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Core business model change or business need? The blockchain cross-border clearing product Shell fully supports ETH

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Core business model change or business need? The blockchain cross-border clearing product Shell fully supports ETH

March 02
22:20 2020

On February 22, 2020, the cross-border payment product Shell launched by Trion Lab was updated. After this update, Shell fully supports ETH deposit and withdrawal functions and flashing functions. According to our understanding of Shell’s business model, Shell has always been fond of stablecoins in the blockchain industry. Does this update support ETH run counter to its core business model? Actually not. Careful study of the new version of the Shell client, we found that Shell only opened the deposit and withdrawal of ETH.

When it is necessary to pledge wallet assets to participate in cross-border settlement nodes, it is still necessary to perform a “Flash Exchange” step to exchange ETH assets. Exchange into USDT. This means that Shell always adheres to its core business model and supports the operation of the entire global Shell node with stablecoins. At the same time, Benoit Coeure, Executive Director of the European Central Bank, said in a recent interview that even with the advent of digital currencies, central bank currency will remain the core of the system. Cryptocurrencies still require fiat currencies as part of their support, as this is necessary for system stability. He also pointed out that the central bank’s currency may need to be developed to be part of the support, it may have to be tokenized, it may have to take a different form, but it will remain at the core of the system. This coincides with Shell’s core business model.

So why did Shell carry out this expansion and update of ETH related support? We think for two reasons:

1. Its own business volume is huge, and it needs to expand more global nodes to support it.

This time the Shell European, American and Asian nodes are officially running, and the Shell mainnet is put into operation. This means that Shell is expanding globally. Europe, the Americas, and Asia have the world’s largest economies, the European Union, the United States, China, South Korea, and Japan, and have strong international trade needs. From the increase of USDT pledged online in Asia to 30,000 USDT, we can see that the activity level of Asian super nodes is extraordinary.

2. It is convenient for global super nodes, especially new super nodes, to join the Shell network.

The convenience of digital currency purchase in various countries has affected Shell’s node expansion in new regions to a certain extent. For example, in the Korean market, it is more difficult for local nodes to purchase USDT on exchanges, and it is relatively difficult to hold and trade ETH. The update of expansion functions can provide more convenient services for local nodes, reduce the difficulty of holding transactions in USDT, and facilitate the expansion of more international nodes. Let’s boldly assume that with the subsequent Shell updates, there may be more mainstream digital assets that can be seamlessly flashed into the Shell ecosystem through USDT.

According to the official client data, Shell’s main network has been running for more than 4,300 hours, with more than 13,850 super nodes on the entire network, and branches around the world. The ETH deposit and withdrawal function and the flashing function effectively reduce the entry threshold for Shell and make it possible for more super nodes to enter. The opening of Asia’s pledge ceiling and the simultaneous expansion of supernodes have ushered in a golden era for Asian supernodes to provide super contribution to the construction of the Shell ecosystem, which is bound to bring rich returns to supernodes in Asia.

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