The size and scale of the world of ecommerce needs to introduction or explanation as everyone knows it is just vast beyond our imagination. This, in turn, leads to the creation of a number of different payment options with some being seen in a more favorable light than others. However, people are also concerned about their details being held in central databases or servers thanks to the various instances where those servers have been hacked leading to details being lacked across the Internet.
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Sonder is a potential solution that is looking at changing all of that for the better as they are seeking to offer ecommerce companies an easy and straightforward cryptocurrency payment option that charges no fees. So, is this true or is there a catch?
What is Sonder?
The idea behind Sonder was to overcome a number of rather difficult and tricky barriers that exist in ecommerce, mainly high transaction fees and the length of time it can take for the transaction to take place. Their hope is that the blockchain will allow them to counteract both areas, which would act as a huge spur for ecommerce retailers to adopt their technology as soon as possible.
They are offering a digital wallet for their cryptocurrency which can then be used to send and receive money as part of the transaction. In other words, it is going to run along the same lines as the likes of Paypal, but with a digital currency at the heart of the actual payment. Aside from that simple option, there is literally nothing else to Sonder to report.
The Technical Aspect
The technical side of things is where it gets rather interesting when compared to other non-cryptocurrency based payment options.
First, there is the undoubted security bonus because not only is the digital wallet secure and anonymous, but it also has an obfuscate mechanism attached to it. That means the balance held by the user is not known by anybody else and the actual transaction address can also be obscured to provide an extra layer of security for all concerned.
Of course, there are all of the other anti-fraud measures that are in place on the blockchain, and they are all going to pretty much make a difference.
The transaction is placed on the public ledger with a Smart Contract between the two so that the transaction can hen take place. Of course, with it being done via the blockchain there is also the speed aspect to remember, and this will undoubtedly bring in businesses that are drawn to an instantaneous payment option.
The token itself acts as fuel for the entire transaction and platform. Obtaining the token is required in order to complete transactions, so it is clear how the value of the token will increase as more payments are processed. The token is also open to being used on a wide range of Ethereum based wallets.
The Advantages of Sonder
There are a number of advantages of offering Sonder as a payment option which does then make it a far more attractive proposition to businesses. Clearly the security aspect is huge and should never be under-estimated especially with the way in which people worry about their details being stored in a central location. Considering the number of hacks that have occurred in recent years, counter-acting this by using a decentralized approach is certainly a better way of doing things.
Also, the high-speed transactions thanks to the blockchain is another advantage and it could encourage retailers to join. However it has to be the zero fees aspect that will be the main draw card especially when you compare it to the high transaction rates that are generally found elsewhere.
The Financial Aspect and the ICO
From a financial perspective, the first thing we need to mention is that the United States and China are blocked from taking part in the ICO. Also, they are only looking at accepting ETH as the currency for the ICO although that in itself should not pose too much of a problem.
They have also set a hard cap for the ICO which has been set at $6,000,000 and there is an exchange rate during the ICO of 1 SNR equating to 0.00007 ETH. However, they do also note that there is a minimum investment of 0.1 ETH for this part
With the ICO, there will be a total of 168,000,000 tokens produced which represents some 70% of the total number that will be minted by the company. There are bonuses available as well with them decreasing in value as the ICO proceeds.
Conclusion About Sonder and the ICO
Sonder is not the only payment option that has been made available via the blockchain, so what they are offering is not exactly new. However, there is more than one payment processing option in other areas of ecommerce, so there is the possibility that Sonder will still be able to get a share of the market especially with them pushing that there are no fees involved.
The security aspect due to them running it on the blockchain and via Smart Contracts will always be in their favor since that is clearly a major concern for anybody conducting a transaction online. They will need to really push that part to encourage more retailers and individuals to start using it as an option.
Overall, when you consider the sheer scale of ecommerce and the number of payments that are processed on even an hourly basis, then it is easy to see the potential that Sonder has. Yes, the hardest part is going to be drawing in clients and customers but even a small percentage of the market is capable of adding up to something quite substantial. From an investment point of view, there is some potential although the percentage of tokens that is available for the ICO is quite high so that doesn’t leave too many to hang around for the processing of payments. Even though that may be a slight red flag for some, it should not be of major concern.