What is the Ivy Project?
The Ivy Project started with a simple idea – that cryptocurrency and blockchain-backed tokens should make it easier for large institutions to accept payments, not more difficult.
Blockchains excel at being a shared source of truth for digital information, where all participants can verify data without having to trust one another. Therefore payments backed by blockchains, such as cryptocurrency transactions, should offer a rich source of information to the receiver, sender, and other interested parties such as regulatory bodies. This data is commonly referred to as Know-Your-Customer (KYC) and Know-Your-Transaction (KYT) data.
We found, through working with financial institutions, that current blockchain-based payments fall short in providing the level of transparency required for KYC + KYT, that are required to create trust and fulfill Anti-Money Laundering (AML) and other compliance rules for traditional financial institutions.
We set out to build a Payment Platform that harnesses the power of blockchain in a system that is:
The Basics of Ivy
- a. Building the platform that links Blockchain-backed Transactions with the KYC + KYT data required by recipients and regulators
- b. Building a workflow for transaction participants to have access to KYC data before approving a transaction
- a. Accept payment from customers using cryptocurrencies and blockchain-backed assets
- b. Serve as intermediaries to oversee and to verify the transfer of Ivy to traditional means of fiat currency payments
Traditional financial institutions and funds can serve as intermediaries receiving Ivy, and can issue financing through traditional means while charging a service fee for facilitating these transactions — in the process, building up their reserves of Ivy.
The first phase of Ivy was to build out two major components
An ERC-20 Utility Token on the Ethereum blockchain that provides:
- a.The basic cryptocurrency (Ether) to enable blockchain-backed payments.
- b.A stable, blockchain-backed infrastructure to record these payments.
A set of technologies working together to:
- a.Facilitate the transfer of cryptocurrencies to ivyKoin, while capturing rich data about the customer (KYC) and the transaction (KYT).
- b.Facilitate the transfer of IvyKoin to payments in fiat currencies, while capturing KYC and KYT data, and allowing intermediaries to approve such payments upon review and validation of the KYC / KYT data.
- c.A secure database, ideally backed by a blockchain itself, that stores the mapping of the blockchain-based cryptocurrency transaction to the KYC / KYT data captured around it.
The first iteration of the components above is called ivyAlpha, and is currently fully functional and working with the TestNets of Ethereum and several other major cryptocurrencies.
BASIC FUNCTIONALITY OF IVYKOIN 1.0 AND IVYNETWORK
Finding the Market for Ivy requires validating three needs:
- Customers who wanted to utilize cryptocurrencies and blockchain-backed assets to make payments, using Ivy as an intermediary.
- Institutions that wanted to accept such payments.
- Institutions that would want to serve as intermediaries.
As we explored the market with these requirements, the primary use case and associated requirements for an instrument and platform such as Ivy has become increasingly clear, as have further potential business models.
These discoveries and insights have since led to multiple business opportunities, as well as the conception of ivyNext – our internal codename for the next iteration of Ivy beyond ivyAlpha.