The anonymity of blockchain is one of the factors that has led to a high growth rate of cryptocurrency. People feel safer when their transactions in a network are private. However, there’s one hurdle with anonymous blockchain, liquidity.

Blockchain Liquidity

In layman’s terms, Financial liquidity refers to how easily an asset (digital or physical) can be converted into cash without any effects on its market price. Assets with high liquidity are easy to convert to cash with fewer effects on market prices.

Unfortunately, despite a lot of efforts, cryptocurrencies still have one of the lowest liquidity among financial assets. This is the only market where the market price of an asset can drop over $1300 in 1.5 hours.

Such news affects the reputation of blockchain and leads to tightened regulations. The overall result is a crypto market with low liquidity, particularly for anonymous blockchain.

Risks of Low Liquidity in Cryptocurrency

One of the main risks of crypto’s low liquidity is lack of security. Coins with low liquidity lack of protection against such manipulations as Pump & Dump Schemes. There prices are strongly affected by large trades.

Also, low liquidity scares away investors. There is a big challenge when investors are not willing to enter an industry. It means not enough money for insurance, fewer technology advancements, and low trading volume, which could easily kill the industry.

Lastly, there is a risk of losing trust among shareholders and creditors. Low liquidity means you don’t get cash at the right time and in expected amounts leading to late payment of debts and dividends.

Addressing Liquidity Problems of Blockchain

Improving liquidity in anonymous blockchain is one way to increase mainstream adoption. Of course, many factors contribute to the low liquidity of an asset. However, if the process of transacting using cryptocurrency can be rethought and simplified, then there’s no doubt the industry will attract more users, and liquidity will improve in the process. Luckily, the Falcon Project is all about this.

Falcon Project

Started on February 2, 2020, the Falcon Project is an initiative by a team of blockchain enthusiast with a global vision to improve anonymous blockchains.

The international structured Project aims to solve the following blockchain issues while ensuring user anonymity.

Exchanges unavailability for anonymous coins – Many available exchanges don’t provide listing for anonymous coins

High cost involved in integrating anonymous coin to few exchanges that support there listing

Lack of infrastructure, such as mobile and hardware wallets for anonymous coins which cause inconveniences for users

Falcon Project presents several unique features that will help solve these problems while improving the liquidity of anonymous blockchains and cryptocurrency.

How Falcon Project Solves The Liquidity Problem of Anonymous Blockchains

Two Complementary Blockchains

Realizing that Bitcoin and Ethereum lead the way in blockchain technology, Falcon team aims to combine the functionalities of the two largest cryptocurrencies to form a “token-anonymous coin”. The two blockchains have different applications for effective services.

FNT blockchain – based on ERC-20 token. ERC-20 stands as a technical standard for all Ethereum smart contracts and token implementation. The network is reputable for its flexibility, reliability, and support for secure hardware wallets (including Ledger and Trezor), web wallets, desktop wallets, and mobile wallets. The FNT token is the main asset of the Falcon Project used for listings, integrations, and all the network undertakings.

FNC blockchain – FNC is the official Falcon Project coin. The coin facilitates optional anonymous transactions. The FNC coin gives users the right to initiate confidential transactions.

The “token-anonymous coin” combines the advantages of flexible ERC-20 and anonymous FNC to give traders a convenient way of sending and receiving funds.

Three Interchangeable Chains

In addition to FNT token and FNC coin, Falcon Project has another chain (Voucher) based on Ethereum’s ERC-1155. Falcon Project voucher is a card on the network that represents ownership of a certain amount of FNT tokens. Vouchers offer Falcon Project users a way to make a profit from “non-working investments.” From holding vouchers, users can earn 10% quarterly or 40 % annual dividends.

The vouchers in the Falcon Project exist in 4 denominations; 1 million, 5 million, 10 million, and 50 million and allow users to make money through hodling while also helping reduce market inflation.

FNT, FNC, and Vouchers are the three chains featured in the Falcon Project that are used interchangeably (through swapping or Falcon telegram bot) giving users several options to choose from according to their needs; FNT for speed and convenience, vouchers for hodling, or FNC for anonymity and privacy.

Top-Notch Security

Falcon Project has techniques and policies in place to ensure the safety of the platform. For instance, FNC coin can only be used for mutual payments among parties and later swapped to FNT for trading in exchanges. Note that FNC coins can’t be traded on exchanges. This way, no one can track your coins.

Also, the FNT token is based on the ERC-20 network, which stands as the most secure network. Besides, with zero recorded hacking cases, Whitebit, a European exchange where FNT is listed, offers traders another layer of security.

Conclusion

The decentralization feature of blockchains is a major catalyst for the growth of cryptocurrency. People prefer privacy. They prefer an environment where they can trade without someone watching them. Anonymous blockchains offer this privilege to crypto traders. However, the low liquidity nature of blockchain threatens to cut short Nakamoto’s vision.

Luckily, there is a unique solution for this. A team of blockchain enthusiasts has embarked on the Falcon Project, a platform that combines the power of Bitcoin and Ethereum to bring our solutions to challenges facing anonymous blockchain. Falcon Project’s unique features are well articulated to bring to an end the liquidity problem of anonymous blockchain.

Source: Crypto Adventure.