Selecting a Store

The journey begins with the buyer selecting a Store from the P2P network. Each Store in this ecosystem is uniquely identified by a Store ID. This Store ID is a cryptographic public key that not only serves as the Store's identifier but also enables verification of the authenticity of the Store's items through digital signatures. Once the buyer has chosen their preferred Store, they proceed to browse its offerings.

Adding Items to the Cart

Within the Store, the buyer explores various items, selecting those they wish to purchase. Each selected item is added to a virtual shopping cart. The process mirrors that of traditional online shopping, but beneath the surface, it is imbued with the privacy and security of the P2P architecture. After finalizing their selections, the buyer moves to the checkout process.

Entering Personal Information and Calculating Postage

At the checkout, the buyer inputs essential information, including their name and delivery address. The system then calculates additional charges, such as postage fees, based on the delivery details provided. These computations are transparent and integral to determining the final payment amount.

Generating and Encrypting Order Information

With the details in place, the buyer's device generates a message for the Store. This message contains the delivery address and other critical information. To ensure confidentiality, the message is encrypted in such a way that only the Store owner, through their private key, can decrypt and access its contents. Simultaneously, the buyer's device encodes the list of ordered items. Unlike the delivery details, this encoded information is not encrypted but is designed to be accessible only to the Payment Service Provider (PSP), completely automated distributed system responsible for processing payments and validating ratings within the marketplace.

Creating the Payment Request

The buyer's computer then generates a QR code representing the payment request. Embedded within this QR code is a Zcash memo field containing the encrypted delivery message, the Store ID, unique order ID and the encoded list of items. The memo acts as a secure container for the transaction details while maintaining the anonymity features inherent to Zcash.

Processing the Payment

Once the buyer scans the QR code and initiates the payment, the transaction is directed to the PSP rather than the Store. The PSP is a critical component of the system, serving dual roles as a payment processor and a rating validator. This distributed network is seamlessly integrated with the Zcash blockchain. Upon receiving the payment, the PSP processes it in several stages:

Decoding the Memo: The PSP decodes the Zcash memo to extract non-encrypted details such as the Store ID and the order items.

Publishing Encrypted Details: The PSP encrypts the payment amount and the encoded list of items, incorporating the pre-encrypted delivery details. These elements are stored in the PSP's public filesystem, where they are accessible to everyone, though only the intended Store owner can decrypt them.

Holding the Payment (Escrow) and Payment Split

The PSP serves as an escrow service, securely holding the buyer's funds to ensure a reliable transaction process and encouraging both parties to meet their respective commitments. Funds are held for a period of 14 days or until the buyer provides a review, whichever occurs first. This approach allows the store to fulfill its shipping obligations and the buyer to inspect the goods received. Once the payment is released from escrow, it is distributed as follows:

Store Owner Earnings: The store owner will receive 97% of the total payment for transactions generated through their own efforts, provided the review and order are deemed satisfactory.

Affiliate Commission: For purchases made through an affiliate link, 10% of the total payment is deducted from the Store owner's payout and is allocated as a commission to the affiliate.

Buyer Refund: Upon the buyer's submission of a review, 2% of the total payment is refunded to the buyer as an incentive to provide feedback.

CrowdStore Fee: A 1% transaction fee is allocated to CrowdStore to support platform maintenance and development.

In cases where a valid buyer complaint arises, the funds may remain frozen and are resolved according to platform policies.

Order Processing and Shipment

The PSP broadcasts information about new transactions to all peers connected to the network. The Store, as part of this network, retrieves the transaction details from the PSP's filesystem. Using its private key, the Store decrypts the payment amount, buyer's delivery details, and the list of ordered items. This allows the Store to process the order and prepare it for shipment.

After shipping the order, the Store creates an encrypted message containing shipment and tracking details. This message is added to the Store's filesystem entry, enabling the buyer to access updates and track their shipment. This process ensures transparency and keeps the buyer informed.

Submitting Reviews and Receiving Refundables

Once the buyer receives their order, they can review the Store by making a small payment to the PSP. This payment includes the review content encoded in a Zcash memo field, which is then added to a public blockchain to ensure transparency and immutability. The PSP verifies the review's authenticity by matching the buyer's public key, the order ID, and a valid signature. If the review is valid, the PSP refunds 2% of the original payment back to the buyer, encouraging participation and building trust in the marketplace.

Impact of Ratings on Payment Disputes

To ensure fairness in resolving issues arising from serious buyer complaints, such as claims that the ordered items were not delivered or significant problems with the received order, the portion of funds released to a store is influenced by the store's overall rating.

In particular, stores with excellent ratings are still compensated with a substantial portion of the payment even when such complaints are reported, reducing financial loss from potentially fraudulent claims. Conversely, stores with poor or no ratings receive only a minimal percentage, as their reliability has either not been demonstrated or has been compromised.

This dynamic encourages stores to maintain high standards and a positive reputation. Additionally, disputed transactions contribute to the store's updated rating, ensuring a responsive and evolving system that rewards trustworthiness and deters potential issues.

Affiliate Program and Referral Tracking

Affiliates play a vital role in expanding the reach of CrowdStore.net and driving traffic to it. To join the affiliate program, users must register a unique identifier linked to a Zcash payment address. This address ensures that affiliates automatically receive commissions for all purchases made by their referred customers across any Store on the platform. Affiliates integrate this registered identifier into their referral links, enabling tracking of referred customers. CrowdStore.net employs a cookie-based tracking system that ensures customers are associated with the affiliate who first referred them. These cookies remain active for 60 days, guaranteeing the affiliate receives credit for all purchases made within this timeframe. Unlike traditional systems that reward the last referrer, CrowdStore.net adopts a "first-click" approach, ensuring that the first affiliate who introduces the customer earns the commission. This method promotes fairness and long-term partnerships by encouraging affiliates to focus on attracting new users rather than competing for repeat clicks.

Trust Through Ratings Instead of Protection

CrowdStore.net operates without traditional buyer or seller protection mechanisms. Instead, users rely on the ratings and reviews left by previous customers to evaluate the reliability of a Store. This approach avoids the pitfalls of conventional systems, where buyer protection can sometimes unfairly harm Store owners through chargebacks or fraudulent claims. By focusing on transparent ratings, the system incentivizes honest transactions and builds trust directly between buyers and Stores, empowering users to make informed decisions.

Handling Ratings and Disputes

The Store's rating is updated based on the review and the order's value, ensuring a weighted scoring system that reflects the significance of each transaction. In cases of disputes, such as claims of non-delivery or fraud, the payment is retained by the PSP. However, the resolution process may factor in the Store's overall rating. For instance, highly rated Stores might receive partial compensation, with their ratings adjusted accordingly to reflect the incident.

Conclusion

This sophisticated system combines the privacy features of Zcash with the distributed functionality of the Payment service provider, enabling secure and transparent transactions. The PSP ensures funds are protected, reviews are verified, and disputes are handled fairly, while Zcash guarantees user anonymity and data confidentiality. By leveraging encryption, Zcash's privacy features, and the PSP's role as a mediator, CrowdStore.net offers a robust framework for P2P commerce, fostering trust and efficiency in a digital marketplace. The integral role of Store IDs as cryptographic public keys adds a layer of trust and security, ensuring that every interaction is verifiable and authentic.