Lithosphere Applications

Borrowing and Lending

Using digital money to produce new value and earn revenue is an unavoidable trend as it grows in importance as a medium of value exchange and a value storage carrier. Bitcoin, for example, is used to fund blockchain mining companies and other crypto initiatives. Direct investment options for digital currency have expanded as the variety of applications for digital money has grown.

Those who generate value with digital currencies need more of them, and people who own digital currencies want to raise their value, thus demand for borrowing and lending digital currencies will rise.

Consider the cryptocurrency Ethereum (ETH). On Lithosphere, a service provider creates a deposit application and sets the interest rate using a smart contract.

Through a cross-chain transaction, a user sends ETH from the Ethereum blockchain to the Lithosphere smart contract address. The deposit on Lithosphere generates a voucher (Lithosphere tokens that look like deposit bank receipts) that is credited to the user’s Lithosphere account. The smart contract then calculates the interest for you. When the user wants to withdraw the money, the voucher is sent to an intermediate address, and a cross-chain transaction is carried out. On the original chain, the ETH corresponding to the voucher is unlocked and sent back to the original user’s account. Deposit reserves (the assets locked on the originating chain that correspond to the intermediate address) are always visible.

Payment and Settlement

Businesses are increasingly accepting digital assets such as Bitcoin as a form of payment. There will be more applications in the future that employ a range of digital currencies for payment. There are several payment options available today, including VISA, Paypal, and Alipay, each with its own set of payment and settlement procedures. The lithosphere is a multi-currency distributed platform that combines many banking ledgers into a single unified ledger. Without needing to install several digital currency wallets, any business or user may utilize the Lithosphere wallet to make multi- currency payments and settlements.

Transaction and Exchange

At the moment, centralized exchanges and over-the-counter marketplaces are required to complete digital currency trades. Every transaction is dependent on the exchanges’ and intermediaries’ confidence. After several currencies have been linked with Lithosphere, exchanges and intermediaries may use smart contracts to enable multi-currency auction trading and one-to-one curb transactions. On Lithosphere, the privacy protection transaction mechanism supports transactions that require privacy protection. Importing digital money into Lithosphere, starting private transactions on Lithosphere, and moving digital currency back to the original chain are all possible with Lithosphere. The original chain’s privacy is protected to some extent by concealing the fund tracking paths. Lithosphere can handle 1,000,000 transactions per second (TPS) compared to Bitcoin which processes 4.6 transactions per second, Ethereum does 15 TPS, and Ripple handles 1,700 TPS. Visa does around 1,700 transactions per second on average (based on a calculation derived from the official claim of over 150 million transactions per day).

Investment and Financing

Traditional institutions are increasingly turning to consortium chains to store assets such as commercial invoices, loyalty points, future earning rights, and accounts receivable. More financial assets will be recorded on consortium chains-based distributed ledgers in the future. When these consortium chains connect to Lithosphere, they become financial asset providers, and investors may acquire these assets with their digital currencies. It’s similar to buying financial goods at a bank, as in the traditional banking company. The main distinction is that more intermediaries can participate, and asset owners can finance themselves directly.

In the blockchain world, Initial Coin Offerings (ICOs) / initial exchange offerings (IEOs) have become a popular way to raise funds, and the practice is expanding to non-blockchain domains. Smart contracts are being used directly for ICOs by an increasing number of projects, particularly those built on Ethereum or BSC, making the process more open and equitable. However, ICOs that exclusively accept Ether annoy investors who possess other digital currencies. The ICO issuer can use Lithosphere to create a smart contract that enables multi-currency investments. Investors may invest more easily using Ethereum, Bitcoin, or any other blockchain token linked with Lithosphere, and issuers can manage their funds more simply. Furthermore, when a new blockchain is released, the Lithosphere cross-chain transactions may be used to convert the crowdfunded shares to the local currency. With Lithosphere, we’re entering a new age of blockchain-based digital right issuing

More Applications

The financial applications mentioned above are meant to help readers better grasp Lithosphere’s rationale and value. More examples include multi-currency credit cards based on digital money, asset- backed securities that bundle a range of assets, peer-to-peer lending firms based on digital currencies, and crowdfunding, among others.

Major banks see blockchain technology as an essential strategy, but they’re also looking at how it might be used to alter traditional business.

Banking, such as currency exchange, has been flourishing in the realm of digital money. In these sectors, blockchains are progressing on two parallel tracks, but with the emergence of digital assets and their increasing integration into the actual economy, these two tracks will eventually cross. Bank balance sheets will be largely moved to blockchains, and digital assets will be incorporated in bank balance sheets (banks that enable the loan and deposit of digital assets) (fiat money is represented and accounted for by blockchain tokens). This future integration will be supported by Lithosphere’s inter-ledger technology.