Abra Intends To Replace Legacy Banking System With Bitcoin Smart Contracts

Recently, Abra introduced that users using their mobile app will now be able to gain exposure regarding a variety of commodities, traditional stocks, and ETFs.

Author: Sohrab Khawas

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    Do you know what is Abra? It is a sort of wide, limitless alternative to Venmo, which offers cross-border payments at a very reasonable cost. This platform originally came into existence by Bill Barhydt, the former Netscape director back in 2014. It was one of the top prize retrieved during the 2015 Launch Festival.

    Currently, Abra allows its customers to use their mobile app to grab exposure with offering several commodities, traditional stocks, and ETFs. This news follows the announcement by the company to let the authenticated users hold, send, and receive a majority of fiat and cryptos via their app.

    While this seems to be another entry within this overcrowded mobile financial market, Abra is ready to influence their potential providing permission less availability with traditional investment opportunities.

    Abra is live on Bitcoin operating smart contracts which is a bonus. As it could have wide implications irrespective of the future bitcoin price.

    The global availability of the company makes them widely known for the use of crypto collateralized contract. However, this enables users to control their money right through their phones. To be more precise, the money keys are hoard on the phone. This is not that similar to a bank or PayPal.

    Abra Crypto Mobile Wallet

    Abra’s crypto collateralized contract initiates on Bitcoin with a creation of 2-of-3 multisig Bitcoin address. Moreover, there are three parties who are able to sign transactions using that address. The user along with a third-party oracle can individually set the exchange rate between any assets.

    While a user converts their bitcoin into U.S. dollars deposited or into other asset, on the backend, they actually establish one of these multisig addresses. In fact, this remains hidden from the Abra users. However, they are not familiar as they are holding bitcoin in a smart contract.This is apart from the real assets that appears in their portfolios. According to Barhydt:

    If you give consumers ones and zero that they can hold on a hard disk on their own, that’s generally not regulated. He said this in an interview on November 2018 during Off the Chain with Anthony Pompliano.

    Barhydt also clarifies about Abra does not have to gather any personal data from the members. He needs to simply deposit bitcoin within the app in his blog post. In 2017, Abra reveals the next phase regarding their master plan to let their users speculate cryptocurrency price.

    Mainly, the company is preparing to establish the first permissionless crypto bank. This helps them to easily replace the legacy banking system functions completely with Bitcoin smart contracts.

     Many consumers in the US and other countries already have access to stocks and mutual funds via online brokerages. However, many people (billions actually) are shut out of these investment opportunities due to their geography, financial status or lack of accredited investor status, income level, or lack of trust for their local financial institutions.

    What is your take on Abra replacing Legacy Banking System? Share your thoughts on our Twitter and Facebook pages.

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