Fortuna (FOTA)

Fortuna is a Chinese blockchain company which aims to create a platform for the global over the counter (OTC) derivatives market. The company was inspired by the problems in the OTC derivatives market of China to elaborate a platform that will solve this type of problem globally.

The company aims to offer solutions to this specific market. One of the solutions is to make it more transparent. There is a big trust issue in this market, but blockchain technology can be used to make it safer and more transparent and, thus, more trustworthy. Transactions can be made via smart contracts and they will be stored forever on the blockchain, which means that they will be secured.

Registered in Singapore, the Fortuna team managed to raise over $2 000 000 during the duration of the crowdsale.

• Trust Network
• Operational Efficiency

Fortuna wants to solve the trust problem of the OTC derivatives market with consensus algorithm DPOSA, structured smart contracts, decentralized quote scheme, digitalized supervision and other techniques of blockchain.

• DPOSA: Optimized Delegated Proof of Stake + Activity.
• Structured Smart Contracts: Programmable and automatic executable digitalized contracts.
• Decentralized Quote Scheme: Price quoter that eliminates the possibilities of price manipulation.
• Digitalized Supervision: FOTA token is introduced to unify exchange media on the platform. The FOTA in margin account will be supervised 24/7 and no human being can intervene.

As a specialized blockchain platform for derivatives, Fortuna can improve the operational efficiency of each step of transactions, including contract creation, price quoting, contract signature, trading & clearing.

• Contract Creation and Signature: 3-Layered contracts that inherits upper layer’s clauses.
• Quote Broadcast on Blockchain: Replaces traditional price quoting by broadcasting to the blockchain, which reduces the cost of communications and response time by parties.
• Automatic Settlement with Smart Contract: Fortuna utilizes the technical features of smart contract to improve the efficiency of transaction settlement.
• Data Supervision on Blockchain: Fortuna utilizes the technical features of blockchain and decentralized network to improve the quality and efficiency of data supervision.

There are quite a few regulatory headaches that pop up instantly and many of them are not addressed anywhere in the whitepaper. How do you ensure that a derivative payments are enforced? How are margin calls enforced? Who is the arbitrators in case of a dispute? These and a few other concerns pose quite a serious risk for the adoption of the Fortuna platform.

Overall, Fortuna is quite an interesting project positioned in the OTC derivatives market. However they do have some issues they need to address before they have a platform that’s ready to go mainstream. Definitely keep it on your radar if you’re interested in its services.