PayFair is a new decentralized escrow platform and a peer-to-peer cryptocurrency exchange for buying popular cryptocurrencies such as Bitcoin, Ethereum and Bitcoin Cash as well as many other coins. The platform delivers security for cryptocurrency transactions between those who do not know each other. The platform charges low fees and uses it’s own PayFair tokens (PFR) as a key part of the ecosystem.
As a peer-to-peer cryptocurrency exchange, PayFair makes it possible to make a transaction to buy or sell a cryptocurrency of your choice without having to worry about a middleman slowing down the process or taking a cut from the transaction. Additionally, PayFair provides an escrow service so users can complete a transaction with confidence, even if they have never met or talked to the other person involved before, as most transactions on PayFair occur between strangers.
How Does PayFair Work?
- 1 How Does PayFair Work?
- 2 What Currencies Does PayFair Support?
- 3 How Do You Find a Buy or Sell Offer on PayFair?
- 4 How Do You Trade on PayFair?
- 5 How Are Disputes on PayFair Resolved?
- 6 What Should You Know about PFR?
- 7 What Fees Does PayFair Charge?
- 8 What Are Trust Nodes?
- 9 What Are the Requirements for a Trust Node and How Do You Set One Up?
- 10 What Are Escrow Nodes?
- 11 What Do Escrow Node Holders Do?
- 12 How Do You Set Up an Escrow Node?
- 13 What Does the PayFair Roadmap Look Like?
- 14 Conclusion
- 15 Payfair
- 16 Pros
- 17 Cons
PayFair has a self-regulating system that allows it to function. This system includes independent Trust nodes and Escrow nodes. The Trust nodes are owners of the PFR token, which sits at the heart of the ecosystem. The PFR token ensures trades on the platform are insured using PFR tokens at stake. PayFair collects a small fee to keep it running and also distributes a percentage of this fee to the Trust nodes every month. In this way, holders of PFR earn a profit by holding tokens.
What Currencies Does PayFair Support?
PayFair supports dozens of cryptocurrencies, including ETH, BTC, BCH, LTC, PFR, 0XBTC, AURA, BAT, BBN, BNB, DENT, FUN, GET, HOT, HYDRO, ICX, LINK, MAN, OMG, PRL, REN, TFD, TUSD, VEN, WTC, ZCO, and ZIL. You can choose up to three of these currencies to track by having them always appear on the landing page of your account for “Markets.”
PayFair plans to continue expanding the cryptocurrencies that it supports. It is letting users make the decision by voting on the next cryptos they would prefer the platform add. Current options in the running include POWR, KEY, DTH, IPSX, MKR, NPXS, SALT, KICK, REM, PRG, SNTR, and HGT.
How Do You Find a Buy or Sell Offer on PayFair?
You can search for a buy or sell offer right from the PayFair homepage. Either select one of the five cryptocurrencies listed in tabs as a default option, or click “More Cryptocurrency” to find another one. Once you click on the cryptocurrency of your choice, you will see filter options with listings immediately below. Options to buy are on the left with options to sell on the right.
You can filter by online status (online or offline), country, currency, and payment method. The currency refers to the currency you will use to buy or sell your chosen crypto and includes dozens of options, with both fiat and crypto. There are also dozens of payment methods, including Advcash, Alipay, Amazon Gift Cards, bank transfers, cash, cash by mail, credit cards, gaming gold, GiroPay, gift cards, iDeal, Masterpass, IMPS, bank transfer, mobile pay, PayDirekt, Paym, PayPal, mobilePay, Neteller, Perfect Money, PayTM, Skrill, Qiwi, SEPA, Revolut, Sofort, Swish, Stripe, Venmo, WeChat, WebMoney, and Vipps.
Each listing has four columns, displaying the seller, payment type, limits, and price. Within the seller column, you will see the username, their country (via a flag), their rating, and the number of trades they have completed. If you see an offer you like, click on “Buy ___” or “Sell ____” next to the offer.
How Do You Trade on PayFair?
Once you find a trade offer you like, you can open trade with the buyer or seller. Take the time to read the Trade Conditions, and if you agree, click “Accept Trade Conditions.” The escrow protection on PayFair only applies for transactions where both parties accepted the trade conditions, and the platform warns against sending funds before this occurs.
The person selling the cryptocurrency will transfer their funds into the PayFair escrow service. Once the buyer sees a notification that the funds are in escrow, they can go ahead and send their fiat (or cryptocurrency) to the other party. Confirm that the seller received the fiat (or cryptocurrency), and upload proof of this if necessary. At this point, the seller can release the funds.
How Are Disputes on PayFair Resolved?
Disputes are settled by escrow nodes on the platform. To settle a dispute, the holder of the escrow node reads the Seller and Buyer Trade Conditions and the chat logs from the trade. They look at the evidence provided by both parties involved. Evidence can include written evidence in the chat log as well as digital or photographic evidence such as a screenshot or picture of a bank transaction, bank statement, transaction IDs, or proof of postage. Escrow nodes are encouraged to check for photoshopped or doctored images and request more information if they need it. Once they have enough evidence, they decide. Three escrow nodes must come to the same decision in a row for it to apply.
What Should You Know about PFR?
The PayFair token (PFR) is an ERC-20 token that uses the Ethereum blockchain as its basis. The token is designed to create trust nodes and deliver a safe environment for transactions.
What Fees Does PayFair Charge?
The low fees charged by PayFair go toward ensuring that all transactions remain private and safe. Non-escrow deals have a 1 percent fee, while escrow deals have 1.5 percent fees, both of which are before taking into account the rating of the contractor. In the case of non-escrow deals, 80 percent of the fee goes to trust nodes, and 20 percent goes toward supporting the ecosystem and marketing. In the case of escrow deals, 99 percent of the fee goes to the escrow node that made the decision with the remaining 1 percent going to trust nodes.
What Are Trust Nodes?
Trust nodes help support the token price for PFR, ensuring it can resist dramatic changes and remains stable. Trust nodes also perform jobs like securing, maintaining, and updating the ecosystem for PayFair.
What Are the Requirements for a Trust Node and How Do You Set One Up?
Before setting up a trust node, a user must have at least, 10,000 PFR. It is important to note that trust nodes are weighted, which means that any tokens over 10,000 multiply the value of a payout. So, someone with 11,000 PFR would have a 1.1x payout. Unlike master nodes in other ecosystems, PayFair trust nodes do not require 24/7 online time or have any hardware requirements. Instead, you just have to link the PFR wallet to the platform.
Trust node holders get rewarded for passive participation within the ecosystem. For every fee paid, trust node holders get a percentage of it divided among themselves, paid out in the same currency as the trade.
To set up a trust node, you must first go to the PayFair website and create a Trust account. You can reuse the email address that you used to create your regular Client account or even an Escrow-Node account, but the username must be different. You will need to then go to your email and click on the confirmation link in the message from PayFair.
Once you log in for the first time, you will be told you do not have enough PFR to be a trust node. There will also be written steps for adding PFR coins to your account. They detail that you should visit MyEtherWallet and sign in. Unlock the wallet on your account in the category “How would you like to access your wallet?” Choose one of the options listed there, such as MetaMask, a private key, a mnemonic phrase, TREZOR, or Ledger Wallet. MetaMask is one of the simpler options. In the signature/message field, enter the account name for your trust node account.
When you click “Sign Message,” a code generates in the signature box. Copy this code, and then paste it into the “Signature Box” on your PayFair trust node dashboard. Click on the button to “Check and add new wallet.” You should receive a message that reads “Success” and a green checkmark, indicating you successfully connected your wallet to your trust node account. Now you have a trust node and will be able to collect passive income.
What Are Escrow Nodes?
Escrow nodes are a key part of the PayFair ecosystem, as they ensure trading integrity. Also known as guarantor nodes, escrow nodes are secured via PFR tokens so each ecosystem decision gets performed by an actual person and has assurance via value. This combines with an escrow rating system to help the platform get rid of bad actors.
PayFair uses “Smart Wallet” technology that lets escrow node holders connect as well as communicate with other node holders if they wish. This is a sharp contrast to the current masternode systems on other platforms that do not allow for any human-to-human connections. The PayFair team feels that this networking provides an advantage for PFR tokens, since escrow node holders have the ability to easily organize themselves via communication.
What Do Escrow Node Holders Do?
Escrow nodes must have $250 worth of PFR, and those who operate escrow nodes will be active participants. They resolve disputes that occur between sellers and buyers using provided information. It is important to note that PayFair temporarily changed the required tokens for an escrow node to 3,000 PFR as a result of the recent crypto crash.
If an escrow node gets a notification that they must resolve a dispute, the user will go back and view the trade logs. They can then use this information to see which party is honest. They also have the ability to request additional information or evidence before making a decision. For an official outcome, there must be three consecutive decisions that are identical. Following a decision, users rate escrow nodes. Escrow nodes with higher ratings are more likely to receive additional dispute cases, leading to a higher income. In return, escrow node holders receive 99 percent of the fee from escrow deals, paid in the currency of the trade.
How Do You Set Up an Escrow Node?
As with a trust node account, you must create a separate escrow node account to have an escrow node. It needs a unique username but can share an email address with your other PayFair accounts. Click on the link in your confirmation email, and once you log in, you will get a warning message that you do not have enough PFR to provide escrow services.
Resolve this by clicking on “Wallet” in the top-right corner of the page, then “Show Wallet.” Click on the tab for PFR to view the unique address to deposit PFR into your PayFair account, which appears under “Deposit PFR.” Copy and paste this address to send the necessary PFR tokens from the wallet where you currently hold them to your PayFair account. You will need to repeat the process to send a small quantity of ETH for gas, at least 0.005 ETH. Just click on “ETH” on the balance page to get the correct address.
Following a short delay, both your ETH and PFR should appear in the wallet. The platform cannot display your PFR until you send the ETH, so keep that in mind. Once you deposit enough tokens, you will begin receiving escrow disputes. Remember that these arise randomly in real time, so there is no way to know when you will receive a dispute.
What Does the PayFair Roadmap Look Like?
The PayFair roadmap began in October 2017 with the pre-sale for the PFR token. The public sale of the token took place in November 2017 with the audit and distribution in December. During Q1 and Q2 of 2018, PayFair delivered a working platform and added new coins. In Q3 and Q4, PayFair will continue to expand by adding a mobile application and bot messenger along with integrating additional applications.
PayFair is a peer-to-peer cryptocurrency exchange that connects those looking to buy and sell cryptocurrency around the world. The platform additionally offers an escrow service to provide peace of mind during transactions and provide dispute resolution via the escrow nodes. PayFair already supports dozens of cryptocurrencies, with the list growing for increased usability.
PayFair operates similarly to sites like LocalBitcoins and LocalMonero, in the fact that it is used to connect buyers and sellers. As such, you will be dealing with other people so it’s important to take note of their account reputation and orders history before choosing to trade with someone, getting stuck with an unresponsive buyer or seller can be frustrating and time-consuming.
The interface of PayFair is very nice, it’s well designed, fast-loading and gives you easy access to all the information you need.
At the time of writing, their doesn’t seem to be a whole lot of activity on the site – even for larger currencies such as Ethereum there was only 4 offers to buy and 11 sellers so the PayFair team have a lot of work to do attracting customers for both sides of the trade. The good thing about PayFair is they offer more currencies, unlike LocalBitcoin and LocalMonero which only deal in those coins.
Buying PFR tokens to allow you to setup a Trust Node or Escrow Node could be profitable for you in future, the price of the tokens is low currently, but your future income will depend on whether they can attract more users to the platform.
The team seems open, with all the employees listed on the about page which is a refreshing sign for this type of website.
For now, we can’t really recommend this platform for use as it seems to be very early days – it definitely has potential though so keep it on your list to watch.