Pandora Protocol: Linking Open Finance and Physical World Assets

What is Pandora Protocol?

Pandora Protocol is a hybrid Open Finance fix for issues faced by both decentralized as well as conventional finance. Mission of this protocol is to offer actual world asset transactions on a trustless platform in a limitless economy.

Pandora’s high throughput framework, interoperability and scalability enables owners of assets to add liquidity to their illiquid tangible world assets.

Pandora enables asset possessors to interchange values like purchase orders, invoices etc., while offering an unchangeable and a sole source of truth for all included parties.

Its ecosystem consists of a decentralized, verifiable data structure that ensures genuinity of asset’s transfer from one party to another.

In brief, Pandora is an interoperable and decentralized protocol enabling folks to typify their real-world assets on trustless on-chain and making them accessible for trade internationally.

What Problems Does Pandora Target?

Centralized Finance

Traditional finance is astoundingly successful in linking traders from all over the world via Internet. Barter system is transformed into online banking, where doing transactions is just a click away. Still, it is far away from figuring out a way for monetization of real-world assets.

• Barter System Trade

We are all aware of Barter system very well, but it holds a couple of restrictions, asset liquidity and difficulty among stakeholders in execution of equitable exchange value.

It isn’t easy to value the commodity and swap and impartial value agreed by a couple of parties.

• Unrestricted Fiat Supply

Fiat system was initiated to tackle barter system. Fiat currency possesses purchasing power and is barter system’s alternative and eliminator, enabling folks to trade products in exchange for money instead of an asset against asset.

Fiat’s value varies from nation to nation, and fluctuates on the basis of economy’s performance, how authorities are governing it. An insatiable economy will weaken Fiat currency’s value, making it challenging for folks to purchase products as per their desired need.

Critics says that Gold’s limited supply makes it more steady than fiat currency with unrestricted supply.

• Fiat’s Negative Yield Generation

Economic crisis lately compelled them to print more Fiat currency for bringing stability in the ecosystem, eventually surplusing the supply, this is a significant cause for demand-supply issue in the nation.

• Time Consumption and Global Transaction Fee

While talking about making transactions, especially internationally, it costs us time as well as money. This charged fee is dispersed among centralized stakeholders, who assist in completion of these payments.

• Privacy

Many organizations throughout the world are seeing crippling safety breaches, the tide of compromised information is at its peak.

Decentralized Finance

There are round about $256 Trillion worth of real-world assets internationally. Cryptocurrency market has surged exponentially in previous years, and is currently $1.7 Trillion as of this writing.

DeFi has been amazingly progressive in capturing assets and depicting them on-chain. But still, a prominent portion of assets is not depicted on-chain.

• Limited Collateral

As of now, no real-world can be traded through stablecoin. For acquiring a loan from DeFi, folks can keep only cryptocurrency as collateral. Trading is not simple through bridging real-world assets on-chain and then doing the trade.

• Illiquid Non-Fungible Tokens

Many platforms have indicated a prominent early grip on NFT ecosystem, such as Rarible and OpenSea. But a significant obstacle for them is illiquidity of NFT assets for both, tangible as well as virtual assets. 

• Inefficiency in NFT Infrastructure

Recent uniswap airdrop and some other events made it clear that gas fees need to be lower. Crypto market is minor in contrast to conventional market. This is why Pandora is eyeing to bring tangible assets on blockchain.

They should have a lower gas fee, swift pace, and cross-blockchain transaction framework, which fits the bill for tangible tokenization.

• Data Privacy

DeFi theme is to operate on trustless principle, but some degree of privacy is required for users and information’s safety, while talking about significant institutions.

On several occasions, folks do not want to share details regarding transactions, but an open ledger publicly reveals information of that occurrence.

What Solution Does Pandora Provide?

NFT ecosystem requires a peer to peer, trustless, decentralized platform, where assets can be tokenized and verified about their genuinity concurrently.

To meet the above requirement, Pandora Protocol is being developed, which is entirely decentralized, provides high throughput, is interoperable, peer to peer and trustless.

Complete Pandora design is ultra modular, making devs life simple for plug and play with Pandora protocol.

Pandora envisions to bring in liquidity to tangible and virtual assets.

Pandora’s Technical Architecture

Pandora’s stack is consisted of 3 distinct layers: Pandora Chain, SDK, dApps.

Pandora chain is an autonomous interoperable chain which allows tokenization and trading for all the assets. It can be Web2 as well as Web3 ecosystem such as Polkadot, ETH, or any other chain.

Pandora’s SDK is an all in one feature which can be plugged and played to any persisting application and spins the serviceability.

Pandora dApps are user friendly, and can be utilized by ones willing to tokenize their tangible assets and to take part in trading of those assets.

Governance and DAO

Among Pandora’s prime beliefs is that all ecosystem’s stakeholders should constantly be a part of decision making, without any dependence.

Pandora’s long term perspective is to operate as a DAO, where decision-making power is held by holders of the token through a voting mechanism. Pandora token serves as gas fee as well as governance token.

Pandora Roadmap

Pandora’s Technical Roadmap is categorized among 5 different paths.

Developers are adding assistance for more tangible asset categories that can additionally support the system and yield holders of the token.

Collaborations and APIs will enable persisting tools to link to Pandora, offering the project, more folks and exposure asset interchange and yield generation.

Treasury management feature is being improved for increased efficiency and transparency as this ecosystem grows.

Pandora DAO will be implemented for governing the protocol, development of funds, adding assets and receiving rewards. It will also assist in alleviating risk during conflict resolution.

Apart from this team is launching Pandora Network and putting other asset management initiatives on deck via its numerous tools as well as API.

Pandora Price

As this article was being written, Pandora Protocol was trading at a market value of $0.0202. It reached its all-time high during August 2021, when it was trading at a market price of $0.8186.

Will Pandora Thrive In Future?

Pandora is customized for solving vital issues of once again enabling folks all across the globe to receive interest on their money. While basically concentrated on virtual asset holders.

The team has faith in the ability to generate interest with a crystal clear view into the backing, and more than usually collateralized income flows will offer another ground for ones in the Fiat universe to enter the BSC community.