The Ultimate Guide to Credit Cards
Thursday, July 18, 2024

FCH Network: Next Generation Capability-Based Blockchain that Provides Fintech Applications with High Security, Tokenization, Staking, and Enterprise Identity Management

Fch Network Brings Security To Fintech Applications
Adam West

Written by: Adam West

Adam West
Adam West

Adam corresponds with finance experts to publish industry news coverage related to helping consumers achieve greater financial literacy and improved credit. He has more than 12 years of storytelling, editing, and design experience in print and online journalism and is most knowledgeable in the areas of credit scores, financial products and services, and the banking industry.

See full bio »

Edited by: Lillian Guevara-Castro

Lillian Guevara-Castro
Lillian Guevara-Castro

Lillian Guevara-Castro brings more than 30 years of editing and journalism experience to the CardRates team. She has written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times, and she previously served as an adjunct journalism instructor at the University of Florida. Today, Lillian edits all CardRates content for clarity, accuracy, and reader engagement.

See full bio »
Advertiser Disclosure

In a Nutshell: Blockchain technology has emerged as a potential game-changer for businesses searching for efficiency and security in transactions. But, so far, the reality of blockchain technology has yet to catch up to its commercial promise. That’s why FCH Network is building a capability based platform to address those throughput and vulnerability concerns. FCH’s blockchain also combines scalability with a world-first proof-of-identity protocol for on-chain user verification. The result is a robust solution for identity management, tokenization, and security that could bridge the gap between the blockchain and broader business adoption.

Since Bitcoin introduced the world to the benefits of the blockchain in 2009, people have predicted that digital currency will eventually replace traditional fiat money. And many businesses are looking into decentralized blockchains to enable more efficient digital transactions than their current centralized databases.

In theory, blockchain technology offers plenty of advantages over the status quo. On the blockchain, information can pass freely and securely between users without the need for human verification — or any intermediaries like banks.

But blockchain also has inherent disadvantages. For example, the proof-of-work (PoW) consensus mechanism necessary to validate transactions can be energy-intensive and time-consuming. For blockchains like the Bitcoin network, that means only processing about seven transactions per second.

Another problem is that cryptocurrency wallets often hold the private keys necessary to access them, potentially exposing the information to cybercriminals.

FCH Network logo

But FCH Network is poised to fix those blockchain flaws by taking a business-focused approach that improves efficiency, scalability, and security. It plans to accomplish its goals by working with other companies in specific verticals — including mobile wallets —to provide a comprehensive solution for businesses.

FCHis rolling out its Atmos 2.0 protocol in October 2019 in partnership with secure enterprise wallet provider SignKeys, among other platforms. Those partnerships will allow businesses to leverage the blockchain’s benefits without being slowed down by its weaknesses.

“We’re taking the next big step by starting a new network as a consortium of companies that will address not only payment requirements but also other solution verticals,” FCH Network Co-Founder Alex Randarevich said. “FCH Network features a robust, high-performance, scalable blockchain protocol with an identity management solution and high-security applications for functions — including marketing and tokenization.”

Identity Management Framework Leverages the Secure SignKeys Wallet

FCH’s Atmos 2.0 addresses scalability concerns through its delegated cross-chain proof-of-stake (dxPoS) consensus mechanism. It is also compatible with the industry-standard ERC-20 protocol pioneered on the Ethereum blockchain.

Like PoS-based networks, the FCH Capability-Based Network platform avoids inefficiencies inherent in PoW architectures. The system also rewards holders of FCH’s XF token with opportunities to earn transaction fees for validating new data blocks. Those rewards are based on the percentage of the total number of XF tokens they hold.

FCH’s dxPoS goes two steps further. First, it protects against any single XF holder gaining a majority share of the total number of tokens — and thus control of the network — by subjecting prospective validation delegates to a voting process. Second, it houses this democratic process on the transparent Ethereum network.

FCH couples this more efficient and secure solution with the SignKeys Enterprise mobile wallet, which validates the identity of delegates and stores their identity attestations on the blockchain using the FCH.ID protocol.

“There risk of fraud due to identity falsification is significantly reduced because it uses public infrastructure security,” Randarevich said.
The SignKeys wallet works with a range of credentials, including biometrics, passwords, and smart devices, and supports EU-standard know-your-customer and anti-money-laundering protocols. And military-grade FIPS 140-2 hardware rooting safeguards and manages digital keys for stronger authentication.

“It’s military-grade and better than traditional banking systems,” Randarevich said. “We’re running hardware security modules to create a real possibility for businesses to onboard fiat.”

Blockchain Technology Boosts Efficiency and Reduces Costs

Thanks to its secure innovations, FCH can scale to 100,000 transactions per second — which presents a unique opportunity for enterprises.

“We have enabled real solutions to a whole array of possible applications, from financial inclusion — identity services for people who may not have a paper trail — to B2B and B2C operations,” Randarevich said.

FCH Co-Founder Joseph Toh agreed. “Blockchain companies can have great ideas, great passion, but often when it comes to execution, it’s a whole different story. A lot of these startups struggle,” he said. “So when Alex talks about identity on the protocol, we can keep those things very private and GDPR adherence.”

Screenshots of FCH Network on mobile devices

FCH’s secure platform is available on mobile devices and can process up to 100,000 transactions per second.

Because the blockchain allows all business assets to be tokenized and exchanged without central authorities or intermediaries, FCH solutions can accommodate a wide array of mobile payment platforms. Those include rewards programs, marketing flows, and even microloan services. That is because FCH’s dxPoS mechanism rewards successful validators with XF tokens, allowing them to subsidize transaction costs for their customers and even offer free transactions.

Enterprises that use the FCH Network blockchain and SignKeys wallet also gain peace of mind from FCH’s guaranteed backing of assets it holds. The wallet currently supports more than 250+ cryptocurrencies and not limited to cryptocurrencies helping bridge the gap between non-blockchain solutions.

“All the things blockchain skeptics say don’t work — scalability, privacy, too hard to use — that’s what we have solved,” Toh said.

FCH: Helping Businesses Grow Their Customer Bases

As a fintech solution, FCH is ideally positioned to help enterprises and businesses leverage the efficiencies of the blockchain with none of the drawbacks. And partnerships beyond its affiliation with SignKeys are starting to fuel FCH’s outreach.

One of those is with CoreLedger, a tokenization and exchange platform.

Photo of FCH Co-Founders Alex Randarevich and Joseph Toh

FCH Co-Founders Alex Randarevich, left, and Joseph Toh how Enterprises what real solutions they can adopt beyond just protocols.

“It’s a company that combines a tokenization platform, an asset-trading platform, and a specific type of exchange,” Randarevich said. “They’re already working with several established organizations, including banks and commodity-type exchanges that will be running on our protocol.”

Meanwhile, FCH is also stepping up with front-to-back solutions that, among other things, support a well-known marketing firm’s work. “We’re doing the tech for them,” Toh said. “They do the last mile for microloan services to reach the unbanked. What we do is help them power that last mile to reach those potential customers. The banks don’t do a lot because it costs them too much.”

Enterprise and businesses interested in the blockchain world are looking for practical solutions built on a foundation of beneficial technology and partnerships. FCH provides a complete infrastructure for user enrolment, including a secure mobile multi-sig wallet-based identity management standard and an asset tokenization platform.

But, according to Randarevich, the technology isn’t worth the investment if it doesn’t produce results.
“It’s already a mature solution,” he said. “We’re real, and we have all the pieces of the puzzle. All the front-end solutions — wallet, staking, identity — are already well established. Testing results are excellent and FCH Network is in October 2019.”

Advertiser Disclosure is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across (including, for example, the order in which they appear). does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.