Ever wondered how Venmo, Coinbase and other fintech apps work behind the scenes? Rehive is designed to be flexible and easy to build on top of and/or integrate any existing payment system, service provider and store of value.
In most cases when you’re creating a fintech app it is not always possible to build everything directly on the payment network or core banking system. These systems weren’t designed to easily build on top off. It is often necessary to create a middleware layer to abstract existing payment networks, banking products and/or niche service providers e.g. KYC/AML.
Businesses can either build a many-to-one middleware layer on top of an existing system or map accounts one-to-one. Many-to-one architecture means that the sum of all the user balances in the system is mapped back to a “fat” custodial account, e.g. like a bank. Whereas an one-to-one architecture will directly map all balances and transactions on both systems. It is not necessary to create a middle layer in a one-to-one architecture, but it limits customizability and speed to innovate while keeping management processes clean.
For example, Venmo, Coinbase, Paypal, Robinhood, Acorns and more had to build their own ledger and user management system to support their niche features like sending to an email address, tracking investments, recording savings, etc.