The Bitcoin Cheque will simplify the usage of Bitcoins. It will remove many of the barriers Bitcoin is struggling against to achieve mass adaptions.
What is it?
Basically the Bitcoin Cheque is a file claiming that its issuer will pay a certain amount to the holder.
The Bitcoin Cheque are typically issued by Bitcoin Banks. When a user wants to purchase some web content or physical goods for Bitcoins, he can request a Bitcoin Cheque from his bank and give it to the merchant as payment. The Merchant then later collect the money from the bank.
How to use it?
When the user visits a web site and is offered some content or goods, he clicks on the payment request link/button and the Banking App will then take care of the rest. This will allow for one-click instantaneously payments.
First time a user will make such a Bitcoin payment, he will automatically be redirected to a recommended Bitcoin Bank. Here he can register for an bank account, buy some Bitcoins and download and install the Bitcoin App. He is then ready to use Bitcoin.
How does it works?
A trade using Bitcoin Cheque will involve three parties, the user himself, the merchant and a Bitcoin Bank.
When using Bitcoin Cheques, the user will not transfer Bitcoins directly to the merchant. Instead he will send send a Bitcoin Cheque to the merchant. After the merchant has received the cheque he can verify that it is valid before giving away the content to the customer. Provided the merchant trusts the bank, he can give the content to the customer immediately, without waiting for a number of Bitcoin transaction confirmation.
A central part is the “Money Address” concept. Basically this is a e-mail equivalent and looks like this:
The Money Address can be used to send Payment Request and Bitcoin Cheques to other persons.
Features and benefits
The Bitcoin Cheque and its protocols will solve most of the weaknesses Bitcoin has, in respect to the user experience:
- Easy Bitcoin payment for non-technical user
- One-click payments
- Instantaneously payments
- Money-back guarantee
- Increased anonymity and privacy
- Increase security against hacking and steeling of Bitcoins
Enabling mass adaption of Bitcoin
The Bitcoin Cheque will solve the big chicken-and-egg problems of Bitcoins; the big user masses are not using it because very few merchants accepts its, and few merchants accepts it because of lack of adaption by the bug user masses.
The Bitcoin Cheque and its surrounding infrastructure will make it very easy to pay with Bitcoins. The system will enable people with little or no technological knowledge in computers, with no experience or incentives in using Bitcoins, to start using it. Thanks to Payment App Browser HTTP Header Standard, new user without a Banking App, or other Bitcoin wallets, will be automatically redirected to a recommended Bitcoin Bank where they can get an Bitcoin account and the needed Banking Apps.
Since Bitcoin is offering very low transactions fees, merchants will have an incentives to start accept it. And once there is no barriers for customers to pay with Bitcoin, they happily will start paying with Bitcoins because of the advantages and the lower fees. All these features will help mass adaption of Bitcoin usage.
Once the Banking App has been installed, a user can send money to his peers by using the Money Address. The receiver is not required to have anything installed and not required to be a existing Bitcoin user. This will contribute to the adoption even more.
The standards and protocols are under development.
In order to demonstrate the usage of Bitcoin Cheques, we want to setup a Bitcoin Bank, and develop needed eCommerce modules and Banking Apps for browser and smart cell phone. The following open-source projects has been initiated:
These project aim to solve a real world-problem in charging micro-payments for web content. The project will in particular be addressed to blogger, newspaper and info sites and will allow them to monetize their content by accepting Bitcoin Cheques.
This is a huge undertaking and contribution is appreciated. If you want to contribute, join us today!