The CTO of P2P lending platform SOFIN talks about international standards for tokens and about major technical challenges of the project.
Vitaly, you were involved in many financial projects. What attracts you in SOFIN?
I am more than 9 years in total in IT development. Almost all this time I was involved in development of enterprise systems — the software for corporate use in big companies. I was involved in several financial startups in the US market. My profile is high-load systems. SOFIN project combines everything that I have done before. I am interested to be in the team of founders.
What are your responsibilities in SOFIN?
I make a scheme that describes the way the system will function. I am responsible for technical input - system architecture, its distribution, performance and failure safety.
What is the unique feature of the project from the technical point of view?
The main thing is that we are focused on international market. We consider legal aspects as important: every country has its own legislation and in every case some list of documents is required. The most complicated thing is to manage the congestion of the system and big volumes of miscellaneous data. In order that people could use our platform, we need the legal aspects of our activity in different countries to be similar, we need the system to be seamless. The other unique feature is related with the token integration, but this task is much more easier to solve.
Why is it important to distribute the system load?
It affects performance of the system. Any system that works with money, must be failure safe. For example, if an online bank shuts down even for an hour, you will see the headlines that the bank is not working again in the media. When dealing with financial systems, you should avoid such kind of situations by all means. SOFIN platform is a compound product and it is important for it to function nonstop.
What are the technical features of SOFIN token?
Our token is a currency of our platform. Other P2P projects are backed solely by the currency of the countries where they work. If they want to operate in another country, that is more complicated for them. They do not have a universal coin that can carry out this task. Of course, this will not be easy for us as well. In most of the countries where we will launch our service, we will have to open representative offices to be legally recognized. Still with our token it is easier to enter international market. Also the tokens will be used in a bonus program to motivate the users of the platform.
In what way do you ensure the security of the system in relation with cryptocurrency?
This is done on the level of the smart contract. If a smart contract is written correctly and is secured to the full, there will be no problems with the vulnerability of the token. Cryptocurrency is a recent trend and there are no generally recognized international standards for issuing it. But there are some steps towards framing technical standards. For example, nowadays many companies use ERC20 smart contract, and there is an instruction for how to write it. Thanks to ERC20 the security of smart contracts increased. I can say that ERC20 is a remote analogue of PCI DSS standard (Payment Card Industry Data Security Standard), which is used in classical payment systems. This standard describes protection of customer’s data, the way to store data, the access types in detail. Roughly if you don’t have PCI DSS certificate, you will not be able to work with Visa and MasterCard bank cards. ERC20 is a combination of methods which can be used to hang on when developing the token.
In what way will the payments in fiat and your model of tokenization be integrated at the platform?
These are two separate unrelated modules. The payments in fiat at the first stage will be made with the bank cards. We will use trusted merchants for this task. Trusted merchants are the payment gateways that work with the cards and with the banks directly. We have several partners to consider. Still in every country we will explore the market of merchants and will choose those which will suit better for our task. As for the token, there will be no third-party services there. The smart contract is fully ours. Later we will present the integration with exchanges to change tokens, but it will be a separate module.
Can you name any project where you were involved in, that is close to what are you doing now?
If to talk about financial projects, I was involved in creating a payment system for South America, its code name is M57. We studied PCI DSS standardization and got a certificate to be able to work with bank cards. That was literally a payment module, a merchant.
What is your main challenge in SOFIN?
It would be cool to ensure full failure safety of the system so that it could work fast and efficient in full load mode. Once I partnered with an US based startup, which broadcasted stock market quotes. Their standard was the ability of the system to boot within two seconds at any moment of time. If it booted in 2,1 seconds, that was already a failure. Now in SOFIN we set the same rigid high quality standards. The system must work as quick as possible and comfortable for a user.
Feel free to ask any questions in SOFIN Telegram chat:https://t.me/sofin
JULIA KUZMINA, journalist