SavAct wants to change that. The company is presenting a system that offers established payment service providers in online trading serious competition. It will enable fraud protection that works with every cryptocurrency integrated into the system while maintaining the advantages of the respective cryptocurrency.
The problem with buyer protection
Payment services that involve a third party are used to protect buyers and sellers from fraud in online trading. In problematic cases, these service providers decide who is right and who is allowed to keep the funds. In order for the fairest possible decision to be made, the private data of the buyer and seller must be known. Furthermore, by integrating a central service provider, it is possible to exclude individual participants from the payment system. However, the points mentioned contradict the basic principles of blockchain technology and thus marginalize the advantages over payments with fiat money.
The independent fraud protection
SavAct offers independent fraud protection for payments with cryptocurrencies that does not require a service provider, an intermediary or an “oracle”. For the first time, all advantages of the crypto currencies remain unrestricted and the use is just as uncomplicated as a normal direct payment. Fraud is prevented in that attempting to cheat is not profitable in principle.
SavAct in everyday online trading
This system is interesting for everyone who cares about the advantages of crypto currencies or who would like to buy cheaper online. Established payment services such as PayPal and Amazon Pay require a fixed and a percentage fee on the payments. Since the seller has to pay these fees, the buyers do not notice them. Nevertheless, the buyer bears the costs because they are ultimately converted into the selling price.
In contrast, SavAct can be used completely free of charge. In a proof of concept, the SavAct concept was compared with PayPal and Amazon Pay. This resulted in a cost saving of up to 78 percent. By eliminating the fixed fees, SavAct also makes it possible to avoid fraud in micro-payments. This has a particular impact on articles with very low posts. For example, an item that costs € 0.75 and previously brought the retailer 20 percent profit would bring 67 percent profit with SavAct. The profit would therefore more than tripled. This is of particular interest to Asian traders who export to western countries.
The cost savings can be used to lower the selling price and thus increase sales. Lower article prices, on the other hand, encourage groups of people who are normally not interested in this technology to use cryptocurrencies.
State of the art
A patent has been submitted for the process and will initially be implemented on EOSIO blockchains. This blockchain technology was selected for the first implementation in order to offer a competitive and environmentally friendly payment method that has no transaction costs as quickly as possible. This is followed by other blockchains, including Ethereum, Cardano and Bitcoin. Because it should be left to the users which cryptocurrency they use with SavAct.
More information about fraud protection and the other areas of application of SavAct is available on the website https://savact.com to find. If you want to be there at the start, you will be in the Telegram group https://t.me/SavActGroup helped.