How CafeCoin Plans to Reduce Transaction Fees

How CafeCoin Plans to Reduce Transaction Fees

HOW WILL CAFECOIN REDUCE TRANSACTION FEES WHERE OTHERS HAVE FAILED?  CAFE COIN PLANS FOR THE FUTURE

It has been said that the first step to solving a problem is to acknowledge there is one. That approach is shaping CafeCoin’s plans for the future, especially in lowering transaction fees.  In cryptocurrency, there are definitely some things people can improve upon, and despite the tremendous potential it has, there are a lot of factors contributing to the fact that it has yet to achieve any significant widespread adoption. The vast majority of this can be blamed on lack of public knowledge of what really goes on in cryptocurrency and how it is utilized, but that in and of itself can be blamed on the fact that a lot of cryptocoins need a certain amount of technical knowledge to properly use.

Read More: Cryptocurrency: An Guide for Beginners

That is just one reason The CafeCoin foundation has identified that stops global adoption of cryptocurrency in general. And the way they plan to make it easier for users to utilize cryptocurrency, is through their innovative mobile application. This application will be what adopters use to interact with each other and transact through CafeCoin. They designed the mobile app to be especially easy to use, modeled after most traditional mobile payment applications on the market, minus the third-party authority to oversee and validate transactions.

But before people can even think of using the app, The Foundation needs to finish building out the custom CafeCoin blockchain, which is where the accompanying software will run. On this blockchain, all of the transactions conducted in the CafeCoin network will be recorded, and just like with other cryptocoins, miners will be the ones who help in the validation process in exchange for rewards. Unlike other cryptos though, CafeCoin intends to make use of a unique incentives system, which will be explained another time. For now, we will delve into The CafeCoin Foundation’s proposals regarding the blockchain, and how it can benefit CafeCoin userss.

Related:

4 Reasons Why Cryptocurrency Is Better Than Fiat Money

THE BLOCKCHAIN ARCHITECTURE IS EXPECTED TO DIMINISH LONGSTANDING TRANSACTION FEES

The CafeCoin Foundation intends to design and implement a custom cryptocurrency that will be modeled around the ERC20 token standard, which is by far the most widely utilized in ICO implementations. Just like all other ERC20 tokens, CafeCoin will make use of a peer-to-peer distributed blockchain to keep and record the validated transactions. The custom blockchain will also include specified solutions that will offer utility benefits to both merchants and consumers alike, all the while staying clear of unnecessary complexity that most other cryptocurrencies seem to have.

Although transactions that require a global consensus on the Ethereum network will always vary with the cost of Ethereum gas, the implementation of the custom blockchain by CafeCoin will noticeably decrease the costs by efficiently planning the type and size of the transactions that will be run across the CafeCoin network, and also by optimizing the accompanying software in order to cater to those transactions in the most economical way possible. By using this method, the CafeCoin blockchain protocol won’t need scaled fees to be applied like Ethereum gas in order to eliminate erroneous or burdensome code.

Read More:

What Cryptocurrency Has to Do with the Video Card Shortage

The CafeCoin Foundation made sure to design the blockchain and plan the implementation of these protocols in order to address the problem of expensive transaction fees. The high validation payments are another reason why a lot of people don’t make use of cryptocurrency, or are hesitant in adopting it as a viable mode of payment for their stores. The Foundation does not intend to follow the failures of prior altcoins, as they invested a lot of time and resources to overcome the roadblocks that stand in their way to widespread adoption.

CAFECOIN’S PLANNED BLOCKCHAIN ARCHITECTURE

Modeled after the often-used and widely-accepted proof-of-work model utilized in the Ethereum network, CafeCoin will focus on the functionality of the protocol depending on the specific kind of transactions that will occur in the CafeCoin network. More specifically, CafeCoin will allow the ability to implement a strained subgroup of smart contract functionality that is specifically geared towards the needs of retail stores and their customers, and will also include the necessary features for peer-to-peer transactions. The CafeCoin blockchain will also have the ability to record custom data about each transaction the end user does, and will also have complete control over who has access to said information.

CafeCoin intends to also make use of a new, custom-made proof-of-work algorithm in the process of validating transactions in its network. This proof-of-work algorithm will offer a unique incentive-based structure compared to other rewards systems that conventional cryptocoins make use of. Similar to the Ethereum network, the CafeCoin token ecosystem will have two components, namely CafeCoin itself, and Cafe. CafeCoin will be the token that executes transactions and carries out the cost savings and tailored promotions marketing of CafeCoin. Cafe will be the digital representation of the costs of confirming a transaction and also updating the necessary information on the CafeCoin blockchain.

Related:

Meet CafeCoin, The Latest Columbia University Invention Aims to Make Cryptocurrency Usable by Everyone

Basically, CafeCoin will be the currency that is being traded, while Cafe will be used to pay for the validation of those trades. Cafe will be the payment-reward incentive that is given to users who are willing to engage in the computational work that is needed to not only validate transactions, but also to reach a consensus on the CafeCoin protocol. Users’ collected Cafe will be credited to their wallet, and will automatically be used to pay for future transactions. If the users who participate in a transaction have yet to receive or earn any Cafe, they have the ability to purchase Cafe during transaction time. This can be paid by a single user, or it can also be evenly split between participating parties.

All in all, there are three ways users are able to receive Cafe. One is when the user completes a proof-of-work calculation through a platform-optimized and intuitive feature on the CafeCoin mobile application. This means they have confirmed a transaction and added the block on the chain, thereby earning them a certain amount of Cafe. The next method is by purchasing Cafe as a percentage of CafeCoin at the time of transaction. The last is by splitting the Cafe cost between the buyer and seller that is engaged in the transaction. The purchase of Cafe will happen prior to the execution of the transaction though.

CAFECOIN BLOCKCHAIN PROPERTIES 

CafeCoin intends to have the size of its blockchain be variable, but restrictive. This will then have a limited scope for information regarding transactions, but then will result in an exceedingly efficient set of operational commands. The blockchain will be small, but because of the restrictions placed on it, it will then be quick to implement the needed actions, depending on the transaction being validated. As mentioned before, history of transactions will be stored in the mobile app. This will contain information regarding quantity of goods, product sub-categories, savings generated by using CafeCoin, and the locations of the transactions.

This data will be stored in a metalayer that is accessible through a hashlink in the transaction, and can be unlocked by the consumer by sharing a merchant-specific key that is generated and stored within the CafeCoin mobile app. Merchants will be able to provide promotions and incentives to customers willing to share their data, but note that the data being given to the merchant will only be regarding transactions where that merchant was a party.

Leave a Reply

Your email address will not be published.

5 Things to Absolutely Do in Austin, Texas

5 Things to Absolutely Do in TRUMP COUNTRY Austin, Texas

Cryptocurrency Investor Sues AT&T, Huge Phone Hacks Loss

Cryptocurrency Investor Sues AT&T, Huge Phone Hacks Loss