The PullPayment Protocol in a Nutshell
We have gone a long way down the PumaPay roadmap. Released only recently, the 2nd version of the PullPayment Protocol introduces single and recurring PullPayments to the Ethereum network. If you want to gain insights into the technical aspects of the PumaPay solution, we invite you to read our previous article.
FashionTV, Wix, Vivid Entertainment and PornHub, to name a few, are among more than 70 top businesses that have committed to adopt the PumaPay PullPayment Protocol, enabling their millions of customers to pay with the PumaPay (PMA) token. While initially the token was developed on the Ethereum network, future iterations may see it being used on other blockchain networks. If you are intrigued by PumaPay’s popularity in the sphere of entertainment or you are simply following the latest advances in blockchain technology, let’s take a closer look at PumaPay’s offering and how it has already began transforming the world of payment processing.
PumaPay’s Pullpayment Protocol was designed to offer an advanced solution to the problem of online payments, such as issues with excessive fees, credibility and inefficiency which are usually experienced with credit cards and even with digital coins such as Bitcoin. The protocol uses a new smart contract architecture known as the ‘PullContract’ which enables new ways of paying on the blockchain.
Payment types available
The PullPayment Protocol supports a variety of payment models such as a single PullPayment, and various scenarios of recurring PullPayments (with fixed amount, with initial variable amount, with trial period and with initial variable amount and trial period).
The first version of the protocol takes a semi-decentralized approach with the aim to reduce fees when setting the PMA/Fiat rates on the blockchain and eliminate the customer’s costs when registering or cancelling PullPayments.
The PMA token
While both a coin and a cryptocurrency are similar and have their own blockchain, a token does not have its own blockchain and is hosted on another platform’s blockchain, usually on the Ethereum Blockchain whose smart contract architecture makes it easier to define the behavior of a token.
The PumaPay token was developed according to the ERC-20 Token standard, developed in a language called Solidity and launched after PumaPay’s Token Generation Event (TGE) which took place on May 7th, 2018. The ERC-20 standard is a common set of rules for Ethereum Blockchain token contracts, so that it is easier for wallets and other smart contracts to develop tools to interact with other tokens within the Ethereum ecosystem.
What is a smart contract?
You might be wondering what a smart contract is. It is basically code or, in other words, a piece of software that defines the rules and penalties of the agreement, but unlike conventional contracts, the smart contract automatically applies and executes these rules. The smart contract eliminates intermediaries, saving you money and offering autonomy to make the agreement without the influence of third parties.
The PullPayment Contract
PullContracts are smart contracts that represent a payment relationship between two or more accounts among which tokens can be moved with all the parties’ consent. The payment relationship can also be determined according to the parties’ preferences, where different payment mechanisms can be enabled. These contracts allow businesses to develop their own billing methodologies, request their customers to authenticate the transaction and finally transmit it for execution on the blockchain.
One of the innovative features of the protocol is that it allows users to pull funds from other wallets instead of one user pushing funds to another user’s wallet. In this respect, PumaPay reverses crypto payment mechanisms making it easier for the merchant to initiate the “Pull” transaction, by first getting authorization from the customer and then pulling the necessary funds from the customer’s wallet, without them bearing the weight of any transaction fees.
This first version of the PullPayment smart contract is owned and operated by PumaPay to eliminate gas costs for customers, which are currently paid by PumaPay. The smart contract holds ETH that is used for funding the “executors” and those executors can be added only by the owner of the smart contract (i.e. PumaPay).
The “Owner” is an address owned by PumaPay which is determining the rate of PMA/Fiat as it is calculated by cryptocompare and is also used for adding and removing executor addresses.
Executors are also addresses owned by PumaPay, which can register and cancel a PullPayment on behalf of a customer. This can happen only when the customer address has signed the registration or cancellation of a PullPayment through the PumaPay wallet.
The customer needs to approve the smart contract to make transactions on behalf of their addresses. This process only takes place the first time that the customer interacts with the PullPaymnent smart contract. Once approved, the customer can sign a registration or cancellation of a PullPayment from the wallet and through the core module of the PumaPay ecosystem the request can be registered to the blockchain.
As you can see, the whole procedure is a complex but perfectly orchestrated transaction characterized by transparency, security and efficiency. PumaPay’s contracts have been audited by blockchain experts and auditing companies to guarantee their functionality and security. Of course, PumaPay’s engineers are working to implement future updates allowing for integration with the early adopters of the protocol. If you feel the Pull of our payment solution, jump on PumaPay’s bandwagon and join our ever-expanding community.