Over the years, the crypto space has evolved rapidly. 113% a year on average, to be precise. With crypto came the lucrative market of decentralized finance, which has drawn massive attraction from both institutions and retail alike.
AllianceBlock is aiming to be the first globally compliant decentralized capital market. A blockchain agnostic Layer 2 protocol bridging legacy and decentralized markets and automating the conversion of digital assets into bankable products. AllianceBlock believes in the future tokenization of assets and aims to be at the forefront of the disruption. By working with both decentralized and centralized entities, AllianceBlock has the potential to be the ropes tying the future of finance together.
By having a regulated and automated global decentralized market, along with the tokenization of assets. Participants of the ecosystem no longer need to wait until Monday morning to buy or sell assets they find news about on a Sunday afternoon. The addition of a global market would also mean users from anywhere in the world would be able to have access to markets and assets they previously weren’t able to. This will further unify the global economy in allowing people from all over the world to participate and invest within markets across the world as current infrastructure can not scale or cooperate with such an idea.
The utility of AllianceBlock begins with their multi layered protocol. From their first layer of cross border regulation and compliance. Multiple jurisdictional regulations will be dynamically input into this layer executed by machine learning and smart contracts. All activity and transactions will be authorized and governed for compliance, regulations will be validated by Oracles, performing as Proof Of Authority nodes on the network.
The second layer data governance and privacy layer, this layer enables users to securely transact and utilize the network without the worry of breach of privacy and gives users full access over their data at all times. This layer enforces the security of the network, ensuring that in the case of an attack, users of the network will have their information and funds protected.
The third and final layer is the transactions and workflow layer, this layer performs as an automated verification process. From processing regulatory submissions, to transactions, this process is not only much faster than the current processes most verification processes are using but does not require human labour to execute.
AllianceBlocks ecosystem consists of diversified participants from financial institutions to legal enterprises, bookkeeping entities, to fin-tech and data processors. Each of these enterprises provides a key part of building the first globally compliant capital market. With the help from a group of assorted financial institutions including asset managers, investment banks, sovereign, pension and mutual funds, stock exchanges and more. These financial institutions will assist in the assets allocated on AllianceBlock and vice versa, along with the future tokenization of assets. The legal and compliance firms in the ecosystem consists of independent law firms, auditing firms and regulatory advisors, these entities ensure AllianceBlock is following regulations as closely as possible avoiding problems with regulators while still bringing out the full potential to connect all financial markets. There are also fin-tech enterprises which will be responsible for a trustless KYC/AML while connecting trading platforms and payment gateways to the network.
Additionally, there is the cryptocurrency and decentralized finance aspect of the ecosystem. This part of the Allianceblock network will provide everything that is currently attracting retail investors into this new innovative market, from peer to peer lending, decentralized exchanges, liquidity providing, insurance, derivatives and NFT markets.
AllianceBlocks three main products and services currently include the Alliance Bridge, which allows users to connect applications built on other chains into other blockchains that have been implemented into AllianceBlock, solving the issue of interoperability within decentralized finance. Unlike most other bridges, that run with centralized relayers which wrap tokens as a solution. Rather AllianceBlock will utilize liquidity pools from both networks for swaps and transfers between networks.
Their next product is their Data Tunnel which will look to tokenize and securitize data and datasets. AllianceBlock sees the potential revenue the data markets could generate in the future and understands the current flaws with data, such as data becoming unavailable, the difficulty of monetizing data and the lack of control firms have over their data once sold. The data tunnel will allow data to be monetized, in addition to monetizing the sales of data, producers of this industry using AllianceBlock will earn royalties on their sales every time they are shared.
The third primary service AllianceBlock offers is their DeFi terminal, this terminal acts as an all in one platform for users to securely and legally utilize all the aspects of decentralized finance and more. From earning yield from liquidity mining to wealth management with features such as portfolio optimization, the automation of staking and allocation. There will also be quantitative tools providing users with insights and details about how users can optimize their returns while minimizing risk. As the DeFi terminal is blockchain agnostic, any chain that is added into the terminal will be able to be utilized on the platform.
The founders behind the project include CEO Rachid Ajaja, CTO Matthijs de Vries, and CIO Amber Ghaddar. Rachid had started about machine learning in 2017 and plans to use this knowledge to improve aspects of AllianceBlock. Rachid has also had previous experience in quantitative analysis at multiple analytic firms along with Barclays Investment Bank. Matthijs is the lead blockchain and software developer, with experience in software development dating back to 2005. Amber studied machine learning at Stanford but has her Masters degree in international risk management from HEC Paris. As the Chief investment officer, she has previous experience and connections within the finance sector from large institutions such as Goldman Sachs and JPMorgan.
AllianceBlock has also gathered a strong team of advisors to ensure they are making the right decisions for the future of their company. Luke Lombe is the strategic blockchain advisor, prior to working at AllianceBlock, Luke has had nearly 10 years of previous experience in consulting and advising for several corporate traditional finance firms along with a few blockchain enterprises, most notably MYNTD a blockchain advisory firm that assists blockchain startups in building out their visions to a reality. David Atkinson is another one of the strategic advisors, with his experience in advisory beginning back in 2013. David has since gone to work on the advisory boards for companies such as Sanctus, Bright Star Studios, Woodstock and Terra. David is also the current commercial director for Holochain, an ecosystem for users to build their own blockchains to interact with other chains on the network.
AllianceBlock has diversified their team and gathered the right personnel within both finance and technology to fill out their executive team along with an advisory board.
The $ALBT tokens is the foundation of AllianceBlock as it is the primary medium of exchange for transactions and fees and the means of reward within the network. The AllianceBlock token will also act as a governance token for voting and power delegations for decisions of the ecosystem.
$ALBT will be required in order to set up staking rewards for securing the network. Nodes vary from institutional nodes to data nodes and service nodes, each designated for certain entities. Rewards for participating in these activities will be paid out in $ALBT. AllianceBlock has also implemented a token burn feature in hopes for a deflationary model, the deflationary process goes as follows. Every transaction that takes place within the ecosystem will require $ALBT as the transaction fee, a portion of those fees will be confiscated by the protocol and burnt every quarter. The second token burn feature is executed through corporate entities buying back and burning tokens based on the revenue generated that quarter.
There are currently 233 million $ALBT circulating out of the 1 billion total supply. With the total amount of tokens going down every quarter. It is also estimated that 15% of the total supply will be locked within node staking and never entering circulating supply. Users who wish to generate passive income through staking can do so by setting up a node or by delegating their tokens to a pre-existing node for those unable to run one. AllianceBlock aims to stimulate the expansion and demand of their token in a manner which drives demand up in multiple ways the more the network grows. As more transactions take place more tokens used as fees will be burned, as the network grows in usage their revenue follows, which they will use a portion of to buy back and burn more tokens.
With the project AllianceBlock has planned they will likely need partners helping them achieve their goal. Some of the main groups they have partnered with include Quant Network, a cryptocurrency company targeted towards enterprises by connecting older existing networks into modern blockchain networks and vice versa. AllianceBlock plans to leverage this partnership by inputting the interoperability solution Quant brings into bridging legacy markets and decentralized finance along with bridging other chains into their ecosystem. Chainlink will also act as an oracle for verifying real world data from legacy markets to deliver data and insights, in addition Chainlink can automate the conversion from any digital asset into a bankable product.
Perhaps an unorthodox partnership, AllianceBlock has chosen to partner with the London Stock Exchange, a partnership between a crypto start-up and a financial institution as large as a stock exchange is nearly unheard of. This partnership not only brings legitimacy to AllianceBlock, it provides AllianceBlock the ability to access other asset classes along with allowing both institutional and retail users of the London Stock Exchange to access AllianceBlocks network. Another legacy partner is Portugal Finlabs, they are regulators which discuss and embrace innovative fintech startups. Portugal Finlabs has drawn a liking towards AllianceBlock and helps them through giving input for future regulations and advisory on their roadmap.
Some other familiar crypto partners that are working with AllianceBlock consist of, Hedera Hashgraph, with their plans to utilize this partnership through Hedera’s Consensus Service to create immutable and verifiable logs of messages, along with Hedera’s Token Service will be deployed towards AllianceBlocks trustless KYC, a decentralized identity verifier, adding to compliance and giving institutional investors another layer of confidence and security. Elrond is one of their most recent partners and they aim to use this partnership to allow users of the Elrond Network to swap between chains efficiently, while also having AllianceBlock provide liquidity and integrating AllianceBlocks decentralized exchange and DeFi terminal into their ecosystem, bringing additional adoption and growth towards both ecosystems.
Alliance has also chosen to partner with Unizen, a thorough regulated liquidity solution for aggregating the entire cryptocurrency market. This partnership will allow Unizen to enable optional and trustless KYC throughout all the native and third party platforms they provide. In addition, Unizen will also be adding AllianceBlock’s DeFi Terminal. This integration will allow users of both networks to provide liquidity, convenient portfolio rearrangement and earn rewards.
AllianceBlock’s total addressable market is limitless as it ranges from traditional finances such as commodities, to derivatives to equities along with the exponentially-growing cryptocurrency and decentralized finance market. The decentralized finance market is valued at $134 billion, while the global equity market is valued at roughly $93 trillion and the derivatives market valued as high as $1 quadrillion. As AllianceBlock is aiming to disrupt this entire industry of finance and investing, it is hard to imagine the full potential and valuation of this project, along with the market share it could potentially take away from legacy markets.
If AllianceBlock succeeds in their promise in the near future, we could potentially be watching a future multi hundred trillion dollar industry in the making. Institutions can finally feel safe accessing decentralized finance while trading assets from the other side of the world. With the much needed help from firms and enterprises, AllianceBlock’s goal is gradually building the pieces together in building a regulated globally compliant ecosystem to not only connect these two worlds of finance, but also to shatter the current geological barriers in the world of trading.
*None of the information listed is financial or investment advice and should only be taken as entertainment or educational as I’m not a financial advisor*
Hey, thanks for taking the time to read my work. I’m your average 20 year old, currently in school for Economics and Finance. Some of my hobbies consist of sports, working out and staring at price charts.
I initially began interested in the crypto space after frustrations with legacy markets. From the second I read about the Ethereum ecosystem, I fell in love. An entire ecosystem built on one platform that anybody can access? Unheard of, until now.
With how fast this space is developing, I try and find projects within this industry that show promise and potential to disrupt our modern world. All this fundamental analysis not only helps me better understand these projects better, but hopefully gives you guys some newfound information!
If there are any projects you’d wish to suggest me take a look into, I’m always available on Twitter