Pocket change for the web

1. Problem/solution2. Demo3. Business4. Why Blockchain5. Smart contracting

Web = content + advertising

Users don’t like web ads

Indonesia 58%Germany 29%USA 18%

Source: PageFair Report 2017

Ad blocking

PAYWALL

€30/month €15/month

€10/month€25/month

99% of paywalls have bad UX

“99% of paywalls have bad UX”Meinhard Benn, 2017

Alternative: Micropayments

Payment fees: 10-30c + %

Sending 1c over the internet is impossible

2cwww.

10cwww.

5cwww.

4cwww.

Solution: Frictionless Nanopayments

Nano: 1c or less

Demo

Contents hidden

Individual payments

No sign-up

No download

No click

Combining access and payment

Across websites

Text, image, audio/video, PDF, ebooks

Publisher dashboard

WordPress plugin

Open API

Business model

10% transaction fee

Free for consumers

Traction

360Publishers

35KUser wallets Cooperation

5c average payment amount

Future

More top-up methods

Website to user payments

Monetisation of personal data (Me2B)

API for nanopayments

Machine-to-machine payments (IoT)

Why blockchain?

Speed: Everything is already built

Security: Built and “stress-tested” by hackers

Stability: Blockchains don’t go down

SatoshiPay Beta: 4 devs, €350k budget

Permissionless innovation

Why Bitcoin blockchain?

Biggest blockchain (80%)

“Dumb contracts” sufficient

Blockchain replaceable

Bitcoin Micropayment Channel

Bitcoin transactions shortcomings:

Not instant

Blockchain bloat

Relatively high fees

Solution: Smart Contracts

Micropayment Channels

Contract between sender and receiver

Funds parked on multi-signature escrow address

Transaction drafts exchanged “off-chain”

Contract can be executed by both partiesat any given time

Sender Recipient

Direct bitcoin transaction (tx)

TxSender Recipient

Direct bitcoin transaction (tx)

TxSender Recipient

Direct bitcoin transaction (tx)Not suitable for payments below €5

● Too expensive: ~€0.50/tx● Too many: Bitcoin currently allows 3 tx/s in total● Too slow: Min. 10 minutes confirmation time

Escrow

Sender Recipient

Funding TxEscrow

Sender Recipient

Funding Tx

Refund Tx

Escrow

Sender Recipient

Funding Tx

Refund Tx

Payout Tx

Negotiation

Escrow

Sender Recipient

Funding Tx

Refund Tx

SignaturePayout Tx

Signature

Negotiation

Escrow

Sender Recipient

Funding Tx

Refund Tx

Payout Tx

SignaturePayout Tx

Signature

Negotiation

Escrow

Sender Recipient

Funding Tx

Refund Tx

Payout Tx

SignaturePayout Tx

Bitcoin Network

Signature

Negotiation

Escrow

Sender Recipient

Funding Tx

Refund Tx

Payout Tx

SignaturePayout Tx

Bitcoin Network

Signature

Negotiation

Payment Channel

Escrow

Sender Recipient

Funding Tx

Refund Tx

Payout Tx

SignaturePayout Tx

Bitcoin Network

Signature

Negotiation

Payment Channel

Escrow

Sender Recipient

No fees apart from 2 transactions

Instant

No blockchain bloat

Allows nanopayments

@SatoshiPay

We are hiring!sp.gg/jobs