As delightedly announced by the Position Exchange, their new bonds feature. Says dive a little deep in this game-changer DeFi Product.
Before going any further on this topic, let’s discuss What is Bond?
As per the definition, a bond is a fixed income instrument, which indicates a borrowing made by an inverter to a borrower. Usually known as a corporate or government. A bond is said to be a promise that signifies I Owe You (IOU) between the borrower and the lender. A bond includes all the minor to major details relating to the borrowings like the amount of the loan to the interest of the loan.
Bonds are normally used by the State government, companies, municipalities to finance any operation or project.
Now, what happens when both Bonds and Crypto join hands?
A blockchain bond is a definite type of automated contract that utilizes the abilities of a blockchain database. Which can be handled as cryptographically secure and still is open and transparent.
These blockchain bonds can potentially emerge as revolutionary for the financial markets by building a decentralized database of distinctive digital assets. The process of issuance of these bonds will be entirely automated via blockchain bonds. This whole thing will possibly reduce the transaction time and will shorten the settlement period. This will also provide transparency, which will result in removing all the unnecessary intermediaries and will potentially generate more savings for the bond issuers.
This means that crypto use has been on the rise and it is the best time to become an early adopter.