BABB is a decentralized bank reshaping the banking industry from the ground up by harnessing emerging technologies. By leveraging the power of blockchain technology and managing accounts through a smartphone app, BABB aims to provide UK bank accounts that cater to the unique needs of the microeconomy, distinguishing itself from existing fintech companies.
Addressing Banking System Problems
The traditional banking system is plagued by outdated infrastructure, the exclusion of individuals and small and medium-sized enterprises (SMEs), systemic risks, financial exclusion, and unfair practices. BABB seeks to tackle these issues by leveraging blockchain, biometrics, and AI, creating a decentralized banking system that promotes financial inclusion and empowers the microeconomy.
Systemic Risks and Financial Exclusion
The centralized nature of the existing banking system poses significant risks, as evidenced by the global financial crisis of 2008. Moreover, approximately 40% of the global adult population faces financial exclusion, limiting their access to essential financial services like savings, credit, mortgages, and insurance products. BABB aims to mitigate these challenges by leveraging technology to provide access to banking services for all, irrespective of background, location, or income.
Empowering the Microeconomy
The microeconomy, encompassing individuals, freelancers, and SMEs, is currently underserved by traditional banks, leading to inefficiencies and restricted access to necessary financial tools. BABB’s innovative solution involves utilizing blockchain, biometrics, and machine learning to offer decentralized banking services globally, with the goal of enabling anyone to open a UK bank account.
Seamless Integration and Accessibility
BABB’s platform seamlessly integrates with existing financial systems, allowing for the onboarding and offboarding of funds, even at larger volumes. Users can easily create a bank account through their mobile application, leveraging either an uploaded ID document or a referral from a fully verified individual within the system. Traditional banking functions like transfers, payments, cash in/out, and peer-to-peer transactions are supported, while users can generate income by providing services such as currency exchange and loans.
The BABB Black Card
BABB has introduced the Black Card, a secure payment card directly linked to the BABB bank account. Users can conveniently spend funds from their BABB bank account in shops and in-person transactions using a QR code or NFC. Retailers can accept payments by downloading the BABB app, scanning the QR code, or utilizing NFC, receiving instant payment in their bank account. This approach bypasses the limitations of traditional card systems, which are costly and often inaccessible to SMEs in developing economies.
Embracing Central Bank Digital Currencies (CBDCs)
BABB firmly believes that central banks will adopt CBDCs in the coming decade. By collaborating with central banks, BABB aims to provide mechanisms, infrastructure, and products to facilitate the integration or issuance of digital currencies. This collaboration not only enhances payment networks at the local level but also supports financial inclusion and stimulates micro-economies, all while ensuring security, regulatory compliance, economic control, and cross-border transactions through the BABB platform’s BAX token.
Use Cases and Future Enhancements
BABB’s innovative platform offers a range of use cases, including peer-to-peer cash withdrawals, borrowing, fundraising, and efficient payments and payroll solutions. Additionally, future enhancements will include automated smart contracts for deductions such as pensions, income tax, and other contributions, streamlining financial processes.
Blockchain Technology and Federation
BABB relies on blockchain technology to secure transactions, notarize identity data, and ensure secure data sharing among participants. The platform utilizes standard blockchain consensus schemes and a federated blockchain of validating nodes, enabling collective oversight, transparency, and multijurisdictional activity involving major participants like central banks and regulators.
Smart Contracts, Tokenization, and Privacy
BABB encodes account operation rules into smart contracts, ensuring transparency, verifiability, and predictability. Through tokenization, BABB converts fiat funds into tokens, facilitating transactions without intermediaries. Privacy is a top priority, with private keys stored solely on users’ devices, granting them complete control over their funds and data. Advanced privacy-preserving features like data encryption and cryptographic hashing are employed to safeguard user information.
Recovery, Succession, and Cloud Hybrid Approach
BABB ensures fund access control through mechanisms for recovery and succession, incorporating Schnorr Signatures and encrypted key portions held by designated parties. The platform aims to create a decentralized ecosystem that combines cloud technology with blockchain advantages, addressing limitations posed by existing technology, legacy systems, and regulations.
BABB’s decentralized banking approach powered by blockchain, biometrics, and machine learning holds immense potential to revolutionize the banking system. By promoting financial inclusion, empowering the microeconomy, and fostering collaboration with central banks, BABB is poised to create a global banking network that addresses the limitations of the existing banking infrastructure. With its innovative features, user-friendly interfaces, and emphasis on privacy and security, BABB aims to build a fully banked global society and reshape the future of finance.
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