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Jan 26, 2018
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The objective of Request Network is to disrupt the monopoly of financial services. The decentralized network operates on the Ethereum blockchain, which allows anyone anywhere to request a payment.
RN at a glance
Request Network embraces the following key features:
- No need for a third-party—the system detects and conducts transactions securely
- The network uses an immutable, authentic ledger to save transaction requests. This makes it a unique source of truth for accepting and auditing processes
- The network integrates a trade law system that is compatible with every legislation
- Request is compatible with every currency worldwide
- The network is flexible and can last hundreds of years. Besides, it blends well with IoT and remains compatible with future systems
Should you invest in the network?
Baptized “PayPal 2.0,” Request Network is a decentralized platform that enables anyone across the globe to make a Request invoice for which the recipient pays securely without any intermediary. All the information relating to the transaction ends up in a decentralized authentic ledger. This makes all transactions cheaper, easier, and more secure with multiple opportunities for automation. The principal objective of the network is to develop a financial structure that could potentially become the norm for invoices, accounting, auditing, and payments in digital currencies and fiat assets.
Request Network has a credible team behind its design. The developers of the network command the best level of trust, having been involved in similar projects before. For instance, they created Moneytis, a reliable company for money transfer. They also have the backing of Y Combinator, one of the players in Silicon Valley, who is a strong pillar behind Coinbase, Airbnb, Dropbox, and Reddit among others. The team is also valued for its transparency and updates, which are rare in other crypto platforms.
In the fourth quarter of 2017, Request Network developed a minimum viable product, which gives, in a snapshot, a snippet of the size of the problem the network is out to solve. Another thing you need to know is that RN is not just about payment processing, but also provides the following:
- Efficient and automated invoicing
- Identity protection
- Fast and cheap value exchange
- Smart auditing
Besides, Request Network offers cross-currency transactions, which makes it easier for you to pay anyone in the currency of your choice, and the receiver can get it in their preferred currency as well. With Request Network, the tomorrow is already here—you can accept any currency, computerize your finances, and remove the overheads involved in running personal and corporate finances.
RN—upsetting the monopoly
Request Network seeks to invade the territory of major payment providers such as PayPal, Stripe, and others. It will also disrupt the comfort of mainstream credit card providers such as Visa, MasterCard, AmEx, and others. Such companies have been around for decades and have been the global powerhouse when it comes to transactions.
However, as their databases accumulate and the revenues rise, different factors including greed, corruption, and the need to control the system lead to deterioration of service. When that happens, users do not get what they deserve, as the systems in place just benefit the company owners.
Request seeks to change all that by introducing a solution that will not compel the user to reveal personal information or to give authority to any intermediary. As a user of Request Network, you will not have your information stored on the side of the retailer. This will enhance security as no central body will collect or breach information. Besides, it will make transactions quicker, transparent, and cost-efficient.
Reduced Fees
As the whitepaper suggests, Request Network seeks to reduce transaction fees significantly. “A marketplace usually pays between 1.5% (Stripe) and 7% (PayPal with inter-currency) of the transaction amount to accept a payment.” Request aims to disrupt this order by introducing lower transaction fees, ranging from $0.001 to $0.20 based on the amount on the invoice and on selected features.
In addition, since virtual currencies utilize the PUSH mechanism instead of the PULL mechanism, the transaction fees will reduce by a big margin in the absence of a third party to pull from your account. The system is already evident in Europe, where SEPA payments are free and will soon become instant. With the Request Network, you will have the full authority to PUSH a certain amount from your wallet to the recipient.
The Impact of Reduced Cost
With lower transaction fees, information security, and faster transactions, Request has what it takes to subdue the competitors, despite their current scale. In addition, since banks depend on access control for their security, it allows for no competition with better options. This leads to a monopoly system, in which users simply have to work with the system in place.
On the Request Network, you and any other user, can audit the code, make recommendations, or even fork it. The ‘closed environment’ system in banks and payment processors is simply a gimmick for consumer protection, which eventually gives complete control and access to the operators only.
Compared to its competitors, Request offers the following benefits, which are non-existent in other networks.
Security
In the traditional setup, financial insecurity remains insecure because the information remains with the marketplace and the bank or payment processor. This means you release an identifier that permits banks to pull money from your account without your permission. With the availability of computer networking and electronic data, businesses have their own databases, where they develop personal and financial information and store them in a centralized location.
Such systems are prone to compromises, breaches, and identity theft. With Request Network, you have the assurance of consumer protection in a decentralized manner, where you have complete and direct control over your money, assets, and transactions. No one will force you to reveal your data with every transaction or ask you to transfer control to a third party before you transact.
Reformed Exchanges
As you move away from centralized exchanges and adopt crypto banks, you get the benefit controlling your money and having access and ownership of the private keys. In that process, Request Network will focus on the security issues. No longer will you need to hold your money on exchange platforms because of their current benefits of liquidity. Instead, you are free to interact without involving a third party. In the current system, users depend on the exchanges to convert one token to another. Besides, customers need to own a particular currency allowed on the platform.
On the Request platform, you can transact or exchange freely with no limitation. With improved user interface, you have complete ownership and security of your assets, as you remain the sole custodian of your private keys.
Experience
While the experience of the Request Network is not fully exploited yet, theoretically, in the checkout stage you can be able to transact quite easily through automatic request detection. You will only need to swipe left or right to reject or verify a transaction respectively.
The link between customers, merchants, and companies
Another aspect of the Request Network experience is how it enables customers, merchants, and companies to conduct seamless transactions between themselves without hassles. For instance, PayPal can freeze many accounts on a daily basis if they detect something they don’t like. The limited accounts have the funds therein held for 180 days before clearance, which also comes with certain conditions.
This kind of limitation is uncalled for and simply creates a host of other issues for merchants and companies in need of faster and efficient transactions. Besides, it is easier for PayPal to leverage the amount in the limited accounts for their own interests. This can hinder growth and development of new companies in the development phase.
Secondly, merchants and companies that conduct transactions through PayPal are exposed to a higher level of scam, due to lack of proper dispute resolution mechanisms. In several instances, merchants have no option but to see their money seized because of false claims. This is just one problem users have to grapple with in addition to increased and unwarranted fees, scams, identity thefts, and more.
For these negative experiences, the Request Network has a solution. While it may take a little while before its full integration, it is something you can look forward to receiving. Upon full implementation, the network will enable you to confirm or reject payments with a single swipe. Additionally, there will be no need to go through the rigorous registration and verification processes, account limitations, or passing information to a third party.
Accounting
On the Request platform, both you and the marketplace can access the same digital invoice or even refer to it later. You can use the same invoice for various purposes including tax or insurance proof, reporting, or sharing with your boss as a business expense. In addition, when the network reaches a point where it acquires additional layers such as smart contracts, it will operate with full automation for accounting.
At that point, you will have every piece of accounting done by the network. In future, Request Network will be able to gather and track issues on your behalf and even serve as an automated virtual assistant to handle your finance reporting. The network is already a hot topic in the cycles of decentralization.
Keep reading for more benefits of RN in part 2 of this piece, which includes Advanced Payments Options and Modularity, Cross-Currency Settlements, B2B Invoicing, and Automation of Jobs among others.
Images courtesy of Google
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