How a regulated blockchain can revolutionize money transfers

Posted by L3COS Jun 21, 2020

blockcain money transfer

Blockchain has drastically revolutionised the financial space, resulting in faster, convenient transactions and more secure payments.

In the not too distant future, it’s expected there will be more commercial banking transactions based on blockchain. But it is also governments, as well as businesses, which need blockchain technology to be trustworthy and reliable as well as disciplined and subject to all the current laws and regulations.

Until now, such technology has been thought to be a pipedream; but the truth is, that the technology does exist. It’s called L3COS.

Transform banking with L3COS

L3COS is the world’s first blockchain-based operating system. It provides financial institutions with the infrastructure to build stand alone yet fully compliant applications based on using blockchain. For banks, it is designed to help them run secure, fast, and regulated transactions.

The following examples are the many different ways L3COS’ technology will revolutionise banking. 

Money transfers

International money transfer is one area in banking which is in continuous need of improvement. Consumers and businesses around the world spend billions of dollars annually on payments and added fees, using outdated, clunky and very costly transaction processes.

Given the unregulated blockchain’s reputation for unpredictability and fraud, banks are have been understandably reluctant to adopt the technology.

That’s where L3COS comes in. Having a blockchain which is overseen by government and regulators gives banks total transparency, allowing them to oversee all transactions and operate with digital currencies.

Using L3COS, banks can facilitate blockchain-based transactions which will save time and money. In some parts of Europe, transfering money internationally requires a transaction fee of several hundred basis points. But the L3COS blockchain facilitates payments that are much swifter with considerably lower fees.

With the advent of a regulated blockchain, consumers and merchants can make an electronic transfer and pay considerably less as compliance and processing costs are effectively eliminated; yet the biggest advantages are the safety, the speed, and the traceability of the transfer.

Inexpensive direct payments

Sending or receiving money is a process that typically involves banks, credit cards, processing networks, each adding complexity to every step, and all of them expecting to earn a fee for their services. This means that businesses see their profits expensively diminished by bank charges.

The following picture shows how complex a single transaction can be:

blockchain for banking system


An obvious solution for both banks and merchants is for them to shift to cheaper blockchain payment methods. With L3COS, all intermediaries are eliminated, which also removes the additional transaction fees. And there’s an added bonus in that it’s faster and still has regulatory oversight from the authorities.

Transaction details

L3COS’ blockchain can also be used for more than money transfer. Since L3COS is an incorruptible digital ledger of economic transactions that is programmed to record not just the transactions themselves but document everything of value. By doing so, it allows stakeholders to track back every transaction and then follow up where suspicious transactions are seen.

Because L3COS’ ledgers are impossible to interfere with, they make it easier and more efficient to track ownership. Each and every transfer of ownership goes into the ledger, resulting in a fully trustworthy source of information about every financial transaction.

Smart contracts

It is also possible to use smart contracts to regulate activities in a way that reduces cost, complexity, and delays to transactions. Smart contracts are automated and can’t be biased. They act based on the relevant events and the regulations. Combined with open banking, L3COS’ encrypted smart contracts can lead to faster, automated decision-making and even dispute resolution.

Financial inclusion

Globally, more than 1.7 billion people do not have access to the most basic financial services. This is a worrying figure given the reach of technology across every aspect of society even in developing nations. Fortunately, regulated blockchain drives financial inclusion, and keeps the price of banking low which facilitates and access to many more people.

Banks should also be able to automate more of their processes. Since the L3COS system removes the intermediaries between the end clients (such as businesses and consumers) and the central banks, this can therefore help the banks reduce their operating fees and in turn their transaction fees for bank users.

Reduced fraud

As a permissioned blockchain, L3COS does not allow any unauthorised use. Hacking the system and stealing any of the data is impossible. This means all bank transactions can be carried out both digitally and safely. The L3COS blockchain technology also allows its users to identify individuals quickly and accurately through a blockchain-enabled digital ID. In situations where it’s traditionally hard to identify individuals, digital IDs provide a large-scale solution.

L3COS makes it possible to track back every transaction — meaning any wrong doing can be easily discovered and sanctioned. And since the government can introduce unalterable records and streamline the exchange of data between institutions, it makes it easier to enforce the law. As a result, there will be less fraud and businesses will be able to devote fewer resources to keeping their online activities safe and secure. The end result is that both businesses and consumers will end up with better security and spend less.


The L3COS blockchain reduces fees by eliminating intermediaries, speeding up transactions, and ensuring absolute security for all participants.

L3COS opens up opportunities for regular banking transactions based on blockchain technology, as banking institutions and governments demonstrate their willingness to look into the implementation of digital currencies using blockchain technology where there the government and regulators maintain oversight. L3COS can therefore provide everything that businesses, financial institutions and individuals need in a quantum-safe and fully reliable system.


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