NEWS: New Paradigm for Cryptocurrency Exchanges with CryptoFuse
Imagine you’re on a flight and want to buy a drink with cryptocurrency, but there’s no wi-fi connection. Traditionally, you wouldn’t be able to make the purchase. However, based on the innovation from a new Irvine startup, you could.
How would this work? You would take a small device on your keychain and connect it to a Square-like device owned by the airline. Through that connection, the cryptocurrency purchase would be made offline. After the flight, the flight attendant would have to update the transaction online, so it can be recorded in the blockchain (a secure digital ledger).
This new offline paradigm is now possible via CryptoFuse, the brainchild of Andrew Couch, who also founded Candy Lab AR. The latter company, also based in Irvine, developed a location-based AR software plug-in, known as ARFuse. It pivoted from developing games for movie studios and game companies to making its software available to developers globally. The goal: to help drive mass adoption of location-based AR experiences.
CryptoFuse is “revolutionary,” Couch told OC Startups Now, because of its ability to move cryptocurrency, supply–line data, and smart contracts offline through a physical device, while still adhering to a byteblock protocol, which prevents “double spending.” (double spending refers to malicious people or bots adding volume offline, which ultimately gets transferred to the blockchain.)
Couch sees further applications for CryptoFuse, including the ability for companies like Oracle and FedEx to track shipments without an Internet connection. For example, Oracle has customers all over the world, some with spotty Internet connections. With a CryptoFuse device, its customers would be able to pay, transfer and track blocks offline, enabling “speedy” transfer of ownership and payments.
“The benefit is the reliability of what would have happened online, like we all know it to work currently,” Couch said. “At the end of the day, any one of those cases mentioned would take their CryptoFuse device, connect it to their terminal and micro-mine the byteblocks out, which updates the online public ledger. It’s as easy as sticking the shortfuse USB into the CryptoFuse terminal that has an online connection.”
CryptoFuse had to create all three pieces of the puzzle for its byteblock protocol to work – the technology to power the new protocol transactions, which it licensed from Candy Lab AR; the physical hardware to enable those transactions; and the cryptocurrency, which can be bought and sold this way. To that end, it created its own form of cryptocurrency, CryptoByte (CBT). The company set a volume of 33,333,333 CryptoBytes using eight decimals. It also filed three patents for the technology.
Couch compares this business model to Apple, which controls its whole system end-to-end, with its technology and protocol integrating seamlessly into all its devices.
He also asserts that using CryptoFuse is more convenient and secure due to its proprietary protocol, hardware, cryptocurrency and method of exchange – all of which is grouped together like a Ford Motor Company assembly factory line.
It’s also “extremely” energy-efficient due to the nature of the device and its novel byteblock protocol, more so than typical cryptocurrency mining transactions, he said.
Bitcoin and other cryptocurrencies are known to consume enormous amounts of electricity when moved around. In November, the power consumed by the entire Bitcoin network was estimated to be higher than that of the Republic of Ireland, according to news reports. Bitcoin is currently trading around $7,000.
CryptoFuse will begin with select users in various markets within the next few months. It plans to launch it’s bytebase exchange globally at the CES show in January.
“Cryptocurrency and Blockchain are quite complex and while we are not saying we have figured everything out, we are saying, ‘Hey entire world, we have figured out a way to move cryptocurrency, supply line data and smart contracts offline, as part of a connected online ledger,’” Couch said.
“The CryptoFuse team is excited to bring an accountable online and offline protocol to the masses,” Couch said. “(We) envision the impact of byteblock to change the way money, supply–line data and smart contracts are exchanged by not just everyday users but large financial institutions and governments.”
The mission of accountability is also driven by the goal to provide secure cryptic transactions worldwide, for everyone, he added.
With Couch devoting his full-time energy to CryptoFuse, Josephine Munis has taken the reins as CEO of Candy Lab AR. That company, which has amassed approximately $7 million among investments, grants and revenue since 2010 is now focused strictly on the needs of AR developers.