Crypto in 5

By Fernando Gutierrez

Transfer insurance: Amp in 5 🖐

#63・
79

issues

Subscribe to our newsletter

By subscribing, you agree with Revue’s Terms of Service and Privacy Policy and understand that Crypto in 5 will receive your email address.

Transfer insurance: Amp in 5 🖐
By Fernando Gutierrez • Issue #63 • View online

What is Amp (AMP)?
Amp is a platform to collateralize asset transfers.
Most asset transfers don’t settle instantly. Participants face risks associated with the delay. Amp insures the risk.
It’s a project by the Flexa payments network, but it’s open-source and extensible, so it works for others too.
Any form of value exchange can be guaranteed (digital payments, fiat currency exchanges, loan distributions, property sales…), but the first use case is payments.
Being launched by Flexa, which processes payments at more than 41k locations in the US and Canada, it’d have been weird that they didn’t eat their own dog food!
When someone initiates a collateralized asset transfer, some AMP is staked in a partition. Once the transfer is confirmed, the AMP is released. If it doesn’t confirm, the AMP is liquidated to cover the losses.
One example use case that opens thanks to this: a merchant can accept zero-confirmation Bitcoin payments with no risk.
Amp creates partitions for each entity, process, application, or transaction being collateralized.
Each partition can be configured in different ways, so it’s fine-tuned for each use case.
Collateral pools decentralize the risk when staking AMP.
AMP is the ERC20-compatible network token that is used for collateralization when users stake it.
It has a fixed supply and is designed to be low-volatility (someone tell the market!).
Most of it is already in circulation, with funds for merchants, developers, the network, and the team.
A few links
Last few words
Of course, this is not financial advice yada yada yada.
Nobody can guarantee you a profit. Do your own due diligence and trust nobody.
I’m catching up with crypto concepts and projects daily for 50 days straight. Please reply to this email if there is something that you would like me to cover.
Or just to say hi, that would be nice 😀
Cheers!
Did you enjoy this issue?
Fernando Gutierrez

I'm catching up with crypto projects and concepts in a few paragraphs for at least 50 days straight.

In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue