Bitcoin and other cryptocurrencies have increased dramatically in popularity and usage over the last twelve months but, while more people are using cryptocurrencies now than ever before, there still remains a number of usability issues associated with the space.
Exchanges are struggling to cope with the uptick in user accounts and this is translating to delays in withdrawals and deposits. Scalability issues are causing long processing and verification times for cryptocurrency transactions (this is especially true of bitcoin right now) and high fees are making it more and more expensive to send even nominal amounts.
There are also severe restrictions on point of sale options. Very few (in the grand scheme of things) retailers accept any form of cryptocurrency as payment for goods and services and those that do generally only accept the biggest names in the space – bitcoin, Ethereum, etc.
When considered against a backdrop of hundreds of fresh coins hitting the market every couple of months, the problem compounds.
So is there a solution?
MoxyOne thinks it’s found one.
The company has created a platform that allows for the virtually instantaneous behind-the-scenes exchange of cryptocurrency to fiat currency, which, in turn, allows a consumer to use practically any cryptocurrency as an asset with which to buy goods and services and millions of point of sale locations across the globe.
How does it work?
MoxyOne uses a liquidity provider to act as a behind-the-scenes point of exchange for the consumer. Say someone wants to buy a pair of jeans at a clothes shop in Barcelona. Chances are this clothes shop doesn’t accept cryptocurrency, but the person wants to pay in cryptocurrency nonetheless.
When they get to the point of sale, they pull out a MoxyOne debit card and hand it to the cashier. The cashier uses the card to process the payment, it’s accepted, the individual gets her jeans and everyone’s happy.
What’s gone on behind the scenes to allow this?
When the cashier swipes the payment card, it triggers a chain of events that facilitate the transaction. First, the real-time exchange value between the cryptocurrency and the local fiat (so, in Barcelona, this would be Euros) is calculated.
Next, a liquidity provider steps in and exchanges the cryptocurrency for Euros at the predefined exchange rate, with the crypto being debited from the consumer’s crypto account that’s held on the MoxyOne platform.
Next, the buyer delivers the Euros via the debit card to the retailer (remember, this all goes on automatically), meaning the retailer receives Euros, never having had to touch cryptocurrency at any point in the transaction.
Simultaneously, the liquidity provider reimburses MoxyOne to the amount exchanged and takes a small transaction fee for its services as an LP.
It’s a simple but incredibly effective approach to solving pretty much all of the issues outlined in the introduction to this piece.
Outside of its proprietary, in-house rollout of this system, the company already has a partner on board that will white label the technology to allow holders of its own coin to spend them in the real world – the Nexus associated coin, Social. Further, almost immediately subsequent to the company’s ICO closing, MoxyOne’s tokens, SPEND, will list on two major exchanges – Cryptopia and IDEX.
Bottom line: there remain some issues in this space, despite the growing mainstream adoption of cryptocurrency, and companies are going to have to find solutions to these problems if coins and tokens are going to replace fiat long term. MoxyOne, with its new technology, has taken a big step towards doing exactly that.
Image courtesy of Sean MacEntee via Flickr