You Can Pay With Vericoin Wherever Bitcoin is Accepted
Vericoin is an innovative and probably even game-changing approach to gain merchant acceptance for altcoin world if the service will get a broader usage.
Released in May, vericoin is a proof-of-stake altcoin that is based on a variable interest rate which changes relying on the amount of coins that are staked out there. The interest rate grows as more coins are used to support the network.
One of the approaches that alternative cryptocurrencies seek for a broader recognition is to expand the merchant acceptance. Coinkite and CoinPayments are the companies that allows payments in altcoins, however, it is still unclear how successful these attempts have been trying to increase the number of merchants that allows altcoins as one of the payment methods.
Many roadblocks have appeared for the altcoin world from merchants who are not willing to accept a potentially volatile alternative digital currency.
Vericoin bypasses these obstacles completely with VeriBit, a service added to the network that allows people to make smaller Bitcoin purchases with their vericoin. VeriBit works as a go-through for vericoin holders, granting purchases for consumers at any business that accepts Bitcoin.
This new type of altcoin service lets to pay at thousands of merchants currently accepting Bitcoin to consumers who want to use vericoin.
Those who wanted to use an altcoin to make a payment had to exchange them for Bitcoin. However, factors such as exchange fees and the natural volatility of the market value, users were losing value prior to making their purchase.
VeriBit is meant for smaller transactions rather than large ones. Currently, there is a limit of 1.0 BTC set that you can spend at once, though this limit is expected to rise in the future as it recently changed from 0.15 BTC.
How it works
VeriBit is a user-friendly solution designed to pay for Bitcoin purchases with vericoin. The vericoin team developed a payments processor for these transactions, managing one wallet for vericoin deposits and another one that pays out in Bitcoin to a selected merchant.
To complete a payment, you need to enter the address you will send Bitcoin to and how much BTC you want to transfer. When you have entered in the required information, VeriBit calculates how much vericoin you are going to send, plus a 2 VRC transaction fee.
You are then given 20 minutes to send your vericoins to the provided address, then the Vericoin team the current wallet operators will complete the transaction and send out the BTC to its destination.
VeriBit was developed mostly to build more convenient services into the network rather than make money off of user transactions, the aim is to encourage consumers to use an altcoin by enabling them to spend it wherever Bitcoin is accepted.