Integration of cryptocurrency in the banking sector | ZENITH Protocol

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How to integrate cryptocurrency in the banking sector


Recently, more and more articles and information about cryptocurrency have appeared
on the Internet and in the press.
We are told about its advantages, properties, usability.
Nevertheless, the cryptocurrency is almost never used as a payment.
Banks and payment systems are in no hurry to use cryptocurrency.

Let's see how the banks and the SWIFT system interact:


Used diagram by John Hemminger from the Chelsea AllIson
article: “What is SWIFT?”

It seems that everything is simple, everything is verified, it is possible to carry
out the movement of cryptocurrency.

So why is this not happening?
What prevents cryptocurrency to be used as a means of payment?

When we come to the bank and replenish our account or transfer money using credit cards,
the person verification procedure is carried out.
And it turns out that anonymity, which is considered one of the main advantages of
cryptocurrency, in this case is its disadvantage.
Anonymity becomes an obstacle to legal cash flow.

Let's take a look at the revised scheme:



How do we solve this problem?
In addition, there are many different cryptocurrencies that have their own blockchain.
That is, we need to develop a single algorithm for existing cryptocurrencies.

We define questions to solve our problem:
1. Anonymity.
2. Single algorithm.

- Let's start with the second question.
At this stage of development, it became possible to use cryptocurrency from various
blockchains in the Ethereum network.
To do this, you need to create a wrapped version of the cryptocurrency in the form of "ERC" token.
There are already options such as WETH, WBCH and WBTC.
We see the possibility of bringing cryptocurrency to a single standard.

- First question.
To solve this problem, we used the standard ERC functions of tokens and added a new function
to the smart contract, with which you can sign a transaction or add the necessary information
to it for any existing ERC token with these properties.
That is, we solve the problem of checking the movement of funds by creating a kind of
gateway in the form of a “ZENITH protocol” to solve it.

Now let's take a look at the obtained solution of the tasks in the form of a schematic image:



We have proposed one of the possible options in order to legalize cryptocurrency.

Our smart contract “ZENITH protocol”

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