Blockchain

QASH and Liquid: What you need to know

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What is QASH?

First, let’s start with a simple explanation of QASH before getting more technical and explaining how it will work in detail.

QASH is a cryptocurrency that will act as a financial utility token on QUOINE’s upcoming Liquid+ Platform. This platform aims to solve the issue of illiquidity throughout the entire crypto space by interlinking exchanges. To provide an example of the benefits this will have, immediate losses will be significantly reduced when trading with smaller FIAT currencies. All of the exchanges that are partnered will be interconnected by this platform, and more specifically the platform connecting exchanges is called the World Book. Additionally, the Liquid+ Platform will provide a Prime Brokerage service, which refers to an amalgamation of special services that are given to clients with difficult financial needs. As stated by the QASH whitepaper, which you should read if you are planning to invest, Liquids prime brokerage service will offer “Direct Market Access (DMA), Fiat Management, Crypto/Fiat Credit Facility, and Real Time Reporting”.

While you are reading this, please keep in mind the market cap of QASH relative to other cryptocurrencies. QASH has a market cap of just under USD$300M at the time of writing this, which ranks as the 67th highest market cap. In my opinion, therefore, QASH has a huge amount of room for growth, and with comparison to other coins and their utility, QASH blows them out of the water. As the roadmap progresses and the potential of QASH is shown, especially with the release of the World Book beta, QASH has some serious growth potential with respect to other coins.

Now we have outlined exactly the aim of the project, it’s time to drilldown and explore how this will be achieved.

World Book

The World Book is the name for the globally sourced trading platform that will interconnect partnered exchanges to increase liquidity. The development team have described exchanges as ‘Liquidity Silos’. This means that there is liquidity for certain coins, but this is trapped within the exchange. As you can imagine, interlinking exchanges will pool together their trading volumes which will significantly increase liquidity. This also means that users can trade on any partnered exchange without the hassle of creating lots of new accounts.

Now, of course this system can only work and progress if exchanges are willing to co-operate, and it is also desirable to know which exchanges would be involved. A big reassurance is the scrutiny QUOINE put potential partnering exchanges under in order to verify their legitimacy. It has been stated that there are set criteria that liquidity partners must meet in order become part of the World Book. This involves technical system audits, inspecting elements such as the API, as well as team behind the exchange. KYC (Know Your Customer) is conducted on the team behind potential partners in order to validate their reliability. Understanding any partners of the World Book all pass this scrutiny is a good sign. It is also stated Bitfinex, a massive exchange, is on board, as well as 4/5 of the top US exchanges, many large exchanges in Europe and Asia, and the largest exchange in Korea. All of these large exchanges becoming part of the World Book can only be good news for the future growth of QASH, as the token will have incentivised utility within the World Book, which will be discussed.

It is also very exciting to consider the ethos of QUOINE in relation to their competitors. Other tokens that aim to provide a similar service are describing what they aim to do, whereas QUOINE are discussing what they have done in terms of development of the system and the massive partnerships they have accrued.

The World Book beta, according to the Co-Founder Mike Kayamori, will be released in Q1 of this year. In other words, quite soon. This is great news for all investors as it will show the true possibilities this platform is going to offer to a wide audience. There was a potential test of the World Book in early January where you can see the volume of QASH trading spike to an incredibly high amount relative to normal trading days. Following this possible test it has been confirmed the World Book has completed development and is now going through quality assurance. The World Book beta is near!

Cross Currency Conversion Engine

One of the most amazing features of the World Book is its ability to match and complete transactions using different trading pairs. The process controlled by the ‘Cross Currency Conversion Engine’ (CCCE). This is best explained with an example.

If there was a trader wanting to trade Ethereum for USD, this trade could get matched up with someone selling GBP for Ethereum.

This is possible because the base currency, ETH, is the same. The CCCE will seamlessly complete an FX conversion between GBP and USD in order for these transactions to be matched. To extend this example further, the CCCE is also able to complete conversions between non-FIAT currencies, such as BTC and ETH. Therefore in this case, the base currency does not even need to be the same. This means that if a user places a sell order selling ETH for GBP, and a buy order is placed, buying BTC for USD, these transactions can be matched by the CCCE. Please see the flowchart below for the entire process explained. The resulting effect of this process is that the World Book is connecting transactions that previously could not be connected, both because of the trading pairs and because of what exchanges they are on, which will increase liquidity.

Blank Diagram (1)

Prime Brokerage

The Liquid platform will provide Prime Brokerage services which will reduce counterparty risk and increase return on investment for users.

Firstly, counterparty risk refers to the risk that the other party in a contract will not fulfill contractual obligations. Simply put, the Liquid platform will reduce this risk because it reduces the number of parties that users have to interact with within the crypto space, potentially reducing this number just down to one, with the one party the user interacts with being QUOINE. This is great, as QUIONE is regulated in Japan by one of the strictest regulators in the world, the Japan Financial Services Agency (JFSA). In September 2017, the JFSA officially licensed QUOINE as a Digital Currency Exchange. This is extremely promising, as mentioned; the regulations enforced by the JFSA are very strict so this shows the credibility of QUOINE.

Secondly, return on investment will be increased for users of the Liquid platform due to the increase in capital efficiency. Users will be able to interact with other exchanges without moving funds directly, saving on transaction costs.

Additionally, Prime Brokerage users will have the ability to utilise QUOINE’s FIAT management system. QUOINE have been working with a major global bank in an attempt to optimise the movement of FIAT currency, as currently moving large amounts of money is costly and slow. QUOINE’s partnerships will allow Prime Brokerage users immediate transfers of FIAT currency worldwide. This is just an extra incentive to use the platform, but it’s a good one.

QASH Token Utility

I’m sure you will agree that all of the points outlined above are amazing – the Liquid platform will greatly improve the user experience of the crypto space. However, what does the Liquid platform have to do with QASH? Why will QASH rise in price if this platform is a great success?

QASH as a cryptocurrency has two main purposes:

  1. A utility token to be used on any of QUOINE’s platforms
  2. A cryptocurrency that is tradable on the market

QASH will be a utility token on the described Liquid platform. This means that QASH will be can be used to cover fees and as collateral for credit. Using QASH to pay for fees will allow for reduced fees. Therefore, QASH will be in high demand if the Liquid Platform succeeds.

Users of the liquid platform can also code their own automated trading algorithms or strategies in an array of popular programming languages. Strategies can be published on the Liquid platform, which are then open to be utilised by users. Strategies can be published by single traders or massive financial institutions. QASH will be used as the currency required to partake in these community trading strategies. Fees are taken from generated profits of these strategies which means the author is then paid, in QASH, for the creation. This incentivises development of exceptional strategies, and also provides a potential draw to new investors who want to try new trading methods.

The vision of the team for QASH is for the token to be the standard payment method for the financial industry. This would occur over time as development of blockchain technology progressed, and migration to decentralised platforms occurred. Of course, this would be massive if achieved.

QASH is currently an ERC-20 token, meaning it is built on the Ethereum blockchain. QASH will migrate to its own blockchain by the second quarter of 2019. The blockchain will possess a large number of features which will target the goal of democratization of finance. This includes smart contracts, support for popular programming languages and much more.

Team

One of my favourite parts of QASH is the team behind it. It is all well and good having a roadmap for development, but it is extremely reassuring to see such a qualified team controlling the progression of this platform.

QUOINE is a powerhouse of a company, with over 250 years of combined experience in financial and technological sectors. This really helps them stand out from their competitors.

In terms of cryptocurrency, the biggest success of QUOINE is their two exchanges, QUOINEX and QRYPTOS, which are both large exchanges in this space. QRYPTOS also acts as an ICO platform. This just shows the teams capabilities. Furthermore, the team’s experience has come from a wide variety of very reputable companies in their respective sectors, such as Goldman Sachs and Bank of America Merrill Lynch for financial and Samsung for technology. Let me be clear as well that this is NOT an extensive list of the team’s previous positions at major corporations. I would suggest doing your own due diligence and learning about the entire team and their accomplishments.

As previously mentioned, QUOINE are licensed by the JFSA, and were actually the first global cryptocurrency firm to achieve this.

Investors

It is always reassuring to know that large investors are involved in companies, as it is assumed that they are knowledgeable and believe in the company. Large investors provide peace of mind that a company is trusted by people in the know. This is why it is great to hear about some of the investors in QASH:

  • Taizo Son – A multi-billionaire who is the CEO of Gungho Online and the younger brother of Masayoshi Son, who is the richest man in Japan and also the founder/CEO of Softbank.
  • Nobuyuki Idei – Former CEO and Chairman of Sony, as well as having high profile roles in many other huge companies such as Nestlé.
  • Jihan Wu – Founder of Bitmain and Antpool – Bitmain estimated to have earned between USD$3-4 Billion last year which shows Jihan’s influence potential.

All of this information was acquired from Mike, the CEO and Co-founder of QUOINE, in one of his video Ask Me Anything (AMA) sessions. Mike does frequent updates and AMAs which provide excellent insight into the progression of the company and of course outline amazing partnerships. Personally I love this type of transparency from development teams as it just allows more trust in the team as a whole.

Security

QUOINE stands out from all the other exchanges in terms of wallet security. I would never advise to store funds in an exchange if you are not planning on trading in the near future. This is because the whole purpose of cryptocurrency is the appeal of decentralisation, and you do not technically hold/own the coins you have stored on an exchange. Therefore, I recommend withdrawing any funds you will not be trading to wallets, hardware wallets if possible, so you control the private key and you are in charge of your funds safety.

The reason for this diatribe is that exchanges have been hacked in the past, and funds have been stolen. There are many examples of this. This is because exchanges hold a large amount of funds and therefore are an appealing target to hackers. QUOINE protects against this by having 100% of funds in cold wallets. A cold wallet means the funds are stored offline. This is amazing in terms of the fund security of its users. QUOINE also mandates 2FA, which is great, everyone should use 2FA. Furthermore, all withdrawal address must be manually whitelisted, there is a private server where QUOINE can monitor all access and no API withdrawals are possible. These are great security features, and it certainly increases a user’s peace of mind storing funds in the exchange, even if it is just for a short amount of time. I particularly like the fact that all funds are stored in a cold wallet, and that any withdrawal address must be approved, as these are great security additions in my mind.

Additional Points

There are so many other features and services that will exist on the Liquid platform that I cannot explain them all in detail. If you are interested in this project please do your own research and learn about the potential of the project. I will now discuss a few points that I won’t go into details about, but they do add great value to the project in my opinion.

QUIONE is the first, and currently only, exchange to have been audited by one of the Big Four. Take this for what you will, but it’s definitely a good sign in my eyes.

The nature of this projects promotion so far has been to complete the tech and then market second. Personally I love this approach as once it comes down to more people learning about the project all they can see is great things, no false promises. But now the marketing has started with the QASH reward programme. You can get 3 QASH by referring someone to QRYPTOS or QUOINEX, and they get 3 QASH too!

 

Thanks for reading my overview on QASH. If you are interested in investing, I will always advise you do additional research from other places to ensure the information you are getting is correct. Regardless, the whole platform is very promising, so I would encourage you to do the additional research.

 

 

This is not financial advice, and the writer of this piece may or may not hold some of the mentioned tokens in the article. This was written for the QASH rewards programme.

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