One of the biggest challenges we have is how to develop a digital wallet that has no transaction fees. This is because bitcoin transactions typically carry mandatory ‘mining’ fees – micro-payments made to individual ‘miners’ who verify transactions against blocks in a blockchain – in addition to transaction fees that are usually charged by the mobile money platform itself. Caricoin is aiming for a different approach; we believe that if mobile money is going to truly replace cash, these fees will need to come from somewhere other than our customers’ pockets.
Think of it like this: if a group of friends sitting around a table pass a $100 bill between them, it’ll still be a $100 bill when it gets handed to the last person. That’s the cash model. But if each person takes $5 as it is passed to him or her, by the time the money is handed to the last person, it’ll be a whole lot less than $100. This is what happens to your money when transaction fees are involved.
At Caricoin we are working to make our platform a viable alternative to cash by creating a no fee model and guaranteeing that the amount of money you put in is always exactly the same as what you get out.