What Is Nota (USNOTA)?
There exists a vast array of assets in the world which people freely choose as a store-of-value, a transnational medium, or an investment. Nota believe the XDC blockchain is a better technology for transacting, storing, and accounting for these assets. Most estimates measure global wealth around 250 trillion dollars with much of that being held by banks or similar financial institutions. The migration of these assets onto the XinFin Network (XDC) blockchain represents a proportionally large opportunity.
Cryptocurrencies were created as “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party”. Nota Common explanations for the current limited mainstream use of cryptocurrencies include volatile price swings, inadequate mass-market understanding of the technology, and insufficient ease of use for non-technical users.
They created a new class of digital currency, a decentralized digital currency or cryptocurrency. Some of the primary advantages of cryptocurrencies are low transaction costs, international border less transfer ability and convertibility, trust less ownership, and exchange, pseudo-anonymity, real-time transparency, and immunity from legacy banking system problems.
Nota Storage Key Points
|Circulating Supply||200,000.00 USNOTA|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Technology Stack and Process
Each Nota issued into circulation will be backed in a one-to-one ratio with the equivalent amount of corresponding fiat currency held in reserves by NOTA. As the custodian of the backing asset, they are acting as a trusted third party responsible for that asset. This risk is mitigated by a simple implementation that collectively reduces the complexity of conducting both fiat and crypto audits while increasing the security, provability, and transparency of these audits.
Proof of Reserves Process
Proof of Solvency, Proof of Reserves, real-time Transparency, and other similar phrases have been growing and resonating across the cryptocurrency industry. Exchange and wallets audits, in their current form, are very unreliable. Nota Insolvency has occurred numerous times in the XDC ecosystem, either via hacks, mismanagement, or outright fraud. Users must be diligent with their exchange selection and vigilant in their use of exchanges. Even then, a savvy user will not be able to fully eliminate the risks.
Further, there are exchange users like traders and businesses who must always keep non-trivial fiat balances in exchanges. In financial language, storing value with a third party is known as the “counterparty risk”. Nota Proof of Reserves configuration is novel because it simplifies the process of proving that the total number of NOTA in circulation (liabilities) are always fully backed by an equal amount of fiat currency held in reserve (assets).
Nota understand that your implementation doesn’t immediately create a fully trust less cryptocurrency system. Mainly because users must trust NOTA and your corresponding legacy banking institution to be the custodian of the reserve assets. However, almost all exchanges and wallets (assuming they hold US$ or fiats) are subject to the same weaknesses. Users of these services are already subject to these risks. Therefore, users of these services are already subject to these risks. Below they describe how each of these concerns are being addressed.
Nota could go bankrupt
In this case, the business entity NOTA would go bankrupt, but client funds would be safe, and subsequently, all NOTA will remain redeemable. Most security breaches on XDC businesses have targeted cryptocurrencies rather than bank accounts. Since all Nota exist on the XDC blockchain, they can be stored by individuals directly through securing their own private keys.
This is a risk faced by all users of the legacy financial system and by all exchange operators. NOTA currently has several accounts with banks whom are aware and confident that NOTA’s business model is acceptable. Additional banking partners are being established in other jurisdictions to further mitigate this concern.
Recentralization of risk to a single point of failure
Nota have some ideas on how to overcome this and coins will be sharing them in upcoming blog and product updates. There are many ways to tackle this problem. For now, this initial implementation gets on the right track to realize these innovations in following versions. The corporate charter is public as well as the business owners’ names, locations, and reputations. Ownership of the account is legally bound to the corporate charter. Any transfers in or out of the bank account will have the associated traces and are bound by rigid internal policies.