Project Quarta

Project Quarta- Next generation Cryptocurrency Application and Ecosystem

How does it work?

Proposed Mechanics/Method/Model for Offline(Cold) Wallet Transactions using One-time Password (OTP), MerlinCrypt (ASBE), and BlockChain

1. Wallet owners shall open an account with the clearing house (Bank) and make a deposit. The account owner shall prescribe the amount to be credited to his/her offline wallet. Credited amount to offline wallet shall be frozen and cannot be used other than the transactions made on his/her offline wallet. Online transactions can only use unfrozen portion unless a limit is prescribed and transactions beyond the prescribed limit requires personal verification/authorization (via phone call).
2. Wallet is created with the essential credentials of the owners identity and unique keys for OTP, blockchain, and merlincrypt.
3. Creation of encryption keys should be time synced using google authenticator OTP algorithm such that each transactions shall be unique with random keys and can be verified/authenticated mathematically at the central clearing house based on the time of transaction.
4. Encryption keys shall be dynamically produced every 30 seconds for each account which is more than enough time for payor and payee to consummate a single transaction.* (Encryption keys shall be dynamically generated. Encryption keys are only valid for 30 seconds for each account which is more than enough time for payor and payee to consummate a single transaction. *)
   1. * It is not necessary for the keys to be actually generated every 30 secs, but the algorithm for the mathematical verification/authentication of each transaction can be completed within a 30 seconds window.
5. Procedural Mechanics
   1. Payor and Payee opens their wallet app,
   2. Payor shall select transaction mode “send” and enters the amount to be sent, thereafter a QR code containing his essential credentials and cryptographic parameters (OTP) shall appear on the lower half portion of the screen with upper half portion showing the camera’s view.
   3. Payee shall select transaction mode “receive”, a QR code containing his essential credentials and cryptographic parameters shall appear on the lower half portion of the screen with upper half portion showing the camera’s view.
   4. Each will scan the opposite party’s QR code, after which the camera view will change showing the identity of the opposite party, the amount of the transaction and the buttons “proceed” and “cancel”, while maintaining the QR code at the lower portion.
   5. By pressing proceed the upper half shall revert back to the camera view and both shall scan the opposite party’s QR code again and the transaction is consummated.
   6. QR code of previous transactions can be viewed anytime.
   7. Transaction keys should implement OTP for dynamic random generation.
   8. At this point the transaction cannot be reversed unless a new transaction is made.
   9. A new encrypted file using ASBE for the parties’ wallet shall be created reflecting all previous transactions and the latest transaction made.
   10. Sending an amount cannot be made if the wallet is insufficient.
   11. Transactions cannot be consummated if OTP between parties are off by 30 seconds.
   12. Other administrative measures can be implemented such as limits and personal verification/authorization (via phone call).
6. Other administrative policies or rules such as syncing their wallet within a prescribed period of time shall be required in order to guarantee the transaction otherwise the bank cannot be held accountable for discrepancies.
7. In case of lost wallet, frozen credits cannot be unfrozen for a prescribed period of time plus a day to give ample time for the opposite parties to sync their wallet.
8. Syncing the wallets enables the insertion of the transactions into the blockchain and a mechanism shall be provided for insertion within a prescribed period of time, since transactions are not synced at the same time. Side chains must be implemented for this scenario.
9. Syncing shall initialize the wallet with new keys/parameters. Old files are automatically archived at the clearing house data center.

BENEFITS:

• Payment Freedom – Send and receive coins anytime, anywhere. No bank holidays, no borders and no limits.

• Very low fees – Payments are currently processed with either no fees or extremely small fees. Users may include fees with transactions to receive priority in verification. Fees are lower than any bank or payment gateway in existence.

• Fewer Risks for Merchants –transactions are secure, irreversible, and don’t contain customer’s sensitive or personal information. This protects the merchants from losses caused by fraud or fraudulent chargebacks.

• Security & Control – Users are in full control of their transactions. It is impossible for merchants to force unwanted or unnoticed charges as what happens with other payment methods. Users can also protect their money with backup and encryption.

• Transparent & Neutral - All information concerning the money supply itself is readily available on the block chain for anybody to verify and use in real-time.