There are many ways the programmability of a blockchain network can be used to the advantage of security and control mechanisms. Some of which provide similar moats to those present in traditional financial systems. Ndau, known for pioneering the concept of an adaptive digital currency, has implemented a dynamic recourse period as a feature that can protect both institutional investors as well as cryptocurrency exchanges.
The network is developed by Oneiro as an alternative for long-term store of value. It runs on the Tendermint protocol and counts on built-in economic structures that incentivize both stability and potential for growth. The result is an asset that captures all the benefits of the digital currency markets but mitigates downside volatility. Ndau can achieve its own stability without being pegged to fiat currencies or commodities.
The network’s recourse period consists of “the period of time that it takes for a transfer of ndau to become available to the recipient to send to a different account,” as explained by the ndau team.
This is similar to what happens in brick and mortar banking systems where a transaction needs to be cleared before the funds are made available to the receiving party. These methods go a long way in preventing fraudulent activity by giving users a chance to catch it on time.
Holders of ndau can choose how long it will take for a particular transaction to take place. The initial period of time set by the system is an hour. This period can be reduced to no time at all or extended to the maximum amount of time allowed by ndau’s governance model.
The feature comes with other solutions on the ndau network that make it an ideal store of value and an important part of the Cosmos Network ecosystem of DeFi applications. The team has implemented in-wallet staking and a command-line multisig as improvements to popular blockchain features.
Altogether, these add up to security improvements that can ease the mind of large investors as well as the host of exchanges and DeFi applications that become “honeypots” for bad actors. John Lester, Head of Product Management at Oneiro, said they “believe security is essential to the development of the space and want to do our part.”