Crypto Based POS Billing Solution made simple
We already had the Internet Protocol Suite serving us more or less, just right. With the link layer used to put data on a wire, and that data was routed using the internet layer. Then follows the transport layer persisting the data along with Application layer which basically delivers the data in the form of applications. While all the four protocols seemed to be working fine as a seamless exchange of data, there was something missing.
Enter Blockchain and it’s sidekick, Cryptocurrency!
The Blockchain basically is the fifth protocol layer for “Value Transfer”. And the best part about it is it’s ability to live up to the standards of first four.
As a Blockchain Development Company, what our experience has taught us about blockchain and it’s adoption, it’s totally been a design problem. However, in this blog. We are going to discuss another issue that is limiting the adoption of cryptocurrencies. Following that, we shall discuss a solution to all this which can make sure that the cryptocurrencies are able to reach to the masses.
First of all, we shall start the talk with this:
What accounts for the biggest share of transactions that an average person makes.
How many times would a person send money to his family in a day?
It’s different for a businessman who needs to maintain balances with his suppliers and vendors, but what about the common man?
A major portion of the total amount that an average person spends or make transactions of is when they make payments at stores and markets, basically, anywhere they buy stuff from.
Now, the fact that almost none of these transactions have yet been made possible to carry out with digital currencies is disturbing for every cryptosphere enthusiast.
It’s true that there’s a gridlock which can be put this way:
Merchants would start accepting payments in Bitcoin had more people been using it, and more people would be using Bitcoin has more merchants been accepting it.
However, there’s a way to get rid of this gridlock:
Crypto Based POS billing solutions.
Imagine this, you go to a convenience store, fill your cart with things you need for the party you’re hosting this weekend, pay with Bitcoin (or any Crypto for that matter) at the counter, and just take off.
No intermediaries involved. No transaction charges incurred.
How do you like the sound of it?
We agree that it won’t happen overnight. PayPal and Stripe didn’t happen overnight. And not everyone’s Peter Thiel or Patrick Collinson, are they?
A rugged, reliable and seamless Crypto based POS billing solution using Blockchain could prove to be the financial backbone of the operations for any store or SME.
The need of Crypto based POS Billing solution
Back in 2008, Bitcoin was created with a purpose of secure and reliable settlement system which enabled them to transfer value over the web without any centralized custodian or intermediary of any sort being involved.
However, the cryptocurrencies including Bitcoin have still not been able to surpass the usage of paper cash and plastic cards by the people in brick and mortar stores.
Long confirmation times and slow settlement architectures might be the culprit here. However, a lot of systems have been able to improve the Crypto based payment systems for the good of merchants as well as the customers.
But the failure to yet carry out transactions seamlessly without the need of any intermediary is still disturbing. The presence of any intermediary (centralized, on top of it) blatantly defies the very purpose of adopting Cryptocurrencies.
The present Cryptocurrency POS billing platforms
There has been an abrupt release of a number of POS billing platforms and Crypto payment processors in the recent months. However, the presence of a third party centralized intermediary Or custodian in one form or other makes them almost useless.
One of the most gruesome problems involved with these billing platforms is the unbalanced and unpredictable transaction charges that are not something that every merchant or customer is able to understand.
This problem resonates with the long confirmation times and poor usability of end-user interfaces resulting in a negative interference called “Un-Scalable”.
And the thing that we, as a Product Development company believe is:
“You develop a solution that’s scalable, or you don’t bother at all.”
Back to the topic, now that we have established the need of Crypto based POS Billing solution, let’s address the elephant in the room, which means discussing what makes a good POS Billing solution on the Blockchain.
The best approach towards making a POS Billing solution on blockchain is to consider the 3 dimensions involved with it. The 3 dimensions namely are:
- Payment Method
- Payment Processing
- Payout Issuance
The responsibility of the development company would be to craft these 3 parts free from any centralized (custodian or intermediary) third parties in such a way that they are integrated to result in a spot-on Crypto based POS billing solution.
Some of the most important things to remember while developing a Crypto based POS Billing solution:
The merchants with your POS Solution shouldn’t have to integrate any other payment software providers and adapt themselves to the overwhelming variety of options out there. At the same time, it must make sure that the users must never need to sign up for a number of centralized services or keep multiple payment wallet apps. A lot of factors, however, come into play to make these two things sure.
Identification, Authentication, and Authorization
It’s not absurd for someone to seek at least a tiny little bit of trust with someone they’re involved in financial transactions with. Not only this, once money gets involved, any process or any product is under scrutiny by the regulatory and compliance bodies. This is what calls for a robust, reliable and foolproof method and step-wise flow from one stage to the other.
Advanced authentication methods to be put in place are of utmost importance for gaining trust and driving adoption of your Crypto based POS Billing solution.
Easy-for-user to use, sophisticated-for-hackers to hack authentication methods must be implemented.
The multi-factor based authentication may include biometrics, FIDO and other password-less factors and techniques.
Not only this, the identity management systems used are a matter of concerns too for a successful Crypto based POS Billing solution. To ensure that your solution is on top of it when it comes to identity management, Distributed Identity service can be implemented like the one used in GRAFT Network.
Physical POS Device and Delivery Tracking
The POS Systems can be made with mobile phones as well as tabs through which the customers can seamlessly send the amount with different methods. These physical devices can also be used for showing real-time rates of various altcoins so that the customer is clear on what he is paying.
An important add-on for the customers as well as the merchants would be to make the delivery tracking more streamlined by using an on-chain delivery tracking system. All the stakeholders or “parties” involved in any particular transaction can trace anything they need to because all of them will be a part of the same value-network, i.e. Blockchain of your Crypto Based POS Billing solution.
However, the service of physical devices for the merchants is more of a one-time thing that the blockchain development team of yours will have to take care of.
Also, a multi-chain compatible POS device is definitely something that the cryptosphere is direly waiting for.
Mobile payments can be made simpler and easier for the end users by making the POS Solution compatible with mobile and crypto wallets. The already prevalent barcodes can be used through which the users can easily pay to the merchant’s public key.
The business owners and vendors who are not tech-savvy enough to code a smart contract for themselves would want the device to give a plug-n-play experience.
Smart contracts for Post Sales. Compliance and Audit Trail considerations
The gruesome manual tasks involved in the whole process or any transactions is what increases the cost of processing. This is the sort of inefficiency that you need to chip away from you Crypto based POS Billing solution. The manual tasks that account for these inefficiencies are refunding, restocking, receipt mailing and a lot of other things which don’t add as much value to the whole process as they contribute in the losses and costs of inefficiencies.
These tasks can be automated by using Smart Contracts which will help the merchants and vendors save big bucks by freeing up the labor eventually reducing operating costs related to the process.
Let’s discuss some things that are under major scrutiny for being considered as an option to employ in the crypto based POS Billing solution. These are:
Bitcoin Lightning Network
The lightning network is known to enable transactions to happen “off-chain” without the users having to wait for a block to be mined. This essentially cuts short the time taken for a payment to be through. Using this, the transaction between the merchant and the buyer will not have to be broadcast to the whole network. The use of bitcoin in the POS billing solutions can be made faster, simpler, and easier with the help of the lightning network.
Ethereum State Channels
It’s common knowledge that every block of a blockchain contains information about the entire chain, which includes account balances, contract storage, contract code and whatnot. Now, this information takes up a lot of space and is rarely relevant to an individual transaction, but the users have to store them without any option everytime they make a transaction. Now, it is not practical for the POS system to manage the space for the whole blockchain everytime a merchant M1 and a customer C1 interact, assuming C1 buys groceries and other things 8 times a month. Using the ethereum state channel, the blockchain powered POS billing solution will have to just include the final outcome over a certain period of time, say a month.
Not only this, the “traceability” and “immutability” that comes with the Blockchain Technology can be leveraged to make the compliance bodies related submissions and audit trails free of redundancies.
Adding a tinge of Cloud-Based analytics to your Crypto based POS Billing solution could also be very popular among the prospective merchants and vendors.
The need for privacy is a highly discussed and somewhat controversial when it comes to dApps and other Blockchain based products. Part of the reason as to why the topic privacy for the people of cryptosphere is the way it is, is because of the wrong perception as to what “Privacy” actually incorporates in these blockchain powered platforms.
The most notable thing about a majority of buyers is that they aren’t really uncomfortable with disclosing their identity to the merchant, or anyone for that matter if it means a better service or necessity for the transaction to even take place. However, there are cases when a person may or may not want to disclose their identity, or maybe it’s just that they don’t feel it’s important. At the same time, the merchant might need to know the identity of the buyer in some cases. In some, they won’t even think about it.
The demands and needs of privacy may vary from total anonymity to even total transparency depending upon a myriad of factors. That being said, the Privacy of merchants as well as buyers is something that you’ll need to be on top of about your Crypto based POS Billing solution.
Pulling out a project like this calls for a tremendous amount of understanding and familiarity with the blockchain technology. Since the technology itself is in the nascent stage at this point in time, it’s only prudent choice to engage with a competent blockchain dApp development company.
Sodio Technologies has worked on and has successfully launched enterprise-grade, robust and reliable blockchain-based products. The sheer quality of our products has made it possible for us to be regarded one of the top blockchain development companies across the world.
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