Believe it or not, cryptocurrencies were never intended to be instruments for rampant speculation. To be sure, there is the “store of value” argument that some crypto enthusiasts make, comparing digital coins like bitcoin to gold. Bitcoin’s original purpose, however, as outlined by its white paper is to serve as a “purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” In other words, it is meant to be an extremely cheap, quick, and secure way of spending money.
History shows us that bitcoin–and other cryptocurrencies–have hardly been used in this way. Bitcoin historical data shows that its price doubled from December 1 to December 17, at was the height of so-called crypto mania. By December 22, however, bitcoin’s price had already dropped below the $12,000. Volatility like this is one of the main reasons why businesses as a whole don’t accept bitcoin or other cryptocurrencies as a payment medium–the price moves too much and there isn’t enough liquidity in the crypto payment markets to make it worth it.
This leaves consumers who buy everyday goods and services with few alternatives. It’s no wonder that debit and credit card are by far and away the most popular payment methods, with cash and newer electronic payment methods bringing up the rear. Seeing the need for an efficient alternative payment method, the blockchain startup Zeex is creating a decentralized, anonymous shopping network that will allow users to purchase goods and services with cryptocurrencies. The platform has a couple of key features that make it a much better alternative to other fiat and crypto based payment methods. Finally, crypto users can do something with their digital coins besides trade them.
What Makes the Zeex Platform a Unique Solution?
First, the Zeex platform runs using the Ethereum blockchain as its foundation. This makes it an efficient and fast method of payment. What’s more, the use of a distributed ledger also removes any unnecessary third parties like financial corporations, banks, and credit card companies (Visa, MasterCard, American Express, etc.).
The ZIX token, is integral to the platform’s operations. It acts as a damage deposit, covering buyer and seller risk while a transaction settles. It also carries deposit value, so it can be used on the platform like the other cryptocurrencies the platform supports. The integral nature of the ZIX token and the decentralized blockchain allow fees to be removed entirely. The platform provides users with a completely fee-free way to purchase items online at a fraction of the ordinary cost. Think of Amazon, but even more so.
Zeex’s fee-free nature stands in stark contrast to credit cards, which charge processings fees of 2.0-2.5 percent on average and regularly carry interest rates well over 15 percent, or even other cryptocurrencies like bitcoin when used through other platforms. This in turn will incentivize buyers to use the platform, since they are getting more bang for their buck, while also influencing merchants, who will receive higher profits because third parties and their associated fees are cut out.
Second, the Zeex platform has top notch security protocols, ensuring that transactions are met exactly as desired. This is because the system utilizes the power of smart contracts, which self-actualize the terms of a contract once the conditions are met. Not only does this remove the need for an independent verifier–driving up transaction costs–it also secures the transactions in a way previously impossible. Because all payments are made through cryptocurrencies and don’t require crypto to fiat conversions, users aren’t forced to give up their bank account numbers, addresses, and other financial information.
Additionally, the ZIX token serves as a login method, which means users don’t have to give up vital private information when using the platform. This is in contrast to other online shopping platforms, which require a Google, Facebook, or other social media account to register. In this case, Zeex is a truly anonymous shopping platform that protects personal data above all else.