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Encointer brings financial inclusion to the Web3

Polkadot logo; Encointer logo.

Encointer’s integration into Kusama, Polkadot’s Canarian network, is a milestone in making
Web3 services globally available and relevant in the future.

Madrid, January 24, 2022. Encointer, a platform that allows communities anywhere to create, circulate and control their own local currency, has obtained a position in a parachain of the Canarian network of Polkadot, Kusama.

Web3 and financial inclusion

Through Encointer, any local community can create, distribute and use their own digital tokens, promoting true financial inclusion for Web3. Encointer joined the network on January 9, 2022, and plans to start the first real-world token communities later this year. Web3 offers the opportunity to foster greater financial inclusion in developing regions, while also enabling new forms of democratic action.

The integration of Encointer marks a turning point in the effort to make Web3 services globally available and relevant in the future, paving the way for the transition to a fully decentralized digital system.

To address a critical financial inclusion challenge, Encointer provides a way to pay fees in a  localized token that matches local purchasing power. Coupled with Polkadot’s flexibility, it’s easier than ever to onboard people with fewer means, allowing you to create localized Web3 financial services. It is a solid solution for people in developing countries and markets who are currently excluded from the modern financial system.

Alain Brenzikofer, Founder of Encointer, commented:  “Improving financial inclusion is imperative for Web3 to play a meaningful role for humanity. I am deeply encouraged by the support of the Kusama council and KSM holders for this initiative. The launch of a commons parachain in Kusama is an important milestone for the Encointer project and an ideal platform from which to experiment, optimize and scale.”

Economic growth

In addition to localized tokens, Encointer also takes a novel approach to secure single identity systems within Web3 services. The protocol stipulates that each participant must be willing to prove their identity in physical key signing events, which makes Encointer more secure.

Ursula O’Kuinghttons, Director of PR at Parity Technologies  (the company that builds Polkadot’s technology infrastructure) said,  “Encointer enriches the Web3 and Polkadot ecosystem in many ways. Through adjusted rates, as well as physical events to prove that the person who performs the digital signature is real, and thus increases security and financial inclusion. This builds trust in these services so that more people can use them in the future.”

By creating localized  tokens  that match the purchasing power of communities, Web3 services can be developed with fees tailored to users’ income levels, which in turn acts as a first stepping stone towards further adoption of Web3 services. in developing countries and emerging markets.

The Polkadot Common Good Parachain Program provides parachain slots for functionality that benefits the ecosystem as a whole. By allocating a subset of parachain slots to the commons chains, the entire network can reap the benefit of valuable parachains that are otherwise underfunded.

Unlike the rest of the processes for the acquisition of a parachain, these are not assigned through the auction process, but through the chain governance system. In turn, these common good parachains do not expire and can only be terminated through governance decisions.

Learn more about Encointer on the Polkadot blog .

contact ATREVIA  
Gabriela Rodriguez |Rubén San Isidoro
grodriguez@atrevia.com | rsanisidoro@atrevia.com 
+34 915 640 725

Úrsula O’Kuinghttons
Director of PR
+34 619 636 958

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