FOP Coin Whitepaper V1.1

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Gabriel Ramsey
5 years ago
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1 FOP Coin Whitepaper V1.1

2 Table of Contents Abstract Introduction of Bitcoin and Motivation Challenges in Online Payments Anatomy of a Payment Card Transaction Authorization Batching and Clearing Funding Merchants Fees Chargebacks Conclusion About FOP Coin Why FOP Coin FCBS FOP Coin Vision and Mission FOP Coin Economy Early Adopters Launch Partners Third Parties Extension Services and Products 2 P age

3 The Technology FOP Mobile Wallet FOP Coin SDK and API Proof of Stake ICO Funds Allocation FOP Coin ICO Details and Pricing Funds Allocation FOP GOALS E-Commerce Market FOP Coin Roadmap Expected Exchanges Resources P age

4 Abstract Global e-commerce is a Necessity Shoppers today no longer simply go to the nearest store; they grab the nearest digital device. The online retail ecosystem is fast evolving. Digital analytics firm emarketer projects that online retail sales will more than double between 2015 and 2019 and account for more than 12% of global sales by Retail therapy is giving way to e-tail therapy. And it s not just purchasing habits that are going digital: The whole retail experience is changing. Today s shoppers are incorporating digital touch points along the entire path to purchase, from reviewing products online at home to using smartphones as personal shopping assistants in the store. In fact, in some countries, such as China, consumers are using mobile devices to purchase selected categories at high rates. Omnichannel shoppers seamlessly switch between on and offline channels with ease. As technology adoption and infrastructure improvements bring more consumers online and familiarity and comfort with digital platforms increase, the continued growth of connected commerce is inevitable. But today there is much uncertainty about the convergence between online and offline shopping behavior and how to drive margin and profitability in both. Retailers and service providers are struggling with inefficient and costly payment mechanisms, which have not kept pace with global commerce. Nothing credit cards, alternative payments, virtual coins, or blockchain technology has yet adapted to today s various processing needs in order to provide an optimized solution for payment processing. The solutions offered by FOP Coin will create business opportunities for external third party companies that can build additional services and contribute to the FOP Coin ecosystem. These companies include, but are not limited to, credit network companies, insurance network companies, escrow service providers, code verification companies and others. 4 P age

The FOP Coin will be promoted through partnerships with businesses that have significant turnovers, by encouraging them to adopt the FOP Coin ecosystem from the onset.

5 The FOP Coin will be promoted through partnerships with businesses that have significant turnovers, by encouraging them to adopt the FOP Coin ecosystem from the onset. Through our Launch Partners, the FOP Coin will plug into industries with tens of thousands of daily customers throughout numerous markets. FOP Coin brings an incredible amount of users into the crypto space by connecting the blockchain to the real world. Through this economic strategy, FOP Coin will grow its network and improve its functionality. There are a limited number of FOP Coins available, and it is advised that you take advantage of the ICO discounts The earliest you invest the Greater your Returns!

Introduction of Bitcoin and Motivation The introduction of Bitcoin as an electronic cash system in 2009 was the first step towards a modern online payment solution.

6 Introduction of Bitcoin and Motivation The introduction of Bitcoin as an electronic cash system in 2009 was the first step towards a modern online payment solution. Bitcoin was originally designed to address trust issues and to optimize security; but at the expense of scalability, speed, and cost. As a result, Bitcoin in its current construct is unable to offer flexible processing solutions for most of the current online billing methodologies. None of the cryptocurrencies that were introduced over the past few years has provided a comprehensive payment solution that allows crypto holders to utilize their cryptocurrencies as a means of payment. Cryptocurrencies are far too underdeveloped to compete at scale with payment cards, they suffer from poor acceptance by merchants mostly due to their complexity of usage and they do not support transactions that are more sophisticated than a simple push transaction. There is a real need for a payment infrastructure that is built to serve merchants, not exploit them. A system that is built from the ground up for the digital era and that is as scalable, flexible and accessible as payment cards, absent their inherent flaws and disadvantages. Blockchain technology offers a great opportunity to create such a system for the benefit of merchants and consumers alike. The Creation of FOP Coin is an attempt to design such an infrastructure 6 P age

7 Challenges in Online Payments Online merchants and consumers alike expect online buying and selling to be easy, efficient, and safe. Ecommerce transactions trigger complex automated processes that involve downstream players: banks and payment processors to name just two. In addition, technological advances in smartphones and e-wallets, shifting purchase patterns, and demand for cross-border, multi-currency electronic payments have fueled PSP competition to maintain and increase market share. New technologies have already simplified and smoothed business-to-business and business-to-customer experiences with mobile payments, e-wallets, and contactless cards. As the online payment processing market grows, user demands for additional payment features and options lead growth in multiple directions. Providers are under pressure to provide peer-to-peer payments beyond traditional banking models, and to facilitate a cashless society that can enable any purchase, even mechanical transactions such as parking meters or vending machines. These demands create technical challenges for merchants, processors, and users up and down the transaction path. Below is a list of the 5 main challenges in online payments 1. Fraud and chargebacks 2. Cross-border transactions 3. Card data security 4. Multi-currency and payment methods 5. Technical integration Anatomy of a Payment Card Transaction 7 P age

8 There are three stages of payment card processing and each player outlined above is involved in one of them. We shall demonstrate the complicated structure of the payment card ecosystem using a simple example of a customer making a 100 USD purchase: Here is the journey of a $ transaction, and the fees the merchant pays for the privilege of accepting credit cards. Authorization Example: A consumer decides to make a 100 USD purchase and swipes her card to begin the transaction. The payment terminal reads the card and sends its information to the acquiring bank. The acquiring bank requests authorization for the transaction from the card network, which in turn communicates with the cardholder s issuing bank to make sure there are sufficient funds available to cover the transaction. It also checks that the card isn t stolen and that there are no other red flags that would interfere with the transaction. Once the issuing bank ensures the transaction can take place, it shares an authorization code with the card network, which passes it on to the acquiring bank. After the acquirer sends the code back to the merchant, authorization is complete. All this takes place in seconds, while the next stages are prolonged. Batching and Clearing The transaction might appear to be over from the customer s perspective after authorization is complete. After all, she s on her way out of the store with her purchase in hand. But much more must happen before the transaction is complete. First, for the merchant to receive the customer s money, each of the day s transactions must be combined into a socalled batch and cleared. At the end of the day, the batch containing all the day s transactions is passed to the acquirer. When the acquirer receives the batch, it requests payments on behalf of the merchant by sharing the day s transaction history with the relevant card networks. They divvy up the transactions by issuer and request funds from the appropriate banks. 8 P age

9 Funding Only when the issuing bank receives a request for funds does money start to change hands. The issuing bank passes the requested amount to the acquiring bank through the card network, after deducting an interchange fee. The card network also deducts an additional fee as an assessment fee, and passes the remaining funds to the acquirer to complete the process. In this last stage, the acquirer subtracts what s known as a Markup fee and deposits the remainder in the merchant s account. This process can take days and sometimes even weeks to complete. Notes: There are other types of transactions such as closed loop transactions, debit card transactions, etc. but the basic mechanics illustrated above are enough for the understanding of the complexity of the transaction. Transactions can be settled in real time as well, not in batches. This approach has the advantage of being faster, but it also carries more risk and is costlier for merchants. It s usually used by e-commerce providers and merchants with a high volume of transactions. Merchants Fees Accepting payment cards comes with a price and merchants are subject to a complex fee structure. There are nearly 300 different fees and they can be broadly divided into 3 categories: Transactional fees - These are the fees the card-issuing banks and the credit card associations charge for each transaction, and they represent the largest expense merchants pay. This category includes Interchange fees which consist of a percentage of each transaction accompanied by a flat per transaction fee (for example 2.1% USD) and Assessment fees charged by the credit card association and calculated as a percentage of the total transaction volume per month. 9 P age

10 Flat Fees - In addition to transactional fees, merchants also pay various flat fees. These include Terminal Fees, Payment Gateway Fees, PCI Fees, Annual Fees, Monthly Fees, Monthly Minimum Fees, Statement Fees, Network Fees etc. Incidental Fees - These fees are not fixed and are charged only per incident: AVS (address verification), VAF (voice authorization fee), Retrieval Request Fee, Chargeback Fee, Batch Fee, NSF Fee and more. Continuing our example of a customer paying 100 USD using a payment card, let s now look at its costs. Fees are collected by the various parties along the way as they transfer the funds from the customers account to the merchants: To keep things simple, we did not take into account indirect fees such as monthly fees, account maintenance fees, incidental fees etc. Nonetheless, these fees may be substantial. The merchant in our example pays a total of 2.95% of its gross earnings for all the parties involved in processing the payment. This may not seem too painful at first identity theft or friendly fraud, but they all pose one major risk for the merchant: Chargebacks. 10 P age

11 Chargebacks When a cardholder disputes a charge with their bank (the issuing bank), banks usually reverses the payment and refund the cardholder. This is called a chargeback. Payment facilitators recover the chargeback funds from the acquiring bank of the merchants who generated them, and the acquirer recovers them from the merchant. Since chargebacks may be received weeks or even months after the original transaction took place, it is sometimes difficult to recover the funds from the merchant. To protect themselves, acquirers may be very conservative in their underwriting: they will implement special policies such as reserves or holdbacks to mitigate loss and may sometime require personal guarantees from business owners whom they will hold personally liable for the business s financial obligations. Card networks (Visa, MasterCard, etc.) set standards for chargebacks ratios. For example, Visa does not allow merchants to exceed a threshold of 1% chargebacks out of all transactions in any given month. Exceeding this threshold will result in fines. Crossing the threshold several months consecutively may lead to account termination by the network and inability of the merchant to process payment cards in the future. In order to minimize chargeback risks, merchants may deploy various tools and tactics, some offered by payment processors or other 3rd parties. While these may help reduce chargebacks, they come with the inevitable cost of lost sales for false-positive errors. Conclusion Payment cards processing is an elementary requirement for merchants. However, due to the centralized structure of the payment processing ecosystem, merchants are subject to inefficiencies, exorbitant fees and substantial risks. FOP Coin Payment System is designed from the ground up in order to facilitate a robust, scalable and flexible payment system that will overcome these hurdles. 11 P age

12 About FOP Coin FOP Coin is an innovative, fast and secure digital currency aimed to replace the traditional payment system over the internet through a decentralized peer-to-peer network without the need of bank. FOP Coin is poised to grow exponentially. Using a total Proof of Stake system as its basis, the coin has been made available to everyone, more so, it s quite easy to use. Why Fop Coin Online retail transactions are on the increase daily while emerging technologies continue to bring simplicity and ease to transactions between businesses. These technologies also make transactions easier for customers. Such technologies include e-wallets, mobile payments, etc. With the ever growing processing market, there will be increasing demand for more payment features and alternatives. Peer to peer transactions are being demanded for more than ever before as customers seek for something beyond conventional banking models; cashless transactions as well as mechanical transactions which include vending machines and parking meters. Introducing the new revolution, the future; the FOP Coin (Future Payment Processor). It will connect Online-Shopping and E-Commerce worldwide. FOP will facilitate an amazing shopping experience which will be fast, secure and relatively cheaper (transaction fee). Let s Start with a New Revolution and Strong Blockchain Technology P age

13 FOP Coin Community Building System (FCBS) FOP coin has been developed for the mass market. This will be achieved by bringing people who have never heard of digital currency into this sector. A major goal of the community building is to reduce the gap between members, promote and champion the use of FOP coin, support and educate people who want to know more about digital currency. FOP Launches new cost effective and easier way to build its community. This is an extremely flexible and robust social networking scheme based on referrals system. Every Member Receives Good Rewards for Inviting and Signing Up New Members A major goal of the community building is to reduce the gap between members, promote and champion the use of FOP coin, support and educate people who want to know more about digital currency. The more you participate, the bigger rewards you receive, and it does not stop there; there are much more incentives. Establishing expectations. The Community Building Program will provide participants with the tools to identify Blockchain Technology, establish potential solutions with a focus on moving specific objectives and projects to completion. The idea is to create the highest quality program and attention to detail for millions of people globally. FOP Community Building System (FCBS) utilizes peer to peer or one hand to other, and with the help of this system we are adding a large amount of worldwide members to our community. We have a Magical Reward System for our members which comprise Direct 30% Bonus for referring other members and Exciting Level Rewards. On Achieving Level 5 On Achieving Level 10 On Achieving Level USD to 5000 USD Rewards 5000 USD to USD Rewards USD to USD Rewards You will become FOP Director 13 P age

FOP Coin Vision The FOP Coin vision is to become a generally accepted payment means by consumers as well as merchants and service providers of the e- Commerce industry, as well as other target

Through the introduction of FOP Coin, we have the possibility to enhance trust and discreetness in the business.

14 FOP Coin Vision The FOP Coin vision is to become a generally accepted payment means by consumers as well as merchants and service providers of the e- Commerce industry, as well as other target industries, in its broadest meaning. The e-commerce industry is already known for innovation, and it is now time for it to adopt cryptocurrencies. Through the introduction of FOP Coin, we have the possibility to enhance trust and discreetness in the business. It is the only way for the market to develop, take its next steps, and increase its social acceptance. By introducing cryptocurrencies, merchants in all target industries will become less dependent on conventional means of payment, especially credit cards, and disconnect from the high charges associated with them. Whether for end users, merchants or token-buyers: FOP Coin is there to help individuals unfold improvidently. 14 P age

FOP Coin Mission The mission of the FOP and the FOP Coin Ecosystem is to provide a future payment system that is safe, private, easy to use, and allows users to obtain and enjoy e- Commerce goods and

15 FOP Coin Mission The mission of the FOP and the FOP Coin Ecosystem is to provide a future payment system that is safe, private, easy to use, and allows users to obtain and enjoy e- Commerce goods and services as well as to participate in e-commerce chats and free from security or privacy concerns. A payment with the FOP Coin will guarantee the same level of privacy that is attached with a cash payment in the day to day business in which the payer does not disclose his identity to the merchant or service provider. FOP Coin are the first to combine a merchant network with an alternative, convenient and cost-efficient payment method with high protection of the user s identity at any time makes the FOP Coin unique. At present, there is no ecosystem of critical size that has adopted a cryptocurrency as an alternative means of payment. Global B2C e-commerce Market The FOP Ecosystem is designed to facilitate real-time one-click payments without disclosing the identity of the user. 15 P age

We will promote the adoption of the FOP Coin both online and offline with a special focus on e-commerce and online service providers. We will initially focus on digital content creators.

16 FOP Coin Economy For a cryptocurrency to be successful over time, it needs to be a core aspect of the ecosystem it represents. The FOP Coin ecosystem will be built entirely around the functionality of the FOP Coin Crowdsale. We will promote the adoption of the FOP Coin both online and offline with a special focus on e-commerce and online service providers. We will initially focus on digital content creators. Our goal is to make FOP Coin the de facto standard for modern payments by achieving adoption backed by a powerful Fop coin economy. In order to achieve this goal, we have carefully crafted a strategy that rests on four pillars: Early Adopters The First pillar of the FOP Coin strategy promotes the adoption of the FOP e-commerce API by merchants that have already agreed to implement the API once released, referred to as Early Adopters. Early Adopters are prominent businesses from various industries that have already committed to the FOP Coin by signing an agreement or a Letter of Intent. These merchants represent a significant volume of processing that could be done within our ecosystem. The Early Adopters will benefit from easy integration and receive support from FOP Coin when integrating the API. In order to encourage the usage of the FOP API by Early Adopters specifically, we will incentivize them by rewarding them with FOP Coins. Early Adopters are likely to distribute FOP Coins to their customers in order to encourage them to make payments using the FOP coins, which results in cost savings for the merchant, and an advantage to consumers. 16 P age

Launch Partners Whereas the Early Adopters commitment is to integrate the Protocol when released and enable customers to pay with FOP Coins, the launch partners will work closely with us to create a

17 Launch Partners Whereas the Early Adopters commitment is to integrate the Protocol when released and enable customers to pay with FOP Coins, the launch partners will work closely with us to create a basis for decentralizing entire industries through widespread adoption of FOP Coin. This will initially be done on a wallet-to-wallet basis, independent of the Protocol. We have carefully chosen launch partners who have the ability to realize FOP s potential in the field of personal skills marketplaces. These marketplaces will enable anyone to empower, monetize services, and shatter unequitable revenue allocation models that exist currently. The launch partners will not only use the FOP Coin, but will also create a prolific marketplace where content creators and service providers are rewarded a much higher revenue share than the status quo. By accepting this challenge and creating a disruptive market, we expect an immense shift of users, content providers and service providers toward these new platforms capturing a large proportion of numerous industries. With a large user base, we will create an incredibly healthy coin economy. Launch Partners may decide to Airdrop FOP Coins to their customers to incentivize usage. Each Launch Partner represents a different approach of skills and content sharing marketplaces. 17 P age

Third Parties Extension Services and Products FOP Coin will give 3rd party service providers the opportunity to build complementary services on top of the Protocol, thereby expanding our services and

For example, a customer or merchant could: Acquire the services of a third party Zero-knowledge proofs company in order to protect their privacy and anonymity.

18 Third Parties Extension Services and Products FOP Coin will give 3rd party service providers the opportunity to build complementary services on top of the Protocol, thereby expanding our services and contributing to the growth of the FOP ecosystem. For example, a customer or merchant could: Acquire the services of a third party Zero-knowledge proofs company in order to protect their privacy and anonymity. Ask for loans or payment by installment via a credit network company. Engage with an arbitration company to solve commercial disputes while Coins are held temporarily on the contract when using a delayed payment or restricted payment. Engage with a code verification company that verifies all contracts are certified and enable low fees. Give users advanced management capabilities including reminders and notifications regarding expected transactions, restricted transactions and any other useful information that can protect the user. Reminders will be sent to the user when they are visiting the wallet or via push notifications and s. 18 P age

The Technology The FOP Payment System is meant to be a flexible payment system that encourages outside input and development. This motivation inspired the modular architecture of the FOP System.

19 The Technology The FOP Payment System is meant to be a flexible payment system that encourages outside input and development. This motivation inspired the modular architecture of the FOP System. Although the FOP Coin will come with built-in modules, we encourage the involvement of the community in its development. The core functionality of the FOP Coin Payment System will be contained in its on-chain architecture, which is designed to be flexible and evolve with the needs of the community. FOP Coin Wallet The wallet is the holder of the user s private key as through it the user executes actions on the blockchain. The FOP Coin Wallet will facilitate payment interactions between Accounts. We are developing two versions of the Wallet. We will first develop an Android app followed by a version for ios. 19 Page

20 FOP Coin SDK and API The FOP System SDK (Software Development Kit) is an off-chain set of tools aimed at facilitating and expanding the Protocol adoption by merchants. The FOP Coin SDK is meant to provide developers the tools they need to fully leverage the Protocol. It will also provide any interested third party with the ability to build additional business solutions based on the Protocol s abilities (such as insurance, code review, credit, billing services, product delivery, etc.) The FOP Coin SDK will contain many different components and features which includes Utilities and code samples for merchants to interact with the blockchain. Data Transparency and easy access - Providing transparency by seeing the results of transactions to enable the creation of complementary products and services to receive raw data, enabling them to create aggregated reports related to transaction volume per period and/or product. Proof of Stake FOP Coin introduces a staking program that can be used by investors to increase their earnings. Staking involves keeping your money in e-wallet for a predetermined period. It has a lot of similarities with fixed deposits in the conventional banking system. The difference is that in banking there is income earned while in staking the user earns coins as the staking reward. The income rates of staking will be between 1-10 percent and minimum stake time will be 24 hours. Anyone holding FOP Coins in their wallet will receive income on their staking balance in return for helping maintain the security of the network. 20 P age

21 FOP Coin ICO Details and Pricing 25 Million FOP Coins, which represent 10% of all generated FOP Coins, will be offered during the ICO. FOP allows community members to buy coins at very lower. One FOP Coin is equal to 25 cents (1FOP = $0.25) FOP Coin ICO Pricing & Rewards 21 P age

22 FOP Coin ICO Funs Allocation FOP Goals 22 P age

23 The goal of FOP Coin is to penetrate 1 percent of the market by 2021 and achieve a capitalization of $45 Billion 1 FOP Coin Price Will Reach $180 by 2021 FOP Coin Roadmap FOP Concept Design November 2017 Jordan Souter Reveal the Concept of FOP Coin Team Formation December 2017 FOP Team is formed with many Skilled Professionals Website Development January 2018 Website Development Started Initial Coin Offering (current stage) March th March 2018 ICO opens and is set to run until 5 th May FOP Priced at $0.25c 23 P age

24 Desktop Wallet June 2018 We will release Desktop Wallet with Staking Function Mobile & Web Wallet June 2018 We will release mobile and web wallets for receiving and sending fop coins. Exchange Listing July 2018 FOP Coin will be available to trade on some exchanges with good starting price. We are expecting minimum price of FOP $1 Merchant Services August 2018 Merchant Services will be started and FOP Coin will list as payment method at many e-commerce websites. FOP Coin Exchange September 2018 FOP Coin will launch HongKong Based Cryptocurrency Exchange with all major trading pairs and at this moment FOP Coin price will be around $5 e-commerce API's October 2018 e-commerce API s will be released and FOP Coin will introduce as payment method at many e-commerce websites. 24 P age

FOP Seminar December 2018 FOP Coin Seminar will be held in December 2018 at Global Head Office (Hong Kong) 2019 - Aim for moon! Q1,Q2,Q3 and Q4 Goals 1 Million Global Users.

25 FOP Seminar December 2018 FOP Coin Seminar will be held in December 2018 at Global Head Office (Hong Kong) Aim for moon! Q1,Q2,Q3 and Q4 Goals 1 Million Global Users. Enhance app Capabilities. Reach up to 10,000 Merchants. $500 Million Market Cap. FOP Coin Price will be $10 with circulating supply of 50 Million FOP Coins (20% of the Total Supply) Expected Exchanges 25 P age

26 Resources P age

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