BANKNETWhitepaper

TABLE OF CONTENTS

1 INTRODUCTION

9 MISSION STATEMENT

10 BANKNET BUSINESS MODEL

13 ABOUT THE BST TOKEN

17 INCORPORATED TECHNOLOGY

21 PROBLEMS AND BANKNET'S SOLUTIONS

39 ROADMAP

40 BKU TOKEN DISTRIBUTION AND ALLOCATION

41 BANKNET'S PUBLIC POLICY AND CORPORATE BYLAW

42 OFFERING PRICE AND SCHEDULE:

43 COMPLIANCE AND SECURITY OF THE BANKNET PLATFORM:

44 DISCLAIMER

Introduction:

Banknet is treading on the path of crafting an Ethereum governed ecosystem which will apply

blockchain technologies to three of the most prominent industries – banking, insurance and real

estate - noting that they are under the influence of several shortcomings which can be done away

with by incorporating innovation. This way Banknet will be tapping into a market filled with

upcoming opportunities.

Banking

The term “banking” has existed for as long as we can remember. However, the most impactful

shortcoming of this industry was that, that it is known for its “classic” methods – which was being

used ever since the industry’s inception. Since digitization is on the rise – this industry could not

elude utilizing artificial intelligence or innovative technology which is helping other industries

boom. Since it was time, this industry embraced innovation to alleviate the possibility of human

error to occur as well as reduce the amount of paperwork that requires handling.

It has been found that every third person in the world is making use of Financial Technology –

which is indicative of the fact that this industry will slowly have a grasp on the global scenario,

without any doubt. According to the Global FinTech Survey conducted by PwC in the year 2017,

FinTech companies are aiming to bring about changes in the market by relying on emerging

technologies. Around 50% of the large companies in this industry are aiming to invest in the

blockchain. Additionally, the report stated that by the year 2020 – 77% of these companies will be

integrating their operations with the blockchain technology. On the other hand, the FinTech

Adoption Index 2017 study stated that 50% of the 22000 people – hailing from 20 different

countries – use FinTech services to make payments and transfers of the sort while 65% said they

will do so in the future. Owing to the data observed so far, it can be safely concluded that digital

currency sounds like a safe alternative to make use of.

Our way of operation in the Banking industry:

While the world saw the wave of globalization, it – also – observed an increase in the relations

forged amongst the international entities and a digital currency would be accessible by all and can

be transferred with ease. This has led to the advent of Banknet’s financial platform which has been

integrated with the use of blockchain not only because of how safe it is but also because of the

speed and the efficiency with which these transactions occur. Thus, ensuring that while it renders

the traditional services - time is being saved. The operations would be smart contracts driven –

which is one of the most interesting elements of the said technology because it would automatically

fulfil the obligations that have been stipulated by its user. The decentralized operations of this

technology act as an aid for keeping all fraudulent and criminal operations at bay.

Financial Services:

The year 2018 witnessed cryptocurrencies taking over the globe at the speed of lightening owing to

the potential that it holds. An incessant number of people flocked towards it in the hope that they

would be able to invest in it. People have good reason to do so because cryptocurrencies have a

robust design which can allow them to become an applicable currency. As it can be observed,

cryptocurrency has a first mover advantage because it is going to bring about a technological

transformation in the conventional financial system.

With the many opportunities that these digital currencies have been offering, one of them is that

they have the ability to be accepted as a commodity. Like gold, the cryptocurrencies have become a

prominent player in the commodity market. What makes them even better is that a mechanism to

directly purchase them online has been set up which allows the users to deal in them without any

hassles.

How is Banknet going to operate in this segment?

Having assessed the opportunities available in the financial services segment, Banknet has decided

to come with two portals which make use of cryptocurrencies and these would include:

- Cryptocurrencies exchange: a cryptocurrency exchange allows its users to trade in these digital

currencies in exchange for fiat money or other similar cryptocurrencies. Banknet decided to come

up with an initiative of the sorts in the first place because it has understood that the cryptocurrency

market is available round the clock and will allow individuals to indulge on exchanges without

having to interact with an intermediary.

Thus, Banknet’s cryptocurrencies exchange platform is going to tread on a development plan which

is going to involve -

a. Future contract trading: Our platform is going to allow users to trade by stipulating future

contracts which they decide to agree upon by analyzing the market stability.

b. Trading within the whole network: Banknet is going to tie up with several other trading platforms

so that the individuals making use of our network can make transactions exceeding the bandwidth

of the platform.

c. Over-the-Counter: Banknet will also create an intermediary service platform which is going to

facilitate individuals with B2C and C2C trading models.

d. A new era of trading: Employing blockchain in our functioning, it goes without saying that

security, efficiency and stability are the attributes that individuals would be able to benefit from.

e. Easy access: Our platform will be accessible on all sorts of operating systems which includes

Android, iOS, Mac, windows etc.

Also, our platform assures that the customers benefit from the use of exchange in terms of the

processing speed so that they can implement concurrent transactions all at once. Moreover, the

underlying technology to this platform adjusts in accordance with the load it faces at a particular

moment in order to render a smooth experience to our customers. Along with this, since Banknet

extends the option of wide network trading – it will allow the users to match the market depth of the

other major exchanges which will lead to an increase in the liquidity. While rendering all these

benefits, Banknet has ensured that a security mechanism is developed in the system. Thus, a multi-

layer system architecture has been put into place.

- Crypto lending platform:

Banknet’s lending platform is likely to become the customer’s go-to if they are looking to leverage

their crypto holding for cash in forms of loans. In this manner, without selling your blockchain

assets, you can obtain money to spend easily.

The question now is- How does it work?

No matter what the purpose is for borrowing money, the users will be able to acquire quick money

against their cryptocurrencies in no time. Banknet has floated this service in the market owing to the

needs that people have. The members can choose to pay their loans off at any point of time without

having to incur any additional cost; thus, eliminating the scope of prepayment penalties. Since the

platform has especially been crafted for the users – Banket assures that it will not consist of any

origination fees or closing costs.

Unlike conventional lenders, Banknet’s services are a step ahead. It has developed a simple portal

which is going to support transparency instead of adding on to the costs that the clientele is to incur.

Also, it understands that a majority of the financial institutions avoid entering the blockchain

market because of the challenges that they are likely to face in the operation of this contemporary

measure. Thus, Banknet is going to help these institutions to loan out currencies to the people who

hold assets on the blockchain network; thus, allowing the establishments to work in accordance

with their stipulated business models. While understanding the apprehensions of these institutions,

Banknet has done its best in assuring compliance and security in order to lend against the said assets

which is based on the use of the blockchain technology.

Once the members who have applied for loans are qualified in accordance with the set rules, they

can select the size and type of loan in addition with the amount of time for which they need a loan.

Thereafter, the members are connected with the qualified lender. The lenders are going to benefit

from the interest they are to accrue from the overcollateralized assets.

Thus, Banknet’s platform has been crafted to support the lending of any type of currency, not

leaving out the trending digital currencies.

Insurance

Thus far, it has been observed that the insurance industry has not been met with any remarkable

changes. Having understood the niche that remains to be filled, 86% of the insurers are of the view

that innovation must occur in the industry so that it remains competitive1. It is about time that the

insurance industry moves away from being paper driven.

Ever since emerging technologies have begun to take over the market, the vision of widening the

InsurTech market has come closer to become real. Once the development has been completed, the

future will make the dream of being insured a button away owing to the internet penetration rate

1 Accenture. (2019).The Rise of Insuretech.

which stands at 53.7%2 and this will lead to insurance becoming ubiquitous in our lives. It will be

available whenever you are in need of it – to protect anything of value or an event that you are

afraid of. Despite the fact that the data would be available widely, it would be secured in all forms.

Given insurance companies are still on their way to digitization – once they adopt this innovation

completely, they would be able to disrupt the market while decimating the costs that the companies

have to bear. This would also allow the insurers to focus on other segments of their operations

which includes product development and portfolio management – this, in turn, is going to lead to

positive consequences for their customers. According to Accenture, despite the fact that the banking

service had the "first mover" advantage of leveraging FinTech, the insurance companies are going

to benefit the most out of this.

What is Banknet going to do?

Comprehension of the Insurtech industry led Banknet to develop an ecosystem which is going to

benefit both the insurers and the insurance distributors and allow them to interact freely. "Smart

insurance" is going to help reduce the hassles of the insurance industry while reducing the costs and

inefficiencies of the market. Banknet's platform will be the main source for all the transactions to

take place, smoothly, using Smart Contracts which will be entailed with the required rules and

regulations with regard to ensuring.

Real Estate Industry

The real estate industry has existed ever since the advent of the global economy. As soon as the

cities began to proliferate, the number of real estate transactions have increased – this led the

industry to become one of the most lucrative, economically. The data obtained from Savills Global

Research Report Trends in Global Real Estate Market in 2016 said that the total market

capitalization of the real estate industry, in a global scenario, was estimated to be around USD 217

trillion and this works out to be nearly 3 times of where the global GDP stands today. This indicates

that it would be best to invest in this segment.

2 Global internet user penetration 2021 | Statistic. (2019).

How Banknet will operate in the real estate segment?

Banknet is going to categorize individual properties as tokens. Once this is done the properties can

be traded on the decentralized exchange administered as units on the “BKR” platform – developed

upon smart contracts and Ethereum. It will be capable of conferring various benefits to its users

which includes the transfer of ownership with ease, decimate the inefficiencies of the taxation

system in this industry, reduce the complexities that have been endowed upon the international

transactions and reducing the interference of the middlemen. This will make all the records of the

real estate market available – digitally.

Banknet’s Mission Statement

Banknet’s statement of mission is to bring a substantial change and empower the financial and real

estate industry by making use of the most advanced and innovative technologies like fintech and

blockchain. We aim to achieve our goals by combining the business models that are well tested

and proven, along with developing platforms and exchanges which are based on blockchain

technology as well as ethereum smart contracts.

With this, Banknet has also established a goal with which it aims to make its token a well-

recognized cryptocurrency to trade in while garnering the trust of users from all over the world. Our

management operates with a belief that the goals that we have set forward for our company would

be realized as soon as we integrate our business model with the advantages the blockchain and

financial technology have got to offer.

Banknet Business Model

Banknet is a decentralized Ethereum based ecosystem that will act as a framework and platform for

the global financial market and the real estate industry. Banknet's innovative and advanced

technology will empower the banking industry in each and every segment, once it has been

introduced. Whether it is global money transfer, fund and assets management, peer-to-peer loan's

platform, the banking sector is bound to become better.

Banknet's Insurtech operation will affect the old fashioned and traditional insurance industry by

leveraging the use of Ethereum smart contract. Banknet would then be able to fight and challenge

the use of fake insurance policies, assess the insurance claims made by the beneficiaries in a jiffy,

and while improving the sector, it would also be able to reduce the overhead costs associated with

managing insurance claims, substantially. Use of Ethereum based smart contracts will assist insurers

to develop better and accurate systems for quoting insurance policies premiums while enabling

them to analyse the risks associated with certain policies.

Banknet's Fundtech and assets management operations will be focused on achieving the highest

levels of returns on investment for both individual customers and businesses. This will be achieved

using advanced algorithm technology for trade and investments execution and by relying upon the

top-rated professional managers to manage funds and assets.

Banknet's revolutionary vision is to turn the banking sector to be a more effective and technology-

driven industry and the roadmap to this vision has already been put into action. It can be observed

that the banks are shutting down their physical facilities and offering most of their services online –

catering to the needs of the customers better. Banknet will tread on the same path while making

major improvements to it by mainly using the advanced blockchain technology and Ethereum smart

contracts that is pending acceptance in the banking industry.

Banknet’s real estate platform BKR is based on blockchain technology which will simplify global

real estate transactions, by using Ethereum smart contract for transactions. Most of the unnecessary

paperwork that leads to the complication of the real estate transactions will be eliminated. Banknet

intends to tokenize the real estate properties to tradeable units and will set up the decentralized

BKEX exchange based on Ethereum smart contract to facilitate trade in the tokenized units. As a

result, massive and overwhelming liquidity will be created in the global real estate markets.

Banknet will independently post a bid and represent international properties on its exchange. The

selection of the properties will be based on standard analysis composed of factors which will be

quantitative, static and dynamic like the generation of cash flow and anticipated yearly ROI.

Banknet’s designated and professional real estate team will be in charge of the platform's operations

and the company will derive its profits by charging commissions paid by the parties to the

transaction performed and executed on Banknet's exchanges/platforms.

An integral part and undivided section of Banknet's terms and conditions demand that users - buyers

and sellers - on the platform will have to pay or accept partial payments in form of the BST or BKU

token as a part of the executed transactional value. Thus at this point, Banknet will demand that

each participant of the transaction will either have to pay or accept 20 per cent of the gross

transaction value in the BST/BKU tokens.

In return, and as part of an extensive rewards/incentive program, each contributor will be rewarded

with a special discount on the market price of properties owned by the Banknet Real Estate Fund.

The reward program at Banknet has been professionally designed and created to achieve two major

goals; firstly, to encourage participants to trade on the Banknet’s platform/exchange; thus, it will not

only help Banknet in deriving profits but will also increase the commissions that the users obtain at

least tenfold. Secondly, the structure of the reward program calls for participants to acquire BKU

and BST tokens at the open market to facilitate the transaction, as a result, each average real estate

transaction will amount to a few hundreds of thousands of US dollars - at the minimum. Thus, the

demand for BKU and BST tokens in the open market will increase substantially in the longer run.

Banknet’s real estate prime properties fund (BKPR)

Banknet real estate division will acquire global real state distress properties from banks, lending

institutions, insurance companies and individuals. Banknet will, also, make use of its financial

resources to acquire prime properties. Thereafter they will be made available on its real estate

platform BKR and then these properties can be accessed globally. Potential buyers of the said

properties will have to pay at least 20 per cent of the property's purchase value with BKU tokens.

Banknet's financial and insurance divisions will provide and guarantee the best and the most

affordable insurance policy for the acquired property and if necessary will offer mortgage-backed

assets at the best rates available in the banking industry.

Business Partnership and Opportunities for Banknet Tokens

Due to the token's unique structure, it is widely anticipated that major online vendors and unlimited

small and medium online operators will accept BKU and BST tokens as a valuable and trusted

method of payment. This will open up several lucrative opportunities as it would enable Banknet to

establish a strategic business partnership with major online operators such as Amazon, Ali Express

and so forth because the BKU and BST tokens are likely to be accepted as solid and stable

currencies.

Making payments with BKU and BST tokens is a precondition for trading on Banknet's real estate

and financial platforms. Using the tokens as a method of payment for insurance premium would

enhance the credibility of the tokens and will pave the way for recognizing BKU and BST tokens as

a well trusted international cryptocurrency.

About the BST token:

Having mentioned the BST token several times in the coin structure, it is required of you to first

understand what the BST is. After the provision of the token, it would serve as the payment gateway

for the Banknet users.

The people trading on the Banknet’s real estate platform and exchange will have to make and accept

the partial payments in BST tokens, in accordance with the terms and conditions of Banknet’s

exchange. In order for the users to pursue a desired real estate property on the Banknet platform, the

users will either have to bid on the open market to obtain the said tokens or approach the BKU

token holders and place a bid for their share of BST holding - because of the limited supply of the

tokens in the market.

Speaking from the insurance perspective of our operations, the users who wish to acquire the most

lucrative insurance policy issued by Banknet are required to contribute a substantial amount of the

premium prescribes under the policy as BKU or BST tokens. Owing to the range the insurance

industry is capable of covering, it has been anticipated that once the Insurtech business model has

been integrated with the blockchain technology – the demand to issue insurance policies that

Banknet is going to witness will be overwhelming. This will result in a ten-fold increase in the

premiums that the insurance policies can fetch.

Overall, the BST token will serve as a globally trusted payment gateway owing to the fast-growing

system of Banknet. The rewards system functional at Banknet will make use of the BST token as

well. Most importantly, with the attention BST is to garner – its price would be determined as per

the price quoted on the international currencies exchange.

Banknet Innovative Token Structure

BKU is a token which is targeted to enhance the value that the token holders derive by creating

sustainable cash flow for its holders by Banknet's rewards distribution programs. The rewards

would be dependent on several factors which include the introduction of five of Banknet’s divisions

to the public via offering and spinning off distribution to BKU token holders, the amount of

confirmed BKU balance in the wallets of the users of Banknet, the sale and distribution of BST

tokens and the burning of unused and oversupplied BKU tokens.

BKU Market Price Stabilization Index (BKIX)

BKU token is uncoditionally pegged from date of issuance to the market value of top ten most

valuable tradable currencies which include: BTC, ETH, XRP, LTC, BCH, EOS, NEO, USDT, BNB

and DASH. Each currency will equally share 10 percent of the basket index. The intrinsic basket

value index (BKIX) is based on each currency’s market value and will be calculated and published

on banknet's website and news releases, monthly.

In the event that BKU adjusted and calculated market price (after taking into consideration the

dividend and distribution made to BKU token holders) is below the market value of the basket

index (as defined), Banknet will provide and contribute additional distribution to BKU token

holders in a form of unused reserved funds, reserved tokens of subsidiaries and own tokens.

Banknet's management reserves the right to change the weight or replace any single currency

consist of BKIX index (if it deems necessary to protect the index value).

BKU - Banknet's newly issued token

BKU token will be issued to the public in the form of a unit. The initiative consists of the right to

own five different currencies which represent the five different divisions of Banknet's global

holdings which are as mentioned:

BKR - An advanced global real estate platform based on the blockchain/smart contract technology

BKS - A global insurance operator based on Fintech technology with a focus on the blockchain

BKN - A global banking and investment platform providing a range of financial services by being

fully integrated with the blockchain technology

BKEX - An advanced cryptocurrency exchange platform based on blockchain/Ethereum smart

contract technology

BKLEND – Advanced crypto lending platform

Banknet is unconditionally committed to introducing its five divisions to the public in a span of 24

months from the first issue date of BKU tokens to the public.

Each BKU token holder will ultimately own five different currencies in addition to BKU tokens

because these currencies are a part of the BKU unit. For instance, if Banknet was to issue

10,000,000 BKR tokens - the real estate platform division currency - to its token holders and if you

are the owner of 1 per cent BKU tokens on the date (which is fixed by Banknet's management) on

which Banknet intends to issue the new coins, you will receive a free bonus distribution of 100,000

newly issued BKR tokens.

Banknet is determined to list and trade on international currency exchanges by accommodating the

use of the newly issued tokens consisting of the BKU unit. The value and price of the currency

(which are ramifications of the BKU) of newly issued tokens, that each BKU token holder is to

receive, will be determined at the offering date to the public and consequently, the price as quoted

will reflect on the various international currency exchanges.

Confirmed BKU Token Balance

Reward distribution is going to be based on the confirmed BKU balance in the owner's wallet. The

rate of reward would be 1 per cent, a month, (12 per cent on an annual basis) of the value of the

confirmed BKU token balance in your secured wallet. The reward would be distributed to the

holders, quarterly and would be in the form of newly issued BST tokens.

Royalty distribution

BKU token holders will be entitled to receive annual royalties from the proceeds of the sale and

distribution of the BST tokens to the public. BST token (when issued) is designated to be the

payment gateway of Banknet's ecosystem. Meanwhile, it would also climb the ladder of becoming a

payment gateway outside Banknet's operations. Individuals, businesses and institutions which will

use Banknet's platforms and exchanges will have to make use of either BST tokens or BKU tokens

as a form of partial payment (by strict terms and conditions of each platform/exchange) for the

transactions (properties, goods or services). As a result, the company anticipates a strong and

sustainable demand for BST and BKU token units to be developed. 25 per cent of the proceed

generated by the total sale of BST tokens will be distributed amongst the BKU token holders as

royalty. At this moment, the management cannot confirm or otherwise estimate the yearly royalty

amount to be received by each BKU token holder, but it can be asserted firmly that the potential

royalty distribution is going to be substantial in amount, once Banknet's divisions commence their

operations.

BKU Burning Tokens Program

Banknet has also come to a decision that it will proceed with burning and cancellation of unused

and oversupplied BKU tokens. The number of tokens to be burned and cancelled and the date of

putting this settlement into action will be publicly announced on Banknet's official website as well

as will be released in the news.

Most Valuable Investors (MVI) Program

All the BKU token holders who have subscribed to BKU token worth at least 8,000 USD at the

Initial Coin Offering and in addition, have at a given point of time (as mentioned) a confirmed value

of 15,000 USD in BKU tokens in their wallet, will be entitled to receive a 12 per cent discount on

purchasing prime real estate property from Banknet's real estate global fund. Additionally, the 12

per cent discount will apply to the premium paid for an insurance policy issued by Insurtech,

Banknet's insurance division. This discount will also run for any banking or financial service fee at

any of Banknet's financial services providers.

In order to simplify our token holder's transactions, all the newly issued currencies will be in the

form of BKU units and will be stored in the token holder's completely secure wallet.

Incorporated Technology:

What is Blockchain?

For as long as we can remember, databases have been centrally managed by organizations for

keeping a track of their transactions. It is a rare occurrence that databases are shared between

individuals because of the security concerns associated. The advent of the blockchain technology

brought about a change in the operations of commerce.

A blockchain can be understood as a shared database which can be accessed by a wide range of

users who agree upon any changes that are to take place. For a new piece of data to become a part

of this database, all the users must come to a consensus about the validity of the change. These

changes are the transactions that occur on this technological platform, which can also be termed as

the "blocks" of this entire chain. All these blocks are cryptographically linked to one another. Given

how these blocks are created, it becomes extremely difficult to change the data stored on them;

however, if any change is to occur on the blockchain – it would be visible to all the users. Since the

code runs on various computers, all at once, the chance of failure occurring is mitigated because of

the absence of a central server.

The way this platform has been crafted allows it to serve as a proof of ownership of any material it

is configured on. When people indulge in transacting on the blockchain platform – they make use of

a public address and a private key. The public address plays a vital role because when it is available

with other users they are enabled to transact the required commodity between them. Whilst a private

key is required to check for the authenticity of a transaction that is to take place.

Advantages of Blockchain:

The blockchain is disrupting various industries because of the role it plays in their operations and

holds certain benefits for them, such as:

1. Increased levels of security: There are various ways in which blockchain is utilized to ensure an

increase in security. Before the occurrence of a transaction – it must be agreed upon by the user so

that it can be recorded further. Once the approval gets through, it is coded and then a link is forged

to the previously recorded blocks. The fact that the code is encrypted is topped with the

characteristic that the information is being stored across a network of computers instead of being

stored on a single server. The latter acts as an aid because the hackers will not be able to lay their

hands over the data pertaining to the transactions. If it is important for the industry to store data,

blockchain has the chance to prevent any sort of frauds to occur.

2. Traceable: Why is blockchain said to be traceable despite the fact that there is no central server

which can be reached to gain access to the data? Allow us to explain this to you. If the industry that

you are a part of has a very complex supply chain to deal with, then you will be familiar with the

fact that how hard it becomes to trace the item back to its origin. This problem is alleviated when

the transactions begin occurring on the blockchain because you end up with a trail of information

regarding the origin of the commodity and all the stops that it has made meanwhile it is on its

journey. This traceability will help you authenticate the journey and will keep all the monetary

frauds at bay.

3. Minimized amount: Paying a lesser amount is a priority for almost all the businesses. Blockchain

mitigates the necessity of middlemen or intermediaries because it is held on a platform where trust

issues do not exist amongst the trading partners. All you have to do is rely on the data that is

presented to you on the blockchain. Furthermore, it comes with an additional benefit of removing

the procedure of documentation in the completion of any trade as it allows access for everyone to a

fixed version of the information.

4. Blockchain and its transparency: Given how blockchain is a distributed ledger, it lets the

transactional history to become easily accessible. All the users of this network are ahold of the same

paperwork instead of having individual copies. Most importantly, this shared version of the

database can only be altered once it has been verified – meaning all the users must agree to the

changes – because if one single transaction is to be altered all the other transactions are supposed to

be altered along with it. This allows an increase in the accuracy of the data that is stored on the

network as compared to all the other processes which entail a lot of bureaucracy.

5. Godspeed and efficient: The fact that there is an increase in the speed because of the

implementation of the blockchain platform in no matter what industry you operate in, indicates that

the efficiency is being compromised. When you compare this procedure to the ones heavy in

paperwork, it becomes indicative of the fact that the whole procedure is going to be time-

consuming. The procedure is also prone to human error and it has also been observed that most

industries require third parties to act as an intermediary in the process. This is everything that the

blockchain does not accommodate – thus increasing the speed and the efficiency with which the

work is being delivered. Also, multiple ledgers need not be maintained because of the single ledger

system. Additionally, the single leger system increase the trust people endow in each other because

they have access to the same information.

What are smart contracts?

Smart contracts are the most interesting and the most important element when it comes to

transacting on the blockchain platform. These contracts can be coded on any blockchain; however,

they are commonly developed on ethereum – yet another cryptocurrency, like the bitcoin, which can

be traded without any hassles - because its development allows unlimited processing capacity.

For all the transactions to go through on a blockchain environment, it requires a “smart contract” to

be executed which entails a set of rules which will allow the various users on the platform to

interact amongst one another. They function like all other contracts, the major difference stands at

the point that the smart contracts are based on a programming code which can be used on a network

of computers. Once the rules mentioned in this contract are met, the said agreement is automatically

put into action. It is because of these contracts that people are able to make use of commerce with

strangers on the internet without having to use a website which plays the role of an authoritarian

third party.

To illustrate how the “smart contracts” function, have a look into the image below:

As it is mentioned that smart contracts are the most interesting part of a blockchain based

transaction – the image below describes how they are capable of standing out and benefitting the

users that rely upon it:

Source: sharetheledger.com

Source: https://blockgeeks.com/guides/smart-contracts/

Problems and Banknet’s Solutions:

Problems of the real estate industry:

1. Involvement of Middlemen

When it comes to real estate, you might be aware of the fact that the involvement of middlemen is

immense. The standard charges that a real estate agent levies add up to a total of six per cent. For

instance, if you want to buy a house that costs $600,000, then the fees for the middlemen would

account for about $36,000. As reported by the National Association of Realtors – nearly eighty per

cent of the people who are interested in buying homes, still take the assistance of an intermediary

and pay the extra fees. Moreover, it is the paperwork which is going to determine whether the

property belongs to you or not. If you have decided to transfer the property to somebody else, you

need the required paperwork and have to change the names that had previously occupied the blanks.

Thereafter, it is necessary for the paper to be notarized to reflect its authenticity. Once this is done,

you need to send the paper to the government so that they can make the required changes in their

database.

Source: https://www.zeromoneyinvestment.com

Do you understand the glitches of this entire procedure? It lacks the contemporary measures that

have evolved to better the functioning of the businesses. Due to this, a precious amount of time and

money is wasted.

Solution:

Until now, the existence of middlemen was necessary for the sole reason that the customers were

unable to access the information and did not have an authentic license which is required for the

transactions to take place. However, with the introduction of blockchain in the field of real estate,

Banknet has created a decentralized portal that is based on Ethereum’s development platform. It

relies on Ethereum blockchain because of the fact that the property records can easily be verified

without the need for middlemen and increases the security in the database multiple folds owing to

the underlying cryptography.

2. Frauds

Given how today’s world has digitized, forging a document does not take too long. Criminals are

able to fake the ownership of a property by altering the names by making use of editing software.

Also, owing to the ease with which the notary stamps can be copied – the rate at which fraud can

occur has increased considerably. This makes the authenticity of documents questionable. The

American Land Title Association has asserted that all the real estate transactions consist of at least

one error which is subject to correction before the title is transferred. This, in turn, leads to

increased costs being incurred by the owners because they have to justify their ownership. To

prevent anything of the sort from occurring, the owners rely upon title insurance – which further

enhances property purchase cost.

Solution:

Once our blockchain solution will tap the real estate market, it will begin to include the history,

location and details about the title of the property holder. As a result, a number of stakeholders

could rely upon this method because tampering the title would require to bring about a change in

the existing data which can only occur once a consensus is run through the many nodes of the

blockchain. Also, the encrypted manner in which the information is stored would make it very

difficult for criminals to commit any crime.

The introduction of blockchain in this industry would also lead to increased speed in transferring

the title; thus, replacing the paper proof with a digital proof is now becoming the go-to.

Additionally, once everything becomes digital – the verification procedure would become a whole

lot simpler.

3. Expensive cross-border transactions:

When it comes to transferring money or paying for a property transaction, the transaction could

become extremely expensive and tedious because of the paperwork that is required to be turned in

as well as the number of people who are involved in the entire procedure. The problem becomes

worse when you are dealing in international transactions. For instance, if a property transaction

involves a buyer from the United Kingdom and the seller is from India – then the number of people

who would be involved in the process would lead to an increase in the transaction cost. The local

bank in the buyer's country would transfer the amount to the head branch of the correspondent bank

in the UK – this money would then be paid to the seller's bank which is situated in India. Finally,

the amount would be transferred to the local bank account which the seller has access to. This

procedure is subject to errors and is not as transparent as the users expect it to be.

Solution:

Source: www.applicature.com

Smart contracts can remedy the situation mentioned above and reduce the inefficiencies down by

various notches. It will also enable a transparent environment wherein the payments procedure

would be carried out.

Blockchain can simplify the overall procedure and provide for a network wherein the two parties

can interact without having to put themselves under a loop in which the interaction with

intermediaries is a mandate. The information that is going to be sent over this common ground is

going to include things like delivery time, foreign exchange rate, transaction fee and all other

requisite data. Additionally, when it would come to settling the procedure down – the process would

be very smooth because both the parties will have access to each other's ledgers by means of this

open network. It must not be forgotten that the method will be free from any errors because it

entails cryptographical verification of all the transfers that are to take place.

4. Scattered information:

The procedure of dealing in real estate is extremely complex because the various steps that the

process is made of are not interlinked. This leads the information to be scattered in various places

which results in duplication of data.

Solution:

Source: www.cointelegraph.com

Blockchain will serve as connective tissue and will connect all these procedures so that they are

accessible at one platform. Thus, all the involved parties will gain access to a database which

consists of the relevant information. Also, the database will be able to record the information in

real-time. While addressing this important issue, the realtors could also make use of predictive

analytics so that smart insights can be drawn from the blockchain data. This would ultimately result

in an increase in the quality of the operations of this industry.

5. Complex search processes:

Brokers, owners and various other stakeholders make use of so many listing platforms to access

information pertaining to properties. The first and the foremost shortcoming of this is - to access its

data, you must subscribe to the platform which requires a very hefty fee. Also, the details are

questionable for they are completely dependent upon the broker’s preferences. On top of this, the

search process is very complicated because of the high probability of its bits and pieces being

spread over various platforms. This delays the overall procedure and leads to low levels of trust

amongst the individuals involved in the procedure.

Solution:

If the listing platform is based upon blockchain, like Banknet’s real estate platform, the data will be

distributed on a peer-to-peer network so that the brokers can exercise control over their data. This

would also enable the data to be accessible freely; thus, leading to an increase in the trust amongst

the people. This platform would be able to provide clear details about the location of the property,

the history of the property’s ownership, the details pertaining to the tenant, how old the property is

and properties available on similar rates. This factor will also introduce affordability into the

picture.

Problems of the insurance industry:

1. Fraud:

From what we have come to understand about fraud, it is indicative of illegal activity and the

scenario gets worse when it comes to the industry as huge as the insurance one. Looking at such

frauds from the perspective of sellers, it is inclusive of selling policies from companies which do

not even exist and fail to submit the premiums back to the clients when they are in need. From the

buyer's side, it includes making use of a false medical history or faking death etc. These ways pave

a path to exploiting the contract an insurance policy stipulates and both the parties – who attempt to

commit this crime – are equally to be blamed.

Solution:

Source: https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=IUW03049USEN

Blockchain has been endowed with the potential of providing a shared ledger across all the people

who operate on its network. Thus, blockchain possesses the potential of eradicating all sorts of

errors while ensuring that the chance of a fraud occurring is diminished by leaps.

A storehouse of data which is decentralized and is available online at the disposal of people – to be

checked at any point of the day – can be relied upon in order to gather information pertaining to the

policies, customers as well as transactions. In this manner, the companies will be able to keep a

track on activities which are being carried out by suspicious stakeholders and the transactions which

are duplicate. This technology also acts as an aid in cross-border payments which rely upon

currencies used as legal tenders in their regions.

In case of reinsurance as well as speciality insurances – the insurers do not have direct contact to

their end clients. This may result in several inefficiencies because of the resultant gap in

communication and thereby leads to poor quality data. However, blockchain can come to the rescue

in such a scenario because verification and validation are the basis on which the blockchain

technology has been crafted.

2. Haphazard management of claims:

One of the most vital components of the insurance industry is the processing of claims. The whole

industry functions upon this step and for as long as we have known this sector, it has been miles

away from making use of technology which has led to several shortcomings and has meant for it to

lag behind in the global scenario since all the others have begun to derive advantage from the use of

technology. Also, it is needless to say how complex the process of managing claims is. The industry

has been manual – for as long as it has existed - and makes use of several systems, at once, this is

the reason that it is not free from errors and this has hampered the relationships a firm is capable of

forging with their customers.

Solution:

However, the advent of blockchain is capable of bringing about some relief in this industry because

of it being efficient, customer-focused as well as transparent. All the said attributes act as catalysts

in increasing the trust amongst the stakeholders.

The claims prevention segment can leverage the use of blockchain to enhance their risk selection

process by integrating external risk and location analytics. Since the technology makes use of a

common ledger, it will allow the insurers as well as the involved third parties to access and update

the applicable information.

The mentioned procedure is a smart contract driven. While it is understood that the data required by

the smart contract to function may lie outside the blockchain network, it is a must for a third party

to be introduced to complete the required loop and carry out an action. This third party is known as

an oracle which is going to help the information reach the blockchain network at a said point of

Source: https://medium.com/crypt-bytes-tech/medicalchain-a-blockchain-for-electronic-health-records-eef181ed14c2

time. Once the smart contract receives the said information – it acts in accordance with that. It is

recommended to make use of a hardware oracle solution which incorporates the use of sensors to

track the events which are going around a certain place and time.

An example to illustrate this statement would be that a sensor would run an alert in case a crash has

occurred and will inform the conveniently located medical teams, garages as well as towing

services about the said crash. This will be enabled using smart contracts which are going to

smoothen the multidimensional procedure.

Thus, the combination of the images retrieved from the satellite, data from the sensors and mobile

technologies with blockchain will ensure that the claims payment and management is eased when a

natural disaster was to occur. Thereby, the data accessed from weather stations could determine the

claims amount and by means of the blockchain, the sharing of data would become effective.

3. Inaccurate risk processing:

A contract that pertains to insurance serves as a guarantee by the insurer that it is liable to pay for

any damages which have been caused owing to the danger that has been covered. The insurance

industry has been predominantly earning by means of creating insurance policies. This allows the

insurers to collect premiums from the clients and thereby proceed to generate profits.

The profitability of an insurer, as we know it, depends on how well they understand the risks which

are associated with what they are promising to insure. The amount charged by an insurer while

creating a policy is an important aspect in which insurance policies function. The premium that the

insurer charges must be enough to cover the claims that are expected in the future to avoid any

circumstance wherein the insurance company ends up paying out more than it has received as

premiums. Nonetheless, if such a case was to arise – it is a result of an inaccurate assessment of

risks.

Solution:

With an increase in the number of devices linked to the Internet of Things, the volume of data that is

being generated is bound to increase. It goes without saying that this data, if available, will be very

beneficial to the insurers as they intend to develop precise risk calculation models or products like

usage-based insurance (UBI) models.

For instance, peeking into the auto insurance market will allow the companies to identify high-risk

drivers on the basis of encrypted data which relates to the breaking patterns, driving distances as

well as time and similar behavioural patterns of the users. This will also help in verification of the

information which the users have mentioned on their applications.

Blockchain would be managing the large amount of data which is being shared amongst millions of

devices which are communicating with one another on this network. The technology will function

on a peer-to-peer basis instead of coming up with an expensive data centre which is going to deal

with this enormous data. Thus, once these devices begin to manage themselves – the whole process

is bound to become cheaper.

4. Reinsurance:

Reinsurance can be a very frustrating process especially when there is a lot of validation work

involved and it gets all the more tiring if you do not have all the documentation in one place for you

to access. The task becomes tedious and time-consuming if you have to go around investigating to

lay hands over the missing document. This will not only waste your time and reduce your efficiency

but will also result in an inaccurate reinsurance processing.

Solution:

As blockchain has come to exist, it is likely to benefit the P&C insurers the most – if they are

looking for a clear outlook towards their reinsurance contracts as well as exposures to the risk. For

instance, if an insurer is making an attempt to distribute an equal amount of risk to two separate

reinsurers – the blockchain technology will become handy in this case. It would help provide insight

if one of these reinsurers is trying to unload some of its risk to a subsidiary of the other reinsurer.

Also, this will help the insurers derive confidence that as they are reinsuring themselves, they will

be able to balance their capital against some specific risk that they foresee in the upcoming future.

While employing blockchain, the reinsurance segment is going to benefit obtaining accurate reserve

calculations which is going to be based upon actual contracts that are participating as well as will

update the calculations once the data has been furnished.

This is also going to aid the insurers in becoming flexible as long as moving the capital is the matter

of concern and will increase the transparency and capital efficiency. Thus, audit trails are easier to

keep a track on.

Problems of the banking and finance industry:

1. Delayed record-keeping:

Manual accounting has existed in the banking sector ever since the latter has incepted. However, it

has been observed that there are several problems with this technique. The major issue is that there

is likely to be a delay in the entry of the transactions made throughout the day. This occurs due to

the fact that humans are prone to errors and require time to carry out a process as compared to the

technology which today's century is being met with.

Solution:

Thus, to remedy this problem Blockchain has been introduced to banking. This technology holds

the benefit of keeping all the records immutable. For instance, if Person X has been sending funds

to Person Z, then this transaction gets recorded on the blockchain, and under no circumstances can

this be altered. The only way to make this change would be by accessing each user’s information at

the same time and making the same changes throughout, which doesn’t look very likely.

The fixed and immutable blocks provided by blockchain are considered to be significant due to

many factors. One reason being – the businesses can now instantly forward these block addresses

for easy transactions and also, the receipt that is provided after the transaction can be given to both

the involved parties for their individual safekeeping in a jiffy. Hence, an immutable account book

by blockchain is regarded as a beneficial tool in the banking sector as it is decreasing the number of

transactions that are disputed and also helps in tracking down an identity fraud.

2. Slack in the transactions:

If we take a look at the present scenario, the transactions that are done in banks take a number of

days to process, the reason behind it is the technology used in banks has remained constant since

ages and even when it was changed, the security and compliance systems were equipped on the

already existing banking set-up. Therefore, it takes 2-3 business days for performing a standard

transaction.

Solution:

To combat this issue which has persisted in this segment for so long, fintech companies began to

take over and they made use of the blockchain technology. Owing to this change, the transactions

are processed at a much higher speed which reduces the probability of a hacker intervening and

diverting the payments being made. While people using public blockchains like Bitcoin complain

about the procedure taking time up to ten minutes, the businesses that make use of Ripple which is a

private blockchain can complete their transactions, cross-border, within seconds.

3. Too many permissions

At the dawn of the 21st century, we witnessed the uprising of information technology but it was

accompanied by several perils which include the threat of privacy breach. It is needless to say this

problem has crept into the banking industry as well and has been spreading over ever since. Users

have been subject to malice and that is why they secure their credentials from being accessed by

Source: Qulix

anyone. Thus, in this way, the data can only be shared manually. However, even trusted individuals

like the user's spouses need to become a part of this tedious hassle of the provision of manual

information.

Solution:

The blockchain is going to serve as a means to overcome the stated problem for it is to provide an

all year round visibility into the said accounts. Given the technology of encrypting data, blockchain

has made it very simple for the users to transfer data which is sensitive. However, this is not it –

blockchain allows the users control over who all can access this data which they term as sensitive.

This will help the users eradicate the doubts they have pertaining to the entities who have access to

their information because of Blockchain’s transparent permission system; thus, it will help us be

away from issues like identity thefts.

4. One size doesn't fit all:

Ever since the banks have come to exist, they have begun to provide solutions which are directed

towards the public. However, these fixes are very generic in nature and do not address specific

Source: https://www.techbullion.com/how-blockchain-is-making-it-easier-for-fintech-companies-to-scale-up/

problems that people are being met within their day-to-day.

Solution:

Since the problem has come to notice, people have been trying to find a way around it. Thus, they

have resorted to blockchain as an aid which has led to the origin of several startups which mimic as

banks. In a similar manner, the blockchain is aiding Banknet's operation so that people can acquire

loans against their crypto holdings in accordance with their budgetary needs. Thus, helping the

banking system escape one vital inefficiency.

5.

Insecure:

Since the banks are currently manual – an individual's information can easily be leaked or can

easily be accessed by anybody who gets ahold of it. This can worsen the situation for them because

they are under the risk of important information being given away.

Solution:

Some models of the blockchain, like Banknet's, involves the use of two keys – a public and a

private key. The public key is made available to all the users and helps the users in viewing the

account balance and transactional history. Meanwhile, the private key is linked to the user's account

number and is shared amongst the people who are parties to the transaction. Even if a hacker gets

Source: https://hackernoon.com/banking-without-bankers-blockchain-unlocked-the-gates-for-open-banking-226373d34795

ahold of the private key and is successful in decrypting it – they would not be able to make any

transactions because the key can be accessed only once.

Also, it must not be forgotten that the traditional banking system introduced several intermediaries

to carry out the errands people needed to run. Nonetheless, with the introduction of the blockchain,

the number of middlemen have decreased so that the user's sensitive information can be kept from

being distributed innumerable times while doing away with the amount being spent on availing the

services of these middlemen.

6. Information scattered all over:

It goes without saying that the quality of the data stored with the banks is vital. However, the

problem is that the banks have their information scattered in multiple places. This allows different

parties the ability to meddle with the data in the location they are in. With so many glitches, the data

is likely to be outdated and incomplete. Practically, the situation gets all the more complex because

of the many regulatory actions involved in it.

Solution:

Despite an entire industry being available to help in managing this financial data, the problems have

not ceased to exist. That is when blockchain comes to rescue because it is capable of storing data in

enormous amounts without having a preference for the data type. The data on this network can only

Source: https://www.linksfin.com/article/243227

be changed in accordance with the rules that have been defined by the organization. These rules will

be put into place by making use of smart contracts. Thus, this shared ledger technology will provide

as a means for more reliable data. Also, since all the data will be accessible in one place – it can

reduce the infrastructural costs incurred by banks.

Roadmap:

BKU Token Distribution:

BKU Tokens Allocation – In accordance with the area of operation:

Banknet's Public Policy and Corporate Bylaw:

Men and women will share equal opportunity – unequivocally - to occupy any available positions in

any organizations, subsidiaries or affiliates wherein Banknet has financial and/or business interest.

Banknet's public policy strongly prohibits discrimination or abuse of any person with respect to

their gender, race, colour or origin. Banknet's corporate bylaw allows to provide financial support to

humanitarian non–profit organizations such as cancer research centres, children protection

organizations, women rights foundations and environment and nature protection bodies. Banknet's

management believes that regardless of the overwhelming majority that the company is to witness,

its BKU tokens holders will proudly endorse the company’s corporate bylaw and public policy as

mentioned.

Offering Price and Schedule:

Token Symbol: BKU

Token Type: ERC—20

Accepted Currencies: FIAT, BTC, ETH , XRP, DASH, LTC, BCH ,NEO, EOS, BNB and USDT

Pricing:

Public pre – sale: $0.004

Price for the first 7 days: $0.007

Price for the next 7 days: $0.009

Price for the next 7 days: $0.012

Price for the last 7 days: $0.015

On a single investment of $5000 or more, a 15% discount shall be applied.

On single investment of $10,000 or more ,a 20% discount shall be applied ,

Minimum Subscription: $75

Banknet will list its BKU token initially at a price of $0.0015 per token.

(Please note that all the prices have been mentioned in accordance with the USD.)

Vesting Period

All the tokens which will be distributed to the Banknet team will be locked for a period of 1 year

after the ICO comes to an end. This is to inform them that the coins will be released periodically.

Compliance and Security of the Banknet Platform:

Banknet’s primary aim is to ensure the security of its investors and users, therefore, there are certain

steps that have been put into action to ensure the same:

1. Database of Registered Users: The user database to be recorded with Banknet is going to be

completely secure from any ill will.

2. Layers of Protection: Banknet is going to rely upon multi-factor authentication which will require

the password of the user in combination with one of the following measures:

a. SMS

b. Google Authenticator

3. Detection of Users: Banknet is going to keep a track on the identity of the consumers on the basis

of the KYC forms that users would be made to fill out.

4. Reputation Score: Once the ICO goes through, a scoring system will be established on the

Banknet platform. This will enable users to make informed decisions while availing banking and

financial services.

5. Technical Support: A special team at Banknet is going to be available at points of the day so that

the platform can deliver its services smoothly and without any interruptions.

6. Security Account and Wallets: The employees at Banknet will not have access to the wallets that

the users will be using since the former is going to be governed by the Smart Contract technology

incorporated by Banknet. The passwords to the wallet or the platform are never going to be saved

and each time a user will be required to make a transaction, the platform will immediately ask for

their password.

7. Privacy and Confidentiality: The blockchain technology at its heart operates on the basis of

encryption and that is going to ensure that the users have utmost levels of privacy at their disposal.

Since the platform is so secure, it leaves little chance for any leaks to occur in the first place.

Disclaimer:

Taking part in an ICO is an activity filled with risks which are on the higher side of the spectrum.

Nonetheless, this coin offering is focused at those executives who have a fine base of knowledge

with regard to the blockchain technology, trading in cryptocurrencies as well as trading at large –

stocks, foreign exchange etc.

The individuals who have decided to engage in this ICO are well acquainted and acknowledge the

security risks as well as the probability of lack of economic results. Along with this, the purchaser

of the coin is aware of the legal unpredictability of such a transaction and has had legal counsel in

accordance with the law they subscribe to.

The buyers of the BKU coin understand that this paper consists of forward-looking statements and

the project so presented is subject to technological and economic changeability. Thus, the company

has the right to exercise any modification, addition and deletion in the content of the document in

accordance with what the law governs. Thus, the investors are familiar with the fact that if the token

fails to perform or be implemented at all or loses its partial/entire value, then they cannot issue any

legal action against the company.

An investment in the BKU would mean that the investors can make use of Banknet’s services;

however, the company stipulates that the distribution of the token, as well as the use of the token,

must be carried out in the manner which has been mentioned. In addition to this, the value of the

token will depend upon the recognition of the value of the coin in relevant marketplaces; thus, the

project cannot determine the value of the coin, beforehand. Thereby, the coin is not and shall not be

considered to be as a bond, security, share, ownership of any form – in the future.

This whitepaper intends to provide the readers with information related to the ICO and is no manner

intended as a financial promotion. Thus, this whitepaper does not serve as an encouragement to

become a part of any investment activity of the sorts and does not act as a guarantee of future

profits to be yielded once the buyers invest in the said token.

Word of Caution:

The offering memorandum was neither filed with nor was approved by the U.S. Securities and

Exchange Commission. It is not intended to be distributed or offered on the U.S. soil, or within any

of its territories. Under no circumstances, U.S. citizens or residents can participate or subscribe to

the offering regardless of their permanent or temporary address. Furthermore, citizens and residents

of state sponsors of terrorism, as defined by the U.S. Department of State (see a published list) are

not allowed to participate in the offering. Banknet reserves the right not to accept subscriptions

where the funds come from restricted sources/subscribers; therefore, if such a case were to arise -

all restricted funds will be returned immediately to the source.