One of the factors CafeCoin has identified as to why cryptocurrency is not as widely utilized as it should be is that transaction fees and times are oftentimes quite high. Most transactional services have raised their prices in recent times, and if you were to bid a lower figure regarding network fees, transaction time can take too long. For a long time, it has been something that has merely been accepted by everyone who trades cryptocurrency, and the majority’s way of thinking is that it’s just the way things work, and there’s very little you can actually do about it.
The CafeCoin Foundation does not simply accept this. Considering that this is one of the main reasons why cryptocurrency has yet to fulfill its true potential, they have made extensive efforts to find ways around it. This has to do with developing the technology for the token and their software, as well as creating a unique yet uncomplicated blockchain architecture. The Foundation also plans to reduce costs by structuring and handling the transactions in the most efficient way possible.
The CafeCoin Foundation is working with leading technology experts to create an optimized ecosystem that consists of both merchant and consumer applications, retail-focused blockchain made to maximize the use and functionality of the mobile application, and the CafeCoin token itself. The software involved feature both mobile and desktop versions to make it easier and more convenient for users to transact. It will feature peer-to-peer payment options, and it will serve as a replacement for the current point of sales systems. The Foundation’s plan for the development of technology comes in four phases.
Phase I – Initial Issuance of CafeCoin Tokens
The first step for The Foundation is the initial distribution of utility tokens that follow the ERC20 standard. The ERC20 token standard is a set of rules that new tokens on the Ethereum platform need to follow. This applies to every ERC20 token that is used in the Ethereum network, and it mainly focuses on how it interacts with the others in the same network. This is the most well-known token standard used in its network, and because it follows the uniformity set by the rules, it reduces the token interaction complexity, and it also enhances the liquidity of the tokens themselves. The initial CafeCoin tokens will serve as a transferrable placeholder until the custom blockchain is completed.
Phase II – Completion of the Blockchain
The next step is the completion of CafeCoin’s custom blockchain. When this is done, the mobile application will run on this blockchain, all the aforementioned ERC20 CafeCoin tokens will be transferred and recorded to the active blockchain. Establishing the blockchain also means the CafeHash proof of work algorithm can also be started.
Phase III – Mobile application
The mobile application will then start development. This application will have the ability to give as well as receive payment, share history of purchase, as well as access third-party liquidity providers. The software will provide everything users will need in order to make full use of CafeCoin, and as mentioned before, merchants can utilize it in lieu of their traditional point of sales systems.
Phase IV – Building relationships
This phase will also feature the launch of CafeCoin’s mobile application. The Foundation will also focus on creating business relationships with the first movers in the consumer goods, retail, and payment processing sectors. These entities were specifically targeted in order to maximize the effect of initial integration of CafeCoin. They are going to be reached by using digital, viral marketing, and traditional means. An additional platform for merchants will also be developed, and it will be have secure access to retail data the users can voluntarily share. Merchants will find this useful and can glean analytics from the data in order to drive their business.
Consumers are anticipated to quickly integrate CafeCoin because of the various benefits it provides. Once consumers are widely using CafeCoin, merchants will have an easier time regarding processing payments through the new system. The purchasing process will be streamlined, and both consumers and businesses will find themselves benefiting from the multi-functionality CafeCoin provides. The Foundation also anticipates the Café sector will be a successful first integrator of CafeCoin due to the industry’s inherent high margin model and repeat customer pool. They have so far proven to be resistant to ecommerce changes to how they do business, but CafeCoin might be the first to break through.
Reducing Transaction Fees
Having transaction fees reduced is one of the main goals The Foundation has set for CafeCoin. The Foundation’s custom blockchain will adapt specific solutions for this, and it will offer utility benefit for both merchants and consumers and at the same time will avoid unneeded complexity. The way the blockchain structures the type and size of transactions done on its network will significantly reduce the transaction fees, and will reduce the time needed to transact as well.
Transaction time is affected by the fees, and once the transaction fees have been stabilized and follow a certain structure, the transaction time will become uniform as well. Most transactions that require a global consensus within the Ethereum network usually varies with the cost of Ethereum gas. CafeCoin mitigates this by making use of dedicated software to control the transactions as efficiently as possible. Because of this, CafeCoin users will not have to go through the long waits other cryptocurrency users experience, and the transaction fees they spend is significantly cut as well.
The Blockchain Architecture
CafeCoin will design their blockchain architecture after the Proof of Work model that has been used to great effect in the Ethereum blockchain. However, they will focus mainly on implementing the protocols regarding the specific kind of transactions that will be implemented on CafeCoin. More specifically, they will enable a limited subset of smart contract functions that are optimized for the usage of the customers and retail stores, and the peer-to-peer transactions. Aside from this, it will also feature the ability to store custom meta data about each transaction, but will only do so when the customer allows it to.
The CafeCoin token ecosystem has two components: CafeCoin itself, which is the token that puts into action the transactions, and Cafe, which is the digital representation of the cost of confirming a transaction and changing information on the blockchain. Cafe will be the incentive given to the people who mine CafeCoin. Aside from that, Cafe can also be gained by purchasing a percentage of CafeCoin during transaction, and splitting Cafe cost between buyer and seller that are engaged in a CafeCoin transaction before the transaction actually happens.
CafeCoin is revolutionizing cryptocurrency by optimizing it for general use, starting in the café industry. The Foundation plans to develop their ecosystem and blockchain architecture to fit the needs of both the merchants and consumers, and they have also put in features and protocols that will benefit all parties involved. If given the chance to mobilize, CafeCoin may very well be the cryptocurrency that replaces fiat money.