Bancor, the decentralized liquidity network, has selected POA Network as a solution to enable a new network of blockchain-based community currencies aimed at alleviating poverty in Kenya. The pilot is being developed with local non-profit Grassroots Economics which will oversee the project. The currencies will be used for everyday commerce in two of the largest underserved communities in Kenya. Integrating the Bancor Protocol with POA Network, an open-source framework for smart contracts, will help the project by minimizing the cost of sending transactions to the Ethereum blockchain through the use of so-called sidechains.

Supporters of the initiative (including community members) will be able to buy and sell the local currencies using a major credit card or popular cryptocurrencies, allowing users globally to support the communities from afar. The pilot represents a unique and timely use-case of blockchain technology to address hard problems for real people in need. Bancor is seeding the initial currencies by contributing capital generated from its $153 million token sale in June 2017.

The community currencies are expected to be among the first tokens released on the POA Network. By integrating with POA Network, Bancor will be able to take advantage of low transaction costs and a high level of decentralization across 18 independent validators. To achieve further reductions in maintenance costs, integration on the EOS blockchain is also being developed.

Economists have observed that one of the main barriers for the use of community currencies is their acceptance is limited and therefore their liquidity is low. In addition, most communities lack the proper tools to build self governance, market creation and sustainable supply-chain linking into their currencies.

Bancor’s initiative aims to solve these issues by equipping Kenyan communities, and eventually communities worldwide, with the ability to create and manage their own tokens. The tokens will be transferable outside the localities and thus sustainable. POA Network is proud to be involved in the pilot, as it has the potential to fill global trade gaps, enable basic income and food security, and stimulate economic growth in local communities everywhere.

Bancor co-founder Galia Benartzi, POA Network’s tech lead Igor Barinov

About POA Network

POA Network is an Ethereum-based platform that offers an open-source framework for smart contracts. Towards the end of 2017, POA Network launched its own blockchain utilizing a new and unique consensus mechanism known as Proof of Authority (POA). POA leverages an independent group of validators who are all licensed public notaries around the United States which increases security while enabling a method of governance on the blockchain. POA Network is scalable, secure and cheaper than other projects, aiming to provide a platform for small and medium businesses. For more information please visit https://poa.network/ .

About Bancor

Bancor Protocol is a standard for the creation of Smart Tokens™, cryptocurrencies with built-in convertibility directly through their smart contracts. Bancor utilizes an innovative token “connector” method to enable formulaic price calculation and continuous liquidity for all compliant tokens, without needing to match two parties in an exchange. Smart Tokens interconnect to form token liquidity networks, allowing user-generated cryptocurrencies to thrive. For more information, visit the website and read the Bancor Protocol white paper.

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