Yellow is a mesh network that uses state channels to unify all of the blockchains. This is not a new blockchain.
It is a financial transaction processing framework built on top of existing blockchains through a Layer-3 concept.
We use state channel technology to build a metadata index over the liquidity and digital assets over any blockchain, making trading easier.
The benefit of this approach is a global, localized, and ultra-high-speed consolidation and aggregation of liquidity, smooth order flow and because there is no blockchain there is no typical performance bottleneck.
The overlay envisions a three fold approach, commonly used in traditional financial markets;
1) A Smart Clearing House to independently clear and validate transactions
2) Offering Cross Currency Swaps to facilitate liquidity management between brokers
3) An Electronic Communication Network for automated order matching on a best effort basis
The mesh network also supports further decentralization of the crypto asset space, as it will allow small brokers and market makers to operate more efficiently without the use of large centralized exchanges, which often require the custody of assets on their proprietary platform.
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