How regulated blockchain can revolutionize money transfers

Posted by L3COS Jun 21, 2020

blockcain money transfer

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

In the near future, it’s expected there will be more regular banking transactions based on blockchain. Yet governments, as well as businesses, need a blockchain they can trust and rely on — one that is disciplined and able to be easily regulated.

Until now, such technology has been a mere fantasy. The truth is, the technology does exist. And it’s called L3COS.

Transform banking with L3COS

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

Following are the different ways L3COS’ technology can revolutionise banking.   

Money transfers

International money transfer is an area continuously needing improvement. Consumers and businesses around the world spend hundreds of billions of dollars annually on payments and added fees, using clunky and costly transaction processes.

Given unregulated blockchain’s reputation for unpredictability and fraud, banks are naturally still reluctant to adopt the technology.

That’s where L3COS comes in, with the regulated blockchain that gives banks total transparency, allowing them to oversee all transactions and to implement predictable digital currencies.

Using L3COS, banks can operate blockchain-based transactions to save time and money. Typically, to transfer money internationally, you’d need to pay a 7–10% transaction fee. But the L3COS blockchain facilitates payments that are faster and have lower fees.

With the advent of regulated blockchain, consumers and merchants can make an electronic transfer using their mobile phone, and pay much less as compliance and processing costs are eliminated. However, the biggest advantages are the safety, the speed, and the legality of the transfer.

Inexpensive direct payments

Sending or receiving money is a process that typically involves banks, credit cards, processing networks, adding complexity to each step, with each service provider expecting to earn a fee for their services. Card payments include a processing fee. This means that businesses see their profits diminished by bank charges.

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

blockchain for banking system


The obvious solution for banks and merchants is to shift to cheaper blockchain payment methods. With L3COS, intermediaries are eliminated, which also eliminates the additional transaction fees. The added bonus is that it’s faster and regulated by authorities.

Transaction details

L3COS’ blockchain can also be used for more than money transfer. L3COS is an incorruptible digital ledger of economic transactions that is programmed to record not just the transactions but virtually everything of value. By doing so, it allows stakeholders to trace every transaction and then act in case of suspicious transactions.

Because L3COS’ ledgers are impossible to interfere with, they make it easier and more efficient to track ownership. Each transfer of ownership can go in the ledger, resulting in a trustworthy source of information about all financial transactions.

Smart contracts

It is 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 could lead to faster, automated decision-making and dispute resolution in the marketplace.

Financial inclusion

Over 1.7 billion people do not have access to the most basic financial services. This is an alarming figure given the reach of technology in every domain of society. Fortunately, regulated blockchain drives financial inclusion, keeping prices low and facilitating access to many people.

Banks can automate some of their processes. The system removes intermediaries between end clients (businesses and consumers) and central banks. This can help banks reduce their operating fees and therefore transaction fees for bank users — making bank services accessible to all members of society.

Reduced fraud

As a permissioned blockchain, L3COS does not allow unauthorised use. Hacking the system and stealing the data is impossible. This means all bank transactions can be done digitally and safely. Blockchain 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 can provide a large-scale solution.

L3COS makes it possible to dig up every transaction — meaning financial crime can be easily found and sanctioned. Governments can introduce unalterable records and streamline the exchange of data between institutions, making it easy to enforce the law. As a result, there will be less fraud and businesses will spend less money to keep their online activities safe and secure. The ultimate result is that both businesses and consumers will spend less and be more secure. 


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

L3COS opens up opportunity for regular banking transactions based on blockchain, as bank institutions and governments are now willing to consider the implementation of digital currencies on regulated blockchain. L3COS can provide everything businesses, financial institutions and individuals need in a secure and completely reliable system.


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