Hello fellow Radarians, If you are a regular reader of TechCabal, you might remember a project/idea called Rupt that was featured on TechCabal a couple months back.
We basically wanted to create a virtual currency that was backed by airtime. We wanted people to be able to pay with airtime (kind of). For those who are aware of bitcoin, it is like bitcoin but you would be exchanging airtime and could reclaim the airtime if you needed to.
So We started to build this interesting project. Along the line, we got selected as one of the 1000 TEEP winners. Got distracted for a while and later continued building.
So we have gone through a number of iterations of this idea from trying to make it decentralized â building a blockchain tech or waiting for the ethereum project to ship so we can build on top of them. The current iteration turned out to be relatively bloated with features that arenât needed. We turned a simple idea into something not so simple to explain. This happened because there wasnât enough engagement with people who are interested in using the platform when it is ready.
So what next? We are getting ready to begin the next iteration of Objects. This time it would be an open source project. At the time Rupt was announced we did not have Radar, we want to use this opportunity to ask you guys what you think? What are your questions, suggestions and thoughts?
Want to also thank @lordbanks for supporting us at the time by featuring us on TechCabal when we needed some validation. I hope it is okay to use this platform to post regular updates about our progress.
+1 for link to the Ethereum project - now more people are aware of it. -1 for being really vague about whatâs next for Objects. The assumption is the original idea still persists, but what has changed? Asking for friends
Sorry for not being too clear. Yes the idea still persists. However, we have added to the original idea the ability to create special types of currencies (or objects as we call them) that can be annotated and used exclusively.
For example, If you intend to sell tickets for an event and you wish to be the only service that can âcharge or acceptâ that object, then you will need to create a new type of object that only the issuer can perform certain operations on it. This can be used for stored value cards (scratch cards, vouchers, tickets and more).
Whatâs next for Objects:
The first stage is development. We have a number of modules to work on:
Wallet
Transaction
Object
History
Notification
After this stage, we will commence user-facing services. We hope to see other developers building these services. If we decide to drop the idea that all objects are backed by airtime, then we would create a couple thousand (or million) objects and distribute them free of charge.
As this is being developed, it would be awesome to have you guys play around with it and give feedback
I think its the way to go. Since a lot of projects will end up not being supported or successful, it makes sense to share all or parts of such projects for other devs to use.
Note: A number of half questions and self confirmation included in the post. @ncodes you donât have to engage all of it.
So in essence money goes into the system to buy a Rupt, but a Rupt can only leave the system as airtime on the level of the buyer? Or can s/he sell back to Market makers?
Also to clarify, a market maker is different from a seller in that he isnât just trader-zero in the system but only they can exchange Rupt for real money with buyers and can pay the seller who has received Rupt(s) for his/her goods or services in real money too? Somewhere in-between trading Rupts btw sellers and buyers they etch out profit?
But all these begs one question; what options may I have when buying a Rupt from a Market maker; Interswitch, Paga, or perhaps a Bank Wire?
Brings us a tad close to the same ole problem doesnât it? Unless buyers can buy rupts off their airtime transfer/exchange and the system is able to dispose of these transfer profitably and retrieve money for sellers.
Like you said this is backed by the value of airtime, hence the faith in Airtime wonât be as a matter of exchanging airtime for an unused Rupt but paying the value of a Rupt forward with the hope that a 3rd machinery can dispose of the accumulated credit in no time to return monetary value. (I also saw you went full circle on that in one of your articles)
So these leaves Rupt with not-too unique benefits for sellers and buyers; for sellers given the absence of a processor transaction fees will be lower, and for the buyer his unused Rupt is worth atleast some airtime, unless he/she finds a market maker whoâs looking to stock up on Rupt?
Before I answer your questions, I want to point out that there are changes in the core concept of Rupt which correlates with our current ideology on how we feel payments can be made much more accessible to people. This believe will shape the final product.
To answer your questions:
The current concept requires users to buy Rupt with money from market markers or exchanges. These monies are then held and used to purchase airtime when Rupt needs to be converted. Users should be able to sell back to market makers or exchanges. The process required to make bidirectional exchange between airtime and Rupt is quite complicated, not seamless and requires having faith in third-parties.
Market markers (MM) are pretty much the ones who provide the liquidity. Rupt is a virtual property for value transfer that has no value till market makers buy them. The platform will sell directly to MMs at no extra charge (1 XR to 1 NGN). They buy large quantities for sole purpose of trading. They can setup exchanges or sell to smaller sellers (with profit margin determined by them) or directly to anyone else. Not everyone can become a market marker.
The ideal way should be from an agent near you. We think It will make a lot of sense if I can work to a nearby store to get Rupts. Some market makers may decide to operate an strictly online operation which will require Interswitch, Paga or similar services. They will decide how they wish to be paid.
The purpose of Rupt is not to make these existing services obsolete but to be a cheaper, bankless, cardless, developer-friendly, inter-operable backbone to foster the development of financial services that are accessible to millions of unbanked and underbanked Nigerians/Africans population.
Really, the backing by value of airtime is a secondary âbenefitâ to the entire idea. The real problem we are interested in solving is movement of value without reliance on banks or cards. Banks are being disrupted everywhere else but it is not so here in Nigeria or Africa. We need to start seeing developers build and improve on services that where previously offered by todayâs banks. We may not natively support conversion to airtime as this action can be fulfilled by third-party services.
Sellers/Market Makers can add transaction fees and how much they wish to add is up to them. A seller who buys at 100 and sells at 110 gets 10 as profit and buys back from regular users at possibly cheaper rate of maybe 90 and sells at 110. I think this is a unique opportunity as long as the volume of trade is good.
@87_chuks I hope I answered your questions well enough? Donât hesitate to ask again if still unclear.
Câmon man, ânobodyâ is complaining about said reliance atleast not anyone you know. Most folks donât even understand our reliance on these systems nor do they care. I dont! (not yet).
We havenât even started enjoying them. Lets get them working well first before we worry about other nuance in ineptitude.
I feel youâre simply lifting a leaf or 2 from the Bitcoin story for Rupt (I do prefer the name RUPT to objects, hope you donât mind?)
I understand the system. Like i said, i simply had âhalf-questionsâ. Which you didnât quite answer.
Arenât you worried that the integrity of the system is based on âfreeloadersâ like your Market makers? I am. Iâd trust the present âunreliableâ system more atleast theyâre insured by the state. Whats your insurance?
How do you pay online or perform any electronic transaction? You use your card or you do a bank transfer. How do/did you get a debit card? You need/needed a bank account. Considering most people use these cards at ATMs and many more do not use cards or are reluctant to use their cards online, you could probably see the need for an alternative system that isnât reliant on banks. It does not make the banks unreliable (I do not think the are).
Without an alternative value system or wallet systems (KongaPay of today), you cannot have helpful features like chargebacks if Interswitch, Paga, the banks do not add them. When you complain about payment gateway down times, when you cannot donate N50 to a cause, when you use Pay on Delivery instead of outright payment you are already complaining. Do you suggest we wait?
Again you are suggesting we sit back and just let 4 guys dictate what happens when the rest of the world are churning our variety of interesting financial services?
No man. It does sound like bitcoin. But this journey was not inspired by bitcoin but a desire for an alternative. Bitcoin story is different in terms of ideology and technology. The core concept of value transfer did not start with bitcoin.
Feel free to ask your questions again.
You are probably referring to Market makers buying at zero-cost. This will stop at some point. Market makers are not different from your regular forex traders. When you purchase Rupts, they go to your wallet/address that you have total control over. I really do not see how they affect the integrity of the system.
People feel it isnât safe yet. I, for one, have none of my bank accounts activated for online transfer of any kind. But I safely push payments of several thousands ($) on my US registered PayPal, without losing sleep, even to faceless, first time sellers.
The singular most verifiable cause pushing Bitcoin and its adoption is to âunseatâ the Western Union, MG, Visa, and Master card cult and their arbitrary ways. Loosening the noose theyâve thrown around our necks. However, in these parts that noose may well be received as an âaccessoryâ.
And you forget Bitcoins biggest feature is its airtight security borne of its vast decentralized network which keeps growing and morphing at a tremendous rate making any attempt at a hack so costly itâs become unprofitable.
But what we have here is a highly centralized network, I already can think of a few ways of gaming.
@ncodes Iâd be more interested to talk to you about 2 other possibilities; a social gaming concept (since you showed some interest in betting as a service) and a financial play but not payments. Think loans.
Iâd have to admit you have a thing for payments, and bound to crack it some day. I wouldnât mind playing a small part in it.
. This our engagement will help people understand this project better.