💵VDC-3: Paperless Notes, Crypto Cash

Paperless Cash (PN) is a concept in which it is possible to make payments from a special device (token) off-chain, synchronizing later when the device is online. The device can be assumed to be almost anything on which VERV Wallet can be run. In the future, it will be a device the size of a nano-sim, which can be implanted under the skin, among other things.

How can you perform off-chain operations, and confirm them when a connection appears?

It is actually elementary — just as it happens when paying with a bank card at an altitude of 9,600 meters, even on airliners that are not equipped with a satellite internet connection. The transaction is recorded in a special register, and bank cards have a special small payment limit for transactions of this type.

Paperless Note works on a similar paradigm. Two smartphones and any connection between them — USB, Bluetooth, NFC, and any other connection that will be created in the future — are sufficient for a transaction. The connection only acts as transport for the data flow. Each smartphone runs VERV OS — initially just an app, and eventually, its own operating system. It may well be initially based on Android or other open-source developments, but eventually, it will be developed in-house to maximize efficiency.

VERV OS includes the Wallet application, which is a mini-node. It stores the last few hours of transactions in memory. The balance at the time of the transaction is calculated from it.

Description of the interaction scenario (simplified)

Alice (producer) and Bob (consumer) have an interest in conducting a transaction. Alice, using her knowledge and time, has created a good or service and wants to get 100 VRV for it. Bob agrees to purchase what Alice has produced.

Banknotes

The application may well be realized as an NFC-sticker. That is, we take an ordinary plastic banknote and solder a processor into it, which is essentially a micro VERV Wallet. For convenience, we display the balance on the screen. The banknote works like a prepaid card — you can put it to the reader, and it will debit as much money as requested, if there is any on the card.

Alice has a card for 74 VRV. She goes to Bob's store to pay for her tea, which costs 24 VRV. Bob taps his smartphone and the system automatically deducts 24 VRV from Alice's card. She now only has 50 left. When she went to Eva's boutique next door to buy socks, Alice could no longer pay with the card — the balance was insufficient.

Why is this necessary?

To make payments where there is no network for some reason. Permanently or temporarily. Or where there is no trust in electronic money — physical banknotes of static denomination can be issued. The system guarantees the reliability of payments.

Where else can the technology be used?

When transferring on-chain assets into the real world. This will be the reverse process of tokenization — the process of printing an object from the virtual world into the real world. This can be useful, for example, when printing a passport or driver's license. The system will have a mechanism that guarantees against hacking and the possibility of off-chain transactions with its help. Thus, it will be possible to easily verify the legality of documents with just one scan of QR code or NFC-chip or other data transmitter in the object.

When?

Prospective samples from VERV will be available as early as 2025.