Israeli start-up Virtual Crypto Technologies Ltd., which develops and provides solutions for making cryptocurrencies accessible, has unveiled a product that allows businesses to receive real time payments in Bitcoin and other cryptocurrencies. The company was founded in January 2018 by a team of entrepreneurs with extensive experience in founding and managing global companies, in research and development, and in cryptocurrencies. In March 2018 the company listed on the United States Over the Counter (OTC) venture market (QB), under the ticker: OTCQB:VRCP.
Today, Virtual Crypto is launching its first of a series of software and hardware products, which it developed under the name NetoBit. NetoBit is designed to enable the purchase, sale, and conversions of Bitcoin and other cryptocurrencies via ATMs, tablets, PCs and mobile devices. Virtual Crypto will distribute its products through distributors and business partners to small and mid-sized businesses such as cafés, restaurants, and shops; enterprises, such as airlines and tourism companies; government agencies; payment gateways; and online businesses.
The product launched today, NetoBit Cash, is a tablet device that enables businesses worldwide to securely receive payments in Bitcoin and cryptocurrencies in real time, while enjoying protection against exchange rate volatility and guaranteeing transactions up to a value of $3,000. For example, a restaurant can include its menu on the NetoBit Cash, enabling diners to choose and order meals on the Virtual Crypto tablet and pay with Bitcoin and other cryptocurrencies through the device. The payment is cleared immediately, and the business owner can choose whether to accept the payment in a cryptocurrency such as Bitcoin, or immediately convert it through NetoBit Cash into regular (fiat) money, which will be transferred into his or her account.
Virtual Crypto Technologies Ltd. was co-founded in January 2018 by a team of Israeli entrepreneurs, CEO Alon Dayan, Chief Scientist Dr. Royi Ithzak, and crypto expert Guy Corem. Alon Dayan was previously co-founder and CEO of the wireless communications company Celliboost and cyber company L1-Systems Ltd. Dr. Royi Ithzak, an expert in applied mathematics and big data algorithms, has a wealth of experience in applied research and in the academe in data mining, network analysis and other fields. He has developed algorithms for Gett (formerly GetTaxi), Fiverr, and others, and headed R&D teams at AT&T, HP, and Outbrain. Guy Corem, who has held positions such as CEO of Spondoolies, a provider of Bitcoin mining equipment, has accumulated vast experience in contributing to the Bitcoin community.
In a new study published in March 2018, Transparency Market Research predicts a CAGR (Compound Annual Growth Rate) of 31% for cryptocurrency hardware and software from 2017 through 2025. The report estimates that the hardware and software business in this industry will soar from $574 million in 2017 to $6.7 billion in 2025.
Virtual Crypto’s solution is different from many other solutions in at least three ways. First, Virtual Crypto’s validation algorithm can very precisely and quickly predict if a cryptocurrency transaction will be approved immediately by a blockchain at the moment of the transaction, before the block is digitally signed. This quick process allows the approval of the crypto transaction within seconds to minutes, rather than between 20 minutes and 24 hours and following a process of six confirmations, as is the case today. Consequently, Virtual Crypto can create a pleasant and immediate transaction experience, minimizing the risk of fraud, which can occur in the usual lengthy transaction approval processes.
Second, cryptocurrency trade supplier usually allow the customer carrying out the transaction to interact with only one crypto exchange, shackling the customer to the exchange rate which that exchange offers. Virtual Crypto allows the customer to work with several crypto exchanges simultaneously for each transaction. In this way, the Virtual Crypto algorithms can immediately locate the best crypto deal and offer the most attractive exchange rate and the lowest commission while the transaction is underway. This ability enables the company to protect the transaction from currency volatility that is liable to occur during the current lengthy transaction approval process and offer guarantee for transactions of up to $3,000.
Third, Virtual Crypto’s backoffice capabilities can operate a very large number of cryptocurrency ATMs and points of sale and provide tools for managing how the currencies accessed. The backoffice capabilities include setting currency price limits for each transaction, defining the KYC (Know Your Customer – customer identification), conforming to different regulations and configurations in different countries, managing risk, and providing useful statistical data on transactions and points of sale. These capabilities are different from many other solutions that offer backoffice capabilities which can manage only one transaction center.
According to Alon Dayan, co-founder and CEO of Virtual Crypto, “Virtual Crypto’s objective is to make a unique contribution towards achieving two important global targets, each of which represents a huge market. One is creating blockchain products and services and that are accessible to businesses and users in every industry and second is helping to turn Bitcoin and cryptocurrencies from dormant assets sitting in users’ digital wallets into money that functions like real money that allows making and receiving easy, user-friendly and secure payments in real time.”
Dayan added: “Unveiling the technology that underpins the NetoBit series, which will allow the purchase, sale, and conversion of Bitcoin and cryptocurrencies, is a concrete and clear step toward achieving our vision. NetoBit Cash is just one example of how Virtual Crypto will turn cryptocurrencies into a means of exchange that functions as real money.”