Monetha Whitepaper

Abstract

E-commerce worldwide sales in 2014 were USD 1.33 trillion and are projected to
increase to USD 4.058 trillion by 2020. E-commerce share of retail sales is expected
to increase from 7.4% in 2015 to 14.6% in 2020. Furthermore, according to Statista,
the number of people buying goods or services online will increase from 1.46 billion
in 2015 to above 2 billion in 2020.

Despite the explosive growth, three major problems still exist:
1. Trust​ ​and​ ​reputation​: Building trust is difficult, and it is centrally governed by
big marketplaces. There is an inability to transfer trust from one centralized
service to another, and thus a need to establish relationship with each
merchant separately. Moreover, a merchant’s history is not recorded, so there
is no ability to punish fraudulent buyers or merchants. Huge efforts and
advertising budgets are needed to create trust if a merchant is not a part of a
centralized marketplace.

2. Expensive​ ​and​ ​long​ ​payment​ ​process:​ ​There are 16(!) different steps to
settle the transaction and up to 15(!) different fees to pay for payment
gateways. Transaction fees range from 2% + 0.1 to 6% + 0.7. Chargeback
fees of USD 15. Moreover, existing payment gateways rarely offer a simple
solution for a merchant to accept mobile payments on their website or point of
sale terminals.

3. An​ ​inability​ ​to​ ​reach​ ​the​ ​growing​ ​ethereum​ ​economy:​ Today, merchants
cannot accept payments in Ether, which has reached a market cap of USD
36bn as of June 14th. Moreover, a totally new digital asset class is being
created: tokens of products that are built on the Ethereum platform. The rise
of a new kind of digital assets enables the creation of a token-based digital
asset economy. It is expected that 10% of global GDP will be generated on
blockchains by 2025. Merchants will definitely want to participate in the
blockchain created economy.

Monetha​ ​is​ ​creating​ ​a​ ​universal​ ​decentralized​ ​trust​ ​and​ ​reputation​ ​solution
working​ ​flawlessly​ ​together​ ​with​ ​mobile​ ​payments​ ​processing​ ​on​ ​the
Ethereum​ ​blockchain​ ​leveraging​ ​smart​ ​contract​ ​technology.
1. Universal/Transferable​ ​trust​ ​and​ ​reputation​ ​system:​ ​Every time a
transaction is made the blockchain will record the time of the transaction, both
receiving and sending wallet addresses, warranty conditions, delivery time,
and all other information that is typically needed to ensure trust. All the
sensitive information will be hashed and only available to authorized users in
a beautifully designed user interface. Based on that information, clients and
merchants will be able to file/solve a claim, rate each other, etc. Every​ ​time​ ​a
transaction​ ​is​ ​made,​ ​claim​ ​registered,​ ​solved​ ​or​ ​unsolved​ ​(according​ ​to
the​ ​purchase​ ​details​ ​saved​ ​during​ ​the​ ​purchase),​ ​review​ ​written,​ ​etc.,​ ​the
smart​ ​contract​ ​will​ ​automatically​ ​change​ ​the​ ​trust​ ​level​ ​for​ ​each​ ​of​ ​the
parties​ ​involved.

2. Mobile​ ​payments​ ​solution:​ ​With the help of the Ethereum blockchain, we
are able to make payments with only​ 1​ ​step​ ​and​ ​1​ ​fee,​ ​which results in
accepting payments generally up to 5X cheaper and up to x10000 faster for
merchants. After simple integration with Monetha, merchants will be able to:
use our decentralized trust and reputation system, accept Ethereum based
tokens, accept mobile payments, and easily convert cryptocurrency to their
local fiat currency.

3. Enabling​ ​merchants​ ​to​ ​reach​ ​$10​ ​trillion​ ​digital​ ​asset​ ​economy:​ ​By
developing Monetha, we will not only allow merchants to participate in a
trustful decentralized economy, but also reach the growing digital asset
economy through our payment solution. The World Bank estimates that 10%
of global GDP will be generated on blockchains by 2025. The GDP estimated
for 2025 is $100T, thus the value generated through blockchain is expected to
be $10T (10%).

Mobile​ ​payments:​ ​According to Boston Consulting Group, the payment industry is
about to experience a huge shift towards mobile payments: 1) In 2015 mobile
payment volume was USD 8.6 billion in the US. It is expected to increase almost 32x
by 2021 to reach $274bn in the US alone, 2) mobile share of total ecommerce is
expected to increase to 48.5% of total e-commerce by 2020. It was 23.6% in 2015.
Business​ ​model:​ ​Monetha will only have one fee – a 1.5% transaction fee for
merchants.

Token​ ​and​ ​token​ ​ecosystem:​ ​A ⅓ of Monetha’s revenue will be put in the “Voucher
Smart Contract” in a form of MTH tokens to our token holders with an ability to claim for a
voucher proportionately to the amount of MTH tokens they hold. Token holders will receive a
voucher in MTH (Monetha’s currency) to use it as a discount when buying from Monetha’s
merchants. This voucher would be proportional to the amount of the MTH tokens held.
Loyalty​ ​program:​ ​In order to encourage a network effect and create an ecosystem
for the Monetha token, we are going to introduce a loyalty program for merchants.

Every purchase made via the Monetha payment system will reward the client of the
merchant with 0.2% (the exact percentage might change over time) of the value of
the transaction in Monetha tokens from the Monetha loyalty pool.

Monetha Website
Monetha Whitepaper

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