What is ECO Blockchain Service?
ECO blockchain service is a new financial wallet that aims to cut out inefficiencies in the financial system and pass the savings back to the customer. Unlike a bank or credit card issuer, ECO offers 2.5% APY and 5% back on purchases. This is because they plan to cut out the middle-men and focus the benefits on the holders of ECO account balances.
But how can ECO offer these services?
When you deposit money at your bank, they loan it back out as mortgages, small business loans, credit cards, etc. In 2021, banks earned about 2.6% annualized, and over the past 20-or-so years, it’s been 3-4%. They then turn around and pay you… basically nothing, 0.01-0.05% annually. The current system, I think we can all agree, is a joke. Usually 0.01-0.05% annually.
Eco aims to upend this system with a new model. According to their site, they want to put “your money back to work for you instead of working for a bank.” This in theory will put more of the money you spend right back in your wallet.
This “new model” has generated extreme interest among those forecasting upcoming ICO’s. However for some this all seems too good to be true. ECO is not FDIC insured like a bank or credit lender, but they argue it isn’t important to the vast majority of those who would benefit from having an ECO account balance. From those living paycheck to paycheck, to those who are affluent and heavily invested in crypto (for example) that already forgo FDIC insurance by having more than $250,000 in their account or wanting their money to work for them through DEFI.
So how does the new model work? To answer this it helps to look at the old one.
Financial institutions use the same processes to move money today as they did in the 1970s, and these processes date back to the Pony Express.
At the end of the day, banks owe each other money from their customers’ checks going back and forth. From the time of the Pony Express, we’d ride on horseback handing out IOU’s, and a clearing house would keep track of all these debts and tell every bank if they owed money. This is called a “net-settlement system.” Today we haven’t really changed all that much. We send checks digitally rather than on horseback. But the settlement chain remains intact. Batches are only processed a few times a day with transfers still having to pass through multiple intermediaries who can all skim money off the top for the “services.”
Enter blockchain–and we now have the ability to instantly transfer cryptocurrencies between parties, without the need for intermediaries. Everything happens on-chain, near instantaneously using information technology and encryption.
About the ECO Blockchain Services team
About the ECO Blockchain Services team
ECO is allied with over 100 partners, including major firms such as Activant, Tribe Capital, and Pantera. They are working with Coinbase, Nima Capital, and even the Digital Currency Group behind such titans as Solana, Algorand, and Grayscale Trust. The list of partners goes on to include more than 90 others …
ECO Blockchain Services Tokenomics
ECO is openly avoiding discussing the crypto aspects of their project in public right now. We know it will be a utility token running on the ERC20 network, or Ethereum mainnet. They are focusing on keeping the project more focused on non-crypto savvy adopters, getting them to use the wallet in a similar way to Cash App, Venmo, or other popular Fintech.
There is a system of “ECO Points” that will be used to compensate vendors and those participating in the ecosystem. These points are supposed to gain more value and use cases overtime. Imagine if AMEX, instead of working on fees and interest, was rewarding their partners and customers with points. This new incentive system would likely make for a more user friendly experience for all sides of the process, and ensure that the points have real value.
There is certainly a lot more to be uncovered about the ECO project, and lots of interest in the world of crypto and beyond.
When and How to Buy ECO Blockchain Services
The exact date of this ICO is TBA, however it is said to be happening “soon.” Stay tuned for more info on how to get involved in this project as an early investor/adopter.