" Once the regulatory framework is clear, banks will dive deeply into crypto transactions," said Brian Moynihan, CEO of Bank of America, during an interview at the World Economic Forum in Davos, Switzerland. This annual event brings together corporate leaders and policymakers to explore global economic challenges and new trends. Moynihan highlighted a strong move towards adopting cryptocurrency in the banking industry shortly after President Trump's inauguration. He stressed that with appropriate regulations, banks are ready to adopt crypto payments, integrating them with existing systems like Visa and Apple Pay. Bank of America is eager to participate, equipped with numerous blockchain patents and a solid strategy to engage in the digital finance landscape as it continues to grow. While regulation is crucial, it's not the only component – banks also require robust infrastructure. Currently, blockchain alone isn't fully equipped to handle traditional finance (TradFi) integration. This is where innovative blockchain platforms like Graphite Network come into play. Bitzo, which previously interviewed Marko Ratkovic, CTO at Graphite Network, reached out again for his thoughts on the recent statements by the Bank of America CEO. "Graphite Network, with its bank-compliant infrastructure and projects like the Bank Integration Demo, is poised to lead this transition," says Ratkovic. "Our blockchain is designed to help traditional financial institutions connect to the Web3 world, providing tools that enhance their services with improved stability, scalability, and security." The Bank Integration Demo is an initiative focused on facilitating seamless bank integration , setting up the necessary infrastructure, establishing partnerships with financial institutions, and integrating them into the blockchain ecosystem. This demo acts as a proof of concept, demonstrating functionality before full-scale implementation. In essence, Graphite Network is paving the way for banks to enter the blockchain realm – step by step, with tangible progress visible along the journey. Moreover, the platform boasts a range of other TradFi-ready features. How Graphite Network Bridges Blockchain and Traditional Finance Graphite Network is unique in offering banks and other financial institutions the ability to create custom reputational smart contracts and provide loans to users who meet specific criteria, ensuring compliance with regulatory and business standards. This approach places reputation and trust at the ecosystem's core. Verified Users for Enhanced Accountability Initially, a setup fee paid in @G, Graphite Network’s native token, enforces a 'One User, One Account' policy, reducing the risk of fraud and ensuring only verified accounts are active. This setup simplifies collaboration for banks, allowing them to interact with blockchain users without concerns about duplicate or suspicious accounts. Additionally, the @G Ticker System clarifies which network a token belongs to, reducing confusion and ensuring transparent, traceable transactions for financial institutions. Secure and Private KYC Processes Graphite Network’s KYC system, based on ZK-Proof technology, simplifies user verification while maintaining privacy. It begins with social media verification, with more advanced levels planned for future updates, allowing banks to verify identities without storing sensitive customer data. This less intrusive method helps banks meet regulatory standards with a reliable framework for blockchain adoption. Unlike traditional banks, which often leverage customer data for marketing, Graphite Network minimizes data usage and ensures third-party platforms can verify users without exposing their sensitive information. Establishing Trust with the Trust Score The Trust Score adds an extra layer of security, offering users a credibility rating based on factors like KYC level, transaction history, and account age. For banks, this provides a transparent method to assess trustworthiness in blockchain transactions. Tagged Addresses for Proper Fund Allocation Graphite Network plans to introduce tagged addresses to enhance transparency and accountability in blockchain activities. These addresses will be linked to specific purposes, such as donations to charities, clearly indicating the intended use of funds. For example, when money is sent to a charity-tagged address, it will be apparent it’s for that cause. If the funds are used otherwise, like for gambling, the system will flag it immediately. Moreover, smart contracts will have the capability to block transactions from suspicious sources, adding another security layer. Although this feature isn't live yet, it represents a significant step toward a more secure and trustworthy blockchain environment. Reward System and Earning Potential Directly from the Blockchain Graphite Network is not just assisting banks; this innovative L1 blockchain is also breaking down barriers for everyone else. While most L1s and L2s favor validators with expensive setups, leaving average users behind, Graphite Network changes this with a reward system where transport nodes (entry-point nodes in the ecosystem) earn a share of transaction fees. These fees are divided, with half going to the node operator and half to the block sealer, while authorized nodes receive 100% for transactions without a transport node and 50% for those with one. This system enhances accessibility and promotes wider adoption by allowing more participants to get involved and earn rewards. “It's absurd that integrators couldn't earn directly from the blockchain before – it was a significant challenge for the industry,” Marko noted earlier. “But now, we have a blockchain where that’s actually possible.” Graphite Network prioritizes top-performing nodes for validation, with an Oracle randomly selecting the node to seal each block, minimizing bias. Returning to the Trust Score, Graphite Network’s system rewards highly ranked validators providing high-quality services with more transactions and better rewards. This focus on trust and reliability enhances the blockchain’s safety and accessibility for everyone. As Brian Moynihan remarked, the banking industry is prepared to embrace crypto payments once regulations are finalized. However, clear regulations alone aren't sufficient – robust infrastructure is equally essential. Graphite Network is diligently working to establish the strong foundation necessary for fair, secure, and scalable crypto transactions. Their Bank Integration Demo and ongoing projects underscore their commitment. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
