Want to buy a coffee with your Crypto? The GRAFT Network can help

in cryptocurrency •  3 months ago

My time as a store owner accepting cryptocurrency as payment


A few months ago, I created an online store called @steemitshopaus which sold Steemit and DTube merchandise. One of the best things about my store was that it accepted STEEM, SBD and a selection of other currencies as payment for my products.


Source

The concept was fantastic however there were a number of problems associated with accepting cryptocurrencies as payment. And the problems that I faced are essentially the same reasons that prevent many other business from accepting cryptocurrencies as payment for products and services. And it's these reasons, among a few others, that are slowing down the mass adoption of cryptocurrencies.

Below is a summary of the problems that I faced as a business owner who once accepted cryptocurrencies as a method of payment:

Payments had to be manually verified


My store could not be automated as each transaction had to be manually confirmed before the product could be shipped. This meant that I could not set up products to be automatically ordered and/ or shipped as payments were made, and significantly increased the administration workload involved in operating my business.

Currencies drastically change in values over short periods of time


When I set up my store, STEEM was valued at around US $6. But it didn't take all that long for the value of the currency to drop to under $2. The problem here was that if I hadn't converted my STEEM to Fiat or another currency at the time of the sale, then I would have made a loss on the sales made. And I suffered this type of loss on a number of occasions.

Of course, there's the flip side that the value of the currency may increase to well above the price that it was at when I made the sale, but that is a gamble that many merchants just aren't willing to make. And is one reason why I had to pull my store down.

Transaction times can be slow


Transaction times for some currencies can be incredibly slow. Transactions for STEEM are completed in a matter of seconds, however for currencies such as Bitcoin, the transaction times can be anywhere from 10 minutes to a number of hours, depending on the level of network activity.


BTC Transaction Times - 7 Day Average

Over the past 7 days, for example, Bitcoin's transaction time has fluctuated between 7 minutes to 30 minutes. For many merchants, this time is simply not suitable for every day purchases.

For my online store, given that I had to manually check that the transaction had taken place before ordering and shipping my products, the transaction time wasn't a worry. But imagine if you were attempting to buy a cup of coffee with Bitcoin? No merchant, and no consumer for that matter, would want to wait 30 minutes to confirm that their transaction had been confirmed before handing over the cup of coffee.

Transaction fees are paid by the sender


While this may not be viewed as a significant problem, it can discourage the use of cryptocurrencies as a payment method given that every time a currency is used for a purchase, the person making the purchase has to pay for the transaction to take place in addition to paying for the product or service. This can be discouraging for the use of cryptocurrencies as a currency, and partly why many cryptocurrencies are simply used as investment vehicles rather than currencies that are used for transacting.

Stepping Closer to Main Stream Adoption


All of the above issues are adding to the difficulty of cryptocurrencies being adopted by the general public, and for businesses to willingly accept cryptocurrencies as a form of payment. The cryptocurrency community is realistically a small community of users when compared to the global population, so for our currencies to achieve much greater value and real usage, we need our currencies to be adopted by the general public and used for every day transactions in businesses who are willing to accept them.

Currently, the likes of Bitcoin and Litecoin are only effectively stores of wealth. But they don't allow for ease of use. So I was extremely excited when I read about The Graft Network.

The GRAFT Network

"Global Real-Time Authorizations and Funds Transfers (GRAFT) is a global, open-sourced, blockchain-based, decentralised payment gateway and processing platform that is available for anyone can use. Any buyer and business/ merchant can use GRAFT in a completely decentralised and inexpensive way." Source
The GRAFT network has the capability to allow any business or merchant to introduce crytocurrency payments into their existing Point of Sale (POS) systems. What this means is that cryptocurrency payments, via a range of coins, can be accepted without the need to install new physical technologies into businesses. The GRAFT network has been designed to allow businesses both large and small to start accepting cryptocurrency as payment and the network has been designed in such a way that effectively addresses the issues that I have described above.

The GRAFT network have completed their ICO and have a functioning MainNet. The team have already released:

 

 


A Mobile Wallet

 


An app for finding stores that accept cryptocurrency as payment

 


And a mobile POS application for merchants

 

And even better, they're working to integrate the GRAFT with traditional payment terminals.

It's this type of technology that will allow for cryptocurrencies to become an every day part of our life. And, as mentioned above, this technology addresses all the concerns that I have when looking to incorporate cryptocurrency payments into my business:

No more worrying about price fluctuations


It still stings when I think about the STEEM shirts that I sold when STEEM was valued at $6.00. I never converted that STEEM to Bitcoin or the Australian dollar. As of today's price, I essentially sold those shirts for about $5, which is less than what it cost me to make them.

source

With GRAFT though, we won't need to worry about the fluctuations in the price of a currency. GRAFT have set up their system so that payments can be received in a cryptocurrency, and then automatically converted to whichever currency you like.

This also greatly simplifies the management of funds, merchants won't need to handle multiple wallets and keys, they'll only need to monitor the wallets and accounts that they choose to utilise as part of their business.

Virtually Instantaneous transaction confirmations


With the GRAPH enabled POS terminals, payments via a range of cryptocurrencies will be possible, and confirmations will be almost instantaneous. This will be possible via both online and in store for businesses both large and small.

So with near instantaneous transaction times and the ability to automatically convert to a currency of your choosing, merchants will no longer need to worry about manually confirming that transactions have occurred. Cryptocurrency payment systems can be automated making the reopening of my online store look a whole lot more attractive.

Transaction fees can be handled by either party


With most currencies there is only one transaction type, the transfer. And when funds are transferred, there is often a transaction fee involved which is typically paid for by the person performing the transfer.

With the GRAFT network however, there are multiple transfer and payment types available. The most attractive of these is the one where the transaction fee is paid for by the merchant, meaning that the consumer no longer needs to worry about the cost of the transaction.

Even better though, if the transfer doesn't need to be instant, the sender can make transactions for free between wallets. This means if you need to send funds to a friend or family member, you can do so at no cost.

The GRAFT Roadmap


While there is still more work to be done, a lot of work has been done to enable mainstream acceptance of cryptocurrencies by small and large businesses. The GRAFT team are well on their way in progressing through the milestones on their roadmap.


You can also view the engineering road map here.

Concluding Remarks


Overall, I am incredibly excited about the GRAFT project. It is this technology that will help in bringing cryptocurrency into the lives of your every day consumer and driving this technology into the future.

There's a lot more to this project than I have described here, such as the ability for transactions to be completely private and untraceable. And the fact that these types of projects essentially take power away from the centralised banking systems and place it back into the hands of consumers.

What mostly interests me is the fact that this project would allow me to re-open my online store and accept payment via cryptocurrency knowing that I won't need to worry about manually confirming transactions and managing multiple wallets. I also won't need to worry about the value of any given currency dropping substantially in value as I'll be in a position to have all funds converted to the currency of my choosing.

There is a large and highly experienced team behind this project as well. The founders both have extensive experience in payment processing and blockchain technology.


Check the team line up here

And seeing the extensive experience and the sizeable team working on this project gives me confidence that we'll see some great news coming from this project in the near future.

More Information and Resources:

Formalities

This article is an entry into the @originalworks writing contest. You can see the details of this contest via this link and also check out the other submissions.

graft2018




Posted from my blog with SteemPress : https://cryptonbrews.xopus.io/2018/07/18/want-to-buy-a-coffee-with-your-crypto-the-graft-network-can-help/

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Congratulations @mazzle your article was perfect.

I congratulate you in reality I think you will do very well in the contest.

The explanation of the subject is made very naturally and citing examples from real life.

Greetings friend, you made it very well ...

@nachomolina

·

Thanks mate, sadly I missed the deadline by a matter of minutes. There's always next week. :)

·
·

aH! ok, I also happen once.

You know @mazzle is possible that the system if you have accepted your publication, I have seen that they have some tolerance to accept some users who spend the time of publication.

Well in the same way your pos has information of the highest quality, I value it.

@nachomolina

·
·
·

Thanks. It got accepted after all. The notification came in a little while ago.

·
·
·
·

Friend that magnifies news!

Your post promises a lot ...

I wish you the best of luck!

Hopefully the results, Bye !!!

·
·
·
·
·

Thanks mate.

@mazzle CRYPTO is making entry in every field..

@mazzle thats nice.
But all time transaction fees are so much high.
What to do with this?

·

Did you actually read the post?

·
·

It clearly doesnt look like he did.

But it's my turn to read it carefully :)

·
·
·

There will always be some spam comments. :)

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by mazzle from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.

Lets hope GRAFT helps make crypto grow in use.

Very great @GRAFT,
But in my country, the major problem is that so many persons still find it hard to accept the idea of cryptocurrency and talking of accepting them as a means of regular payment is more difficult.

So there is still more to do, creating a product is great, getting the users even in the less developed country to understand and trust the system is another great work

Great post @mazzle

·

Thanks. And yes I completely understand. It’s similar in many countries. Many people in Australia have such a terrible understanding of what a cryptocurrency is. There’s a lot of work to do before mainstream acceptance will be a thing.

I'm now able to understand clearly why adoption of Crypto in businesses turn out to be too slow. Good to see "GRAFT" coming to solve some of these issues. Thanks!

·

Welcome. :)

Want to buy Oneplus 6 with crypto ... let me know if you can put this on your store and can send me in my country ;)

·

I don’t even know what that is. :)

·
·

2nd Fastest smartphone of the world right now;

https://www.oneplus.com/6

·
·
·

Very cool. Not quite sure that’s a product that I can list though.

·
·
·
·

Try my best to reach this one but not available in my country yet.

This looks promising...

What do you think about Bitcoin/Crypto debit cards..don't they work the same way ( BTC to fiat) for the consumer side?

·

I had to do a little digging into crypto debit cards before responding since I haven't ever really looked too deeply into them.

It seems that they generally rely on partnerships with certain institutions, which is getting problematic. So GRAFT might be a decent solution to deal with this problem given that payments will be via an app and QR code rather than debit cards.

Check this out: https://www.finder.com.au/cryptocurrency/debit-cards

·
·

Tks for replying...

which is getting problematic

any links for this ?

·
·
·

Yeah check the one in my reply. It mentions that VISA has ended the relationship with one of the companies.

This post has been submitted for the @OriginalWorks Sponsored Writing Contest!
You can also follow @contestbot to be notified of future contests!

hi @mazzle

Im amazed to see that more stores are allowing crypto as a payment method. Or at least trying.
Those kind of posts shoudl be promoted the most because they show real usage of crypto and can serve in real life.

And it's these reasons, among a few others, that are slowing down the mass adoption of cryptocurrencies.

Thanks for sharing your valuable experience with us. Im actually glad that I resteemed this post. So much valuable info.

Currencies drastically change in values over short periods of time

Charging for item in crypto and paying for manufacturing in FIAT currency is major issue here.

I also would find calculating and paying taxes really hard if my shop would allow crypto.

With GRAFT though, we won't need to worry about the fluctuations in the price of a currency

I really cannot understand how they can fix this problem. Fluctuations in price will always affect your business. Would it matter if your crypto will be converted manually or automatically to FIAT?

Anyway this is interesting project. Thx for that amazing review.

Yours
Piotr

·

Thanks Piotr. The fix to fluctuating currency values is the speed of conversion to the currency of your choosing. Whether that be Fiat or another currency. It gives you greater control and helps manage the risk of fluctuating values.

Automated conversions means that there’s little administrative work required and it gives business owners more comfort given that they don’t really need to know much about cryptocurrencies if all payments end up as Fiat anyway.

One thing that I should have mentioned in the post is that the GRAFT network is actually brilliant for people who don’t understand crypto but want to incorporate it into their business.

·
·

Thanks for your reply buddy, appreciate

This is very interesting to read. Making business with crypto has a lot of challenges and the transaction fees and the devaluation is one of those.
Good luck with the Graft project team, I am going to follow them more.

Such an obvious innovation for crypto. Your explanation saved me a lot of time. Graft sure seems to have a handle on the delicate matter of balancing practical crypto applications while keeping the system decentralized.

·

I absolutely agree that it is an obvious and necessary development for mainstream acceptance to become a reality. I really hope that GRAFT can make it happen.

never be the same crypto