Project Spotlight – Jibrel Network

Overview

The Jibrel network is an intermediary service on the Ethereum blockchain that facilitates the tokenization, listing and trading of traditional assets. In addition, Jibrel aims to offer instant, near-zero fee global payments and remittances in the form of fiat-fiat transactions through various payment channels. Four core offerings of the Jibrel network:

Crypto Depository Receipts (CryDRs)

  • Tethered tokens for representing the ownership of underlying traditional assets held by Jibrel
  • Fully programmable; embedded with regulation

Jibrel Decentralized Autonomous Organization (Jibrel DAO)

  • Receives/holds traditional assets on behalf of stakeholders, and issues respective CryDRs

Asset Portals

  • Consisting of fiat and non-fiat portals, asset portals are intended for undertaking the necessary legal and financial steps to converting traditional assets into on-chain digital assets

Jibrel Network Token (JNT)

  • Used for levying Jibrel DAO’s on-chain fees and commissions

Problems Jibrel Aims To Solve

  • Cryptocurrencies’ market values being restricted by use cases and geography, due to limited adoption at the institution level
  • Widespread systemic risks introduced by challenges and limitations in converting between traditional assets and digital assets
  • Time delays and fees imposed by intermediaries, namely cryptocurrency exchanges, financial institutions and payment processors
  • Traditional investors being deterred from participating in the cryptocurrency market due to extreme market volatility as well as a lack of transparency
  • Limited options for decentralized organizations/funds and individual crypto investors to diversify into traditional holdings

Why A Token?

In order for all Crypto Depository Receipts (CryDRs) to remain tethered to underlying traditional assets, a virtual exchange currency will be needed for securing off-chain assets.  This virtual exchange currency needs to fulfill three purposes: 1) to transact on the network; 2) to facilitate payment off-chain fees; and 3) to facilitate a seamless migration process. CryDRs themselves can’t be used for these purposes as they are part of the payment structure, and must remain tethered to traditional assets. Hence the JNT tokens are created to ensure CryDRs remain tethered to underlying traditional assets while offering an extra layer of compliance (illustrated down below).

Three layers in CryDR:

  • View: interface for 3rd-party contracts (i.e. ERC20) and web-apps (i.e. Dapps)
  • Controller: orchestration of Views and Storage; implementation of compliance and business logic
  • Storage: host for all data

Use Cases

Investment Platform

  • An investment bank that provides the users with on-chain/off-chain arbitrage opportunities by allowing them to deposit money market instruments or commodities into Jibrel DAO, then sell their CryDRs to decentralized organizations/funds at a premium

Hedging Tokens

  • Allow decentralized organizations/funds to hedge their positions in traditional assets, and protect their funds against crypto market downturns

Remittances

  • Fiat-to-fiat transfers that utilize crypto-infrastructure for transaction execution
  • Allow users to add and transfer funds globally with low fees while providing the stability and security of traditional assets

Universal Wallet

  • Gives users the ability to seamlessly convert between currencies, and make transfers

API

  • Currency API for users to freely convert between currencies
  • Merchant API for merchants to accept payments in any currency, and receive payouts in local currency.
  • No incurring exchange or transfer fees

Remarks

With most of the world still spectating the cryptocurrency market, Jibrel is actively seeking to bridge the gap between traditional economy and cryptoeconomy. Though the idea of tokenizing traditional assets on-chain while pertaining to off-chain assets seemed far fetched at first, our view quickly changed after a careful evaluation of the project. Among similar projects that dare to bring traditional finance on blockchain, Jibrel has a unique approach in integrating traditional financial instruments into cryptocurrency. The proposed approach is intricate and very well thought out. With regulatory and governing protocols added in, the Jibrel Network has a huge potential of breaking regulatory barriers and achieving institutional adoption at a higher level. 

 

Reference

Jibrel Network Whitepaper [PDF].

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