{"id":29797,"date":"2020-09-27T11:45:53","date_gmt":"2020-09-27T09:45:53","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=29797"},"modified":"2023-03-26T19:10:28","modified_gmt":"2023-03-26T19:10:28","slug":"mojaloop","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/mojaloop\/","title":{"rendered":"Mojaloop – What It is and How It Ensures Financially Inclusive Future?"},"content":{"rendered":"
With the rise of digital payment systems and mobile wallets, universal financial inclusion is now possible.<\/strong> Systematic barriers such as outdated payment infrastructures and challenges to interoperability are now being solved through emerging technologies, like blockchain<\/a> and crypto.<\/strong><\/p>\n <\/p>\n But today\u2019s global financial system still does not meet the needs of unbanked people,<\/strong> especially in Africa, the Middle East, Latin America, East, and Southeastern Asia. The reason is that current payment systems are not interoperable.<\/p>\n To make digital payment systems interoperable, Mojaloop<\/a> kicks in.<\/strong><\/p>\n Mojaloop is an open-source software platform that aims to improve the interoperability of payment systems<\/strong>, making it easier and more affordable to send and receive money, especially in emerging markets. Mojaloop, launched in May 2020, is managed by Mojaloop Foundation, a charitable nonprofit organization based in Wakefield, Massachusetts.<\/p>\n In essence, Mojaloop is designed to provide a reference model for payment interoperability, that can be used to overcome barriers that have slowed the spread of digital financial services. It is not a financial product or application in itself. According to Mojaloop Foundation, it is an open-source blueprint that will remove barriers like time, money, and technical complexity, that have hindered payment models from meeting the digital financial needs of the world\u2019s 1.7 billion unbanked people.<\/p>\n Mojaloop grew out of principles set forth by the Financial Services for the Poor team at the Bill & Melinda Gates Foundation<\/a>. Global payment network Ripple<\/strong> <\/a>is also closely related to Mojaloop Foundation.<\/p>\n <\/p>\n There are several components that make up the Mojaloop ecosystem. According to the Mojaloop documentation, the Mojaloop Hub is the primary container and reference used to describe the core Mojaloop components. The Mojaloop is further split into two domains: Mojaloop Hub and Mojaloop Open-Source services.<\/strong><\/p>\n The Moojaloop Hub consists of Mojaloop API Adapters, the Account Lookup Service (ALS), the Central Services (CS), Central Settlement service, and Quoting Service.<\/p>\n According to the documentation provided by Mojaloop, the Mojaloop API Adapters provide the standard set of interfaces a digital financial service provider (DFSP) can implement to connect to the system for transfers.<\/p>\n A service provider can connect with Mojaloop by adapting Mojaloop\u2019s example code or implementing the standard interfaces into their own software. This provides a simple way for a DFSP to connect to the interoperable network.<\/p>\n <\/p>\n The central services contain a set of components required to move money from one DFSP to another through the Mojaloop API Adapters like banks or clearinghouses.<\/p>\n This contains not only the core central ledger logic to move money, but also provides fraud management services, identity lookup, and enforce scheme rules.<\/p>\n This component routes each payment to the correct service provider in the ecosystem. The Mojaloop documentation explains this service as:<\/p>\n \u201cThe Account Lookup Service (ALS) provides a mechanism to resolve FSP routing information through the Participant API or orchestrate a Party request based on an internal Participant look-up. The internal Participant lookup is handled by a number of standard Oracle adapter or services. Example Oracle adapter\/service would be to look-up Participant information from Pathfinder or a Merchant Registry. These Oracle adapter or services can easily be added depending on the schema requirements.\u201d<\/em><\/p>\n The quoting service determines fees and commission required to perform a financial transaction between two DFSPs. This service is always set up between payer FSP to Payee FSP, just like a financial transaction.<\/p>\nWhat is Mojaloop?<\/strong><\/h2>\n
What is Inside Mojaloop Hub?<\/strong><\/h2>\n
Mojaloop API Adaptors<\/strong><\/h3>\n
Central Services (CS)<\/strong><\/h3>\n
Account Lookup Service (ALS)<\/strong><\/h3>\n
Quoting Service<\/strong><\/h3>\n
Central Settlement Services<\/strong><\/h3>\n