Thank you for visiting our FAQ. Keep in mind that the FAQ only give a general overview. As the topic is rather complex, we recommend reading the White Paper for a detailed explanation.
Why SavAct is a cryptocurrency with future
1. Why are cryptocurrencies used for payments?
There are various reasons why cryptocurrencies are used for online payments. Cryptocurrencies usually have a limited amount of coins and are not controlled by any central authority. They are easy and cheap to transfer or store. Furthermore, cryptocurrencies are independent of governments or governmental regulations. They additionally allow transacting anonymously and faster than usual money transfers.
2. What are the disadvantages of previous cryptocurrencies?
Previous cryptocurrencies do not offer decentral buyer protection. This is often abused by scammers. The given advantages of cryptocurrencies, anonymity and decentralization, therefore become disadvantages.
3. What differs SavAct from other cryptocurrencies?
SavAct offers buyer protection that does not need high fees or involving a trustee. It enables binding a bought service, goods, a voting result or anything else to be delivered in an optional time limit.
4. Why should SavAct be preferred over a trustee?
By involving a trustee, you have to trust a central third party, give her the authority over all traded goods and lose anonymity. Additionally, the seller has to pay fees, which are currently around 4% on established systems. This contradicts the fundamental ideas decentral cryptocurrencies.
5. How does SavAct work?
SavAct is a cryptocurrency that enables to bind bought services, goods, voting results etc. to be delivered within an optional time limit. A transaction may also contain a deadline where the sender has the ability to invalidate his transaction. For example, it can be used in online shops. If the product does not arrive or has an intolerable bad quality, the transaction may be invalidated before the time limit runs out. Therefore, the vendor is forced to satisfy the customer. Invalidated transactions are not returned to the buyer but instead they are distributed among token owners, miners and additionally support the development of the system. This ensures that customers do not abuse this function for their own benefits, but only make use of it if they feel betrayed by the vendor. Chapter 2 of the White Paper offers a more detailed explanation and gives a few examples.
6. Where are the SavAct transferred to if a transaction is invalidated?
The SavAct are mainly transferred to an uninvolved party, the token owners. Another part is given to the miners of the blockchain and another small portion is transferred to the development team to ensure ongoing development. For more details, see chapter 2.3 of the White Paper.
7. What if SavAct is used by a “fake shop” that does not send any products?
It is not lucrative to create a “fake shop” with the hope that some people do not invalidate their transaction if their order does not arrive. Furthermore, “fake shops” are usually quickly uncovered and become known as such after having a few hundred customers. Therefore, SavAct cannot guarantee 100% security but much less fraud attempts compared to other cryptocurrencies.
8. What if the buyer invalidates a transaction without any reason?
It is possible for people to invalidate a transaction without a reason to troll or to be malicious despite having no advantages. Vendors may add an extra charge to compensate for this situation just like the fees of trustee services.
For independent and decentralized systems, it is natural that one party, either seller or buyer, has to bear a higher risk. The buyer bears it when using current cryptocurrencies as he must hope for the paid product or service to be delivered. SavAct balances this risk among both parties. The expected frequency of how often sellers are punished was determined statistically. Depending on the region, maximum values of 1.2% to 1.8% are expected. The resulting costs are more favorable than the fees of already established trustees. The associated study will be published soon.
Additionally, buyer rating portals may establish, similar to already existing seller rating portals.
The White Paper features a few examples for a SavAct transaction in chapter 2.
9. What would happen if a Seller tries to harm a competitor in online-trading?
If a seller wants to harm a competitor he could try to buy out his whole supply of goods and invalidate the transactions afterwards. This would harm the competitor because he would have sold his whole inventory without receiving any payment. Compared to a trustee, a Seller who uses SavAct has no chance to get his offered goods back and would have to take the loss. However, the losses of the attacker would still be greater than the losses of the competitor. The competitor loses the purchase value where the attacker loses the retail value of the goods.
In order to harm the competitor significantly, the bulk of the selling volume has to be known. Since a seller can have plenty of pseudonyms this is pretty hard to find out due to anonymity.
The attacker can try to diminish his losses by reselling the purchased goods. Traders have never 100% profit on an item, usually the profit is only a small part of the total sale. Keep in mind the attacker will probably not be able to resell the purchased goods in a short period of time for the same price he bought them for . Also consider that by reselling the goods the attacker must pay potential shipping costs, platform fees, administrative expenses and storage costs. In addition ,during the time he tries to resell the bought goods he hinders the sales of his own goods.Nevertheless, a seller should never sell his whole inventory to a single address with a single deadline. Furthermore the seller should exclude buyers who unjustly punished them previously.
If, hypothetically speaking, the attacker has over hundreds of real addresses to deceive the competitor in order to resell the goods, he still has to expect that the competitor notices that. A sudden, not comprehensible sales growth through mostly new customers would raise suspicion. This would led to the loss of the financial capital of the attacker. It is even easier to see though such an attack if all the addresses came out of the same region. An attacker who has the financial potential to deceive his competitor would probably be even able to outwit a trustee with a high success chance. Fake unsatisfied customers could make the trustee believe that the seller is a fraudster. The seller would be blocked by the trustee and the attacker would receive all of his investment back. By seeing how successful trustees in the online market are and by not finding any proof for this kind of attack, you can assume how hypothetical this case is.
10. Why should vendors use SavAct despite having a higher risk than usual?
Vendors can increase their customer’s trust by using SavAct and thereby may increase their sales volume. Many vendors already use trustees for the same reason, even though this means that they have to pay fees for the trustee. SavAct is free to use for vendors and buyers.
Questions regarding the token and coin distribution
11. Why is there a token and a coin?
The token exists to separate investors from normal coin users. Token owners are interested in increasing the coin’s value and keeping the system stable. Coin users use the system for its benefits while they are not necessarily interested in its stability.
12. Why are token owners not having notable advantages by invalidating a transaction?
Token owners regain just very small amounts by withdrawing their own transactions, as the tokens are distributed over a large number of persons. Its strength lies in getting returns accumulated from all worldwide invalidated transactions.
However, by abusing the system, token owners would damage the system’s reputation in long-term and therefore also harm their investment.
13. How will the Coin SavAct be distributed?
There are two cases that need to be distinguished:
- At the initial distribution, all SavAct are assigned to the token owners based on the percentage of owned tokens.
- SavAct from invalidated transactions are going to be frequently distributed among the token owners and miners and additionally support the ongoing development of the system.
For details see chapter 2.3 of the White Paper.
Fragen und Antworten zum Abstimmungssystem von SavAct
14. What are the advantages of a decentral voting system?
Voting results are safe from manipulations as all votes are recorded in a decentral blockchain. Additionally, as the blockchain is visible to anyone, the voting result cannot be challenged while still keeping each vote anonymous.
15. Which advantages does SavAct have compared to other decentral voting systems?
SavAct “forces” the host of a voting to stick with the result, otherwise most voters might invalidate their transactions. Content creators can use these votings to fund themselves with the help of their supporters. The votings can be shared independent of the platform, for example as texts, images, or masks in video streams. You can find more information in chapter 2.2 of the White Paper.
16. What purpose does SavAct serve in the voting system?
SavAct financially binds the host of a voting to its result. Votes serve as funding for the host. If he does not stick to the result or it is not performed as promised, the voters may invalidate their votes. An example voting can be seen in chapter 2.2 of the White Paper.
17. Where is SavAct’s voting system applicable?
SavAct can be used nearly everywhere. There are dozens of applications due to its versatility. Besides online trading, where SavAct can be used as a fair currency, it might enhance the whole social media domain with its paid votings. It may be used on random live chat, streaming and social media platforms. Furthermore, it can be used in free media to vote for future investigation topics but also in blogs or forums. You can find more on this topic in chapter 3 of the White Paper.
18. Why should one pay for a voting?
Paid votings can be used in nearly all parts of social media and streaming platforms. Independent and easy-to-use technologies to enhance and fund these domains offer much potential to millions of users.
With SavAct, content creators can fund themselves without having to depend on advertisement. Followers are able to participate in these votings with small amounts and thereby directly support the content creators and influence their content. For more information visit chapter 2.2 of the White Paper.
19. Is the weight of a vote based on the SavAct amount?
The host of a voting decides how votes are weighted. It is basically possible to choose the result by the sum of the voting’s transactions or by the count of votes. However, further extensions with rules like minimum or maximum values or even more complex ones may be possible. If the host does not stick to the result it is always possible to invalidate the transactions within a given time period, independent of the host’s rules.
Questions regarding the legal limitations of SavAct users
20. What are the legal aspects, if a transaction was deducted?
Invalidating a transaction and thereby redistributing the payment to third parties like the token owner (cf. question 12), is actively done by the sender and is considered as an obliteration of the value. By using this system all parties agree to this mechanism.