Since the beginning of 2021, with the influx of institutions and individuals into fast-growing fields, the cryptocurrency industry has experienced significant popularity. Although the barriers to entry into the field have been significantly reduced since its inception a decade ago, there are still several sticking points that make wider adoption difficult, especially when interacting with local fiat currencies.
An effective and efficient liquidity bridge needs to be established between cryptocurrency and merchants. As the industry develops, this bridge will only become stronger. In addition, the influx of new participants-most of them retail investors or traders-is leading to increased volatility, which may make the mass adoption of the industry by the mainstream financial community untenable. Even if the stablecoin space swells due to these issues, it is not ready to attract those industries that might benefit the most from its use; that is, business. There is a need for a solution to accelerate the acceptance of cryptocurrencies and stablecoins that will not fake merchants’ acceptance of cryptocurrencies by using prepaid cards or encrypting to fiat gateways to automatically convert encryption to fiat currencies.
enter swear (R), a company that develops alternatives to stablecoins, named vcurrency. Contrary to the financial support in the bank account, vThe currency is pledged to support thousands of independent merchants. They exist in the ecosystem that promotes local and global commerce, and have the role of promoting and increasing the use of blockchain-based assets in commerce. indeed, vThe currency has been used in the context of reward programs in 11 countries. By publishing their transactions to the secondary expansion layer (operated by Aventus Network), these reward programs processed a total of 8.5 million historical transactions before being publicly released. This article will discuss Vow’s solution in depth. It will study the company’s innovative and stable new methods and explore the benefits of its fast-growing business ecosystem. But first, what is an oath and how does it work?
What is an oath and how does it work?
swearIts mission is to decentralize currency issuance and establish itself as a universal bridge for global merchant encryption acceptance. Vow’s unique approach addresses the multi-billion-dollar “promises” that merchants make to customers in the form of vouchers, points, cash back and gift cards, and label them as a new form of liquidity. Its token, which Vow calls “v“Currency” is a fixed value discount token issued by merchants to replace their usual reward “promises.” Instead of gift cards, cash back or discounts worth $1, merchants only need to reward their customers $1 vCurrency instead.Customers then collect their vCurrency, and redeem for fixed discounts on merchant service products at any time in the future.
Because of being accepted against merchant goods and services, vCurrency has the same equivalent function; this means that when a customer purchases goods from a given merchant, they reflect the local legal tender in all respects. E.g:
Merchant A’s product X is priced at $100 and comes with a 20% cash back.When customer A purchases product X in exchange for fiat currency, they will receive a value of $20 vThe currency in their Vow wallet can use that 20 vUSD can get a discount of 20 USD on the next purchase.
Vow’s “platform” exists as an ecosystem of merchants and customers, allowing these customers to spend their tokenized rewards at a wide selection of merchants, effectively establishing a localized currency. This means that it is not an electronic currency, nor can it be classified as a stable currency, because it does not have any intrinsic value. In fact, it is a discount on goods and services.
Because it was sent by the merchant vCurrency, they support it to protect the integrity of their brand.This also played a unique role vCompared with traditional stablecoins, because there is no central company, government, private group or asset to support the value of tokens at any time, consumers can obtain them completely for free.
In contrast, every vSince distributed merchants promise to accept them back in exchange for their goods and services, the currency retains 100% of its value, which is 1:1 equivalent to the local currency.
In addition vThe currency itself, the core of the Vow platform is a free-floating, limited-supply ERC777 cryptocurrency called VOW. Merchants need to purchase the cryptocurrency to mint new ones. vcurrency. The value of VOW directly reflects the adoption rate of the ecosystem.
The bridge between commerce and encryption
indeed, vCurrency, VOW and broader Vow ecosystem Destined to become a key tool for adopting more mainstream cryptocurrencies and blockchain-based technologies for the following reasons:
- This ecosystem enables companies to create a new liquidity pool, which not only makes local commerce more likely to happen, but also enhances industries that may be difficult to build from offsets.
- vFrom a consumer’s point of view, currency is fundamentally easy to understand, which is an important feature of persuading merchants and customers to participate in the platform.
- vCurrency is truly decentralized and puts key stakeholders—merchants and customers—first. Therefore, businesses can have full confidence in the integrity of the ecosystem.
- Merchants will benefit financially vCurrency and the wider Vow ecosystem reduce statutory fees and customer acquisition costs, thereby generating more efficient cash flow.
Vow’s model embodies the shift to an ecosystem-led business approach—a trend that encourages companies to build for all stakeholders, not just shareholders. This method is the foundation of a blockchain-based platform and brings a more equal distribution of benefits to similar projects in the encryption field.
Oath the chairman, Bishara Smel, Speaking of the necessity for merchants to adopt, said:
“Currently, there is not much demand for companies to accept decentralized currencies. Replace existing coupons and stored-value products vCurrency can be a simple step into the wider decentralized world. ”
How to do vCurrency and stablecoin comparison?
Compared with free-floating cryptocurrencies such as Bitcoin, stablecoins aim to keep their value stable. Traditionally, there are two methods:
- By holding the same amount of currency reserves, the stable currency is bound to the legal currency,
- The value of the stablecoin is linked to a basket of assets (based on encryption or other assets) through an algorithm. The algorithm adjusts the value of the stablecoin according to changes in the price of the items in the basket.
However, in business, both of these methods contain potential risks and may pose a threat to the widespread adoption of encrypted payments by merchants.
The first method requires merchants to trust a third party holding a large amount of fiat currency, which can be cashed. The reintroduction of third parties to transactions runs counter to the spirit of blockchain. In most advanced economies, this is also an expensive task fraught with compliance issues.
The second algorithm method is a positive step towards decentralization. However, the reliance on unstable crypto assets and the risk-reward strategy of maintaining legal parity means that stability in extreme market environments has not yet been tested. vCurrency is backed by products and services that have the same unit value associated with it vCurrency, so their value is completely related, thus eliminating the risk that the collateral is different from the value of the asset it supports.
Conclusion: experimental evolution
All of the above swearCommitted to expanding business by applying blockchain-based technology. However, at its core, Vow’s solution is fundamentally commercial and strategic in its implementation. Vow studied the key issues in the interaction between merchants and customers, and applied a specific business-led solution that took advantage of the innovative new areas of blockchain and cryptocurrency.
In fact, the application is driving ongoing decentralization experiments in mainstream industries, with Vow in a clear leading position. Vow’s unique merchant-led decentralized ecosystem approach will not only accelerate the adoption of cryptocurrency and blockchain in business, but also pave the way for more innovations in the future, triggering industry-wide acceptance of new technologies .
More information about Vow vCurrency is leading the way in seeking to build liquidity bridges between all cryptocurrencies and physical or online merchants, please visit their main website Here.
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