BlueCoin Goes One Step Further to Help the Unbanked
In 2006, McKinsey performed a study about unbanked adults globally. They found that 2.5 billion adults do not use formal financial services and 2.2 billion of those unbanked adults live in Africa, Asia, Latin America, and the Middle East.
As an active cryptoeconomic research project, BlueCoin 2.0 is eager to learn from the results of their research to bring greater economic freedom to the world.
BlueCoin offers a super-fast payment rail for making cross-border transactions. Based on the Bitcoin Core 0.10.0 codebase, their system offers virtually unlimited transaction scalability by using sidechains and Layer 2 extensions, such as Lightning Network and Segregated Witness (SegWit), meaning that it also offers transactional stability to its users.
While it’s wonderful to be able to bypass banks and their extortionate fees from making transactions of this nature, what happens to some of the benefits banks offer, such as account interest and secure storage of funds?
BlueCoin doesn’t offer interest. However, the platform uses a Proof-of- Stake-Velocity (PoSV) system that acts in a similar way. Simply by holding BLU tokens in a wallet, holders are entitled to a share of 1% annual inflation, which is fixed at a total of 3%.
Several tokens offer similar rewards to holders, including ReddCoin and NEO. Some, however, require tokens to be kept in a hot wallet, which means that it is online and connected to the Internet in some way. For many, this is a security concern, but the BlueCoin 2.0 ecosystem allows users to store tokens offline, in cold wallets or storage, and still collect rewards.
It is probably no coincidence that internet access is also limited in many of the areas with a large unbanked population, meaning that their access to financial services is further limited. However, BlueCoin allows P2P Bluetooth transaction where internet access is limited or non-existent.
The crypto world has moved on drastically since BlueCoin’s launch in 2014, but their mission ‘to usher in the next generation of P2P blockchain advancements’ seems to have arrived, and it can only help the billions of unbanked adults globally.