Instant payments with Monero?

Clearly Monero is a vastly superior currency compared to the crypto alternatives. However, to attain widespread adoption I think it needs to work on transaction speed. It is precisely because Monero works so well as a currency that this is important. The low transaction fees mean it works great to buy a coffee or any other low priced everyday good. But, and this is a big but, I think the slowness of TX confirmation severely undermines this everyday use case. Nobody wants to buy a coffee and then have to wait in the store for 10-20minutes awaiting confirmation. In our fast paced lives, even waiting for 30 seconds for an Apple Pay transaction to go through can seem painfully long.

Is there a way to pre-release a certain amount of Monero, so that it can be instantly accepted by the cashier?

I am not a programmer so forgive me if this suggestion lacks technical understanding, but I am trying to envision a way of having a secondary wallet which has pre-confirmed Monero. Monero which has been confirmed on the network, but not sent to a specific recipient.

The use example would be as follows: Coffee stores and shops would subscribe to a centralised Monero wallet service and they would be given a unique store reference number and QR code. A Coffee drinker who likes Monero takes $100 of Monero and sends it to this centralised wallet service (this could be done ad-hoc or as a weekly automated top-up feature). The central wallet service, as per Monero protocol, doesn't know who sends this money, but once the $100 confirms on the blockchain into their centralised wallet, it sends back to the coffee drinker a unique unlocking password that is linked to that $100 deposit (this could be to an anonymous encrypted protonmail or it could be sent to an app created by the central wallet provider- user decides their level of anonymity versus convenience).

Whenever user purchases a coffee, he emails the central wallet service the unique ref. of the coffee shop, his password (that he previously received when he deposited $100) and the amount (if using the app the customer simply scans a QR code generated by the shop till). The centralised wallet immediately sends an email/text/app confirmation to both the vendor and the buyer of the coffee. The vendor is now happy for that customer to walk out the shop, even though they haven't actually received the monero yet. They know that the centralised monero wallet will send over the monero in dues course (say 2 hours). When that does happen the centralised wallet will send both vendor and customer the TX id for their records. The users $100 on the centralised wallet app is now showing a balance of $97.60 and shows that a coffee was bought from Daisy's Fantastic Coffee for $2.40.

Yes- this involves some centralisation. But I think the beauty of the system is that the customer still retains anonymity if they want to. The Central wallet app requires no personal details (or the user can forgo the app and simply use an anonymous email address). It simply responds to the unique password sent to the user with each $100 deposit (or whatever amount the user decides on). Yes, the central wallet provider knows that a certain email address/or username on the app is linked to a succession of deposits and their corresponding purchases, but it has no idea what the real world identity of that person is. The vendor knows even less- all it is told is that it has been paid.

Primarily this service would be aimed at smaller transactions, so from a security POV, the user would only be risking around $100 at a time (or whatever other amount they are comfortable with). They would be using it for things that aren't so privacy important and are usually purchased IRL (when they want full privacy they simply use monero normally and wait for the 20minute confirmation- no one wants to stand around for 20 minutes as their coffee gets cold, but they may not mind doing that in a sex shop having just bought a life sized sex doll….) There could even be a cap of $30 per transaction (as with contactless card payments) to further increase security (this could even be custom set by the user on the app). The key thing about the system is that each deposit generates its own unique password. Once that deposit is spent the password become useless. It is the complete opposite of a seed which accesses all money sent to an address, now and forever.

Clearly the centralised wallet provider needs a cut, so perhaps they charge the stores that use them a 1% fee.

I think the key takeaway is that this allows near instant purchases with Monero whilst still maintaining a level of anonymity far superior to instant crypto such as litecoin.


submitted by /u/EnthusiasmGreen4859
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