Velocity Launches Demo of Smart Contract Price Feed
The decentralized derivatives platform uses blockchain technology and Ethereum’s smart contracts to provide more transparent, accessible, and secure trading for cryptocurrency users. By integrating Ethereum’s smart contracts, Velocity will become the first platform to settle contracts without the authorization of a third party or central server.
In the demonstration, users can test a collar option contract which can managed independently. To get started the user will purchase a contract by sending a small amount of Ether to the contract’s address. The user will then enter whether they believe the price of Ether will go up or down. In order to determine the outcome, the contract must run through at least five blocks on the Ethereum testnet blockchain.
Velocity aims to provide a complete transparent platform. After a contract is completed, users will be given charts that show the time, price, and block of the most recent block. The data will be displayed in real data. And by removing the middleman or a third party, trades will be executed faster and at a smaller fee.
“The OTC derivatives market is worth $16 trillion in the U.S. alone, making derivatives integral to today’s financial landscape, in everything from insurance to portfolio management,” said Vignesh Sundaresan, Chief Architect at Velocity.
“Velocity provides advanced yet approachable blockchain technology to support cryptocurrency’s trend towards margin trading, and to further adoption of smart contracts on the blockchain.”
To track the pricing data, Velocity will be quoting Poloniex through their oracle feed pricegeth.
To gain more access and have a better hands-on experience with the demo, users are welcomed to use Ethereum’s Metamask wallet Chrome plugin.
Along with the launch of the demo, Velocity announced it will hold a crowdsale in the fourth quarter of this year. A formal launch of the platform is slated to be release in the second quarter of next year.