A Comprehensive Guide To ACTUS Crypto (AFP)- 2023

The ACTUS Financial Protocol (AFP) facilitates a seamless and frictionless financial ecosystem, enabling effortless movement of digital assets within diversified portfolios. This simplifies the trading of digital assets to a level akin to browsing the internet. Consequently, market participants gain the ability to instantaneously comprehend and engage with any digital asset issued by various entities. AFP empowers issuers to tokenize a wide array of financial instruments in a coherent and systematic manner.

They can generate interoperable and economically transparent digital assets, serving as compatible building blocks in the financial landscape, and capable of seamless communication. Moreover, these assets possess plug-and-play functionalities, enabling market participants to seamlessly integrate and utilize them within their systems without the need for prior configuration or integration efforts.

AFP introduces the following array of additional advantages, which a decentralized financial system characterized by proprietary digital assets currently fails to deliver:

Seamless: By eliminating the necessity for integrating and reconciling data pertaining to different digital assets within a portfolio, substantial costs and manual labor can be eradicated.

Economically Transparent: The management of risk receives a significant boost, as digital assets lay bare their financial commitments in a structured and algorithmic format. This empowers comprehensive projected analyses on both portfolio and market levels.

Interoperable: The level of automation is elevated, as digital assets and systems are capable of seamless interaction and contractual referencing within a standardized framework.

Accessible: Barriers to asset ownership and trading are drastically lowered, providing investors with expanded access to a more diverse array of digital assets.

Solution — A Unified Financial Layer

The limitations inherent in a fragmented financial infrastructure can be effectively surmounted. By issuing digital assets using consistent financial notation and housing them within standardized containers, an ecosystem devoid of friction emerges for all participants. This streamlined approach facilitates the efficient handling of digital assets, simplifies the development of applications to cater to these assets, and offers users a plug-and-play encounter with digital assets. Through the ACTUS Financial Protocol (AFP), we offer a solution that bridges existing financial compartments and tackles the ever-growing challenges of interoperability. This protocol serves as the bedrock for an open, transparent, and interconnected financial ecosystem — essentially becoming the internet for digital financial assets.

When stakeholders unite under this unified representation of digital assets, they pave the way for an ecosystem that yields benefits for all involved parties, resulting in network effects:

1. Asset Holders — Gain enhanced access to financial services at reduced costs. They minimize their operational expenses and enhance risk management capabilities.
2. Asset Issuers — Experience amplified market exposure and increased liquidity due to the interoperability of digital assets.
3. Third-Party Service Providers — Reach a broader customer base, as each solution becomes compatible with all AFP-compliant digital assets from any issuer.
4. Regulators — Can promptly identify financial market risks by effortlessly and consistently projecting analytical insights at a granular level, easily aggregating them to any desired scale.

In tandem with other protocols addressing compliance and identity, we envision the construction of a potent financial infrastructure for Distributed Ledger Technologies (DLTs) — a decentralized and cohesive alternative to the current systems.

Key Components of AFP:

The ACTUS standard forms the economic kernel of AFP, ensuring uniform semantics and logic for all digital assets. Financial contracts are modeled as state machines, capturing a (potentially dynamic) event schedule and maintaining the present state and ownership. Furthermore, AFP establishes standardized communication interfaces to service, trade, or analyze digital assets. Analogous to Ethereum’s ERC-20 standard for tokens, these consistent interfaces foster interoperability for financial instruments.

Reference Implementation — AFP on Ethereum

While diligently crafting the AFP standard whitepaper, we are concurrently engaged in developing the inaugural reference implementation of AFP on the Ethereum blockchain, aptly named AFPoE. This endeavor serves the dual purpose of showcasing and substantiating the viability of the proposed standard.

In the same vein, various other issuers or protocols can capitalize on the AFP contract issuance platform integrated within Ethereum. This confers upon them several distinct advantages:

1. Streamlined Entry: Barriers to entry are substantially diminished, granting these entities the ability to expedite their solutions by harnessing AFP digital assets as a launchpad.
2. Diverse Financial Spectrum: An extensive array of financial instruments becomes readily accessible, easily issued by fine-tuning or amalgamating the AFP financial contracts as per specific requirements.
3. Unified Smart Contract Repository: A repository of shared smart financial contracts encapsulating fundamental financial logic becomes a collective resource. This repository significantly curtails the demands of maintenance and audit, fostering operational efficiency.