Sat, 17 Nov 2018

STK Token Sale

STK Token Sale

Instant crypto payments

Review Project

Nearly a decade ago, the creation of cryptocurrencies promised to democratize money and free consumers from the frustrations associated with traditional financial services. Since then, Bitcoin, Ethereum and their siblings have seen rapid growth, achieving circulations rivalling many national currencies. Despite the early enthusiasm, one step remains in realizing its full potential — the ability to pay for everyday purchases easily, instantly and directly from a cryptocurrency wallet.

The status quo

Currently, no established credit or debit cards allow you to hold or transact with cryptocurrencies. Without payment gateway support, most merchants are unable to accept cryptocurrency in-store or online. Building out such a network from scratch would take years and be prohibitively expensive.

The future of finance

At STK, we’re working towards a better future of finance. A new and revolutionary set of financial services — bringing the freedom and autonomy of cryptocurrencies together with the speed and convenience of existing payment solutions.

Through a partnership with STACK, a new personal finance app, we’ve created a platform to enable instant cryptocurrency payments at points of sale. Together, we’re working towards the first seamless integration of cryptocurrency into a mainstream financial services solution, delivered right from your smartphone.
Today we’re happy to announce the STK token, enabling instant cryptocurrency payments at points of sale. The first implementation of the STK token will be through STACK, providing users the ability to add cryptocurrency to their STACK digital wallet, facilitating real-time transactions at worldwide retailers using existing point of sale equipment.

How STK works

If allowed a little more time, and a higher character limit, we’d provide a lot more detail. So, in less of a nutshell, here’s a breakdown from our Chief Technology Officer on the magic behind the scenes of our STK token and technology.

The STK token lets you make instant payments at points of sale directly from your cryptocurrency wallet. When you tap to pay through the STACK app, you can make purchases at any retail location that supports credit or debit cards. The STK token opens a bridge between the Ethereum blockchain and traditional credit card payment rails. In this article I’m going to explain the challenges of creating this protocol and how we resolved them.

STK: A bridge

STK resolves the above problems by acting as a middleman between the existing payment rails and customers’ private crypto wallets. The STK token provides access to a payment channel between a crypto wallet and a 3rd party liquidity provider. This liquidity provider holds a reserve of local currency. Initially, the liquidity provider will be STACK. When making a purchase using STK tokens,

a. STK obtains a signed transaction from the customer promising to send cryptocurrency from their wallet to STACK’s wallet.

b. STACK then pays for the purchase from it’s own local currency reserve, using the existing payment rails.

Payment channels are an exciting step forward in scaling up the Ethereum blockchain. You can find a summary of how they work here. Payment channels are commonly used to guarantee that the transactions between two parties will always be successful.

Using payment channels, we can satisfy the requirements of all parties in the transaction. They provide a near-real-time guarantee of payment to the merchant. At the same time they give crypto wallet holders full control over their private keys, including the ability to trade their assets at any time.
Using the STACK app feels like you’re paying the merchant directly from your crypto-wallet. The machinery behind STK creates a seamless experience for the customer.

Here’s a step by step look at how STK makes payments behind the scenes, beginning when a shopper taps to pay at a point of sale.

  1. A shopper taps on a point of sale using their STACK app’s crypto-card.
  2. The payment rail tells the STACK app the amount of the purchase and the currency. The terminal then pauses and waits to hear if the transaction is approved.
  3. The app securely determined how much cryptocurrency would be required to pay the merchant.
  4. The app converts the price of the purchase to the cryptocurrency.
  5. Through the app, the shopper digitally signs a transaction transferring the purchase amount from their crypto-wallet to STACK’s wallet. They sign it using their private key, which is stored on their device.
  6. The app sends the signed transaction to the STK server
  7. The STK server verifies that a) The amount of cryptocurrency being sent is correct, b) the amount required is available in the shopper’s payment channel, and c) the signed transaction comes from the correct crypto wallet
  8. If any of the above fails, STK sends a message to STACK to reject the purchase.
  9. Otherwise, it tells STACK to approve the transaction. The approval message includes the wallet, the target merchant, local currency and the amount of the settled purchase.

 

Benefits of STK

Using STK brings you the best of both worlds. It combines the ubiquity of existing global payment networks with the secure autonomy of the blockchain. It also has a few additional benefits:

  • Chargeback. If you pay through STK, you can get a refund for your purchase if the product is not delivered as expected. The money returns to STACK through the payment rails; STACK then passes the refund back to your crypto-wallet through STK’s payment channel.
  • Security. Unlike centralized cryptocurrency exchanges, a wallet’s private keys are only stored on the user’s device. An attacker must break into each individual phone to steal the owner’s funds. Since the payoff for a successful hack is small, such an attack is less attractive to thieves.
  • System as a service. STK can connect any two parties through a payment channel. STACK is STK’s first partner; others can be added later.
  • Fail-safe. Regardless of what happens to STK’s or STACK’s databases, the funds in the channel are always safe and can be withdrawn by customers.

Token Sale

Crowdsale Opening Date

11-12-2017

341 days ago

Crowdsale Closing Date

14-01-2018

307 days ago

Allocations

Token Distribution

Distribution

Allocation
For Token Sale 55 %
For Platform reserve 25 %
For Founder & team 10 %
For advisors 5%
For Bounty and referral programs 5%

Uses of proceeds

Use

Allocation
Solution Development 20 %
Marketing and customer acquisition
50%
Operational costs 20 %
Payouts for contributors 10 %
Legal 5 %

Team

Written By

Isuk
Profile
ETH : 0x237706bfE11D4C4E148b4764c8f7Da37743657d4