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Introducing Bakkt: A revolutionary platform that will deliver Bitcoins 'Physically'

Cryptoverse is getting denser and denser day by day. With newer platforms showing up every other day, the cryptoverse is only going to get better. That being said, Bakkt is a platform that will allow investors, consumers and whoever interested in cryptocurrency, to trade federally regulated cryptocurrency markets.

In this post, we will be talking about everything on Bakkt. This post will help you understand why it's worth your attention. Without further ado, let's begin it right away.

Attention! Learn what is Bitcoin Fork, and stay ahead of the curve.

What is Bakkt? 

Every once a while, the citizens of cryptoverse has seen a threat against their digital assets. With decentralized exchange slowly showing up it's getting easier for traders to rely on the platforms for their daily life tradings. Bakkt as a trading platform will help the traders to buy, sell, save & spend the digital assets on a huge network that's more than safe.

Intercontinental Exchange is behind Bakkt, which is also a child company to NYSE. Bakkt will be working with big names like Starbucks, Microsoft & many others to speed up the growth process of both the investors and the company itself. Bakkt is on the role to create an ecosystem that is powerful enough to flourish in a ~$270 billion digital assets marketplace.

Attempting to perfect the popularity of Ethereum, the Bakkt will not only have a safer environment to trade cryptocurrencies but also a marketplace that will have decentralized applications to make the experience better.

"Initially, we’ll focus on the trading and conversion of Bitcoin versus fiat currencies, given Bitcoin is currently the most liquid digital currency.

By combining regulated infrastructure with institutional and consumer applications, we’ll apply our track record of bringing transparency and trust to previously unregulated markets. In this way, we intend to play a key role in boosting institutional, merchant and consumer participation in digital assets." Says the Bakkt CEO, Kelly Loeffler in an official blog post.

Bakkt is designed to enable consumers and institutions to seamlessly buy, sell, store and spend digital assets. Formed with the purpose of bringing trust, efficiency and commerce to digital assets, Bakkt seeks to develop open technology to connect existing market and merchant infrastructure to the blockchain.

"As an initial component of the Bakkt offering, Intercontinental Exchange’s U.S.-based futures exchange and clearinghouse plan to launch a 1-day physically delivered Bitcoin contract along with physical warehousing in November 2018, subject to CFTC review and approval. These regulated venues will establish new protocols for managing the specific security and settlement requirements of digital currencies. In addition, the clearinghouse plans to create a separate guarantee fund that will be funded by Bakkt.

We’re excited about the opportunity to help unlock the transformative potential of digital assets across global markets. Bakkt is preparing for launch in the upcoming weeks, and we look forward to keeping you updated." said Bakkt in a blog post.

Here's a video that you will find helpful: 

What's the problem Bakkt aims to solve?

The market these days, especially Bitcoin's, is not only getting congested but also saturated by a handful number of companies. Considering this flaw, Bakkt is already facing a lot of criticism in the market for getting into a flawed market.

The most important goal the company is chasing is liquidifying the digital assets, make it more accessible & reliable for the investors/users. That being said, let's see what different in Bakkt's approach.

#1 New products on an existing platform

New technology is a sheer headache for the beginners. If beginners find it difficult to adapt to the newly emerged technology, it's nearly impossible for the platform to grow.

The gap between the infrastructure of an existing platform and the new technology is significant. Significant enough to be called as a flaw. Bakkt has taken time and effort to cut the gap and make it thinner.

Bakkt's foundational features are on the existing tested & regulated features that will deliver the Bitcoin physically and also provide warehouse service for the global markets.

Once the platform is operational it will have industry standard compliance, market surveillance, reports from the federal regulation point of view. Bakkt will work on Bitcoin Futures contracts, and that's how it will deliver the Bitcoins "physically". By physically, Bakkt means delivering the future contracts.

If you're wondering,

What is Bitcoin Futures?

Bitcoin futures is an agreement to buy, sell Bitcoin on a specific date at a specific price in the future. These details are mentioned in the contract and the investors can make use of these to ensure their monetary safety.

#2 New security features

You all are aware of the cryptocurrency hacks happening across the globe. Bakkt has taken immense care to ensure that the platform they're building has key features, powerful enough to perform as efficient as the parent technology they rely on. Furthermore, the whole platform will be heavily accessible but the key parts will not be accessible, even via the internet.

So the key part will obviously include the gateway through which the transactions will pass. Consider the whole system like a funnel, the neck of the funnel is the key part and this will not be accessible to anyone. Not even the developers, to make it error-free and hack-free.

This also means that transactions once are done, will not be reversed at any cost. The investor, buyer, the seller will have to be extra sure before making the transaction.

Considering the cryptocurrency market value, which is well over $200 billion, security is the first aspect that every company is focusing on. That being said, Bakkt has very well furnitured this aspect of their infrastructure.

#3 New access to market and information

Since the Bakkt platform is backed by existing technology, it's obvious that the data from the platform will be accessed by Bakkt via APIs. All the market data will flow to the system through the layers of blockchain applications/platforms with a broader database.

"The connectivity and participation requirements of large financial institutions necessarily differ from retail participants on unregulated cash-market crypto-exchanges. These include things like access to FIX API’s, consolidated ticker feeds, regulatory reporting features and participation agreements. Notably, Bakkt will not rely upon ISDA agreements — which are used in the over-the-counter swaps markets. The existing futures ecosystem, which has a broad range of trading and risk management applications, will serve as a second layer on the blockchain to facilitate more seamless access for institutions. The existing cash crypto market is highly fragmented, which creates inefficiencies and makes market access and information more costly. The availability of Bakkt’s regulated physical delivery market price is designed to offer more information in real-time and greater transaction efficiency." said Bakkt CEO, Kelly Loeffler.

What makes Bakkt, cooler & different from the others?

From the security standpoint, Bakkt is going to partner with Microsoft to utilize their cloud-based computing. This will help expedite the payment process for Bakkt's users. Furthermore, one of the biggest names that came out was Seattle based Coffee tycoon, Starbucks. The company is planning to outsource the whole payment system to Bakkt.

One doesn't simply use a payment system when there is a tight competition from companies like Ripple. This has brought a lot of funding from Wall Street players like Pantera Capital, Protocol Ventures, Galaxy Digital & Horizon Ventures. Furthermore, the platform is a big contributor to bullish predictions of Bitcoin

Closing thoughts on Bakkt

The platform is set to launch in November this year, and it has already got a decent followership on Twitter. 31k is a good start for a venture that hasn't even set its foot in the industry, yet. 

The public is the God, and when God is in support of this platform at this stage, you know that it's gonna be groundbreaking. However, it's definitely too early to judge. But a platform that's worth a hype is definitely worth a try. The company has just given a glimpse of what Bakkt is capable of doing, and nothing more than that. 

Let's wait for the platform to hit the market and see for ourselves. Meanwhile, we request you to keep in touch so that we can keep you posted on any more update on this awesome platform. Also leave your thoughts below in the comment section and share this article on social media.

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