Veritaseum is not a cryptocurrency but a company that builds global, Blockchain-based capital markets as a software. The company takes fiat assets and places them on the Blockchain as autonomous software, thus eliminating the need for third-party or authoritarian oversight. Any person can access the capital market on a peer-to-peer, over-the-counter, and on a one-on-one basis.
The project seeks to cut middlemen in the financial services and financial markets with smart contracts. The Jamaican Stock Exchange has already shown interest in the project. Veritaseum has also started to create partnerships with other stock exchanges as it pursues opportunities in the trillion dollar assets market.
How Does Veritaseum Work?
Veritaseum offers a smart contract based wallet interface that allows people to create, enter, and manage smart contracts without the need for intermediaries or centralized authorities. The company also allows people to interact with real-world products based on Blockchain technology and smart contracts.
Veritaseum’s software solution for powering smart contracts will have two major components: Centralized and Distributed.
The centralized platform is being developed with the aim of addressing the needs of institutions that are not planning to take a full leap into distributed capital market systems. The centralized solution runs on servers under the control of the client.
The centralized solution is to be used as an exchange or prime brokerage entity. It will also act as a smart arbitrage software component for providing cross-platform liquidity.
Veritaseum distributed solutions use a unique system that is research and analysis based. Forensic, fundamental, and macro analysis form the building blocks of “Veritas”, which is the company’s main Blockchain software.
VERITAS mining involves a request being communicated to the Veritaseum team, by, say, a client or a customer. In return, the company’s financial analysts, macro strategists, and financial engineers create and construct an analytical framework that supports the said construct along with the fundamental and macro research.
Financial research is then sent to the Veritaseum software developers and engineers who create the software token and the smart contracts that support the business. Finally, the software token is issued directly to the Veritaseum customer for direct P2P OTC transfer.
The maximum supply of VERI tokens that will ever be in circulation is capped at 100 million coins.
While the cryptocurrency claims to have huge plans to disrupt the financial industry, there is talk as to whether the project is susceptible to scams.
Last year, the founder of the cryptocurrency admitted to a breach on the network that resulted in 36,000, tokens being stolen. Reggie Middleton claims the hackers dumped the coins a few hours after, stealing them without the public knowing anything about the hack.
The stolen tokens were reportedly exchanged on EtherDelta, a decentralized trading platform. The platform handles nearly 80% of VERI tokens.
Another nagging concern among investors is the fact that the company behind the cryptocurrency has yet to provide detailed information on what the token does. The only information that investors have been given is that the token is set to revolutionize the financial sector--some argue this is yet to be proven.