Enterprise Perks and Rewards on GRAFT Blockchain

Paypal recently revealed that it was playing around with payment blockchain for its own internal “perk and rewards” purposes. Quoting the article,

“PayPal’s new blockchain platform rewards employees in crypto-tokens, but they only have value inside of PayPal and the platform. Staff can earn tokens by joining innovation programs and contributing ideas, they can also trade tokens. The token transactions will be recorded on the platform’s blockchain ledger and can be redeemed for over different 100 rewards, or experiences. These range from poker tournaments with PayPal vice presidents, a morning of martial arts with PayPal CEO Dan Schulman to borrowing the dog of the head of the investor relations.”

We at GRAFT have long seen this as one of the most viable early use cases for a payment blockchain adoption by the enterprise, and it (along with merchant loyalty programs) was the impetus behind GRAFT Network’s plans for secondary tokens and virtual private chains.

Going down this path what Paypal and others will likely discover the following:

  1. They will struggle with centralized vs decentralized approach to the blockchain. On one hand, yes, they can spin up a Hyperledger and do their own hosting, but they will be responsible for the security and the uptime – and the stakes are high as this is REAL money that can be traded for goods and services

  2. They will struggle with transaction speed and privacy Should this blockchain be public where everyone can see where their coworker is spending their perk dollars, or should it be private? The answer most likely is that privacy IS important, which rules out Ethereum token solutions. Speed wise, even though Hyperledger for instance provides a good TPS, it’s not a GUARANTEED TPS and is subject to bottlenecks.

  3. They will have to figure out how to store and accept the tokens, meaning that they will have to develop their own wallet and POS/Terminal applications and web plugins.

  4. They will face a question of portability Should these tokens be exchangeable for good and services outside of the immediate “walled garden” of perks (think cafeteria credits, child sitting credits, Uber credits, etc)?

  5. Finally, they will have to think about maintainability People inside corporations leave and move to other jobs, projects get deprioritized, the organizations goes through growth and cuts. Maintaining a in-house system is a big commitment for an organization.


A payment network like GRAFT makes for a good solution for this use case as it provides support for the company (aka merchant) tokens and private overlay networks while leveraging the robust features of the underlying POS-compatible permissionless blockchain network, ready made apps (POS/terminal and wallet) that can be customized by the commercial entity to their needs and branding, and an infrastructure of service brokers that can provide exchange capabilities and various other services and applications.

We invite Paypal and others who are considering offering a “perk money” program based on a blockchain designed for payments to explore GRAFT Network as a potential solution.

How GRAFT Is Similar To And At The Same Time Different From Visa And Other Payment Card Networks (Part 2)

Slava Gomzin, Co-Founder of GRAFT

In the previous post we reviewed the similarities between GRAFT and plastic card networks. Now let’s review the differences.

Difference #1 – Decentralization

There is such a key property of GRAFT Network that fundamentally differentiates it from plastic cards. Unfortunately, not all buyers realize and appreciate this property immediately because it is not that obvious to the average consumer, especially in developed countries. And let’s be completely honest with ourselves here – not everyone cares about this property – it’s not until you find yourself in, not before your get into a situation that it suddenly becomes very important. I am talking about decentralization.

The card processing consists of several elements represented by multiple corporations: payment networks (Visa, Mastercard, American Express, etc.), issuing and acquiring banks (such as Chase, Bank of America, etc.), and payment processors (such as First Data, Heartland, etc.). Each corporation has its rules and compliance to national governments, which means they can reject any merchant or buyer, anytime. They can put you out of business, make you “persona non grata” – without any reason, notice, or explanation, just because you don’t fit their requirements – by declining your credit card application, decreasing your credit limit, locking your funds, or cancelling your merchant account. Millions of people live behind the “invisible wall” built by those corporations and governments, without access to banking system, i.e. without ability to use credit/debit cards.

Unlike plastic cards, GRAFT Network does not belong to anyone. GRAFT is more a protocol rather than a product due to its open source nature and peer-to-peer architecture. Therefore, the buyers and merchants cannot be either rejected or approved: they simply connect to the network (by downloading free apps) and start using it, no strings attached. But remember that unlike typical ”bare” cryptocurrencies, the features #1 – 4 from above are still there to satisfy both buyers and merchants standards on the same level as they are satisfied by payment card processors, only without centralization.

Difference #2 – Privacy

Another key difference is somewhat related to #1; however, it is completely separate feature, which is achieved by using special additional technical means rather then just solely based on the fact that GRAFT is independent from corporations and governments. What’s really similar to #1 is the fact that for some people this property may not been important at first glance – again, until you get into specific situation when it does become important. This property is absolute privacy provided by GRAFT Network to both buyer and merchant. Unlike plastic cards and most cryptocurrencies, GRAFT’s sender address, recipient address, transaction amount, and transaction fee amount are invisible to everyone except for the sender and recipient themselves. Although payment card networks do not expose the details of transaction to the public, this data is accessible by employees of multiple corporations, can be shared with governments, and can be stolen by hackers. Unlike plastic cards, no employees or hackers can access GRAFT transaction data which is encrypted forever – thanks to strong cryptography and underlying blockchain’s CryptoNote protocol.

Difference #3 – Security

Security is another thing that differentiate GRAFT Network from plastic cards. I spent years working on security of plastic cards payments . This technology was created in 1960s, and improved in 1990s by introducing EMV – “chip and pin” cards. But back then, even in 1990s, people were not very familiar with terms like “cybersecurity” or “hacker”, so the technology was not designed with security in mind. The result – a multi-million industry called “credit card fraud” that flourishes to this day.

I am not saying cryptocurrencies don’t have security issues at all – everything related to computers and network has potential security issues. However, if you manage your wallets and keys properly, the security of GRAFT for both buyers and merchants is much stronger than plastic cards: no chargebacks, no lost or stolen cards with the primary account number embossed on the face of the card, and no hacked point of sale systems with millions and millions of payment card records stolen and sold on dark market.

Difference #4 – Technology

Let’s not forget about technology – payment cards use centralized networks, relational databases, and centrally managed customer and merchant accounts. GRAFT uses decentralized peer-to-peer network, distributed blockchain database, and random wallet addresses which are not linked to customer identities.

GRAFT “inherits” all the positive features of traditional payment card processing networks while offering solutions to negative sides of centralized, insecure, olding technology. Give it a try!

How GRAFT Is Similar To And At The Same Time Different From Visa And Other Payment Card Networks (Part 1)

Slava Gomzin, Co-Founder of GRAFT

GRAFT Network is often compared to credit and debit card processing networks such as Visa, Mastercard, and other plastic payment brands. Most of the time such a comparison is focused solely on the differences while in fact GRAFT and payment card networks have some (good) things in common. In this post I will try to describe both similarities and differences.

Let’s start with the good things that both GRAFT and plastic cards have in common. GRAFT “borrowed” many good features from payment cards, which have been tried and tested for over 50 years, and become a defacto standard for payments in that time.

Similarity #1 – No cost to the user

Traditionally in cryptocurrency, transaction fees are paid for by the buyer – a practice that goes against the grain of payment workflows in the global merchant space, where transaction fees get charged to the vendor. Just like with plastic cards, GRAFT Network does not charge the buyer a fee for processing a payment transaction. This difference might seem to be insignificant, but in reality it is one of the most important features which positions GRAFT on the right side of the user experience battle. After so many years of plastic card payments, where the buyer is not even aware of transaction fees paid by merchants, Bitcoin and other crypto started “forcing” consumers to pay “network” fees for each transaction including in-store purchases. This setup creates an inhibition to spending and is one of the reasons cryptocurrencies are still not widely supported by mainstream consumers as a payment method at checkout. In some cases, the fees reach an incredible amount, often making the purchase itself illogical. Would you buy a cup of coffee that costs $3 and pay another $1 (extra 33%) as a “network fee” if you can pay just $3 by credit or debit card? GRAFT resolves this problem by charging the merchant instead of the buyer, just like plastic cards do, leaving it to the merchant to price their goods and services accordingly

Similarity #2 – Predictable transaction costs

There is another, more serious problem with cryptocurrency transaction fees: inconsistency. Retail is a tough business with small margins, and it likes predictability. Retailers want to be able to know in advance what part of the revenue they take home and what part they pay to the payment processor. Payment card brands recognized this issue many years ago and resolved by setting very consistent rules. The fees may vary based on amount and type of transaction, but they always can be calculated in advance. The most important rule is that there is always a rule. For example, the processor can charge the merchant 3% + $0.20 for each transaction. If the merchant sells its product for a total of $10,000 today to 100 customers, they know they will pay $320 in transaction fees.

Unlike payment cards, blockchain-based cryptocurrencies usually charge transaction fees based on the size of transaction record in kilobytes. It is impossible to predict the fee as the buyer’s wallet compiles the payment “on the fly” from a number of outputs of previous transactions which varies from wallet to wallet. If GRAFT only “flipped” the fees burden from buyers to merchants but kept the same common cryptocurrency approach to fee calculation, it wouldn’t work for merchants. So GRAFT made the fees predictable, dependant on transaction amount just like payment card brands. The authorization cost of a GRAFT Network transaction (paid to the supernodes supporting the network) is 0.5% of the transaction amount while the settlement (paid to the miners) is a fixed fee of 0.1 GRFT (more details about GRAFT fee structure can be found here). This helps bring predictability, and thus stability to the process, making accepting crypto payments more attractive to the merchants.

Similarity #3 – Special transaction types.

When we go deeper into the specifics of retail – especially the hospitality and gas station business – there are more exotic features of payment systems, and many people, including developers of other cryptocurrencies, have not developed around their existence, leaving big holes for cryptocurrency use in these areas. Most of us, however, are familiar with features such as pre-authorizations from our day to day life as consumers. Payment card brands developed these features because they were vital for many businesses to replace cash payments. Cryptocurrency designers, however, have underestimated the importance of brick-and-mortar business requirements because they focused mostly on online payments.

When you swipe your card at gas station to fill your car’s gas tank, your card is not charged immediately, but instead it is preauthorized for a particular amount set by the merchant or its payment processor; for example, $50. Preauthorization (aka “pre-auth”) ensures that your account has enough money to pay for the gas, up to $50, but it does not charge your account. Technically, you still have the $50, but temporarily you cannot spend it because pre-auth decrements your spending limit. It’s done this way because the pump does not know in advance how much gas will enter your tank (and how much you will have to pay for it). Once you’re finished fueling, the pump sends the exact amount to the network and finalizes the transaction. This operation is called completion because it actually completes the transaction. Completion unlocks the funds previously locked by pre-auth and charges your account for the exact amount. So if you owe the pump $25 for the gas, it will cancel your $50 hold and debit your bank account balance by $25 (or increase your available credit in the case of a credit card).

“Pre-auth”/”complete” mechanisms are also applicable in other big industries such as hospitality – when you check in to the hotel your card is pre-authorized for the approximated cost of your entire stay plus some additional amount for unexpected expenses. When you check out, your room your card is “completed” for the exact amount including your mini-bar charges. It sounds simple but there is a whole infrastructure behind the scenes supporting this. All existing cryptocurrencies lack “pre-auth/complete” functionality and therefore cannot be used as a method of payment at gas stations, hotels, and many other businesses. GRAFT fills this gap and provides a “pre-auth/complete” mechanism similar to plastic cards – thanks to the supernode infrastructure.

Similarity #4 – Real Time Authorizations

Finally, let’s talk about the most important feature provided by payment cards (this could very well have been listed at #1 but it’s important to emphasize the previous three as they are big challenges for the cryptocurrency paradigm that should not be overlooked). Payment cards work remarkably fast when it comes to authorization and preauthorization. Typically it takes a fraction of second (up to several seconds if their processor is slow) to get authorization or pre-authorization from Visa or most other card processing networks. It takes from several minutes to several hours to confirm payment with most cryptocurrencies. Bitcoin itself was designed for online transfers of funds where authorization time is not a critical factor. Bitcoin is more like a bank ACH transfer than a credit card payment. Most cryptocurrencies have followed Bitcoin’s design and inherited this “feature”. In the reality of brick-and-mortar stores, however, time is money, literally, as for these merchants more time spent on every payment means less customers (less revenue) and more cashiers (more expenses).

GRAFT Network processes instant authorizations and preauthorizations using special technology called Real Time Authorizations (RTA) which is accomplished through GRAFT’s decentralized supernode topology. Therefore, payments processed through the GRAFT Network are suitable for brick-and-mortar merchants.

This part is concluded now; in the next post, which will be published tomorrow, we will discuss key differences between GRAFT and plastic card networks. After all, there must be something fundamentally different in the way GRAFT processes payments, otherwise, why would anyone forget good old plastic card and rush to pay with crypto via GRAFT Network?

RTA Public Alpha Release

GRAFT Development Status Update November 12, 2018

Today is a very big day for GRAFT project – we’re releasing the new baby into the world!

The RTA Supernode is a linchpin of the GRAFT project, allowing the real-time transaction authorizations. To get to this point it took a lot of work engineering reliable transport protocol, supernode sample selection, all in a maintainable and modular way.

With the RTA Public alpha release, we’re opening the testing up to the wider public to further test and optimize its performance and reliability.

How to participate in RTA Public Alpha

  • Follow these instructions to install the RTA supernode
  • Submit this form to request the alphanet supernode PoS stake.
  • Join the RTA Alpha Telegram group to get more info about the testing process and share your findings and ideas with the community and developers.

What kinds of goals is RTA public alpha pursuing?

There are several goals for the RTA Public Alpha testing stage:

  • Find potential issues and bugs that cannot be found on a low scale network of closed alpha (about 50 participants/supernodes)
  • Allow supernode owners to get familiar with the supernode setup and maintenance processes so they will be fully prepared for the RTA Beta launch on the mainnet
  • Allow the supernode owners to estimate the earnings on the real network (the stimulus transactions will be running on public alphanet on the same or similar scale as they will be available on the mainnet after the Beta launch)
  • Most importantly, work on preparing the network for the mainnet launch by allowing community to discover any security holes and potential exploits
The RTA alpha is time to find vulnerabilities in the design, from both scaling and exploits point of view. We expect the RTA alpha testers to contribute to pushing the network’s scalability limits as well as security and usability. To that end we’re working on a bug bounty reward program that will be announced shortly.

What to expect?

  • November 12 – the RTA SN instructions are available to the community to build their RTA supernodes, configure them and connect to the Alphanet (RTA Alpha testnet)
  • November 14 – Transaction simulator availability – a special bot that will generate regular test transactions in the system
  • November 15 – Alphanet hard fork to enable the latest release of RTA supernodes and client apps; Wallet/POS RTA-compatible clients updates available via Apple app store
  • November 26Stimulus Tx package testing…

How long with the RTA public alpha last?

We don’t know what kind of things are going to get uncovered during the course of the public alpha, so it’s hard to put a date on the Mainnet beta release. 8 weeks is a good case scenario, but at this point it’s a rough target.

How to report bugs / suggestions?

Please funnel the bug reports and suggestions through our community dev liason – Jason R @jagerman..

Happy GRAFTing!

GRAFT “Anti-ASIC” Major Network Update 1.5 on October 31, 2018

Last Updated: October 25, 2018

GRAFT developers just released a new version of GRAFT software for the upcoming major network update that will introduce a new variation of the PoW hash algorithm which prevents ASIC mining. Network hashrate is important, but it is not the only factor in blockchain security. The way this hash power is distributed between the miners is also important. ASICs break the balance and facilitate centralization (concentration of hash power) which can be dangerous for the network.

The major network update will apply a new variation of CryptoNight hash algorithm (CryptoNight V8 / CN variant 2) which is currently ASIC-resistant. The source code of the new version 1.5.1 can be downloaded from master. The Linux (both Ubuntu 16.04 and 18.04) and Windows binaries are available for download from github.

The major network update (aka hard fork) in GRAFT mainnet is scheduled for Wednesday, October 31st at block 207,700 (block 194,130 in GRAFT testnet tomorrow, October 24, 2018).

The major network update means that if you are running the GRAFT network node (graftnoded) you must upgrade to the latest software before October 31st. If you do not upgrade your node before October 31st, it will be disconnected from the mainnet. Note that users of GRAFT mobile and desktop wallets are not affected by the hard fork and should not do anything – as long as they are still connected to the default proxy supernodes (if you are connected to your own supernode, do not forget to upgrade the underlying network node).

GRAFT Weekly Development Status Update October 22nd, 2018

Hi everyone, this is our weekly update on GRAFT development activities. Last week we were focused on RTA alpha debugging and new release, exchange broker development, and payment gateway UI, while dealing with an “anti-ASIC” major network update. Let’s review the status of all these activities.

The new RTA alpha release with stabilized communication is ready, the only reason we did not release it to the alpha testers last week was the work on the hard fork patch, so the release will happen later this week. This RTA release is a close version of the upcoming beta release to the mainnet, with a few things still in development.

Before RTA beta, however, we are going to open the RTA alpha to the public, so everyone will be able to “touch” and try to break it while still in test mode (right now it is only available to the 50 alpha testers.) Once we get a “confirmation” from the RTA Public Alpha testers, we will release the beta to the mainnet. This way we can test the supernode network scalability in environment pretty close to the real world operations before it goes to full production.

While the core dev team was focused on RTA and the upcoming major network update, another team continued working on payment terminal apps, exchange broker, and payment gateway. More specifically, last week there were working on an enhanced GUI for exchange broker and payment gateway (as shown on the screenshot below). Since the payment gateway is aimed towards the less technical, more business operations oriented audience, the quality and functionality of the user interface is very important.

Also, the core team is working on a patch for the upcoming major network update that will introduce a new variation of the hash algorithm that prevents ASIC mining. Network hashrate is important, but it is not the only factor in blockchain security. The way this hash power is distributed between the miners is also important. ASICs break the balance and facilitate centralization (concentration of hash power) which can be dangerous for the network.

The patch will apply a new variation of CryptoNight hash algorithm (CryptoNight V8 / CN variant 2) which is currently ASIC-resistant. The patch is still being tested – thanks to the group of GRAFT miners’ who help with the testing. We will announce the hard fork block number and date once the testing is finished (probably tomorrow). As usual, we remind that the major network update (aka “hard fork”) is only relevant to the miners and other full node operators; if you use one of the GRAFT mobile or desktop wallet apps you don’t need to do anything.

Finally, please check out the questions and answers from our first official AMA (“Ask Me Anything”) session which took place last week. We tried to answer all the questions from the community, but if you don’t find an answer to your question in the list – don’t worry, we plan to conduct periodic (shooting for monthly) AMA sessions!

Happy GRAFTing!

GRAFT Weekly Development Status Update October 15th, 2018

It’s been another hard working week for GRAFT devs, and here is our brief weekly update.

We are continuing work on debugging and improvement of the RTA communication protocol. During the last week we merged “blocking doubled RTA notifications” PR, fixed connection and white peer lists management, and did some internal debugging, merging, and testing. Also, we just finished creating a couple of diagnostics tools – an automated communication test framework and GraftnetExplorer (see the screenshots below).

The supernodes communicate to each other through “tunnels” which they build using the existing network of underlying cryptonodes. They use a special mechanism that allows creating a set of shortest and fastest tunnels. Currently, the protocol works but not in the most efficient way, so we are looking for weak spots and bugs. These diagnostic tools have already allowed us to find and fix a couple of bugs in communication between the supernodes. At some point we may release them to the alpha group (and then to the public as well).

As you can see on the GraftnetExplorer screenshot above, several supernodes in this dev network are interconnected, which means they can send each other instant notifications or broadcast messages to a larger group or even the entire network – all without knowing the IP addresses of other nodes, just by using their logical IDs. This is one of the major features (but not the only one) that differentiates the GRAFT supernodes from similar protocols such as Dash masternodes as it significantly enhances both the privacy and security of the GRAFT network.

The automated testing framework is another utility, recently developed by the team, that allows us to simulate various scenarios of communication between the supernodes and print the resulting diagnostics and statistics.

On the screenshot above you can see one of the results of the test run. There is a detailed backtrace located before the red line, while the next test is the same but without the details. 3 out of 4 the communication tests were successful, while one was failed (‘broadcast’, marked by letter ‘F’).

Another part of the team continues working on terminal apps, payment gateway, and exchange broker – optimizing the API, preparing for the production environment deployment, and developing reports. They are in the middle of the sprint, and the results will be reported next week.

Also, please check out a new version of the GRAFT white paper which now can be downloaded from the website. In this version, we have added recent proposals created since the previous white paper release, and summarized the changes in the original functionality. As the ideas initially set forth in the original GRAFT white paper gradually materialize, we need to make adjustments as we get deeper into the project. There are three areas of new or updated content in this version of the white paper:

And finally, the GRAFT Team will be hosting an AMA (“Ask Me Anything”) live on Telegram and Discord on October 18th, at 12pm EDT, so if you have not submitted your questions yet please do so!

Happy GRAFTing!

Engineering Update: Pay-in Broker and Payment Gateway Demo

While we’ve been focusing on stabilizing the Full Supernode based RTA (real-time authorizations), part of the team has been diligently working on the other components that are necessary to make the main GRAFT Network use case (paying with any digital currency with your favorite wallet) a reality – namely Payment Gateway and an Pay-in (aka Accept) Broker, and it’s time to show some progress!

Pay-in broker is a type of an exchange broker that provides alt-currency acceptance for the network. It’s a critical piece required to enable any digital currency acceptance at the POS with the wallets of user preference.

Payment Gateway provides a layer between the payment terminal and a network that’s meant to handle business logic and part of the remote wallet functionality.

Real-time Transactions – GRAFT vs Electroneum, etc.

Electroneum recently announced real-time transactions available as beta on their network. We wanted to take some time to shed some light on the difference in approaches between solutions like Electroneum and GRAFT.

With their approach, Electroneum is effectively following the centralized model of Bitpay, Coinbase, Coingate, GoUrl.io, and many other centralized crypto payment processing gateways in that they issue an authorization immediately as the transaction enters the transaction pool, without waiting for confirmations on the network. There is little innovation in this approach which is well-known to the industry. With centralized entity in the middle, the buyer and the merchant must rely on trusted party just like with traditional plastic payment processing, which means compromise on privacy, security, and a single point of control.

Unlike Bitpay and other centralized payment gateways, Electroneum shifts the risk of transaction not getting confirmed onto the merchant rather than absorbing it themselves.

The vendor does not get the cryptocurrency instantly, but our system acts as a trusted 3rd party to ensure the ETN or other cryptocurrencies such as Bitcoin is sent (our patent covers ETN, Bitcoin and other cryptos). The vendor knows the payment is sent and will make its way to the blockchain, so they can allow instant checkout – and the customer can walk out of the store with their cup of coffee or checkout online etc.
https://electroneum.com/2018/06/12/announcing-instant-payment-beta-vendor-application/

This illustrates the fundamental difference in approach where GRAFT is decentralized and utilizes an independent authorization sample (selected from the distributed network of supernodes) to validate the transaction, and independent exchange brokers to handle off-network (alt currency) acceptance risks when handling real-time payments.

GRAFT’s approach not only minimizes the risk of real-time transaction processing, but distributes to remaining risk (and reward) to the right party. It also allows acceptance of alternative cryptocurrencies, where Electroneum’s current approach is limited to ETN currency.

Finally, but importantly, GRAFT builds a payment network eco-system as opposed to providing a single vendor solution, which is the essence of decentralization that’s at the very core of the blockchain-based cryptocurrencies like Bitcoin.

*** Note that our intent is not to pick on Electroneum with this article – we’re merely trying only to bring some clarity in what sets GRAFT apart from other payment solutions, using Electroneum as one of the better representatives of this class of centralized solutions.

GRAFT Development Status Update September 2018

It’s time for another dev update! It’s no secret that RTAs (real time authorizations) remain the main focus for the GRAFT development team, so let’s start from the alpha review.

RTA Alpha

We are excited to announce that RTA transaction now works end to end for the entire sale workflow – it is stable, and takes just a couple of seconds to get approval on both wallet and point of sale as expected. There is still some work to be done before we move to beta release, and there are many ways to do even more improvements. But here is the most important thing: the first instant payment on a private CryptoNote blockchain is now a reality!

The RTA alpha release contains a full set of components necessary to conduct an end-to-end point of sale transaction in real time:

  • completely redesigned full supernode, i.e. the supernode that can participate in authorization sample and approve a GRAFT transaction in real time;
  • completely redesigned wallet and point-of-sale proxy supernodes, i.e. the supernodes that provides an “entry point” to the RTA network and participate in RTA transactions;
  • mobile and desktop wallet and point of sale apps for iOS and Mac OS X redesigned for RTA.

In addition, there is a special testing environment created for RTA alpha testing – alphanet – a dedicated testnet which contains several seed nodes, a miner, proxy supernode cluster with load balancer, and blockchain explorer.

We managed to assemble a very efficient and quite large team of alpha testers – 50+ active members who are able to run both RTA supernode and iOS/Mac clients (wallet, POS). In addition, we have selected an extra “reserve” group of volunteers (also 50+) that will be able to join the testing once it’s extended to the next phases – additional clients for Android/Windows and then beta release.

People familiar with development release cycle know that alpha releases are usually unstable and may lack some features. RTA alpha was not an exception. Once the RTA functionality was released to the alphanet, we discovered issues that we could not see during regular testing. We are able to simulate the real network very well because the alphanet consists of real participants running on different networks and different hardware or hardware abstractions, rather than artificially cloned nodes and supernodes. We really appreciate the patience and positive attitude of alpha testers team!

So it’s time to learn more about the RTA transaction flow, which you will be able to experience in retail stores soon! It is very simple – a couple of clicks (literally) in the wallet app and a couple of clicks at the point of sale app: Figure 1: GRAFT RTA Workflow Between Mobile Wallet and Point-of-sale Apps

Payment Gateway for Merchants and Service Providers

As recently described in the Fees and economics update post, one of the important profiles in GRAFT ecosystem is a Merchant Service Provider (MSP). An MSP’s role is to provide and support payment network services to the merchant, ensure the uptime of the network (usually referred to as Service Level agreement or SLA), provide and manage equipment (e.g. payment terminals), provide reporting, etc.

To enable an MSP to do this, another type of server is needed – one that would:

  • Manage the terminal’s configuration (including wallet address)
  • Handle the MSP specific fee economics for the MSP (an MSP could choose to handle tiers of service differently or charge different fees for different transaction amounts)
  • Maintain transaction reporting and analyyics for merchants

In theory, such payment gateway can be designed and implemented by a third party such as traditional payment processor that wants to add cryptocurrency payments to their portfolio of services. However, we decided to create a “reference implementation” to enable faster adoption rate as a part of our go-to-market strategy.
Since GRAFT is a decentralized payment network, the payment gateway is multi-tenant, multi-instance, open source app, and everyone can host their own payment gateway and become a service provider on the network.

Payment Gateway is this “fifth element” that is supposed to manage the GRAFT payment apps on hardware payment terminals and GRAFT ecommerce interfaces, and link them with the GRAFT supernodes. Since it has transaction visibility, it is considered part of merchant’s ‘back office’ applications. Figure 2: GRAFT Payment Gateway, Service Provider Dashboard Figure 3: GRAFT Payment Gateway, Merchant Dashboard

* Note: With GRAFT network, the merchant can be their own MSP, but would still require the functions of a Gateway in order to manage the terminals setup, reporting, etc.

Upcoming Dev Updates

We’re moving forward with every track on the development roadmap and even pulling some of them forward. An interesting upcoming project, which is currently in design and not even announced yet, is GRAFT ColdPay Supercard. This is a smart card that combines functionality of cold wallet, which can be used with mobile or desktop host app, and payment card, which can be used for making a payment at hardware payment terminals and mobile points of sale. More details about this exciting development will be unleashed very soon. Stay tuned, happy grafting!