on the crypto
Gemini Pay, the recently launched payments system, has announced a new payment feature with BTC, ETH or any other asset on Gemini. The payment is instantaneous and the Flexa protocol solution used guarantees the absence of fraud through a collateralisation process that provides for the staking of FXC, the Flexa token.
Guaranteed payments
Approximately $ 80 million of such tokens are currently locked, ensuring that any double transaction for buy bitcoin confirmed is paid to merchants through this type of guaranteed insurance fund.
“When paying with a flexcode, the value of the Flexa-enabled account is protected by the value of the cryptocurrency instead of being funded with fiat money, and thus represents a pre-authorization or letter of credit.
As in credit and debit networks, merchants receive payment after each transaction has taken place (and after the corresponding amount of cryptocurrency has been converted into fiat) through any preferred payment method ", they say from Gemini Pay, adding that "The corresponding amount of Flexacoin is blocked on their payment until confirmation is obtained on both sides of the transaction, after which the Flexacoin is released and can be used to secure additional payments-"
In return, they get "their share of the previously announced network reward distribution, worth 1 billion FXC, which is returned at a rate of approximately 2.500.000 FXC per day on 15-minute intervals through the end of 2020" .
Flexa Token Prices, August 2020
Initially the price and market cap moved in tandem, but more recently the market cap has grown faster presumably due to these reward distributions. Currently, around 40.000 merchants accept cryptocurrency payments via Flexa.
Gemini Pay Flexa and Coinbase, August 2020
Approximately $ 14 million was raised from this payment processing project by Pantera Capital, Nima Capital, 1kx and Access Ventures. The system works through smart contracts and, since the start of the project, about 2.000 transactions have been carried out, the first of which was on November 19, 2019.
In the case of Gemini, cryptocurrencies are taken based on what has been deposited on the Gemini exchange, with the possibility of converting the sum into dollars or not according to the preferences of the merchants.
If there is any problem with the payment, then the guarantee is activated. Any other app can integrate the functionality, including Coinbase or Metamask itself, which have evolved to be more of an app than a browser plug-in. From now until the end of 2020, there will be no commissions to pay, presumably thanks to some VC companies covering them temporarily.
