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