The Request Network, also known as REQ, is a decentralised, open-source network of payment methods. It enables users from around the globe to make payment requests and receive money easier. The network is based on the Ethereum blockchain. When payment or receipt requests are made through the network, it pays them without requiring the services of any third party.
This makes it a highly secure and cost-effective solution that competes with PayPal. All requests made are stored in an immutable authentic ledger, which provides transactional evidence for accounting and auditing purposes.
The design of the REQ is compliant with trade laws worldwide, and it is a solution that works with all global currencies. In short,
In short, the developers summed up their product’s benefits as Security, Simplicity, and Savings.
This could be a solution if you needed to transfer across different currency accounts before buying your crypto to play at a bitcoin casino.
How Does The Request Network Operate?
The request is distributed in three distinct layers.
Core Layer
The Core layer comprises the network’s most essential functions. These features include sending and receiving payments and creating and executing basic invoices.
Extensions Layer
The Extensions layer provides additional functionality to the essential functions of the Core layer. These are evident in arranging escrow payments, the disbursement of payroll, and/or period rent payments to specific accounts.
Applications Layer
With the Applications layer of the Request Network, developers can create supplemental applications. These can be third-party applications that use its payment features. Moreover, this layer maintains a reputation system that identifies users’ profiles on the network.
An important element of the Application layer is that it is stored off-chain, ensuring that the essential functions of REQ are not congested.
To incentivise the timely payment of requests, the Request Network team has implemented a Reputation feature in the Application layer. When a payer accepts a request but does not pay invoices on time, they will get a Reputation penalty. Conversely, they gain a good reputation when they pay their requests on time and could qualify for cost reductions or custom extensions.
Benefits Of Using REQ
The benefits of using the Request Network extend to costs, security, inter-currencies, experience, accounting, advanced payment options, and timely payments. These are extremely attractive to users who wish to transact efficiently and securely on a decentralised platform. Let’s look at some of these in more detail below.
Decentralised
As the network is built on Ethereum blockchain technology, it offers a decentralised, secure, and effortless payment solution that includes one-click confirmation of payment requests, commonly referred to as Request Invoices.
Easy Payment and Receipt Processing
As documented by the REQ team, any user can write on the Request ledger and create a Request for Payment. The recipient of that payment can detect that request by monitoring the network through a wallet or a financial application. If the user approves the payment request, it will be paid with a single click. This process leads to the conclusion of the request, and the network is subsequently updated.
Low Fees
The requests’ costs are quite cost-effective compared to other providers in the marketplace. Third parties typically take a commission that ranges from 1.5% up to 7%. However, on REQ, the costs of requests range from $0.001 to $0.20, depending on the amount that was invoiced and the extensions. The Request Network team is hopeful that the system’s growth will result in a remarkable decrease in transaction costs.
Flexibility In Payments
Besides users having the capability to make peer-to-peer transactions, Request Token crypto enables users to make online payments across multiple websites. All transactions can be processed without the need to leave the blockchain technology. In essence, there is no longer a need for third parties, which subsequently minimises the risk of disclosing transactional and personal information.
Smart Audit Capability
Because the network is a complete system for all transactions, it is an accessible source of accounting entries, improving rather than replacing current systems.
How Does Request Compare To Other Payment Platforms?
The Request Network intends to target the entire digital payments space, and this has brought many competitors to its door. When it comes to blockchain competitors, OmiseGo is a very similar platform. However, the request maintains that it and OmiseGo complement each other, and therefore there is no threat of competition.
Other competitors are Populous, an invoice financing platform, and popular crypto card solutions such as Monaco and TenX. Established platforms like PayPal also pose competition, although the REQ believes that their cheaper, safer, and more transparent platform will convince users to switch over.
Since it has its foundations in blockchain technology, it already has many of the functionalities that other payment providers like PayPal are still looking to implement. The network is decentralised, and this means that when a transaction is in progress, no user from the organisation can hold the payment or funds, with the payment being directly transferred between the parties to that transaction.
Additionally, the Request Network can provide a record of every transaction through a transparent and comprehensive ledger. It has impeccable and inherent security and immutability elements, boosting its credibility as it is viewed as a verifiable source of payment confirmation.
Moreover, it employs cross-border, multi-currency payment functionalities. This means that there is an integration when payments are being made. When these payments are sent across borders, the currencies get exchanged immediately. This convenient option makes sending and receiving currencies very easy and more accessible to users across the globe.
REQ ensures that all transactions actioned through its network remain cost-effective compared to other online payment solutions. Considering that PayPal can cost up to 5.6% of the total transaction amount when dealing cross currency results in large savings in fees.
Additional Functionalities Of The Network
The Request Network is constantly looking at improving its offering and has plans to build on its existing payments infrastructure. These plans envisage simplifying and automating accounting, taxation, auditing, and verification protocols for personal, corporate, or government use.
In terms of accounting and auditing services, the maintained ledgers pertaining to each account will provide a transparent trail for every transaction performed.
Where there are accounts that are designed for specific funding, like payroll or escrow, these services can facilitate those functions. Accounting and auditing processes will become much simpler and will not require as much time by human personnel. The time saved can be translated into monetary savings.
REQ also plans to incorporate the Internet of Things (IoT) into its services. The IoT is essentially a concept that many devices like computers, mobile phones, and point-of-sale machines can communicate with each other and process payments independently. This could be compared to applying standing instructions or an auto-debit on your traditional bank account.
These devices connected to the internet will be capable of connecting to each other, communicating amongst themselves, and collecting payments for any services rendered. With this concept, payments are automatically deducted and transferred to the respective parties. Essentially, the Request Network wants to create a more efficient process for the future.
What Is The Request Token?
The Request Token is the Request Network’s native token. Since it is based on the Ethereum network, it is an ERC20 token. In short, it can be stored by all wallets that are compatible with the ERC20 token through their services.
The entire supply of the Request Token amounts to 1 billion, where 50% was distributed through an initial coin offering in 2017, 20% was distributed to early investors, and 15% each was distributed to the Request Network team and advisors for external development.
Together with paying transaction fees, the Request Token can be used for specific functions on the platform, depending on who the user is and their level of participation. The Request Token is intended to be used for the governance of REQ. In terms of transaction fees, this amount will be charged according to the Request Token currency, varying between 0.05% to 0.5%.
Once an amount has been paid in tokens after a successful transaction, those tokens will be burnt. This will lead to a gradual decrease in supply and subsequently raise the token value proportionally.
The REQ Token can be used as an intermediary for cross-currency exchanges and also form governance in community voting. The network may employ a Proof-of-Stake consensus algorithm in the future, enabling holders of the token to receive dividends for holding it.
How Are They Different?
Like most other cryptocurrencies, Request Token enables its users to facilitate peer-to-peer transactions. The network looks to take things further and address many common problems. They aim to make the process of transacting faster, more efficient, and simple for the ordinary user to understand.
Moreover, the token enables users to make payments on websites. Since it benefits from blockchain technology, it provides a more cost-effective method for transacting while maintaining its security and efficiency. It is also designed to integrate with the trade laws of all countries worldwide.
Buying Request Tokens
REQ tokens are available on many popular exchanges, such as CoinSwitch, Binance, Huobi, Gate.io, OKEx, Kucoin, Mercatox, and Bitfinex. On the exchanges, you can trade across the various cryptocurrencies, buying and selling as you need to.
Storing Your Tokens
Because Request Tokens are ECR20 tokens, there are many options for users. For example, they can be stored in an Ethereum Paper Wallet. Additionally, hardware wallets such as Ledger Nano S, Trezor, and Keepkey are viable solutions.
Other popular options for storage include MyEtherWallet and MetaMask.
The Team Behind The Technology
Network leadership primarily comprises the team that developed Moneytis, a global money transfer solution. Although Moneytis enjoyed steady growth, the team developed the Request Network instead. From their experience with Moneytis, they realised that the majority of money transfers were invoices and wanted to turn their attention toward the problems associated with them, hence the likeness to PayPal.
REQ was founded by Christopher Lassuyt and Etienne Tatur, who still currently lead the team. Regarding development updates, the team is one of the most transparent in the industry. They post regular updates on many popular platforms online and remain active on social channels.
On top of that, they have expanded their coin support on the platform to include Bitcoin and all ECR20 tokens. Plans are in place to implement additional cryptocurrency support, data encryption and sustainability, and a payment dashboard.
Request Network Stablecoin Support
While the network enables businesses to accept cryptocurrency for payment, and provision is made to integrate these payments into their accounting systems automatically, there can be drawbacks. One of these is the volatility of cryptocurrencies, which has led to some merchants exploring using stablecoins instead.
It is good news, though – REQ supports many stablecoins, making it easier for users to transact and request fiat-backed cryptocurrencies. The stablecoins supported by the Request Network include USDC, PAX, TUSD, and DAI and the team has plans to implement additional stablecoins in the future.
The Bottom Line
The Request Network aims to provide blockchain solutions to all aspects of digital payments. The platform is one that developers can leverage to create their apps and services.
Their team has many years of payment experience and has consistently met their developmental milestones in improving the network. The Request Network’s platform has shown great promise and is attracting increasing users through its efforts.
If they continue in this trajectory, they may very well rise to the top as the digital payment platform of choice!
