Cryptocurrencies have been gaining a lot of attention over the last year, mainly due to the sharp increase in Bitcoin’s price. With the added attention and the birth of initial coin offerings, we’ve been seeing more and more projects come to life to solve everyday problems. One solution the community has really taken a keen interest in is the ability to pay for purchases using cryptocurrencies such as Ethereum or Bitcoin anywhere. Given the lack of willingness from existing businesses to accept cryptocurrencies as payment at the point of sale, how would this vision of instant payments with cryptocurrencies achieve mainstream adoption? One project that we’ve recently had a chance to speak with is STK, aiming to solve both problems: a) the lack of merchants accepting cryptocurrencies and 2) enabling near-instant transaction times for payments at POS (Point-of-Sale).
The STK Token will provide instant cryptocurrency payments at point of sale, enabling seamless integration of cryptocurrency into everyday transactions and financial services in the STACK wallet. The STK token will be implemented on the public Ethereum blockchain as an ERC20 token. – STKToken.com
What is STK?
STK is an ERC20 token implemented on the Ethereum blockchain which allows merchants to accept cryptocurrencies as payment, without having to add any extra, bulky terminals or change their regular methods of conducting business. It enables real-time point-of-sale (POS) transactions directly from a cryptocurrency wallet. How does the STK token work? Read STK CTO Yervant Kulbashian’s technical explanation of the entire process below
Also See: STK Whitepaper
How does it work?
- Creation of the State channel – STK token is loaded onto user’s STACK mobile wallet thereby creating a State Channel.
- Conducting Transactions and State Changes – A POS transaction is initiated, the user is notified on the STACK mobile wallet the details of the transaction. User authorizes the transaction which prompts sending dollar equivalent of cryptocurrency to STK. The signed transaction is received, verified and stored off-chain. STK then pays the merchant in local currency on behalf of the user.
- Keeping Funds Ready – There are fees for conducting a transaction between the mobile wallet owner and STK.
- Withdrawing Funds – user can withdraw all of some of their STK. Partial withdrawals ensure the channel is open for future transactions with STK.
- Closing – State channel can be closed if one of the parties signs and publishes a close request to the State channel. parties submit their most recent transactions to ensure state channel is closed.
What are some of the other features?
The STACK app with STK integration will be full of other great features other than just paying for purchases using cryptocurrencies. The app will include features to manage your spending habits along with analytics and insights to promote financial awareness and IQ.
Upcoming Token Generation Event
STK will be holding their ICO starting October 24th ( pre-sale ) and November 13 (crowdsale). Contribution methods include Etheruem and Bitcoin. The token generation event will last for 2 weeks and a total number of tokens generated will be 1Bn, of which 550Mn will be allocated to the crowd sale. To learn more about their upcoming TGE, visit the official STK Website.
With the introduction of cryptocurrency payment cards, we can start to see more mainstream adoption. The benefit of using payment apps such as STACK allows businesses to operate regularly, yet at the same time accept digital currency payments. We think STK has the potential to bridge the gap between the merchants and at point-of-sale instant cryptocurrency payments.
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