Safex Marketplace is the first global decentralized marketplace on its own blockchain. On this marketplace, users can buy and sell goods and services, no matter where they are - without the restrictions of a central entity. It's important to remember: Safex is a protocol, not a company, which means only the open-source software exists between the buyer and the seller, and any peer-to-peer trade that is taking place.
The whole system works in favor of the user, not the marketplace owner, as is the case with large centralized eCommerce companies. User privacy is protected thanks to a blockchain that ensures user anonymity and data privacy. This marketplace has all the features essential for a safe eCommerce environment. So, let’s find out more…
The history of Safex Marketplace: Crowdfunding
A crowdsale was launched in December 2015 when almost the entire amount (99%) of Safe Exchange Coins (as they were then called) was sold out. Approximately 2.1 billion tokens were sold, with only 1% remaining within the Safex team. The crowdsale collected 69.7 bitcoins and 1.4 million MaidSafe coins, which together made up a value of approximately $ 50,000 at that time.
Unlike modern ICOs, where founders retain vast percentages of the coins for themselves, valued in the many millions of dollars, the 1% of Safe Exchange Coins kept by the Safex team had a face value of only $500 at the completion of the crowdsale - the focus was on distributing the token widely, right from the very beginning.
The project has undergone certain changes from the original idea, so, from a simple application on the SAFE network (MaidSafe), it has been transformed into an ambitious project for crypto-commerce on its own blockchain, with privacy protection. Now, we have an easy-to-use wallet/application for eCommerce with embedded functions for reliable and safe transactions that is still in the phase of ongoing development.
Why does Safex Marketplace have a bright future?
When we consider that eCommerce companies are constantly rising in value and the growing potential of cryptocurrencies, it is clear that Safex has an excellent starting position. On top of that, private transactions are something that users appreciate on a large scale. Cryptocurrencies such as Safex Cash are an excellent payment method: they are fast and untraceable, one can send transactions anytime to anyone, from anywhere in the world.
How is this Safex Marketplace platform different from other eCommerce platforms?
Safex is supported by blockchain technology with a specially designed economic model for the distribution of Safex Cash. What is essential for the users in real-time is a simple application that will contain everything necessary for safe and easy purchases. Some of the other benefits are fair opportunities reflected in decentralization, the possibility of passive income, and data protection.
Additionally, vendor trust can be established within time through the built-in feedback system, allowing sellers to build up reputation, and it is tamper resistant, due to only legitimate purchases being able to provide feedback (unlike some of the fake reviews seen on other eCommerce platforms).
Safex Marketplace is a public good
Safex is powered by the community and in service of all the people. Anyone can use Safex Marketplace, send transactions of Safex Cash and Safex Token, buy some product or list it on the marketplace. Safex Marketplace is taking care of the Safex Token holders, especially those original crowdsale participants who continued their support, by rewarding their loyalty by distributing a revenue share (backed by the low 5% sales commission) among the token holders who stake their tokens.
Safex is not a company
It is crucial that Safex is not a company but only a protocol that allows users to trade with each other. Safex Marketplace has no products, warehouses, or employees. Safex is a decentralized blockchain software that allows users to list their own products, set prices, sell, or buy. Therefore, it is not possible for a user to be forcibly removed from the merchant list, nor for their property to be confiscated. It will not be possible for a ban to be sent to a product or user.
Also, Safex does not have the ability to compete with customers by inserting its own products instead of customer products, as we know that large centralized companies often do. Simply put, this eCommerce platform can be a service that allows direct sales - "direct to consumer" (D2C).
We mentioned a simple Safex app: It’s actually a combination of an app where all the products with the necessary descriptions are displayed along with a regular cryptocurrency wallet. Integrated in this way, customers are able to view the entire list of product offerings and simply select and pay for a desired product in just a few clicks. The product information includes, among other things, basic description of the product, price, available quantity, and other factors related to the offered item.
All that is needed is for the customer to have a sufficient amount of Safex Cash and purchase the desired product. If you don’t have Safex Cash, you can buy it on the exchange and send it to the application/wallet. However, you don’t have to purchase anything, you can simply just hold your Safex Cash and Safex Tokens. Keep in mind, Safex TWM Wallet is still under development. Take a look at how it looks right now and what functions it already has.
Note: Safex.Market, accessible via the Safex TWM Wallet, is an application developed, curated and maintained by TWM, Inc. It is the first application that utilizes the Safex blockchain for eCommerce and is in ongoing development. Since the Safex blockchain is decentralized, anyone can build an application to interact with it and use it for eCommerce purposes.
Another wallet, called Safex Big Box Store, has been developed independently by Safex Community members. An associated software system, the Big Box Store Front, allows anyone to host their own Store. Store Front owners have the option of allowing other Merchants to list items via their store front. One such example is https://globalsafex.com. Further information on the Big Box software suite can be found at [link to the 101 article, once published].
We see online services of a similar nature taking huge percentages of earnings from sellers. The Apple shop takes 30% of the gains from the seller, not counting all the other percentages deducted from the profit. Other platforms also charge burdensome fees to the detriment of vendors. Payments via PayPal, Payoneer can be very inconvenient and also expensive. So, compared to standard solutions, Safex is a refreshing change from the norm and a great opportunity of a new market for both sellers and buyers. In addition to the fact that the platform does not take exorbitant fees from the seller, there are no monthly subscription fees. The only thing that sellers have to pay for is the creation of a merchant account (1,000 Safex Token need to be locked for 30 days and are then returned to the user) and then they start selling freely, with each product listing only costing a fraction of a cent in transaction fees. This way, sellers are stimulated to dare to offer their products on very favorable terms, which means for buyers that they will be able to shop for goods at attractive prices.
Everyone has equal rights
The fact that Safex Marketplace is not a centralized company creates a situation where all users have equal opportunities for success. It’s possible for anyone, anywhere to sell products, even if they are underprivileged in their community. Any user can now sell products and earn money from the most faraway parts of the world. In this way, Safex Marketplace allows everyone to participate in global trade without discrimination on any grounds. We often forget how many people do not have the opportunity to earn in a modern way: they are discriminated against based on nationality, religion, gender, education level or economic status. Using Safex, they can all earn easily and have an equal chance of success.
What is recognized as a necessity in a modern online store is the protection of user privacy. This protection is enabled on two levels with Safex Marketplace.
The Safex eCommerce platform is made on a blockchain with privacy features. Thanks to this blockchain technology, all payments are anonymous. All the information related to the existing cash balance, location, sending time, and the like are private. This is possible thanks to CryptoNote blockchain technology, enabled by digital ring signatures and so-called stealth addresses.
As a software protocol, Safex does not have the ability to store anyone’s data, its focus cannot be on gathering information and monitoring user behavior. Therefore, your data will always be private.
The Safex Marketplace allows users to purchase goods and services in private mode - the buyer and seller share whatever pertinent details are needed to complete the purchase and no third party can access that information. With this option, users will achieve their right to privacy and reduce potential losses of money during online activities due to Internet crime.
As you know, there are two coins on the Safex Marketplace platform. One is Safex Token, and the other one is Safex Cash. As all payments are made in Safex Cash, this means that the seller will receive the payment very quickly, within a few minutes after execution. This is a great way to charge for products without waiting, without having money withheld by a bank or another service. Both the buyer and the seller benefit from paying in cryptocurrencies. On the other hand, the Safex Token can be used for passive earning from revenue, beside the functionality for merchant account creation.
As already mentioned, a 5% fee on every purchase is included in the price of the item on the marketplace. Compared to the prices of leading eCommerce companies, where fees are even ~30%, it is clear that Safex Marketplace can be attractive for both merchants and customers. By having this small fee for purchases, users will be more motivated to use this platform. So what happens with that 5%? That 5% fee, paid in Safex Cash, goes into the sales commission pool and is allocated on a pro rata basis amongst among Safex Token holders who have their tokens staked. Each holder of staked tokens gets a reward in proportion to the staked amount. Of course, this staking is optional.
Distribution of Safex Cash
What especially inspires miners is the attention in the development of the economic model of the coin. Other projects, modelled on the bitcoin distribution curve, have facilitated the accumulation of coins by early miners and users. This creates an unequal bias against those who join the network at a later stage. Therefore, Daniel Dabek and Ivana Todorovic designed a unique S-curve distribution of Safex Cash to make this coin attractive for mining to both current and future miners, as it has an egalitarian distribution curve of Safex Cash over time.
Users of Safex Marketplace
Safex Marketplace does not only focus on users who are already in crypto-commerce, but on a much larger number of people - the ones who are not in it yet. So many people can take the opportunity to sell on Safex Marketplace. This opportunity can give them primary or secondary income, passive earning, and independence from the banking system. We already know of a large number of sellers who are preparing to offer their products. Users can peruse the hundreds of items currently offered for sale (USA users only, for now) on the community-run safex.ninja website.
Safex wishes to provide an alternative and allows sellers and buyers to trade freely, safely, and efficiently. The best way to see how Safex Marketplace works is to download the Safex Wallet. As we said earlier, at this moment, it comes with certain limitations and soon we expect to see the full potential of the Marketplace.