Introducing Verso - A Common Ground for the Entire Finance Industry
Disclaimer: The text below is a press release that was not written by Cryptonews.com.
The financial industry is massive. When people think about finance, most of the time, they think of banks, sending money from one account to the other, and maybe of investments and trading. But, the financial industry is so much more than that. There are insurance companies, lending firms, custodial wallet providers, cryptocurrencies, DeFi, and many more sectors, some of which are regulated, some of which are still working on becoming regulated. But, the fact is that they are all interconnected — at least to some degree.
Unfortunately, the connection between these sectors of the financial industry is still rather shallow, which is surprising, given that the financial industry is one of the most technologically advanced and developed industries in the world. Since the world is revolving around money, you would expect that there is sufficient technology that allows all of these colossal industries to communicate with one another in a blink of an eye.
However, this is not the case. These sectors cannot even access all of their own branches properly, in some cases. Take the insurance industry, for example. There is a massive market of small insurance users, which the insurance industry simply cannot tap. DeFi, or decentralized finance — a sector of the crypto industry that exploded in 2020, and is still growing — is simply too complicated to reach mass adoption.
How can someone who doesn’t understand modern technology be expected to switch from centralized finance to DeFi when they don’t understand it? These are the issues that are preventing a massive amount of people from enjoying the full benefits that the financial industry has to offer, which, in turn, allows issues like poverty to persist. This is an issue that the Verso Network is trying to solve, by bridging these gaps between different sectors of the financial industry.
About Verso Network
The Verso Network, or Verso, is a decentralized marketplace for the regulated financial service industry. It provides financial service providers with access to consumers who were previously inaccessible to them. In doing so, it also helps the consumers by opening the door to new financial services. In essence, it is a marketplace that does not do much other than connecting the people with the services, both of which were inaccessible to one another in the past.
For example, let’s say that a financial service, such as a bank, decides to create a new service offering, like a microloan. If it wanted to offer this product to a specific segment of users, such as those of a certain age, income, or region — it would use the Verso network to create a campaign and define it by using these criteria.
From there, the algorithm of the marketplace calculates the price for the placement of the product inside the Verso network, and the bank pays it by prefunding the product pool with USDC. Then, a wallet provider that is also a member of the marketplace will see the campaign, and they can then display it to their users that are a match, based on the bank’s criteria.
Finally, we have come to the consumer, who now gets to see the available product, as offered by the bank. If they are interested and they apply to use it, the wallet can then provide their data to the bank, and the user gets to enjoy the microloan, while the bank has another new user.
As for the Verso network, it is not getting directly involved in the loan itself, only in the mechanics that brings the loan from the bank to the consumer, who previously may not have had any connection to the bank at all.
Obviously, Verso uses blockchain technology to run its mechanism, which is also fueled by its native token, VSO. This is a utility token that allows users to access network services, receive rewards, and more. It also offers its validators the ability to vote on different proposals and help steer the project. However, unlike governance models, where more tokens mean heavier weight of your vote, Verso grants equality to all of its users, thus preventing potential whales from manipulating the market, overruling decisions with a single vote, and more.