Zone has been described as everything from the most innovative financial technology since NIBSS to a groundbreaking, near-perfect fintech solution. These descriptions are largely accurate, but they resonate most with those who truly understand the value the we offer.
As is common with most B2B companies, Zone’s solutions might not be directly visible to the end-user or the general public. As an infrastructure provider, Zone’s work is felt by participating institutions. However, to appreciate the revolutionary value we bring, it’s essential first to understand the underlying technology that powers our solution—blockchain.
Blockchain is a distributed ledger and application runtime environment that is both transparent and tamper-proof. It infuses trust into counterparty transactions without the need for a central authority or intermediary by decentralizing the custody of data and business rules associated with any transaction or process. Blockchain ensures that the data and business rules it contains are valid, transparent, and immutable.
The decentralized nature of blockchain data means it is inherently transparent. This ability to provide transparency while maintaining security is at the core of our value propositions and benefits to financial institutions that connect to Zone’s payment infrastructure.
Blockchain’s Application in Zone
Zone is a decentralized and regulated payment network powered by blockchain. A regulated blockchain combines the transparency and immutability of cryptocurrency with the rules and oversight of traditional finance (TradFi) to create a decentralized environment where assets, applications, and records are safe, compliant with regulations, and secure.
We enable banks and other financial institutions (FIs) to transact directly with each other in a trusted and regulated manner. To fully appreciate how this setup significantly improves payment processes, it’s important to understand how the current payment rails work.
In the case of PoS transactions, the cardholder’s bank must go through a payment switch to transfer funds to the merchant’s bank, as the two banks lack a direct line of communication. Consequently, none of the institutions involved in the transaction can monitor its status in real time. If an error occurs, the switch must request information from both banks, which could take days or even weeks.
This setup also complicates efforts to combat chargeback fraud, as much time may pass before correcting the error. Zone addresses these challenges by enabling direct routing, automated reconciliation, and instant settlement of transactions between counterparties without the need for an intermediary while empowering regulators to enforce all regulatory guidelines and oversee operations. We leverage the emerging concept of a “Regulated Blockchain” to tackle the issues plaguing the existing payment infrastructure in the Nigerian market.
While payment switches traditionally link banks and maintain transaction records, Zone takes this a step further by placing those records on the blockchain, making them accessible to financial institutions. This also allows regulators to monitor transactions in real time, enhancing oversight and security.
It’s no surprise that NIBSS has partnered with Zone. While blockchain is a groundbreaking technology on its own, Zone has demonstrated that true innovation lies in applying it in a way that conforms with regulations and solves tomorrow’s problems today.
