Payper — P2P micro-payments for the Open API Economy

Introduction

An Open API Economy cannot work on the Internet when micro-payments infrastructure is missing at the fundamental communication layers. API Consumers need to go through the inconvenience to manually subscribe to payment models with individual API providers or intermediaries, while the best option for providers is to use payment processing embedded in API Management Tools, but tailored for the enterprises.

Use case

A REST API provider needs to sustain its service, so they decide to charge small amounts for each API response with valuable data that they provide. The provider’s team installs the Payper Gateway as proxy to the API.

Payper Demo Screen Cast

User Receives Payments From API Provider

Another use case is when the API User is rewarded for uploading content or for contributing in some way to the API.

Principles

In author’s view, Payper is compatible with decentralization and censorship resistance principles promoted in cryptocurrency / blockchain space.

Striving for Non-blocking Payment Processing

The question arises how much overhead does the payment request (on client side) and payment proof verification (serverside) have on the API request execution time?

Escrow Smart Contract

An API User deposits a larger amount to a smart contract and goes through a handshake process with the API Provider. That deposit is intended to “buy” a bulk of API requests, but does not put at risk the deposited funds, as the API User has full ownership over the unspent or not yet reserved amounts.

Presentation Slides

https://docs.google.com/presentation/d/1W1UJ6xowGc8HutmLAzP1RHnlKLP5lUlzwhOF2gqLr5E/edit?usp=sharing

What’s Next?

The solutions described in this article are evidently free to use by any person or business for their own applications. Any feedback that improves the solution or points out security risks is greatly appreciated!

Special Thanks

To Hedera Hashgraph Team for the cool global Hackathon! BeMyApp (especially to the team in London) for organizing the event and for providing valuable feedback and guidance for pitching and presentations! Thanks to all the participating teams for their inspiring DApp ideas!

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