Introduction
The Crypto industry is about to get more exciting.
If you have ever earned and spent a crypto, then you would know that you cannot buy anything with your cryptocurrency from an average store.
I do not mean that your crypto holds no value. Quite to the contrary. Just one Bitcoin is today valued at 7,468 usd.
However, you cannot spend your cryptocurrency immediately you earn it. First, you necessarily have to convert it to Fiat (one of the national government-approved currencies) at a cryptocurrency exchange and charged an exchange fee which is often steep.
Only after this exchange delay can you pay for the goods or service you require - with fiat.
Needless to say this is an annoying phenomenon to cryptocurrency earners. It is also a curious one. The crypto market is thriving. Since the invention of Bitcoin in 2009, There are now over 1,800 cryptocurrencies which serve as token to various projects on the blockchain, each attracting a wide range of investors.
The sheer number of people embracing blockchain technology and earning from it are increasingly significantly on a daily basis, from the average millennial to the high-networth entrepreneur. And cryptocurrency has been severally described as the future of money.
Acknowledging the growing weight of the blockchain in world economy, a few high profile companies are now accepting notably bitcoin for payments. They include Microsoft; CheapAir.com, who pioneered it in the travel industry; Playboy magazine, Namecheap, a domain name registrar and Reddit, social online forum amongst others. However, predominantly, stores do not. Your average online or local still does not accept cryptocurrencies.
So why are stores not accepting cryptocurrencies despite their obvious value?
One obvious reason which is key is that the blockchain is a new technology, different from the centralised, traditional system that we have been used to. It is decentralised, cuts out the middleman and operates transactions through smart contracts.
To send money to another person on the blockchain ( i.e a peer-to-peer exchange) would warrant sending the token from directly from the sender's wallet to the receiver's wallet. To send money to a different blockchain, the cryptocurrency would usually first be transferred to an exchange and converted to the token on that platform.
This is not how the traditional system transacts money. Mostly, payment terminals are the most popular consumer payment mode with stores. To confirm transactions, the merchant runs the consumers' debit/credit card through the terminal.
Debits and credit cards are issued by any of the payment processors like Visa, PayPal, MasterCard and many others running into their hundreds. But this payment processors all run Fiat currency.
Bringing cryptocurrencies to point of sale: GRAFT
Now GRAFT, a blockchain company wants to integrate cryptocurrencies on payment terminals.
GRAFT itself is a multi-currency platform run by the GRAFT foundation, a non-for-profit organisation. The platform's native token is also called GRAFT.
GRAFT is on a mission to bring cryptocurrency to point of sale by. The platform believes that for quick adoption of cryptocurrencies for payment, it must be adapted to fit into existing traditional nodes and not existing as a separate entity.
Through GRAFT, consumers will be able to pay for goods or services using any of several cryptocurrencies without first having to convert them to Fiat. Signed up merchants will also be able to easily accept payments with multiple cryptocurrencies with the concurrent value in Fiat.
GRAFT's Mobile Applications
The company definitely looks like it knows what it is doing. GRAFT has launched its MainNet and has already integrated on two platforms: Verifone and Ingenico. Previously it had launched three apps that will facilitate the transactions in both their IOS and android versions, making a total of six.
(1) GRAFT multi-currency mobile wallet apps for storing cryptocurrencies.
(2) GRAFT Cryptofind apps. GRAFT Cryptofind apps enable users to locate merchants that accept cryptocurrencies.
(3) GRAFT mobile POS apps enable stores to accept cryptocurrencies
Merchants on Verifone and Ingenico only have to download the applications and sign up on GRAFT to begin to accept payments in cryptocurrencies. This will expand their audience, enabling them profit from the multi-billion dollar crypto market.
The applications are free to install. As GRAFT is integrated on more payment terminals, merchants on the terminals will also enjoy this service.
Can you imagine the impact of this on the cryptocurrency and payment-processing industries?
Why use GRAFT?
Real Time Authorization
Through a 2-layer network with randomly selected supernodes, GRAFT is able to confirm transactions in real time, within milliseconds to second with settlement within 2 minutes. This is very uncommon in the blockchain industry is but will match traditional payment systems. This is very important as speedy transactions are critical to the success of a payment system. GRAFT expects to process up to 10 million transactions per day by 2021.
Simplified GRAFT payment flow
Due to its blockchain foundation, GRAFT is decentralised, secure, reliable and Immutable. This is also a direct result of the combined use of Proof of Work, Proof of Stake and Proof of Ideas algorithms on the platform.
The issue of security is very important in finance, Although GRAFT is blockchain-based, it uses an uncommon technology to ensure that transaction are private and untraceable. Parties involved in the transaction will be able to select the levels of disclosure on their private networks.
For effectiveness, GRAFT uses third-party providers for services that can largely not be decentralized, including credit card processing, identity verification and instant currency exchange.
Why should merchants use GRAFT services?
GRAFT accepts multiple cryptocurrencies, thus merchants are saved the inconveniences and additional cost of his maintaining multiple point of sale apps and wallets.
GRAFT is integrated with leading terminal providers which merchants are already familiar with, hence adoption will be seamless. Instead, merchants will now have the chance to profit from the multi-billion dollar cryptocurrency market.
GRAFT is also compatible with different credit cards.
On the whole, merchants are charged a fraction of the 2-3% that traditional credit card companies charge them for each transaction.
While merchants will be able to accept payments in different cryptocurrencies, payout will be in local Fiat and confirmation will be instant, with settlement to follow within 2 minutes.
Merchants can makes use of built-in merchant tokens, loyalty programs, automatic currency conversion features and several other added features on the apps.
Why cryptocurrency earners should use GRAFT
Users will enjoy zero fees charges on their credit balances
Users will not be charged for transportation.
Transaction costs are minimal and will be borne by the merchant.
Foreign transaction fees are eliminated.
Users will not have to exchange currencies to Fiat first, thereby losing some amount to exchange charges.
Users will be able to make small purchases with their earned cryptocurrencies.
Interest rates are lowered because of the elimination of middlemen.
Users in different categories can also earn passive income
Use cases of GRAFT
Users will be able to make small purchases with their cryptocurrencies:
Debbie is a steemian (a steemit user) who earns steem dollars and steem from blogging at her spare time. She does not earn a lot as she has a demanding full time job, hence she has to wait for weeks for her coins to accumulate, then withdraw it to an exchange, pay the exchange fees and then spend her money in fiat.
However, Debbit soon learns about GRAFT from the restaurant near her office who has integrated the system. She signs up and now buys lunch everyday directly with steem from her GRAFT mobile wallet. Debbie no longer has to wait for her coins to accumulate and her transactions with the restaurant are charge-free.
Merchants can accept multiple cryptocurrencies for payment of goods and use of Cryptofind app:
Mymoviebox.com is a movie ticket retailer store that previously accepted payments in only Fiat currency and in Bitcoin through her gift cards.
Since integrating GRAFT on their Point of Sale, mymoviebox.com now directly accepts Bitcoin payments via the GRAFT payment processor. It now also accepts payment in Ether, GRAFT and other major cryptocurrencies through GRAFT payment processor, which was previously not possible. This is in addition to the usual Fiat payments.
Most of the business' cryptocurrency-paying clients find it through the GRAFT Cryptofind app. Thus, it has succeeded in widening its client base and expanding its business.
Conclusion
The GRAFT project is definitely worth every crypto user and every merchant's attention.
Realistically, for a successful landing of the blockchain, there has to be a meeting point the traditional central system and blockchain technology, which GRAFT has made very plain in its project. I look forwards to the steady and gradual realisation of this laudable project. I look forward to the time as stated in GRAFT website, when cryptocurrency will be at every point of sale.
There are several other beneficial features which would make this article too lengthen. You can however find them on the platform's website and Whitepaper
graft2018
Twitter tweet
https://twitter.com/boladayl/status/1019482342396694528?s=20
- boladayl
This is my submission for the @originalworks GRAFT sponsored writing contest.