Financial Services on Ethereum by Elephant: An Interview With Its Project Managers

Financial Services on Ethereum by Elephant | An Interview With Its Project Managers

Not long after Bitcoin burst onto the cryptography scene in 2009 came alternative blockchains, oftentimes dubbed altcoins, aimed at building upon and expanding Bitcoin’s innovation. Undoubtedly the most highly anticipated, well-funded, and hotly debated of these alternative blockchains has been Ethereum, whose developers collected over 30,000 Bitcoins during Ethereum’s initial crowdfunding held in 2014

Not long after Bitcoin burst onto the cryptography scene in 2009 came alternative blockchains, oftentimes dubbed altcoins, aimed at building upon and expanding Bitcoin’s innovation. Undoubtedly the most highly anticipated, well-funded, and hotly debated of these alternative blockchains has been Ethereum, whose developers collected over 30,000 Bitcoins during Ethereum’s initial crowdfunding held in 2014. Its first of many releases to come known as Frontier went live in July 2015 much to the pleasure of speculators and crypto fans alike.

Applications and platforms built upon Ethereum are slowly but surely seeing the light of day and one of the latest and most talked about such platforms to go live is called Elephant. Elephant is a financial platform aimed at providing toolsets oriented towards a wide range of use cases such as crowdfunding and smart contracts. Such financial actions have traditionally been slow, tedious and expensive due to a third party, such as a bank or government, has to be involved. Elephant and its native service tokens, elCoins, enable such actions on a peer-to-peer basis and make them incredibly inexpensive, efficient and user-friendly.

Pavel Usenkov, the project’s strategic manager, and Sergei Primachik, head of the project’s program, recently answered some questions about Elephant in an effort to clarify its mission and background for the platform’s users and others who are interested.

Q: What stimulated you in creating the project?

Usenkov:

We discovered cryptocurrency technologies and Ethereum in particular almost a year ago. The opportunity to provide people with new financial tools allowing one to lower the entry threshold for investors and to facilitate attracting money to businesses grasped me. Just imagine what it takes to issue a company’s shares in ‘the real world’. It’s a trial involving a bunch of problems.

Q: Recently Ethereum’s market cap became cryptocurrency’s second largest and its exchange rate almost tripled. What do you think about Ethereum and its prospects?

Primachik:

It’s hard to speak about it on profound levels. For me, Ethereum is a tool for implementation of Elephant in the first place. Our developers offered to build the system on top of Ethereum and when we looked through its options we agreed. Certainly, I study Ethereum and its opportunities as far as I can. Frankly, I can’t stop wondering how many truly revolutionary changes a single project may contain. I think Ethereum will be fine. I perceive it as more functional version of Bitcoin.

Q: Elephant is blamed for being a brainchild of Elevrus, a company many people deem a Ponzi scheme. What do you think about it?

Usenkov:

Elephant is not a brainchild of Elevrus. Elevrus is among our investors, nothing more.

Primachik:

There are lots of payment systems used by different users for different purposes. If it comes to Ponzi schemes, we may list payment systems used by their members. This does not cause any problems to payment schemes. An elephant is a financial tool and we cannot prohibit a group of people from using our services.

Q: Maybe there could be some solutions for this implemented in the future?

Primachik:

Yes, we’re developing a certification system to introduce reputation to the platform. It will restrict access of malevolent users. Any user will see whether a service has our certificate or not, and if so, what its reputation is. This information might be sufficient to make a decision or to mitigate some risks.

https://www.youtube.com/watch?v=X4F36Gz8L-M

Q: Who are the project’s other investors?

Primachik:

There are individuals whose names are hardly known to your readers. There are serious companies, but I cannot disclose this information yet. I may say, however, that currently, we’re negotiating with a new serious investor. The deal may be announced in a short while.

Q: What are your further plans for Elephant development?

Usenkov:

Initially, we positioned ourselves as a project with a live audience. Currently, we’re actively developing a crowdfunding platform to provide users with additional options and reinforce elCoin. The token will soon become tradeable at a well-known exchange. Finally, we intend to attract new users, so we’re expanding the available functionality of the project.

Q: What can you say about elCoin price? As far as we know, it nearly halved in December. Do you have any predictions?

Primachik:

The project is very young and volatility is natural for cryptocurrencies. Experienced traders make their profits on that. I’m sure that as the project grows in popularity and new users get involved the price will grow. We’re making an interesting platform solving quite tangible problems. To my reckoning, a fair price of elCoin by mid-2016 is about 5 Euros but that’s merely an opinion. First of all, we should maintain the development pace and integrate new features into the project.

Platforms like Elephant are arguably the most disruptive implementations of blockchain technology because they afford people worldwide the power to remove traditionally corrupt and inept third parties from financial actions and empower individuals to have more control over their own finances.

Bitcoin paved the path towards a new financial frontier and implementations like Elephant are seizing the opportunities Bitcoin has opened for us to expand the power of the blockchain into additional systems and institutions that belong to the people, not corporations or governments.

For more information on Elephant, refer to the official whitepaper and slideshow presentation.