The financial industry has changed a lot over the years, particularly after the invention of the internet. Because of this, it is now possible to shop online, send money to the other side of the world, manage your funds via the web, without the need to go to the bank or some other financial institution, and even invest and trade.
However, despite all of these benefits, the financial industry is still not as good as it could be. The cost of using all of these services is massive, particularly due to the fact that there are plenty of intermediaries involved between the consumer and their goal, and they all charge hefty fees for their services.
The end result is slow payments since there is no trust between these intermediaries, who need to thoroughly check all transactions, plus expensive payments because they all also charge their services.
Since the DeFi sector of the crypto industry emerged, however, a new option became possible, which is to simply bypass all of these intermediaries and start making direct transactions. This is something that the regulated financial service industry and its consumers can greatly benefit from, and it is what Verso Finance aims to offer.
What is Verso Finance?
In its essence, Verso is a decentralized marketplace for financial products. It is a project that aims to solve an industry-wide distribution challenge that is preventing innovative microfinance and DeFi products from reaching retail customers and offering them its potential.
The platform was created primarily for the regulated financial service industry, as it is fully decentralized, meaning that it is governed by its own community. The community also comprises financial service providers and regulated institutions, but it uses smart contracts to facilitate the product-specific money flow and distribution between different financial institutions, service providers, and their users.
Services that govern the network act as validators, which is this project’s equivalent of stakers, miners, and alike. As such, Verso can bridge the gap between traditional finance and decentralized finance, by standardizing how financial products are distributed and connected to users.
It uses bank accounts and e-wallets alike to achieve this goal, and it allows any type of financial institution — including lenders, insurance providers, and others — to distribute their microfinance products, while it also provides DeFi products an on-ramp into the retail space.
While DeFi has the potential to reach everyone in the world and offer them access to the global economy for the first time — especially when it comes to unbanked and underbanked regions and their people — this connection to the centralized finance industry further expands the possibilities they will now have access to.
Verso Token and Its Uses
As a DeFi project, Verso also has its own token, called simply the Verso Token (VSO). The token is primarily used for allowing access to the platform, but also for things like marketing, placement, conversion of products, and more. Tokens are also used for bringing in new validators to the network. Basically, to become the project validator, certain conditions need to be met. For example, the validator needs to provide collateral, which is quite high — 1 million VSO tokens. But, since the collateral is calculated by the initial public sale price, which was $0.05 per token, that means that anyone who wishes to become a validator must provide $50,000 in VSO tokens.
On top of that, the would-be validators will also have to perform a certain amount of work. In return, they will have voting rights, and permission to participate in the validator pool. Each validator that gets accepted has an equal vote to that of other validators, which evens out the voting power for validation. This differs from the governance staking model, where more tokens in your possession grants your vote greater weight.
Verso is built on Avalanche — a new, revolutionary blockchain that actually consists of multiple chains, all of which work together to create the Avalanche network. The network is extremely fast, capable of hitting 4,500 transactions per second, which makes it more than capable of handling the job that Verso is set out to do.
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