Published in le Journal Du Coin on February 21, 2024 ((https://journalducoin.com/economie/wecan-ripple-comparatif-crypto-institutions/))
Institutional players appreciate crypto more and more – This new technology delivers major gains in efficiency and transparency. And many companies are betting on a growing adoption by traditional institutions that will expand the sector. This is exactly what Wecan, but also Ripple, are betting on. These two companies do not, however, all share the same point of view. And it was time to revisit these different value propositions.
Wecan: compliance simplified
If you have no idea what the Wecan project is, we have already discussed it in (https://journalducoin.com/economie/wecan-simplifiez-conformite/). That said, Wecan's proposition has been gaining so much traction and interest lately that we can't resist summarizing it again for you.
How Wecan works and why it matters for banks
Wecan is THE way for institutional players (banks, financial institutions or even crypto exchanges) to simplify the handling of their compliance obligations while complying with regulation. How? Through a clever use of blockchain technology. It allows Wecan's clients to create digital vaults to store their customers' data (KYC or "know your customer" obligations) in an extremely secure environment.
It should be noted that only Wecan's clients can access this data, the architecture being based on so-called "zero-knowledge" technology. As a result, even Wecan does not have the ability to access the data stored by the institutions that use its solution. Clients, on the other hand, can leverage the specific features of blockchain technology to demonstrate that the access, storage and modification of sensitive data are carried out in the strictest compliance with the rules in force.
Once again, feel free to consult (https://journalducoin.com/actualites/wecan-listing-jeton-utilitaire-wecan-plateforme-uniswap/) to learn more about Wecan. Because the project offers a complete suite including an encrypted and secure messaging service that is well worth a look.
With the basics in place, it's time to turn to Ripple.
Ripple: the crypto project without a blockchain
Ripple is a project that has already generated a lot of ink. Most of the articles about it report on the long-running lawsuit pitting the Ripple company against the U.S. justice system. This legal battle revolves around the (https://journalducoin.com/actualites/ripple-versus-sec-guerre-continuera-2024/). The American judges accuse the company of enabling investments in unregistered securities, which is illegal. A serious difficulty that Wecan will not encounter.
But let's go back in a little more detail to Ripple's origins, what is it for? And who are its potential clients?
A first major difference to note compared to Wecan: Ripple does not use blockchain technology at all. Ripple uses so-called "validation" servers. These rely on a consensus called "HashTree" which compares not the entire ledger, but a single value (the hash) obtained by summarizing the ledger's data.
Ripple's objective
Ripple is a project that, like Wecan, aims to simplify certain aspects of the banking world. While both projects target banks, they do not, however, operate on the same activities. While Wecan focuses on Compliance, Ripple's ambition is to replace the payment infrastructures currently in place, such as the SWIFT network.
For those who may not be familiar with (https://journalducoin.com/actualites/swift-interconnecion-finance-tradfi-blockchain-tokenisation/), it is an interbank network that banks use to communicate with one another and exchange various pieces of information (details about a transfer, a request to return funds, etc.).
Ripple is therefore seeking to replace this network with an infrastructure that is faster, less costly but just as reliable.
Wecan blends institutional propositions with respect for crypto values
For its part, Wecan is an innovative project that intends to bring institutional players the added value that emanates from our ecosystem. The use of technologies developed for web3 should not be limited to DeFi. Their use by institutional players could be a tremendous springboard for the entire sector.
Launch of the $WECAN token
We had mentioned it here, Wecan has just launched its own token. It is a utility token that allows you to use Wecan's application suite.
The token was first launched on the Bitstamp platform. Bitstamp was so convinced by the project that it even decided to use it internally. A fine proof of success. And it is not the only one, since many banks and asset managers have decided to do the same. The company already has more than 100 clients and its rise does not seem ready to stop.
Why launch a token?
We sometimes hear criticism about the need for this or that project to launch its own token. For Wecan, this launch is consistent since the $WECAN utility token will be used for anchoring fees when recording data on the Wecan Chain.
To put it another way, this token bridges all the features offered by the Wecan suite. It thus ensures the smooth functioning of the entire ecosystem and contributes to its transparency and security. As a reminder, the total token supply will be 19 billion. These are divisible up to six decimals in order to ensure optimal use across all of Wecan's services (instant messaging, for example).
Wecan is a major project. While it was first built for and around institutional players, the launch of its token reflects a desire to open up to the widest audience. The general public can now use the $WECAN token to use the services of the Swiss company and, for example, exchange messages with their contacts in complete security. The commitment to transparency made by the Wecan Group has never wavered, and the company appears to still have many bright days of development ahead of it.