Author: Nicolas Dorier 2017-12-21 08:20:11
Published on: 2017-12-21T08:20:11+00:00
Nicolas Dorier has proposed a new standard called Crypto Open Exchange Protocol (COX) that allows merchants to accept cryptocurrency payments and sell them automatically. The protocol aims to reduce transaction fees for merchants and provide them with more flexibility in choosing payment processors. COX is aimed at decoupling payment processors from exchanges, which will help local exchanges that lack resources to develop their own payment solutions.The COX protocol offers an address source creation wizard, which allows the merchant to answer questions regarding what to do when cryptocurrency is sent to the address source. It also offers an "address source URI," which can be input into the payment processor. An exchange compatible with COX would reply to any HTTP POST request to this "address source URI" by providing a deposit address for accepting payment, the current rate, and in some cases, details about rate fluctuation risks.A payment processor called PROCCO has developed a Crypto Open Exchange Protocol that allows e-commerce websites to accept bitcoin payments. The protocol ensures that the rate of bitcoin is guaranteed for a certain period and provides the required confirmations for a successful transaction. When a customer pays in bitcoin, PROCCO retrieves the rate and conditions from the address source URI and shows the Bitcoin Payment Checkout page.Once the payment is made, PROCCO marks it as paid and redirects to the e-commerce website. MYCOIN credits the merchant's account with the received amount of bitcoin and simultaneously creates a market sell order on behalf of the merchant. The response from an exchange would be different based on whether the exchange guarantees the rate or not.If the exchange does not guarantee the rate, it provides the deposit address, currency code, crypto currency code, rate, and the number of required confirmations. If the exchange guarantees the rate, it also adds conditions such as the time when the transaction should be seen and confirmed on the blockchain to ensure the rate. Although adopting this protocol is not strictly needed, local exchanges have incentives to implement it. Alternatively, an adapter server can be developed to expose Crypto Open Exchange Protocol endpoints and connect to underlying exchange APIs. This protocol is dual licensed as BSD 3-clause and Creative Commons CC0 1.0 Universal.
Updated on: 2023-06-12T23:13:51.127195+00:00