Showcase — CommerceBlock — Platform for creating smart contracts to trade seamlessly
The CommerceBlock platform uses cryptographic technology and smart contracts to trade seamlessly, anonymously and transparently resulting in reduced legal, administration and transaction costs, whilst mitigating third party risk. Using industry leading technology CommerceBlock provides an trade ecosystem built on the public blockchain whilst leveraging to enable the security and privacy of a private blockchain.
Symbol: CBT (ICO planned soon)
Platform for Fundraiser: Ethereum
Trade or Business transaction involved in commerce are susceptible to high fees, involve multiple intermediaries involving middle or back office to process the transaction and multiple systems, there are potential human errors, or possible language barriers during manual intervention and the possibility of counterparty risk is still present and prevalent.
CommerceBlock’s solution based around blockchain to solve some of the most common commercial challenges help remove the need some of these risks and intermediaries while doing trade or a commercial transaction. The platform already provides Zero- Knowledge proofs over the existing bitcoin blockchain, taking advantage of the security without the data being publicly accessible. It uses Contract to Hash Protocol (Timo Hank paper 2012) Zero- Knowledge Proofs Implementation.
How it works?
The following steps explain the high-level flow of the system and how it works:
Contract Creation Process by Seller:
- Add metadata to any wallet address (e.g invoice): Invoice contracts are created by uploading files (physical invoice pdf or file) and then generating hashes which are used as part of the addresses.
- New anonymous address is generated: By generating these public keys you are associate the files with the derived addresses.
- Metadata can be validated against address: Public keys can be used by the payer to validate associated data (uploaded files) with the derived addresses.
Contract Fulfillment Process by Buyer:
- First Metadata (e.g invoice) validated against address: The invoice contract public keys generated in the above process, along with the physical invoice pdf or file can be used to validate against the address.
- Add metadata (e.g signed invoice or receipt): Then buyer can upload the physical receipt or signed invoice pdf.
- Sign with key generate new address: This generates a new address where buyer can make the payment.
- Send funds to new generated address: Once the buyer makes the payment it is present in the new address and a receipt json is generated containing details of the new address containing the funds. This can be sent offline to the seller to reclaim the funds.
Contract Reclaim Process by the Buyer:
- Original key and meta used to release funds: The invoice contract private key generated in the contract creation process and the physical receipt or signed invoice pdf uploaded in the Contract Fulfillment Process can be used to get the BIP32 Derivation Path for the Payment Address. Here the private receipt json is generated which can be used in any deterministic wallet like copay to get the funds.
Such a system can be used by many Businesses e.g commerce, trade real estate, and other paper based assets like property or even payment processing in digital transactions.
For more better understanding please watch the demo video below:
Foundation Paper — Homomorphic Payment Addresses and the Pay-to-Contract Protocol
In this electronic payment protocol customer-merchant relations do not require a trusted (signed) payment descriptor to be sent from the merchant to the customer. Instead, the destination “account” number for the payment is solely created on the customer side. Funds and receipt are exchanged in a single atomic action. The asymmetric nature of the customer-merchant relation is crucial.
The only essential requirement on the payment system is that “accounts” are arbitrary user-created keypairs of a cryptosystem whose keypairs enjoy a homomorphic property. All ElGamal-type cryptosystems have this feature. E.g Deterministic bitcoin wallet whose addresses can be indexed by clear text strings.
- Zero- Knowledge Proofs Implementation
- First open source implementation on github
- Validated by community and BIP (Bitcoin Improvement Process)
- Leverage the bitcoin network, product ready.
- Chain agnostic could support Litecoin, Decred & Ethereum.
- Customers already, OTC Market & bitsupply
- Product exists on https://trade.commerceblock.com
- Optimizes logistics & information shared
- lower cost
- safe and secure
- Reduces Intermediaries
- CommerceBlock business model is simple transaction based revenue. When a trade is instantiated on the CommerceBlock network, CommerceBlock takes a small percentage of the transaction.
- In future a Token will be used to run transaction and incentivise partners to use the CommerceBlock ecosystem.
- Token will be issues on ERC20, to be later migrated to the network with the strongest security and liquidity (same model as Civic) on an appropriate “side-chain”.
- CommerceBlock has deep experience in side chains (RSK and Hivemind) having already implemented the technology. Lightning now possible.
The below image shows the key features that in progress or planning for the future.
They have a token sale planned soon. Please find their current roadmap:
Whatchout their website for more details http://www.commerceblock.com.
- Nicholas Gregory — Co-founder
- Omar Shibli — Co-founder
There are two key innovations at play here one is the zero knowledge of proof and also the opportunity of atomic swap possible using the Commerce Block contracts. While the dependence on Deterministic Wallets may raise few risks (Read here why) but when looking at how it helps to remove the need for a trusted party in transaction and brings in the feature of using Bitcoin and other crypto currency for business transactions I feel the advantages are huge. Another key feature if implemented by the founders which I think their platform can support is for cross chain atomic swaps where users in different blockchains like Bitcoin/Litecoin or Bitcoin/Ethereum can do transactions removing the need for centralized exchanges and ushering the era of making everyday transactions using crypto currency with low or no transaction fees a reality.
Disclaimer: This is not investment or trading advice, always do your own independent research.
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