VolleyCash. Instant crypto payments

VolleyCash system is a solution to the problem of real-time (instant) transfer of cryptocurrency funds. VolleyCash system is backed by IOTA cryptocurrency, and everything below is mostly related to IOTA.

A little bit of theory

IOTA’s blockchain is called the Tangle.

New way to use multisignatures

VolleyCash system consists of a server and wallets. The server is a highly scalable API service. A wallet is a mobile application (or any other device/POS/software) that communicates with the server only.

arrows represent transaction body flow via network, not funds flow

VolleyCash retail use case

The store (coffee shop with POS wallet as destination) releases the product (coffee) immediately after the server says that the transaction from the payer (source wallet) is valid. And the payer can leave the store with the product. At the end of the day, the store has all transactions settled on its wallet on-chain and ready for further processing (accumulating from POS devices to single device, withdrawing to fiat, etc).

arrows represent transaction body flow via network, not funds flow

Malicious scenario, that VolleyCash is protected from

VolleyCash is exceptionally fast because it is protected from a case of malicious usage, that we call “side spending”.

No long-term state, always on-chain

There are no “channels” or any other long-term connection between the payer and the store. So, there is no penalty on terminating established connections by withdrawing funds from the system. Every payment is individual, on-chain, and ready for further withdrawal.

High security of funds

The VolleyCash server is not enabled to spend users’ funds, because it has only half-key for each address. So, it is not an “online wallet” that possesses all funds. The purpose of the VolleyCash server is to be always online and to keep its half-keys safe (prevent leakage/breach). Even if a breach happens, current addresses are switched to withdraw-only mode. That mode is when parties can’t be given that instant guarantee because a “side spending” becomes possible. VolleyCash architecture features high security of funds, despite involving a centralized party (server).

No registration. No tracking

Due to low complexity of the server, there are no reasons to force users to sign in. Users access VolleyCash server anonymously. Also the architecture of VolleyCash has no room for tracking users. All the information, that VolleyCash server knows, is nothing extra over what is stored on the Tangle (except private keys).

Implementation

This idea is implemented in software, available at https://volleycash.com. Android App is free to download from Google Play. AppStore version will be released soon. To see all features of VolleyCash (particularly, how funds are transferred between two VolleyCash wallets), you may need two smartphones.

Temporary limitations

VolleyCash lacks some decentralization right now. Splitting the server to several independent parties is a high priority for us. Also payments chaining is currently disabled. For example, if wallet1 sends funds to wallet2, and then wallet2 sends them to wallet3, only first transfer is instant. The second transfer will complete once the first one settles on the Tangle (usually 1–3 minutes).