Cryptocurrencies are typically volatile, with significant value shifts being commonplace. Unfortunately, at this point, there are no real payment alternatives offered by any decentralized currencies.
We have two “payment systems” in operation. One is the bank payments system which has been around for some time and has its challenges and significant risks associated with the monetary system, bankruptcy, fiat currencies, and inflation. The other is the Bitcoin Blockchain system which also has challenges in terms of extreme volatility and is in its relative infancy. In addition, the payment processing time is slower than the other system, and the transaction flow is an energy guzzler of note.
This article investigates whether closed networks and communities could offer solutions by introducing their coins into an existing closed system. By merging the two systems, one can potentially avoid the disadvantages and exploit the advantages of each, resulting in a better hybrid for all.
Let’s examine one such closed payment model and see whether this could offer a real payment alternative.
Introducing the SANUSLIFE plan
In 2006 Ewald Rieder founded a company called SANUSLIFE International. The offering was initially the sale of water filters. The company expanded its product lines to include some natural wellness and wellbeing products and established a community of customers.
As part of its offering, the company then began offering its customers credits as a form of cashback. On 21 March 2018, the company stored 777.777.777 SANUSCOINS on the Bitcoin blockchain. These coins are classified as utility payment tokens.
Customers collect credits as they purchase goods, and the following year, they can convert the credits proportionally into coins. Everyone who pays via SANUSPAY or with SANUSCOINS in the future does something good with every transaction. With every payment, a portion of the purchase amount flows into the SANUSPLANET-pool. The SANUSCOIN stands for a healthy coin, and that clarifies the practice. Whenever people pay with it in the future, SANUSLIFE make a healthy contribution. For people, animals and the environment.
In the words of the founder, Ewald Rieder, “The SANUSCOIN is a digital voucher or utility payment token. It is stored on the Bitcoin blockchain, the most secure and established blockchain in the world – which, by the way, has never been hacked. Therefore, it can also be said that the SANUSCOIN is 100% secure on the Bitcoin blockchain. It is also strictly limited by a software code, which protects it from inflation.”
One of the exciting features is that every transaction results in a small portion automatically being siphoned off into an environmental and animal protection fund—green coins for a greener world.
Combining the Bitcoin BlockChain with the Closed Payment system
SANUSLIFE now plans to move their Utility Payment Token, which is stored on the Bitcoin-Blockchain,into a closed and centralized ecosystem which will be accessed through an application still to be developed. The application, according to the website, is to be launched in 2022. This strategy harnesses the security of the bitcoin blockchain and the speed and simplicity of the closed payments system.
One of the significant benefits will be in significant energy savings.
Benefits of combining the systems
Unfortunately, the blockchain computing power required to effect transactions has proven to be energy-consuming and flies in the face of international movements towards sustainability.
Classic payments in closed systems are typically much faster and less complicated than in decentralized stored crypto-asset systems. Unfortunately, this has hampered the uptake of using Crypto as a popular payment mechanism.
SANUSLIFE have already grown their merchant network to include many stores and intend developing this even further. The system will be administered by a custodian bank offering security on the platform.
Ewald Rieder states further:
” Another advantage is the access to a large world of benefits if one holds the coins centrally in the SANUSAPP. In this case, you can pay with SANUSCOINS at SANUSLIFE and all partner companies at lightning speed.
For each SANUSCOIN transaction, the customer receives a cashback, both at all stationary points of sale and in all online shops. The entrepreneur, on the other hand, gets many new customers through our new payment method SANUSPAY and the acceptance of SANUSCOINS.”
Can closed systems breathe new life into crypto solutions? Well, as with so many aspects of crypto, this is unpredictable. It remains to be seen how this translates practically and what the uptake will be. It will take companies like SANUSLIFE to invest in these experiments for us to see. The fact that companies like SANUSLIFE are investing bodes well for the future of Crypto in whatever form it eventually takes.