The original business idea behind the Buyer’s Protection was to add value on Sparks.
The idea was that guardians nodes were just take a cut of all of the fees (in Sparks) which a store will have to process.
The original idea was that the Sparks’ payment Gateway would accept payment in any kind of major coins, Bitcoins or whatever. And buyer’s protection would just be a fee on top of the original payment which gets locked into a transaction by a guardian node.
It’s a bit like an insurance, something like that.
A store owner for example will not receive his Bitcoin, if he paid in Bitcoin, until the buyer has confirmed by for example a special governance object that his transaction is arrived and it’s a good shape or something.
So when the owner will say okay I click on this, my item has arrived then the transaction gets broadcasted to the network and the guardian node which signed the transaction in this atomic swap, will just lock the funds from the multi sig wallet and the funds will just go to the original store.
And the fees for that will just be converted to Sparks and the guardian node takes a cut of that because they are providing this guarantee of funds being delivered when the item has been confirmed as arrived and so on.
They centralize because neither the store nor the customer, the buyer, let’s say nor the guardian nodes owner will just be involved in any of this process.
It’s just centralized because the guardian nodes will just sign the transaction which just get a fee. It’s exactly like for example instances work, you know, on Dash, because they get a fee of the sent transaction which are process by them by the specific nodes. So, masternodes can be usual block reward plus any existing instance send… validation they perform.
Because validations on instance are validated by 5 masternodes, and the next one is block confirmation from miners. So, each of the 5 masternodes involved in instance’s validation just get a cut of this fee. Instances usually have a higher fee than a regular transaction. So, it’s the same way with the buyer’s protection.
In theory at least because in moral the trusts involve a lot of blockchains, it would kind of need atomic swap implemented and also this multi-signature wallet, because the buyer will have to sign a transaction then the guardian node will have to sign a Bitcoin transaction with their own private key and then you know this really complicated scheme of locking funds in a big centralized way in the multi sig wallet. We need several signatures to unlock the funds and so on. There’s a special Bitcoin up transaction with the operations you know.
Different operations which specify that if a transaction is not performed in a specific timeframe, then the funds get back originally to the original sender. It’s called Data Sig. So you can have a special transaction with this Flex set and then if the time is reached or the specific block height is reached then the transaction is reverted back to the original sender and so on.
So, the whole idea behind the buyer’s protection scheme, was to implement a really friendly way because no one is able right now to manually set this kind of special transaction in an easy from the Bitcoin wallet or any other wallet tight now.
As we need to have a really big knowledge of the bitcoin protocol to understand how it works, we are doing in-depth analysis with our developers to go on with this functionality.
Customer shops on merchant website
Payment accepted on merchant website (powered by Sparks widget + platform)
Rules based validation to release funds to merchant
Buyer Protection for 30 days post orders through Dispute Claims Portal
Order status updates via Shipping company API's
Every steps are recorded on Sparks Blockchain throughout various Stages (Full Transparency).
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