums. Nonetheless, if such a case was to arise – it is a result of an inaccurate assessment of
risks.
Solution:
With an increase in the number of devices linked to the Internet of Things, the volume of data that is
being generated is bound to increase. It goes without saying that this data, if available, will be very
beneficial to the insurers as they intend to develop precise risk calculation models or products like
usage-based insurance (UBI) models.
For instance, peeking into the auto insurance market will allow the companies to identify high-risk
drivers on the basis of encrypted data which relates to the breaking patterns, driving distances as
well as time and similar behavioural patterns of the users. This will also help in verification of the
information which the users have mentioned on their applications.
Blockchain would be managing the large amount of data which is being shared amongst millions of
devices which are communicating with one another on this network. The technology will function
on a peer-to-peer basis instead of coming up with an expensive data centre which is going to deal
with this enormous data. Thus, once these devices begin to manage themselves – the whole process
is bound to become cheaper.
4. Reinsurance:
Reinsurance can be a very frustrating process especially when there is a lot of validation work
involved and it gets all the more tiring if you do not have all the documentation in one place for you
to access. The task becomes tedious and time-consuming if you have to go around investigating to
lay hands over the missing document. This will not only waste your time and reduce your efficiency
but will also result in an inaccurate reinsurance processing.
Solution:
As blockchain has come to exist, it is likely to benefit the P&C insurers the most – if they are
looking for a clear outlook towards their reinsurance contracts as well as exposures to the risk. For
instance, if an insurer is making an attempt to distribute an equal amount of risk to two separate
reinsurers – the blockchain technology will become handy in this case. It would help provide insight
if one of these reinsurers is trying to unload some of its risk to a subsidiary of the other reinsurer.
Also, this will help the insurers derive confidence that as they are reinsuring themselves, they will
be able to balance their capital against some specific risk that they foresee in the upcoming future.
While employing blockchain, the reinsurance segment is going to benefit obtaining accurate reserve
calculations which is going to be based upon actual contracts that are participating as well as will
update the calculations once the data has been furnished.
This is also going to aid the insurers in becoming flexible as long as moving the capital is the matter
of concern and will increase the transparency and capital efficiency. Thus, audit trails are easier to
keep a track on.
Problems of the banking and finance industry:
1. Delayed record-keeping:
Manual accounting has existed in the banking sector ever since the latter has incepted. However, it
has been observed that there are several problems with this technique. The major issue is that there
is likely to be a delay in the entry of the transactions made throughout the day. This occurs due to
the fact that humans are prone to errors and require time to carry out a process as compared to the
technology which today's century is being met with.
Solution:
Thus, to remedy this problem Blockchain has been introduced to banking. This technology holds
the benefit of keeping all the records immutable. For instance, if Person X has been sending funds
to Person Z, then this transaction gets recorded on the blockchain, and under no circumstances can
this be altered. The only way to make this change would be by accessing each user’s information at
the same time and making the same changes throughout, which doesn’t look very likely.
The fixed and immutable blocks provided by blockchain are considered to be significant due to
many factors. One reason being – the businesses can now instantly forward these block addresses
for easy transactions and also, the receipt that is provided after the transaction can be given to both
the involved parties for their individual safekeeping in a jiffy. Hence, an immutable account book
by blockchain is regarded as a beneficial tool in the banking sector as it is decreasing the number of
transactions that are disputed and also helps in tracking down an identity fraud.
2. Slack in the transactions:
If we take a look at the present scenario, the transactions that are done in banks take a number of
days to process, the reason behind it is the technology used in banks has remained constant since
ages and even when it was changed, the security and compliance systems were equipped on the
already existing banking set-up. Therefore, it takes 2-3 business days for performing a standard
transaction.
Solution:
To combat this issue which has persisted in this segment for so long, fintech companies began to
take over and they made use of the blockchain technology. Owing to this change, the transactions
are processed at a much higher speed which reduces the probability of a hacker intervening and
diverting the payments being made. While people using public blockchains like Bitcoin complain
about the procedure taking time up to ten minutes, the businesses that make use of Ripple which is a
private blockchain can complete their transactions, cross-border, within seconds.
3. Too many permissions
At the dawn of the 21st century, we witnessed the uprising of information technology but it was
accompanied by several perils which include the threat of privacy breach. It is needless to say this
problem has crept into the banking industry as well and has been spreading over ever since. Users
have been subject to malice and that is why they secure their credentials from being accessed by
Source: Qulix
anyone. Thus, in this way, the data can only be shared manually. However, even trusted individuals
like the user's spouses need to become a part of this tedious hassle of the provision of manual
information.
Solution:
The blockchain is going to serve as a means to overcome the stated problem for it is to provide an
all year round visibility into the said accounts. Given the technology of encrypting data, blockchain
has made it very simple for the users to transfer data which is sensitive. However, this is not it –
blockchain allows the users control over who all can access this data which they term as sensitive.
This will help the users eradicate the doubts they have pertaining to the entities who have access to
their information because of Blockchain’s transparent permission system; thus, it will help us be
away from issues like identity thefts.
4. One size doesn't fit all:
Ever since the banks have come to exist, they have begun to provide solutions which are directed
towards the public. However, these fixes are very generic in nature and do not address specific
Source: https://www.techbullion.com/how-blockchain-is-making-it-easier-for-fintech-companies-to-scale-up/
problems that people are being met within their day-to-day.
Solution:
Since the problem has come to notice, people have been trying to find a way around it. Thus, they
have resorted to blockchain as an aid which has led to the origin of several startups which mimic as
banks. In a similar manner, the blockchain is aiding Banknet's operation so that people can acquire
loans against their crypto holdings in accordance with their budgetary needs. Thus, helping the
banking system escape one vital inefficiency.
5.
Insecure:
Since the banks are currently manual – an individual's information can easily be leaked or can
easily be accessed by anybody who gets ahold of it. This can worsen the situation for them because
they are under the risk of important information being given away.
Solution:
Some models of the blockchain, like Banknet's, involves the use of two keys – a public and a
private key. The public key is made available to all the users and helps the users in viewing the
account balance and transactional history. Meanwhile, the private key is linked to the user's account
number and is shared amongst the people who are parties to the transaction. Even if a hacker gets
Source: https://hackernoon.com/banking-without-bankers-blockchain-unlocked-the-gates-for-open-banking-226373d34795
ahold of the private key and is successful in decrypting it – they would not be able to make any
transactions because the key can be accessed only once.
Also, it must not be forgotten that the traditional banking system introduced several intermediaries
to carry out the errands people needed to run. Nonetheless, with the introduction of the blockchain,
the number of middlemen have decreased so that the user's sensitive information can be kept from
being distributed innumerable times while doing away with the amount being spent on availing the
services of these middlemen.
6. Information scattered all over:
It goes without saying that the quality of the data stored with the banks is vital. However, the
problem is that the banks have their information scattered in multiple places. This allows different
parties the ability to meddle with the data in the location they are in. With so many glitches, the data
is likely to be outdated and incomplete. Practically, the situation gets all the more complex because
of the many regulatory actions involved in it.
Solution:
Despite an entire industry being available to help in managing this financial data, the problems have
not ceased to exist. That is when blockchain comes to rescue because it is capable of storing data in
enormous amounts without having a preference for the data type. The data on this network can only
Source: https://www.linksfin.com/article/243227
be changed in accordance with the rules that have been defined by the organization. These rules will
be put into place by making use of smart contracts. Thus, this shared ledger technology will provide
as a means for more reliable data. Also, since all the data will be accessible in one place – it can
reduce the infrastructural costs incurred by banks.
Roadmap:
BKU Token Distribution:
BKU Tokens Allocation – In accordance with the area of operation:
Banknet's Public Policy and Corporate Bylaw:
Men and women will share equal opportunity – unequivocally - to occupy any available positions in
any organizations, subsidiaries or affiliates wherein Banknet has financial and/or business interest.
Banknet's public policy strongly prohibits discrimination or abuse of any person with respect to
their gender, race, colour or origin. Banknet's corporate bylaw allows to provide financial support to
humanitarian non–profit organizations such as cancer research centres, children protection
organizations, women rights foundations and environment and nature protection bodies. Banknet's
management believes that regardless of the overwhelming majority that the company is to witness,
its BKU tokens holders will proudly endorse the company’s corporate bylaw and public policy as
mentioned.
Offering Price and Schedule:
Token Symbol: BKU
Token Type: ERC—20
Accepted Currencies: FIAT, BTC, ETH , XRP, DASH, LTC, BCH ,NEO, EOS, BNB and USDT
Pricing:
Public pre – sale: $0.004
Price for the first 7 days: $0.007
Price for the next 7 days: $0.009
Price for the next 7 days: $0.012
Price for the last 7 days: $0.015
On a single investment of $5000 or more, a 15% discount shall be applied.
On single investment of $10,000 or more ,a 20% discount shall be applied ,
Minimum Subscription: $75
Banknet will list its BKU token initially at a price of $0.0015 per token.
(Please note that all the prices have been mentioned in accordance with the USD.)
Vesting Period
All the tokens which will be distributed to the Banknet team will be locked for a period of 1 year
after the ICO comes to an end. This is to inform them that the coins will be released periodically.
Compliance and Security of the Banknet Platform:
Banknet’s primary aim is to ensure the security of its investors and users, therefore, there are certain
steps that have been put into action to ensure the same:
1. Database of Registered Users: The user database to be recorded with Banknet is going to be
completely secure from any ill will.
2. Layers of Protection: Banknet is going to rely upon multi-factor authentication which will require
the password of the user in combination with one of the following measures:
a. SMS
b. Google Authenticator
3. Detection of Users: Banknet is going to keep a track on the identity of the consumers on the basis
of the KYC forms that users would be made to fill out.
4. Reputation Score: Once the ICO goes through, a scoring system will be established on the
Banknet platform. This will enable users to make informed decisions while availing banking and
financial services.
5. Technical Support: A special team at Banknet is going to be available at points of the day so that
the platform can deliver its services smoothly and without any interruptions.
6. Security Account and Wallets: The employees at Banknet will not have access to the wallets that
the users will be using since the former is going to be governed by the Smart Contract technology
incorporated by Banknet. The passwords to the wallet or the platform are never going to be saved
and each time a user will be required to make a transaction, the platform will immediately ask for
their password.
7. Privacy and Confidentiality: The blockchain technology at its heart operates on the basis of
encryption and that is going to ensure that the users have utmost levels of privacy at their disposal.
Since the platform is so secure, it leaves little chance for any leaks to occur in the first place.
Disclaimer:
Taking part in an ICO is an activity filled with risks which are on the higher side of the spectrum.
Nonetheless, this coin offering is focused at those executives who have a fine base of knowledge
with regard to the blockchain technology, trading in cryptocurrencies as well as trading at large –
stocks, foreign exchange etc.
The individuals who have decided to engage in this ICO are well acquainted and acknowledge the
security risks as well as the probability of lack of economic results. Along with this, the purchaser
of the coin is aware of the legal unpredictability of such a transaction and has had legal counsel in
accordance with the law they subscribe to.
The buyers of the BKU coin understand that this paper consists of forward-looking statements and
the project so presented is subject to technological and economic changeability. Thus, the company
has the right to exercise any modification, addition and deletion in the content of the document in
accordance with what the law governs. Thus, the investors are familiar with the fact that if the token
fails to perform or be implemented at all or loses its partial/entire value, then they cannot issue any
legal action against the company.
An investment in the BKU would mean that the investors can make use of Banknet’s services;
however, the company stipulates that the distribution of the token, as well as the use of the token,
must be carried out in the manner which has been mentioned. In addition to this, the value of the
token will depend upon the recognition of the value of the coin in relevant marketplaces; thus, the
project cannot determine the value of the coin, beforehand. Thereby, the coin is not and shall not be
considered to be as a bond, security, share, ownership of any form – in the future.
This whitepaper intends to provide the readers with information related to the ICO and is no manner
intended as a financial promotion. Thus, this whitepaper does not serve as an encouragement to
become a part of any investment activity of the sorts and does not act as a guarantee of future
profits to be yielded once the buyers invest in the said token.
Word of Caution:
The offering memorandum was neither filed with nor was approved by the U.S. Securities and
Exchange Commission. It is not intended to be distributed or offered on the U.S. soil, or within any
of its territories. Under no circumstances, U.S. citizens or residents can participate or subscribe to
the offering regardless of their permanent or temporary address. Furthermore, citizens and residents
of state sponsors of terrorism, as defined by the U.S. Department of State (see a published list) are
not allowed to participate in the offering. Banknet reserves the right not to accept subscriptions
where the funds come from restricted sources/subscribers; therefore, if such a case were to arise -
all restricted funds will be returned immediately to the source.