As the cryptocurrency sector grows, it requires more specialized infrastructure to enable advanced use cases. To that end, Flexa’s AMP platform appears poised to enable a wide range of new applications that link cryptocurrency to traditional eCommerce. They do so by providing a form of collateral that ensures payment while transactions process. Depending on the blockchain in question, some transaction validations can take minutes – or even hours, depending on network congestion. While immutable, verifiable, and secure, this speed makes cryptocurrency unfeasible for day-to-day purchases.
AMP’s collateral system assures sellers that they will receive payment after the transaction has begun, thereby allowing them to ‘assume’ that the purchase is complete. AMP replaces the previously used Flexacoin or FXC due to their integration of ConsenSys technology. As with other back-end cryptocurrencies, AMP has found success as businesses begin layering necessary mechanics atop one another to achieve acceptable parameters. Much as SaaS businesses thrive by providing back-end solutions, so too does AMP in the crypto-space.
Why Does Cryptocurrency Require Collateral?
One of the most basic factors of blockchain technology is the immutable, verifiable validation of transactions. Yet, each crypto-boom comes with congestion, high fees, and frustration as everyone attempts to validate transactions at once. While sidechains solutions proliferated in the wake of 2018, their adoption remains stagnant. As such, collateral provides a necessary solution for technological inefficiency.
Even when these inefficiencies inevitably evaporate, AMP’s well-earned reputation will ensure it holds a considerable market share within the industry. Serving as a different type of bridge, AMP allows a variety of crypto-assets to engage directly with point-of-sale features in traditional commerce areas. Beyond this use case, AMP also allows users to stake their tokens – thereby providing the necessary funds to provide collateral in the first place.
Will Amazon Adopt AMP?
Recent rumors swirled that Amazon may adopt AMP as the basis for their acceptance of cryptocurrency. No official announcement has emerged on whether Amazon will accept cryptocurrency at all, and there is some doubt that Amazon would integrate a third-party service in such a way. Yet, AMP’s facilitation of near-instant transactions would allow any theoretical Amazon crypto-pay platform to function at the same speed as their fiat payment systems.
These rumors seem to have originated with BitBoy crypto, who was recently banned from YouTube. Finding reliable information in the cryptocurrency space can be difficult, but the recent rush to adopt cryptocurrency will likely spur some movement on Amazon’s part. Failing that, AMP remains a notable new cryptocurrency and a solid platform for solving problems that have plagued the industry since the beginning.