|
KOVEREDPAY
Enabling reversible, refundable payments on the blockchain
Introduction
The creation of Bitcoin and its blockchain has given rise to the industry of
cryptocurrencies. It emerged as the first digital currency and is now becoming a
popular medium for payments on the web. Since its inception in 2008, Bitcoin has
seen a sharp growth in users and mainstream adoption by businesses around the
globe.
In 2015, Vitalik Buterin released Ethereum, a whole new Blockchain system which
supported Decentralized Applications (Dapps), thus paving the way for a more
flexible system. The concept of Dapps made it possible to create applications that
run on a decentralized platform; in this case, the Ethereum blockchain.
The creation of Dapps made it possible to provide solutions to specific problems
using the existing features of blockchain technology, which include permanent, rapid,
and more secured transactions, etc. The idea of the Ethereum blockchain was to
make everything decentralized, just as Bitcoin’s blockchain did for money.
Problem
One of the criticisms made about blockchains by mainstream consumers is that the
transactions on a blockchain are not reversible. For instance, if you purchase goods
from someone over the web with no trade reputation, they may take your coins and
never ship the item to you, and thus they will have stolen your money and scammed
you, leaving you with no recourse.
When buying products using a credit card (Visa, MasterCard, etc.), you’re
automatically protected against situations like this. If the purchased goods are never
received, aren’t what you expected, or are damaged, you can report this to your
credit company. They will investigate the case and then give you a refund. Credit card
transactions can be reversed.
This is not the case with blockchains. You cannot reverse a transaction once it has
been broadcast on the network. This remains a hurdle to the adoption of Bitcoin and
other cryptocurrencies by mainstream users.
Thus, reversible transactions are a necessity for the mainstream adoption of the
cryptocurrencies.
Solution
KoveredPay is a decentralized token based on the Ethereum blockchain. Our aim is
to enable safe, reversible transactions on the blockchain. The transactions made
using KoveredPay can be reversed and/or put on hold, making KoveredPay a must-
have cryptocurrency for both merchants and buyers to ensure the safety of their
funds.
The KVP token, developed on the ERC20 pattern, has been crafted for easy transfers
between users and businesses on the blockchain. Following the standard ERC20
pattern, the tokens can be easily used and integrated on the majority of Ethereum
wallets and exchanges.
The tokens will be distributed to users via an airdrop. At the end of the airdrop, the
tokens may be used to purchase goods on the websites accepting KVP, as they
become available. Advertising campaigns will be created to spread awareness among
people about the token. Merchants will be encouraged to accept the coin on their
websites.
How KoveredPay Works
KoveredPay will make it safer and more secure for people on the Internet to trade
with each other. Merchants will be able to use its capabilities to send refunds
instantaneous. The three main features of KoveredPay include:
1. Trustless Transactions
Let’s assume that you’re in a situation where you’re paying a freelancer for a quick-
fix of an issue on your website. The freelancer does not have a verifiable reputation
and you are unsure if you should trust the freelancer.
In this case, you can use the trustless payment system provided by the KoveredPay
token. The payment you make is sent and held, and both the buyer (i.e., you) and the
seller (freelancer) are unable to access the funds. The seller receives an event
notification that they have received the payment. You communicate with the
freelancer regarding the work, and they deliver the promised work in less than 72
hours. You’re happy with the work provided by the freelancer and you pass the
command to the system to release the funds to the seller.
If the freelancer fails to deliver the promised fix, you can immediately pass the
command to retrieve the funds back to your account.
If the buyer has released the payment, but is now asking for a refund, the seller can
send the refund by passing a command to the contract. An equal amount of funds
sent by the buyer will be refunded back to their account.
Trustless transactions are protected for a time period of 72 hours + the next block
time. After this time period, a reversal of funds is not possible.
You’re buying cryptocurrency from someone you met in a chat or group. You are very
unsure if the other person will run away with your money or not. With trustless
refundable transactions, you can ensure a safe trade.
2. Mediated Transactions
You hire a freelancer who you met online to create your website and you have a
dispute with the freelancer. With KoveredPay’s Mediated Transactions, both you
and the freelancer can appoint a mediator in an event of dispute. The neutral
mediator is selected randomly from the KoveredPay Mediator Pool to resolve your
dispute.
A mediator fee is also charged for handling a transaction which is taken directly
from the disputed transaction amount. In case of a dispute, the mediator is paid on
the successful resolution.
A mediated transaction works as follows:
- Once the payment is made, the funds go to a hold.
- The funds are both inaccessible from buyer and seller.
- A dispute arises and a mediator is added to the dispute by either party.
- The mediator conducts their investigation and decides on a resolution. The
mediator can only forward or reject the transaction and have no direct
access to the held funds. The funds are secured on blockchain.
The mediated transactions are protected for a time period of 728 hours + the next
block time. If the sender doesn’t show their satisfaction and neither of the parties
appoint any mediator during this time period, the funds are returned back to the
sender. If the mediator is appointed during this time period by either of the parties,
then the decision of the mediator is final.
3. Instant Transactions
If you’re sending the payment to a reputed exchange, friend, or any other highly
trusted entity, then you most likely won’t ask for any protection of the funds.
In this case, you can send an instant, unprotected transaction. Instant transactions
are final and cannot be reversed. These transactions are usually processed within 15
to 30 seconds if sufficient gas fees are paid.
Conclusion
KoveredPay has made the effort to create a secure, reversible payment protocol on
top of the Ethereum blockchain. KoveredPay has taken ample coding measures that
if the community ever planned to migrate to a different blockchain, it will be simple
and straightforward to do so. By joining KoveredPay, you’re helping us develop a safe
payment protocol for both merchants and buyers.
|
Show Posts
