To date, cryptocurrency has yet to gain mainstream adoption. The last barriers to mass market adoption will be removed when cryptocurrencies become embedded into everyday commerce.
Mammoth PAY vision is to create a globally accessible alternative to traditional banking, allowing you to store your money safely, access it instantly and transact with it anywhere, in any currency including crypto by using the MMT token, right from your smartphone.
In order for users of the MMT wallet to transact in real-time, the Mammoth solution will be integrated into the digital multi-currency wallet. This functionality can only be accessed with a MMT token. The MMT token will be used to pay for the operating cost of setting up the Data channel. Because MMT tokens can change in value, the price per transaction is calculated similarly to how gas prices are on Ethereum.
Data channels are a technique for making off-chain transactions with the same security guarantees as an onchain operation. Data channels allow us to conduct blockchain interactions as if they were being conductedon-chain, but require only that two or more users exchange information with each other.
How does Mammoth platform work?
1. Creating a Data Channel
The user loads their MMT token into the mobile wallet, which authorizes the creation of a Data Channel with the Mammoth platform. Both the user’s device and wallet keep a local copy of the current state of the channel.
2. Conducting transactions and changes
When the user initiates a point of sale transaction using Mammoth, they receive a visual prompt in the wallet showing the value of the transaction, similar to using traditional tap-to-pay mobile applications. Behind the scenes, the user authorizes a transaction to send the equivalent cryptocurrency to the Mammoth platform.
Almost immediately, the mammoth platform receives the signed transaction, counter-signs and stores a copy of that new state off-chain. MMT then authorizes its local currency account to pay the requested purchase through its global payment network on behalf of the user. Because the transaction occurs off-chain, there is virtually no delay except for a small amount of computation time and network latency.
3. Keeping Funds Ready
So long as the Data Channel is open, there are no fees for conducting any number of transactions between the user and MMT. More over, there is no fee for keeping the channel open.
4. Withdrawing Funds
If the user wants to retrieve all or part of their MMT token in the channel that has not been sent, they can do so by withdrawing their funds. The user signs and publishes a withdrawal request, which requiresan on-chain operation. It is possible to make partial withdrawals, so the user is always secure in being ableretrieve his or her ether while still keeping the channel open for future transactions with the Mammoth network.
5. The closing of the Data Channel
To close a Data Channel, one of the parties signs and publishes a close request to the Data Channel. This initiates a period during which either party can submit their most recent transactions, which determines the final state of the Data Channel.