Co-authored by Jeff Scott

As much as businesses need blockchains, the mass-market of everyday users are just as much in need of simplified blockchain technology, and Lamden has the tools to make it happen. We therefore are further expanding how we simplify cryptocurrency technology by introducing a new way for a large user-base to have the access to the benefits of blockchain while remaining in the familiar realm of fiat, through a new concept called tokenized fiat.

Codename “ClovePay”

Our new project, tentatively labeled,“ClovePay” is a new Financial Technology (Fintech) that will accept 95% of cryptocurrencies as well as Tokenize Fiat with the purpose of facilitating the exchange of assets on blockchain based networks.

1 USD EQUALS 1 Tokenized USD Coin

This is achieved by being backed by an established bank and Lamden becoming a legally recognized entity, with legal responsibility for securing the network. This is similar to how other money transmission services like Stripe, Venmo, Square and PayPal operate to send USD. With ClovePay we gain the features of these platforms while applying the advantages of Blockchain. This advantage is then passed to developers via Clove’s API which is part of the Lamden Developer Suite.

Tokenized Fiat for Everyday Users

The process will be simple. Much like other money transmission services, users will create an account and fulfill a KYC process before depositing. Once your account is created, you can deposit money using a credit card or bank transfer, which will then be added to your account.

Behind the scenes, all of the transactions and transfers in the system will be handled with a private blockchain powered by Lamden. Users will be able to freely send and receive money from other users, and because of the blockchain backend, users will also be able to hook directly into dApps via Atomic swaps.

What does this mean for Developers?

Fiat gateways are the next horizon for crypto, but it’s not easy. By having a Tokenized Fiat solution, we allow blockchain developers to just use Fiat Tokens the same way that they use any other crypto. Exchanges and dApps will be able to add USD tokens as easily as they add any other token, and since the backend and legal is all handled through “ClovePay,” there will be no additional hassle for developers to factor in KYC or similar.

We strongly believe that access to Tokenized Fiat is an integral part of our full-featured set of development tools. Tokenized Fiat will be 100% compatible with Lamden’s Atomic Swap engine called Clove API. For the first time Developers will have direct API access to a Fiat on/off ramp; creating possibilities for a new breed of decentralized applications and blockchain use cases.

Lamden’s Smart Contracts will be able to access Tokenized Fiat via Clove API. This opens up free micropayments that can be easily integrated with websites instead of the current 2.9%+ fees paid today. Lamden’s forward thinking platform becomes the ideal place for Centralized or Decentralized Exchanges as it allows them to access Tokenized Fiat for their customers. This will be showcased on Lamden’s own Decentralized Exchange, LamDEX (available 2018 Q4).

Finally, Smart Contracts use Atomic Triggers via Oracles to open up a new ecosystem of decentralized applications with access to real world relevant assets. Developers (such as our recent CEAP partner Elysian International, Inc.) can now create marketplaces to pair real world assets, with real world value, on a decentralized platform.

Where is ClovePay in Development?

The development of ClovePay is two-fold: technical, and legal.

Regarding the technical aspect, Lamden has already set up a test network to use Ethereum’s Proof of Authority technology and have begun development on the coin itself. In the short term ClovePay will be an ECR20 solution which means it will be compatible with all major Ethereum based software and hardware wallets. Eventually a more permanent home for ClovePay will be Lamden’s own Cilantro Blockchain platform.

Regarding the legal aspect, Lamden has already employed money transmission lawyers and have begun the process of obtaining a bank sponsor, all to ensure full legal compliance of ClovePay to SEC regulations. Once the project’s development is at 70%, we will begin pitching a wide number of additional Fintech companies that we have direct connections with as well.

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