- Provenance Blockchain’s Hold Module revolutionizes financial transactions by reducing the need for smart contracts, resulting in faster and more secure transactions.
- The Hold Module eliminates gas fees and overhead associated with smart contracts, minimizing potential pitfalls and expediting transactions.
- By offering a seamless alternative to smart contracts, the Hold Module streamlines transactions, reduces complexity, and enhances trust in financial services.
In the ever-evolving landscape of financial services, blockchain technology continues to redefine the way we conduct transactions. One noteworthy advancement in this domain is Provenance Blockchain’s groundbreaking Hold Module. This private API has been engineered directly into the protocol, and it’s poised to revolutionize the financial asset lifecycle by reducing the need for smart contracts, resulting in faster and more secure transactions. In this article, we’ll explore the unique capabilities of the Hold Module, its advantages over smart contracts, and its potential to streamline financial transactions for professionals in the field.
Understanding the Hold Module
The Hold Module is designed to address a fundamental challenge in financial transactions — ensuring that counterparties possess the necessary assets to complete a transaction. It functions in a manner akin to a hotel placing a temporary hold on your credit card when you check in. This hold merely reserves the ability to collect funds if deemed appropriate at the end of your stay. Similarly, the Hold Module places a temporary freeze on counterparties’ assets until it is deemed appropriate to complete the transaction. The remarkable aspect of this innovation is that, especially for long-running transactions requiring additional coordination and checks performed, the assets posted do not need to be in an escrow account. Said differently, no third party sits in the middle (e.g., intermediary or smart contract) of the transaction.
An additional benefit, specifically for long-running transactions, is that the Hold Module enables the account holder to maintain the benefits associated with their asset while the transaction is in progress. For instance, if the asset owner retains the ability to earn interest on a token while the transaction is in progress.
Comparing Hold Module with Smart Contracts
To complete most financial transactions on blockchain technology requires a smart contract. To appreciate the significance of the Hold Module, let’s contrast it with the traditional approach of using smart contracts.
Gas Fees and Overhead
Smart contracts result in incremental gas fees, much like traditional intermediaries. Moreover, they demand additional network resources, increasing gas fees. The Hold Module, on the other hand, eliminates the need for smart contracts to verify counterparties’ assets and ensures that assets remain under their control until the transaction is completed. This novel approach not only expedites transactions but also minimizes the potential pitfalls associated with smart contracts.
Security Risks and Maintenance
Smart contracts can introduce vulnerabilities that require costly auditing and maintenance. Immutability of deployed smart contracts can be problematic if there are bugs or vulnerabilities. By utilizing the Hold Module, financial professionals can reduce security risks and maintenance efforts, as it eliminates the need for smart contracts to act as intermediaries during transactions.
Upgradability and Compatibility
Maintaining and upgrading smart contract code can be complicated and expensive, posing potential risks related to compatibility and data security. The Hold Module, being a built-in feature of the Provenance Blockchain protocol, offers a seamless and efficient alternative that doesn’t require complex upgradability procedures. This ensures compatibility and mitigates risks associated with maintaining and updating smart contract code.
The Benefits for Marketplace and Asset Issuers
Provenance Blockchain’s Hold Module reduces the need for intermediaries, such as the use of smart contracts. By leveraging the protocol directly, users are able to remove complexity, costs, risk, an extra transfer step, and any extra bookkeeping required, streamlining transactions. The Hold Module represents a significant step forward in blockchain technology for financial services, offering a necessary, more secure, and cost-effective alternative to smart contracts. This aligns perfectly with the industry’s need for reduced risk, greater efficiency, and trust.
Provenance Blockchain: Modernizing Financial Services
Provenance Blockchain is modernizing financial services with properly permissioned, public blockchain technology. Since 2018, leading financial institutions and fintechs have leveraged the purpose-built blockchain to deploy assets cheaper, faster, and safer than ever before. Provenance Blockchain is one of the world’s largest blockchain networks with more than $9B in real-world financial asset value locked (TVL), and more than $30B in financial transactions supported.
Conclusion
In conclusion, Provenance Blockchain’s Hold Module is revolutionizing the financial asset lifecycle by offering a streamlined and secure alternative to smart contracts. It eliminates intermediaries, simplifies transactions, and reduces costs, complexity, and risks. With significant market impact and a large blockchain network, Provenance Blockchain is a trailblazer in leveraging blockchain technology for financial services.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
