The first Global Direct Bank.

In the world of banking, KYC and banks interoperate – barely. A global direct bank initiative is a effort to create a blockchain based banking system that combines all the strengths of a distributed ledger with mandatory non-anonymity via video-verification and strong social-behavioural leveraged KYC. In other words, by combining open-source ecosystem, decentralized file-sharing, public cryptocurrencies and social networking behavioural data, new decentralized internet protocols can be used to radically improve socio-economic infrastructure.
eIDV

online electronic identity verification

This system acquires its strength by combining the dynamic elements of the internet of blockchains such as interoperability, scalability, upgradability and decentralization with a global KYC system – itself combining video ID verification with social networking behavioural data to help keep users in check. In other words, it takes care of the system’s technical needs as well as the human side of things which is just as important.

The technology hub is a self regulatory blockchain environment created thanks to the existence of protocols that govern the entire system yet by being P2P it means users themselves have direct access to the transaction pool via a series of gateways. All transactions are global and all forex is done on the fly.

In order to understand this concept it is important to understand each technological hub that will be used.
P2P networking or decentralized file sharing

P2P systems are scalable large files distribution networks. The file is split into multiple chunks. Peers contact other peers in order to collect missing chunks to eventually complete the file as a whole. The rare chunk phenomenon, where a single chunk becomes rare for various reasons and prevents peers from completing the file, is a threat to the stability of this type of system. Practical systems such as BitTorrent overcome this issue by requiring a global search for the rare chunk, which necessitates a centralized mechanism. We demonstrate a new system based on an approximate rare-chunk rule, allowing for completely distributed file sharing while retaining scalability and stability. We assume non-altruistic peers and the seed is required to make only a minimal contribution.
Blockchains (public crypto-services)

Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain. The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
Blockchain Durability and robustness
Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of information that are identical across its network, the blockchain cannot:
Be controlled by any single entity.
Has no single point of failure.
Opensource, decentralization

By design, the blockchain is a decentralized technology.

Anything that happens on it is a function of the network as a whole. Some important implications stem from this. By creating a new way to verify transactions aspects of traditional commerce could become unnecessary. Stock market trades become almost simultaneous on the blockchain, for instance — or it could make types of record keeping, like a land registry, fully public. And decentralization is already a reality.

A global network of computers uses blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration this makes possible are just beginning to be investigated.
Networks of distributed ledgers

Here we present Cosmos, a novel blockchain network architecture that addresses all of these problems. Cosmos is a network of many independent blockchains, called zones. The zones are powered by Tendermint Core [8], which provides a high-performance, consistent, secure PBFT-like consensus engine, where strict fork-accountability guarantees hold over the behaviour of malicious actors. Tendermint Core’s BFT consensus algorithm is well suited for scaling public proof-of-stake blockchains.
Social behaviour based – blockchain leveraged KYC & AML

Anti-money laundering (AML) and know your customer (KYC) practices have a strong potential for being adapted to the blockchain. Currently, financial institutions must perform a labour intensive multi-step process for each new customer. KYC costs could be reduced through cross-institution client verification, and at the same time increase monitoring and analysis effectiveness.
startup Polycoin has an AML/KYC solution that involves analysing transactions. Those transactions identified as being suspicious are forwarded on to compliance officers. Another startup Tradle is developing an application called Trust in Motion (TiM). Characterized as an “Instagram for KYC”, TiM allows customers to take a snapshot of key documents (passport, utility bill, etc.). Once verified by the bank, this data is cryptographically stored on the blockchain
Governance

This global direct bank has an unlikely group of validators for it robustness and one of them – is a distributed public ledger with a constitution and a governance system. In our system validators and delegators within our hub can vote on proposals that would change preset parameters, coordinate upgrades, vote on amendments to the constitution (which is human readable).

Each zone also has a constitution of its own, which means that we enforce immutability at the hub and roll-backs are prohibited. By enabling interoperability among differing policy zones, the Cosmos network gives its users ultimate freedom and potential for permissionless experimentation.
Consensus

COnsensus theory is complex but here is the easy rundown: the future of all financial systems
Communication – interledger protocol

The hub and zones of the Cosmos network communicate with each other via an inter-blockchain communication (IBC) protocol, a kind of virtual UDP or TCP for blockchains. Tokens can be transferred from one zone to another securely and quickly without the need for exchange liquidity between zones. Instead, all inter-zone token transfers go through the Cosmos Hub, which keeps track of the total amount of tokens held by each zone. The hub isolates each zone from the failure of other zones. Because anyone can connect a new zone to the Cosmos Hub, zones allow for future-compatibility with new blockchain innovations.
Security & accountability – preventing attacks

Overcoming Forks and Censorship Attacks
Preventing Long Range Attack
Scalability
Scaling is another open issue for blockchains. Both Ethereum and Bitcoin support only a fraction of the transactions seen daily on payment networks like Visa or Mastercard. In contrast, zones allow Cosmos to scale out indefinitely. If your transaction speed slows in one zone because too many people are using it, you simply add another zone to the hub and direct half the users over that zone, thereby doubling your transaction speed. Meanwhile, the Cosmos hub ensures that any zones connected to it remain in sync.”
Efficiency, robustness
Multi-applicatioon integration