Korva is a scroll of the internet’s best ideas.
Everyone wants dollars, instantly
Start with the customer
Solving problems starts with the customer's problem. If a solution isn't solving a problem, it doesn't matter that it's better, because no one cares. Some people want all of these qualities in a dollar and some want only a few.
Why stablecoins deliver
Stablecoins deliver them, but they couldn't be offered in the past because they weren't allowed and nobody knew how to account for them. Moving money around the world the old way takes two to three days at best, the speed of the post office.
What holds it back
How fast dollars migrate onto the blockchain depends on one thing. The only thing holding it back is regulation, and the need and the solution are already there.
How do stablecoins hold a dollar value?
Fiat-backed stablecoins keep reserves in assets like cash deposits and short-term Treasury bills and promise to redeem each coin for one dollar. Redemption lets traders profit if the price drifts, which pulls it back toward a dollar. Other designs, such as MakerDAO's DAI, launched in 2017, back each coin with more than a dollar of crypto collateral locked in smart contracts.
Why do international transfers take days?
A payment between banks in different countries usually passes through correspondent banks, each holding accounts at the next. SWIFT, founded in 1973, carries the payment messages, but it does not move the money, and each bank in the chain settles separately. Banks work in different time zones and open hours, and each stop adds checks for sanctions and fraud. Remittances can therefore take several days to arrive.
How can money be programmable?
On blockchains such as Ethereum, launched in 2015, smart contracts are programs that hold funds and release them when conditions are met. A contract can pay a worker when a delivery is confirmed or split a payment among several recipients automatically. Because the code runs on the network, no one has to approve each step. A digital dollar on such a network can carry those rules with it.