Celes Chain is an innovative public chain driven by financial services/applications and providing access for regulators and policy makers. Regulators are "super administrators" on the chain and regulate Celes Chain and their applications in all dimensions. In addition, Celes Chain reduce the cost and improve the efficiency of regulations. Therefore, it rebuilds the competition of market and the confidence of institutions.
Celes Chain smart script language, CSSL, is used to develop the business logic of CC, including services such as code, applications, smart contracts, and settlements. The features - including Turing complete, assessment of consumption, automatic execution, compatible with legal compliance, easy-to-use and privacy protection and so on – supports our ultimate goal: “Code is law”. Celes Chain has the compiler specifically designed for translating business logics to legal documents. We set regulators as the special users with maximum access to all levels, all data.
Regulators Uses Celes Chain: Less Cost and be More.
Effective to Prevent the next Potential Financial Crises.
In order to prevent the next financial crisis, the regulators, including the central banks, securities agencies or other financial regulators, are using a remedialmeasure: first of all, they try to repair the existing compliance systems and thenupgrade the IT technology. Finally they try to improve the whole system. Althoughthis approach is easy to get started, there are also huge drawbacks:
Huge amount of data to be processed: This includes the amount and timing which the industry needs to submit through their old systems. Also regulators need to have a new system ready to process such big amount of the data. It would be a huge challenge to the bank's IT system.
Legal Documents and Regulatory Costs: Every single bill has a vast of documents with high enforcement costs.
Social costs can be as high as hundreds of billions of dollars and tens of millions of working hours. In addition to the social costs, it can also cost the government billions of dollars. And such project usually is a progressive development, and it is difficult to predict the total cost.
It could take years for the implementations even if the financial institutions are willing to cooperate.
First of all, our Celes Chain is a public-chain blockchain system that uses innovative consensus. The data generated by those financial applications built on our system, are not able to be falsified. They are also transparent and visible to regulatory compliance and analysis. It easily solves the first problem above.
Second, all the laws, regulations, and smart contracts are stored in Celes Chain in the form of codes and executed automatically by the Celes Virtual Machine (CVM), effectively solving the second problem above.
Like the other financial institutions, government regulators conduct their financial activities by participating in regulation activities on Celes Chain and pay a certain amount of token to miners. Since the miner operations are fully decentralized and competitive, the regulatory costs will be significantly lower than the regulatory costs currently required.
In theory, any regulation implemented on Celes Chain is considered to be "real-time". Regulators can also do a variety of "stress tests" if needed. By using a common platform, financial institutions will be much faster than traditional way when they try to adopt to new regulations. Although regulation at Celes Chain can save hundreds of billions of dollars in costs and is highly efficient, regulators do not need to force financial institutions to use the platform through additional laws and regulations. The only thing the regulators need is to be compatible with this Celes Chain, and financial institutions will voluntarily choose to use Celes Chain because of cost and efficiency considerations. In addition, because Celes Chain is a public chain, this reduces the doubts of financial institutions when considering to participate the chain.
Financial Institutions Uses Celes Chain: Cost Saving and Return Increasing.
There are many reasons why financial institutions should choose Celes Chain, but only this one is the most important: to increase shareholder return. Financial institutions can increase shareholder return in the following ways.
Reduce the costs of regulation, compliance and arbitration: The theoretical costs for financial institutions to respond to various types of regulation at Celes10. Chain can be almost zero. In the most extreme circumstances, some financial institutions might have their profit before tax increased by 30%. Moreover, as regulatory compliance becomes more transparent and contracts are written and stored on Celes Chain, this will significantly reduce the costs of arbitration due to disagreement.
Reduce the operation cost from the back office : the use of smart contracts can greatly reduce operational risk. Because smart contracts are automatically executed by virtual machines and settled.
Reduce possible losses: The use of blockchain / public chain can be more effective in managing counterparty risk.
Generates more profits: financial institutions can access a larger market more easily and quickly to develop valuable products.
Final Users of Celes Chain Could Have a Safe and Effective Service.
Users use financial services through Celes Chain for better pricing and security. As financial institutions can produce financial products with lower costs. At the same time, the users can enjoy lower prices and higher quality of service.End-users can easily identify whether the purchased product is in compliance with regulation; with a proper risk disclosure and safe.