ConsenSys, MakerDAO, and Dether joined forces to launch Bifrost. By eliminating central third parties such as banks and governments, and introducing their stablecoin, DAI, Bifrost was built to help aid groups in conflict areas that need immediate cash on the ground. Now, charities will see more of the donated money and banks will see less of it.

Bifrost was announced on May 29th at the Oslo Freedom Forum in Norway. The platform is a crypto-to-fiat payment system, that promises to transfer money in less than three days – reducing the traditional remittance payment time by more than half with transaction fees less than 1%.

How Project Bifrost Works

ConsenSys is a global formation of technologists and entrepreneurs building the infrastructure, applications, and practices that enable a decentralized world.

Bifrost is the first project that the ConsenSys Social Impact division has tackled. It works by using smart contracts on the Ethereum blockchain to enable peer-to-peer value transfer.

As a result, they cut out many of the middlemen (often several different banks) and create a more direct system for people to donate money to charities.

By eliminating the need for banks, Bifrost can significantly reduce fees, ensuring that those who need the money, receive it. Once a donation is made, MakerDAO and Dether will then deliver the funds to the scheduled recipients.

MakerDAO created the DAI, a stablecoin pegged to the US dollar, removing significant volatility that currently exists with other cryptocurrencies. This helps ensure that the amount of money donated to aid groups is the amount intended recipients receive.

Dether is a peer-to-peer system that only requires a mobile phone with internet access, thereby allowing aid groups to work with the local population instead of a centralized bank. This application is critical for the two billion unbanked adults across the globe.

Robby Greenfield, ConsenSys Social Impact’s global technical lead said:

“Collaborative solutions like these … are paramount to materializing solutions in the social sector. The Bifröst initiative looks to overcome both the inefficiencies in international aid and the user experience obstacles preventing the mainstream adoption of today’s decentralized applications.”

For more information on Project Bifrost, watch the video below:

Cover Photo by Bernard Hermant on Unsplash

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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(Excerpt) Read more Here | 2018-05-30 07:00:00
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