Kenya-based crypto remittance and exchange platform, Bits.Africa, has introduced the Nara Protocol.
Nara Protocol, which is an intra-Africa decentralized payment and settlement protocol, seeks to use a Makers channel to solve the cross-border payments issue in Africa.
According to the Bits.Africa team, Nara is built on the Binance Smart Chain (BSC) system which also powers the Bits.Africa application.
Nara Protocol uses a network of system makers and institutions to provide trust and liquidity to settle between various players.
According to its whitepaper, Nara has an entirely automated process that gives every single maker equal opportunity to deposit and withdraw within a set timeframe and specific geographic regions where the remittance service is required.
Makers function like agents. They help process transactions on the network in exchange for earning a percentage of the fees that are charged on the deposits and withdrawals of customers.
For you to become a maker, you must (i) hold and also stake a certain amount of Bits.Africa tokens as collateral to access the Nara platform. (ii) complete KYC verification procedures.
To guarantee security for all its users, Bits.Africa uses FireBlocks to insure all funds on its platform.
Bits.Africa is expected to launch the Nara Protocol, with Kenya as its first market, on October 4, 2021. The team expects to launch with key partners across various jurisdictions, across 12 other African markets.
Understanding the Nara Protocol
Deposits
For deposits, an Application Programming Interface (API) request is first sent to the protocol and Nara automatically matches the request to a maker.
Deposit instructions are then issued to the institution/exchange (fiat deposit instructions are issued to the customer), after which the Maker confirms the deposit.
The Bits Wallet of the exchange/institution is credited and the corresponding e-currency is minted.
Finally, a confirmation message is forwarded to the institution/exchange.
Withdrawals
For withdrawals, when an API request is sent, Nara automatically matches the request to a maker.
Withdrawal instructions are then issued to the institution/exchange (withdrawal instructions are also issued to the customer), after which the Maker confirms processing the withdrawal.
The Bit Wallet of the exchange/institution is debited and the corresponding e-currency is burned, while the fiat is distributed to the customer minus the fees.
The backend of the platform will be accessible to makers and institutions, with institutions having full access to the maker functions of the Nara Protocol without limits.
Makers will be able to access the Nara Protocol either through the wallet app of Bits.Africa or its web portal, while institutions will be able to access the Nara Protocol through an API.
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