Recently, Bankcoin Reserve presented to NASA during the 46th Annual Space Congress that was held in Cape Canaveral, Florida.
The presentation by the platform, which serves as a stable store of value cryptocurrency project is the latest hint of interest in blockchain by NASA. In this piece, I seek to understand what exactly NASA is looking for from events like this.
NASA is looking for Blockchain Solutions
NASA's interest in blockchain can be traced back to January 2018 when news broke that the agency had awarded the University of Akron $330,000.
The money was to go into researching the potential of blockchain and how this technology could improve space communications.
Dr. Jen Wei, the assistant professor of computer engineering at Akron was to lead a team of researchers in developing a Resilient Networking and Computing Paradigm (RNCP) for space exploration.
According to a synopsis of the research, the team was to:
"Employ the blockchain technique to design a secure and decentralized infrastructure for processing the massive data for space exploration and related science.”
Fast forward to January 2019, and NASA was reported to be exploring the possibility of using the blockchain technology as it seeks to safeguard the privacy and security of aircraft flight data.
Ronald Reisman, the aero-computer engineer, explained the project in a research paper stating that:
“The design innovation is the use of an open-source permissioned blockchain framework to enable aircraft privacy and anonymity while providing a secure and efficient method for communication with Air Traffic Services, Operations Support, or other authorized entities.”
Finally, earlier this September, NASA posted a job opening on Linkedin where they sought a candidate that boasted a wide range of skills. There was special consideration being given to the individual that had experience with cryptocurrencies and the blockchain.
From the above news, it's clear that NASA is very interested in the blockchain technology. Below I am going to look at eight patents filled by Bankcoin Reserve that could have caught the attention of NASA.
8 Patents Filled By Bankcoin Reserve
So far, Bankcoin Reserve boasts eight patents that were granted to AAA Blockchain Limited and Gary McAlister.
1. Foreign Exchange Innovation
The new foreign exchange is based on the blockchain and makes it possible to transfer funds internationally through a foreign exchange like AMLFX. The funds are transferred and settled locally without having to leave the country of origin.
Imagine a scenario where two friends, Alvin and Kelvin are having a conversation in a café. Kelvin says that he is waiting on $1,000 from Aki in Japan. Coincidentally Alvin tells Kelvin that he intends to send $1,000 to Akio who lives in Japan. On overhearing this conversation, John, who happens to be in the same cafe, suggests that Alvin should transfer the $1,000 to Kelvin. Also, Kelvin should ask Aki to transfer the $1,000 owed to him to Akio.
Therefore, the two transactions are settled without the funds having to leave the country of origin. Fees are still involved; however, they are very low, which acts as an incentive for the banks.
To make this possible banks will need access to a Proof of Stake mechanism that is built on the blockchain. The mechanism acts as a reserve for the banks and keeps the network up and running.
The innovative foreign exchange offers a solution to the above scenario by using algorithms that match up the four parties involved in the equation.
The blockchain sends the value as an asset or message to a payment processor like V2Pay which processes all the requests from the senders and receivers in a specific country and matches them to all senders and receivers in a different country.
2. Franchise Innovation
It’s a blockchain digital mine discovery franchise innovation that makes it possible to discover and develop an unlimited number of master digital mine franchises.
These master digital mine franchises also can discover an unlimited number of sub franchises which in turn can find sub franchises of their own and so forth.
The new mines which are discovered constantly give the “franchise market” liquidity and can be sold, traded or swapped before being availed to the public market through exchanges.
3. Islamic Banking And Sharia Compliant Innovation
It’s an innovation that seeks to use the blockchain technology to eliminate interest from Savings and Deposits. This will be possible by transitioning to using the Islamic Banking Innovation revenue earnings shared model.
The innovation will be compliant with Islamic banking laws by ensuring it has no riba, usury or any other interest component for deposits, savings, finance, ethical loans, stocks, shares, bonds, and private placement programs. It will cater for Banks, other financial institutions, and monetary funds.
This will happen by using digital currencies for savings, deposit taking, escrow, trust, remittance, intermediaries, and safekeeping.
4. Loan And Finance
This innovation allows banks, financial institutions, and monetary funds to offer ethical financial loans that carry zero interest or usury.
Instead, these institutions can earn the interest or usury using a blockchain-dependent internal process for minting new coins and mining for transaction fees. This is possible by leveraging on the Bankcoin.
When a borrower applies for a loan, the bank approves the loan and at the same time acquires Bankcoin that is of equal value to the credit.
The bank can then proceed to leverage the coins acquired by 2x, 5x, or even 30x. The leveraged Bankcoins are used to create fiat that is loaned to the borrower.
The process is interest-free since Bankcoin is a cryptocurrency that is based on the blockchain which mints new coins and mines the transaction fees throughout the Bankcoin network.
Banks and other financial institutions can explore this new method to determine what % they would like to earn through the mine/mint process.
5. New Monetary System
The new monetary innovation allows governments, corporations, companies, SME’s, NGO’s and any other entities to employ cryptocurrencies like Bankcoin to generate revenue by the use of a wallet that mint/mines new coin assets
The process helps in the reduction of fees for businesses, taxes for governments, grants for NGOs, and donations for nonprofit organizations.
Using the government as an example, it can acquire or develop a revenue-generating crypto asset like Bankcoin, which uses the blockchain to earn revenue by minting/mining new assets.
Also, the asset can be used to mint/mine transaction fees as opposed to the current system where it requires taxes, fees, or even rates to be paid which act as its form of revenue.
6. Private Placement High Yield Investment
Bankcoin isn’t only a virtual asset but also a digital mining asset. This means it exists on the blockchain with a fixed contract value or a floating mining contract value.
After being mined, a digital mining asset like Bankcoin is known as the principal.
This principal once in your wallet starts to secondary mine/mint new Bankcoins at the rate of let’s say 10% per annum. Hence the name digital mining asset, as opposed to just a digital, mined asset.
There is an additional mining function that takes place after the initial principle coin has been mined. This leads to the creation of new ethical markets for private placement high yield investment that lasts for 40 weeks per period.
7. Savings and Deposits
This new method allows financial institutions to enter the cryptocurrency market using the funds deposited by clients with a chance of increasing profits as they eliminate costs, interests, and associated fees.
When a customer walks into a bank with fiat and asks for a savings term deposit, the bank can proceed to purchase Bankcoins of equal amount and allocate them to the customer’s Bankcoin term deposit account.
The bank can then use the Bankcoins in its possession for fractional reserve and leverage them 3x, 5x or according to whatever the rules are for that specific Bank.
In summary, it’s one way for banks and other financial institutions to enter the crypto market, ensuring they benefit from the many advantages it offers without experiencing any high costs or risks.
8. Stock And Bond Management
This is a new stock/bond innovation that uses the principle of mined cryptographic digital mining assets that proceeds to secondary mine for stock/share/bondholders by using the blockchain on a cryptographic exchange.
In the case of a new company that holds stock/shares/bonds, by applying the digital mining asset/commodity, the company would have principle digital mining assets that it can sell to traders.
Investors buy the principle stocks/shares/bonds and proceed to secondary mine them and then sell the new assets on a blockchain exchange.
All the above patents seem very ingenious, and this helps explain why NASA may be interested in Bankcoin Reserve. What I am not sure of is which particular blockchain solution the agency is seeking from the crypto platform. There is a possibility that I will encounter some blockchain-related announcement from NASA shortly.
Disclaimer: I do not have any vested interest in any of the mentioned projects. The views and opinions expressed are those of the author and is not investment advice. Do your research.