Building more bridges with the real world, we are launching our first fiat on-ramp today.
We partnered with Indacoin to allow to buy Bytes with Visa or Mastercard. Indacoin already offered Bytes on their website but the fee was huge: about 20%. Unfortunately, selling crypto with credit cards is a high-risk business.
But we have KYC, which allows to reduce risks, reduce costs, and improve user experience by removing the necessity to go through Indacoin’s own KYC.
To buy Bytes with a card, your real name has to be attested (if it is not, it is a good reason to go through Jumio attestation). You talk to the bot “Buy Bytes with Visa or Mastercard”, which you find in the Bot Store. You share your private profile with the bot in a couple of clicks, answer a few questions about how much you are going to buy, and the bot gives you a link to indacoin site where you enter your card details and finish the purchase.
When a user comes from this bot, Indacoin charges 9% plus a fixed commission of about $1 and 2 MB.
This is still too high, and to reduce the barrier to entry, we will subsidize part of the fee from the undistributed funds: after you successfully complete the purchase and indacoin notifies the bot about it (it takes some time, so be patient), you receive a 6% reward funded by the undistributed funds. So, you receive two GBYTE payments, one from indacoin and the other from the bot, and your net commission is about 3% (it is somewhat higher for small purchases due to the fixed commissions).
You can make multiple purchases through the bot and receive these rewards multiple times but the total reward per user is capped at $100.00. A user is a real-world person, so no cheating here (unlike our Telegram quiz bot).
This is our first direct connection to the fiat world, which makes it a lot easier for new users to enter the Byteball ecosystem, and it is also the first real use case for identity on the DAG.