Introducing Millicent — The Infrastructure

for the Future of Global Finance

The world’s current financial infrastructure is still rooted in a bygone paper-based era. It’s outdated, isolated, and built on ancient programming. Even the most modern FinTech platforms are often little more than a slick user interface wrapped around a decades old core banking system.

Times have changed, and traditional finance’s long-standing inefficiencies are no longer acceptable. The world has shifted into a borderless, cashless, and interconnected society. The people demand open, instant, secure, and low-cost transactions.

Millicent was built for this.

Millicent is a hybrid Layer-1 distributed ledger network (DLT), designed to be the first digital asset network to truly reach mass adoption.

Painstakingly designed to become a vital part of the Cosmos’ ecosystem’s “Internet of Blockchains,” Millicent is a scalable, interoperable network designed to revolutionize global financial inclusion, providing everyone with access to a smartphone a powerful set of equitable financial tools.

Millicent unites a powerful decentralized network with regulator-friendly stablecoins: stable value, liquid asset-backed digital currencies that can be used both on-chain and in everyday life, finally delivering the promised benefits of digital currencies to the world at large.

Backed by funding from the UK government, Millicent intends to lay a universal foundation for the future of global finance by overcoming the major obstacles faced by both legacy financial systems and other DLT networks, namely:

Scalability

As measured by transactions per second and settlement speed, Millicent is designed to be the fastest network in the Cosmos ecosystem, able to process nearly 6 times the transaction requirements of the VISA network. Millicent’s scalability is genuinely unprecedented, as it’s built with a unique hybrid structure — pairing a DAG-based consensus with a Cosmos SDK-based blockchain (see our whitepaper for details).

With ultra-low network fees, and the ability to eliminate the unnecessary intermediaries in financial transactions, while secure smart contracts, written in Rust and powered by CosmWasm, eliminate many of the attack vectors found on other chains, making Millicent extremely appealing to third-party developers, and the ideal foundation for the development of the next-generation of financial services.

Interoperability

Imagine a scenario in which you couldn’t easily send an email from Gmail to Hotmail, Yahoo, or any other provider.

That’s precisely the conundrum that both traditional finance and much of the blockchain space currently find themselves in.

DLT is a decentralized technology, but individual networks are still not inherently able to communicate with each other. This has created a multitude of operational inefficiencies that Millicent has addressed en route to its mass adoption.

Millicent is built to connect to major public and enterprise blockchain networks and integrate with legacy financial systems via open banking protocols.

For the first time, this creates a universal financial system, where money can easily flow not only across borders but between on-chain and off-chain realities.

Stable-Value Currencies

The same volatility that makes cryptocurrencies a popular speculative asset also renders them a poor choice for everyday life.

It’s likely that you wouldn’t be very happy spending $10,000 worth of Bitcoin on a car, only to see the price of Bitcoin double the next day.

Worse still, imagine a merchant who relies on their sales income to pay staff, pay rent, and order the next month’s worth of stock seeing the purchasing power of their assets fall by 50% overnight, leaving them unable to pay their bills.

Stablecoins were created to merge crypto’s benefits with the price stability required by the sound money required to underpin real world economies.

Safety

While stablecoins could have a bright future beyond the blockchain, and value has exploded over the past year, they don’t always come without drawbacks.

These coins are still synthetic, with value tied to another asset. If any component of the stablecoins’ backing does not correctly function, the stablecoin can become unpegged and crash, sometimes all the way to zero.

In contrast to many designs, Millicent’s stablecoins assure both safety and transparency, as they are fully backed by liquid reserves, and safely held in an account directly with the Bank of England—thoroughly eliminating counterparty and liquidity risk.

For digital currencies to be used for everyday functions, this is crucial.

There is always a place for permissionless protocols, and the Wild West nature of crypto today is akin to the birth of the internet.

But, as exemplified by the recent Wonderland scandal, that risks a host of stablecoins losing the peg to their base asset, sometimes checks and balances are a good thing.

Digital assets have the power to truly disrupt the global economy and create a more equitable financial landscape for billions of underserved people around the world. However, without sufficient structures and safeguards, digital currencies will never reach mainstream acceptance with either the public or institutions.

As such, Millicent’s stablecoins are designed to be regulator friendly, meeting current e-money regulations, eliminating counterparty and liquidity risk, and making them the ideal currency to underpin the future of finance, from retail purchases; to low-cost, instant remittance payments; to institutional DeFi.

This is just the tip of the iceberg for what Millicent has planned, and we’re really looking forward to sharing our journey with you.

In the coming weeks we’ll be sharing updates on our development, roadmap and team members, as well as broader pieces that showcase the current — and future — landscape of global finance.

Make sure to join our social channels, so you don’t miss out on any updates. 👇