Breaking News
0

MoxyOne Tries To Make It Easier To Spend Cryptocurrency In Real World

By Samuel RaeCryptocurrencyJan 02, 2018 01:23PM ET
www.investing.com/analysis/moxyone-is-trying-to-make-it-easier-to-spend-cryptocurrency-in-the-real-world-200277065
MoxyOne Tries To Make It Easier To Spend Cryptocurrency In Real World
By Samuel Rae   |  Jan 02, 2018 01:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

2017 was the year of the initial coin offering (ICO). In August 2017 alone, more than 400 companies sought to raise development and operational capital through issuing company specific tokens in return for liquid cryptocurrencies – Bitcoin, Ethereum, etc.

As each of these companies conducts offerings and distribute their tokens into the cryptocurrency ecosystem, the number of coins that make up the system in question increases. As we head into the new year, the total market capitalization of the cryptocurrency market comes in at just shy of $660 billion.

There's a problem, however.

Right now, only the most liquid and top-tier currencies can be used in real-world transactions. And even these coins – Bitcoin, Litecoin, Ethereum, etc. – are only accepted by a tiny proportion of retailers across the globe. Essentially, this means that the vast majority of coins, while being used to some degree for various tasks associated with the platforms, technologies, and companies that created them, can't be used to transact in the real world.

So what's the solution?

One company thinks it has the answer – MoxyOne.

MoxyOne is a company that's about to conduct its own ICO, with the funds raised in the offering set to be used for the development of secure debit card and payment infrastructure for every company, project, and ICO that issues cryptocurrency tokens. That sounds like a big ask but take a look at the way that MoxyOne is going about achieving this solution and it looks remarkably simple and, in turn, elegant – in concept, that is. The company has created a wallet and cryptocurrency system that links up to a mobile device application and allows users to make payments at millions of points of sale globally (basically, anywhere debit and credit cards are accepted) through a physical debit card or a mobile device payment system.

So how does it work?

The MoxyOne model has two crucial components.

The first is what's called Just In Time Funding (JITF), which is a protocol that allows for the (essentially) instant conversion of a particular token or cryptocurrency to the fiat currency that's local to the retail point of sale at which the individual is trying to transact.

The second is a liquidity provider, which is the party that buys the tokens from the individual and – in doing so – allows for the above-described JITF process to take place. These LPs receive the full amount of the tokens from the MoxyOne user as well as a number of extra tokens that serves as the LP's fee for facilitating the transaction. When the tokens are received, the LP refunds MoxyOne for the purchase total.

What this means is that by the time the merchant receives the funds that underpin the transaction, they are denominated in fiat.

In turn, this negates the necessity for the merchant in question to accept cryptocurrency – indeed, chances are they will have no idea that cryptocurrency was exchanged as part of the JITF protocol that preceded the merchant processing side of the transaction.

On completion, the funds are debited from the users account with MoxyOne, the merchant gets their fiat, and the transaction is recorded on secure blockchain technology.

So how does this work with the wider crypto space?

The above-outlined system is designed to work with SPEND, which is a cryptocurrency that MoxyOne has developed and is issuing as part of its ICO. However, the company is also able to white-label the system so as to allow it to integrate with practically any other cryptocurrency.

In other words, another company (call this one Company A) will come to MoxyOne and say they want to allow their token holders to spend tokens in the real world. MoxyOne will work with Company A to brand the platform and the debit cards to fit with Company A's image and the LP will be set up to exchange the tokens issued by the Company A (say these are called COMPA) for fiat when users transact.

This means that anyone that holds COMPA can use the Company A debit card (which has been white-labeled based on the MoxyOne platform and transaction system) can spend their COMPA, just as they could fiat, at any of the millions of retailers globally that accept credit and debit card payments.

The company intends to list its SPEND tokens on Cryptopia as part of an agreement that's already in place shortly after the token sale completes. Social will be white labeling the MoxyOne infrastructure to issue their own custom debit card for SCL token holders, with debit card distribution slated for the final quarter of next year (MoxyOne's system should be ready to go by the third quarter of 2018).

There are more details available in the whitepaper, here.

MoxyOne Tries To Make It Easier To Spend Cryptocurrency In Real World
 

Related Articles

MoxyOne Tries To Make It Easier To Spend Cryptocurrency In Real World

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email