Cross border transfers are inherently complex, with high cost of capital, multiple regulatory environments, and are difficult to achieve scale. As a result, legacy transfer networks, traditionally based on a centralized hub-and-spoke architecture built over 50 years ago, have managed to establish an entrenched position, preventing new competition. Their high fees, slow speeds, and opaque service come at a cost to all consumers and businesses who need to make such transfers. For example, the smallest of all cross border transfer markets was US$500 billion in 2015 alone.
Instead of building on the edges of a closed and proprietary settlement infrastructure, we have built OKLink on top of open internet protocols including the blockchain. The true breakthrough of the blockchain technology is to allow multiple parties to engage in a secure, trustless, and cost-effective transaction. We apply this concept by first isolating the roles of the transfer company and delivery company, allowing each to focus on their local market and removing global complexity. This creates a network with a lower barrier to entry open to all participants. The increased local service offerings result in consumers and businesses benefiting from lower costs and higher quality of service. Ultimately, these local partners are connected through OKLink’s machine learning algorithm to achieve a consistently improving network.
OKLink’s implementation of blockchain technology thereby allows participants to complete a currency conversion and transfer in a fraction of the time and the cost it would take in the traditional banking landscape. In addition, the transactions recorded inside the blockchain are immutable. Once they are created and confirmed, they cannot be altered nor removed from the network, resulting in ultra-high security and transparency.