What Is Velo (VELO)?

What Is Velo (VELO)? Complete Guide Review About Velo.

What Is Velo (VELO)?

Velo intends to create a guaranteed decentralized settlement layer with a highly liquid value exchange on a federated permissioned blockchain technology between Trusted Partners. Initially, these partners may take the form of large remittance providers, banks, or e-wallets. Each partner, in turn, would be connected to thousands of end users that would be able to interact with any other partner in the network. The remittance market is an exceptionally large addressable market that can immediately benefit.

Despite the recent advancements in financial infrastructure, it remains difficult to do a cross-border money transfer between different types of institutions and service providers. Velo technology allows trust less and secure digital credit transfers that will remove friction and barriers from the current value transfer process. They will enable any one Trusted Partner to transact with any other Trusted Partner at any time and any place once they become part of the Ecosystem.

This would allow businesses, migrant workers, and end- consumers to get better service at a lower cost than provided by current offerings. In addition to remittance scenarios, the Velo Network will also include a wider range of financial services which will require the use of smart contracts. As Stellar is one of the best blockchain networks for digital asset transactions, the Network will also expand blockchain adoption of Stellar and will include smart contract functions on Every Net, which will also enable cross-chain solutions.

Velo Storage Key Points

Coin BasicInformation
Coin NameVelo
Short NameVELO
Circulating Supply947,050,097.00 VELO
Total Supply28,999,998,947
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

Velo Tokens

Velo tokens are utility tokens designed to ensure the settlement of digital credits issued in the ecosystem by being used as smart contract locked collateral for value transfers. Value for token holders will increase as demand for digital credits grow and transfer volumes increase with the addition of more business partners and end users. The token’s utility lies in its double feature as both collateral and as an entrance requirement to the Ecosystem. Each use of the Ecosystem starts with the deposit of fiat and the issuance of a matching amount digital credits by engaging the Protocol, which requires tokens.

As more Trusted Partners join the Ecosystem and as each of their businesses grow, the demand for newly issued digital credits, and subsequently tokens, will also grow. The expansion of the Ecosystem will create demand for tokens in the open market because Trusted Partners will need to purchase or borrow the tokens to receive digital credits to meet their operational demands. Digital credit flow and settlement will be managed by the Digital Reserve System whose operation will facilitate the growth of the network and the value of the token in an orderly manner.

Built on Stellar

Many cryptocurrencies are limited for payments due to their latency and the time-consuming consensus process which prevents the currency from being able to process high transaction volumes. Due to these limitations, cryptocurrencies have yet to pose a real threat to the leading incumbents in the payment space. When compared to the performance of the SWIFT network, cryptocurrencies offer a viable means for much faster point-to-point transfer of money between entities, be it businesses or individuals. Transactions of these types can commonly take up to two to three business days to settle, whereas the leading blockchain technologies are able to do this instantly depending on the platform deployed.

The reason Stellar was chosen as the technology for issuance of the Velo token is because it is one of the fastest, cheapest, most efficient, and secure blockchains in the market. When looking at the major blockchains, Bitcoin is only able to process 3-4 transactions per second and Ethereum 20 transactions per second. From a transaction cost perspective, Ethereum and Bitcoin are cost prohibitive for small payments due to high network activity. The Stellar blockchain can complete 1000 transactions per second, which is especially suitable for financial scenarios such as remittances and payments.

Underlying Distributed Ledger Technology

Transactions in the Ecosystem will be validated by implementing the proven Stellar Consensus Protocol. The Velo Protocol is the financial infrastructure that issues digital credits based on distributed ledger technology (DLT). DLT creates a decentralized system for trust and transaction validation using consensus, whereby multiple nodes agree on a proposed transaction and then update the ledger held by each node.