SMARTdirect: Pre-Proposal Discussion for a Fiat to SMART Peer to Peer Exchange and Escrow Service


Disclosure: This proposal was originally presented to PIVX but was sadly not voted for in enough numbers to pass their treasury vote by their MasterNode network as there were other proposals, mostly core dev fuel and marketing that were favoured above it. I have in the last month discovered SmartCash and think this proposal would be a great fit for this project, which I find really exciting, especially the fulfilled governance manifesto objectives with the whole community able to vote on proposals… So here goes!

Objectives: Our minimum viable project (MVP) objectives are to create a peer to peer, fiat (USD and user’s local currencies) to SMART exchange allowing people in the same country to transfer funds from their local bank account into a SMART seller’s account and then receive SMART from the seller via SMARTdirect escrow.

Value Drivers: SMARTdirect will enable people to more easily acquire SMART without having to first convert their fiat to BTC and then buy SMART on a centralized exchange. With only a 1% service charge it will also potentially save the users significant fees and currency risk from converting from fiat to BTC to SMART.


  1. User registers on the SMARTdirect website, enters SMART wallet address in profile and selects status (online and available or offline.) The user will also enter their country and whether they accept payments by Bank Transfer, Cash deposit, Paypal or Skrill. They will also state their trade conditions including time to complete trade etc. More payment options will be added later.

  2. Step 2 is optional where a user conducts KYC with IDnow Video Identification as an option to increase their “Trustworthiness Score”. This will also allow users to purchase with VISA/Mastercard, when this option is enabled. If the user prefers not to conduct KYC they will be entirely reliant on their track record on the site for their Trustworthiness Score.

  3. User inputs a sale/purchase advertisement with either a static price or a price pegged to the SMART average floating rate plus or minus a specified %.

  4. A buyer will choose a sale advert based on user’s trust score and online availability requesting a trade.

  5. The seller will confirm he wants to trade by sending the SMART for sale to the SMARTdirect escrow wallet, thus initiating the trade and opening an Instant Message conversation with the buyer.

  6. The seller gives their bank account details to the buyer and waits for a confirmation that the deposit has been made. Depending upon the type of transfer to the account the trade will take differing time periods but as soon as payment has been confirmed as received, the seller can release the SMART to the buyer’s SMART wallet, minus the 1% transaction fee.

  7. Upon completion of the transaction the users will rate each other and leave comments on the transaction for other users.

  8. In the event of a dispute, the transaction will be frozen for 7 days during which time the buyer and seller can follow up on the transfer with their respective banks, following which the trade goes into arbitration. If the transaction is satisfactorily resolved before 7 days the trade can be completed.

  9. If the trade is escalated to arbitration status, SMARTdirect will evaluate all the evidence submitted, including chat history, sale conditions and documentary evidence, and then release the SMART back to the seller or to the buyer depending upon the evidence submitted.

Team: MyHotZone International Ltd, will be managing the development of this project, headed up by Niall Igoe, the Director of Operations. MyHotZone is a multi-service networking company that has been specializing in Hotspot services in the UK and Africa for the last 15 years. This includes the development of our proprietary Authentication Authorization and Accounting systems that have been integrated with Hotel Property Management Systems, payment gateways and other payment platforms.

The lead developer on this project will be Sri Rangan based out of the Netherlands, who has many years of experience developing blockchain based solutions, cryptocurrencies and decentralized apps running on Bitcoin and Ethereum platforms. He also has experience creating web and mobile apps, with Python, Node.js, React and React Native. Sri has over a decade of experience developing software for the aviation, oil and gas and banking industries. His experience in building an investments and securities trading app and platform for ING Bank Netherlands will bring a high level of competence to the execution of this project.

Once operational, SMARTdirect will be supported by MyHotZone’s 24/7/365 support team by IM and by telephone. At present this team supports guests and users of MyHotZone hotspots in UK and Zimbabwe around the clock.

Progress tracking: The progress towards this project’s objectives will be tracked on Trello where each element of the development will be outlined and marked off as complete as they are dealt with. A progress report will also be generated for the SMART community following completion of each sprint as set out below.

Sprint 1 – The Basics: Repositories, Libraries, Frameworks, CI/CD


  • Web application with navigation hierarchy, basic theme
  • Build system for front-end, back-end and static assets
  • Continuous integration and deployment environment
  • URL for stakeholders to review the latest state of the web app anytime during the project

Sprint 2 – Designs & User Module


  • Detailed design for overall web app
  • Detailed mockups for all static pages
  • Early mockups for Markets (Buy & Sell)
  • User signup, signin, signout and account management

Sprint 3 – Markets Module


  • Detailed designs for Markets Sell
  • Seller flow

Sprint 4 – Markets Module


  • Detailed designs for Markets Sell
  • Buyer flow

Sprint 5 – Alpha Release, Security Audits, Testing


  • Bug fixes, missing features discovered along the way
  • Performance testing
  • Security audit and fixes
  • Alpha release for small group of early testers

Sprint 6 – Beta Release, Security Audits, Testing


  • Bug fixes, missing features discovered along the way
  • Performance testing
  • Security audit and fixes
  • Beta release for larger group of testers


Budget: This proposal is seeking 200 000 SMART (final value TBD when proposal is submitted due to price volatility) to be paid over six tranches as per deliverables above.

Discussion on new projects and ICOs

This sounds incredible friend. I am a fan of locabitcoin and if we create an equally useful and practical system, Smartcash will be able to take great value.

For example in Venezuela we use a lot of localbitcoin to make everyday transactions. The downside is that the bitcoin fees are very very high.

Please be assured that you have our help in achieving this. Would be one of the first active users :slight_smile:


Thanks Andres. We have a similar problem in Zimbabwe as you do in Venezuela.


Hello, how do you spend cryptocurrencys in Zimbaue? Are there platforms?

We would like to see how we can help. P2P transascions in Venezuela are very safe. The community helps each other to prevent scams.

Are there groups of Telegram or Slack of Zimbaue ?.


Hi @Aratechnology at the moment cryptos in Zim are regarded with suspicion and bemusement by the government, though there is no legislation against them. Our big problem at present is that we have a local “Zimbabwe Bond Note” currency which is meant to be pegged at 1:1 vs the USD, but it is not exchangeable outside of Zimbabwe, and in effect it is no longer exchangeable on par in Zim. Because there are such tight restrictions on international payments, a black market has emerged with the local bond notes now at a 70% discount. It looks like we are heading back into hyperinflation like we had up to 2008.

Consequently people are now looking at cryptos both a store of value and perhaps a new transactional currency. The limit on local bank online VISA purchases is USD$100 a day in some banks and $100 a month in others, so take up of SMART will be difficult in a commercial sense.

One thing Zimbabweans do have however is a strong IT base and IT companies may be able to sell their services online for SMART in the future. Another idea I had was having a P2P exchange selling movable goods for smart with the escrow released on receipt of a DHL or Fedex note.

Most crypto owners in zim at this point, sell them on exchanges for FIAT to pay their foreign bills.


This sounds like a very good proposal to me :+1::+1::+1:


Dash is silly to have passed on this one, sounds genius to me. it would really get SmartCash into the hands of more people at cheaper rates than a centralized exchange. I’m in love with this proposal.



Looks like an awesome idea, It’s always annoying to buy bitcoin in order to buy an other coins you trust in. It will be sooo interesting to make smartcash becoming a real, apart, day to day, ‘crypo’ currency


First I would never pay for you to start your company. I would like to see it be community run and not paying for someone to start a company then tax me on it.

I would like a system like localbitcoins. Since this is community funded it should be run by the community not be centralized. There should be a 1% taxed for you if the COMMUNITY PAYED FOR IT. That was so its easier to read. This won’t be you paid for it i profit.

It must be decentralizd. I’m giving a bank/you my money if i don’t know its been already spent.

Thats the reason that pivx didn’t do it. First we don’t support banks. Second its to help the community not to make you rich.

Maybe make a localbitcoin clone. Which isn’t a scam. It’s a good service i believe they have a tax but the they weren’t payed to tax people.

Ok now this were you defend your points i learned. Have fun i look forward to reading them. Good men might argue there opinion but the they will recpect other’s


Hi @LIL_GUNNER_1 thanks for the input. I appreciate your point on funding this proposal for me to start a company to offer this service. I didn’t see anyone else doing something similar for SMART so I thought I would put my hand up for it.

The idea is essentially that this would work along the lines of Localbitcoin but for SMART. The 1% fee charged would go towards the running of the service and further development. For example the next version of this service once volumes have been established was to interface with VISA/MasterCard so that prepaid cards could be issued to users of the site. This would speed up and secure payments between users that want to move in and out of fiat.

There are also costs for integrating with IDnow, which is the cheapest of the KYC platforms I could find. Others include Jumio and Shuftipro.

The whole purpose of the site is to provide a trusted platform where users can connect with each other and transact from fiat to SMART. In any escrow type system you will need an arbitrator in case of disputes. This is what the fee is paid for. If anyone can think of a better way of doing this I am all ears.

I am not sure this platform will make me rich, but I am sure it will help adoption of SMART as an everyday use cryptocurrecy.

Lastly, I do respect your opinion and thank you for it. These Pre-proposal discussions are here for people to contribute ideas and constructive criticism.


I do agree to everything you pointed out, but the idea is good. just like the central america exchange proposal, i don’t agree with using community funds to support a for profit idea. that being said, if it was self funded and brought to SmartCash, id be all about it.



How long until the beta release? Do you have any estimate?


Ya sorry thats a good idea i had a big test and media studies hurts my head it would be a great idea thats understandable you could always scale the tax lower for adoption and if the price rockets


After reading your rebuttal, I’m back on board as well. I totally didn’t think of the kyc cost and maintenance, 1% would be more than reasonable. The good it would do far out ways the slight chance of profit from your end.


I love this idea. Taking an exchange out of the equation is a great idea.


The entire project was expected to take about 2 and a half months, this includes over 120 hours of coding from a couple of devs, integration with IDnow, skinning of the site by another design company in Zimbabwe. This time scale may be reduced as we will be co-operating with the exchange guys who have already done some work on the crypto exchange wallet.



Could you please provide a detailed budget showing how the SMART amount was calculated?

I am looking for a break-down of cost.



Hi @slpin , sure, though the SMART price seems a little variable at the moment. I will outline the costs in USD here.

120 Hrs at $100 per hour: $12 000 (high end, github repositories available for perusal if interested)
IDnow Integration: $5000
Front end skin for website. $3000
Artwork origination and initial marketing budget: $2500

Total $22 500

I am not sure what the price will be doing after the 28th, but these are the fiat costs. It is hoped that future development will be funded by anything that the site makes in fees, though we have no idea how much it will be used.


Let me address the concern that this proposal could start a profitable company. The goal of the SmartHive is to create infrastructure for SmartCash to make it more useful and easier to use. It doesn’t matter if that ends up creating a business for someone to profit from. That is actually an advantage, since the service will keep going into the future. Think win/win where both proposer and SmartCash benefit.

Whenever you trade into fiat you need to understand the local regulations and laws. So be sure that you know what licenses you will need before you undertake this project. And you also want to define what areas you will serve.

Another option is to skip the KYC and do an anonymous type of exchange. Maybe shapeshift + bitsquare or something. Maybe register it so it doesn’t have to have licensing.

And maybe you us a 3rd party like coinbase to do the fiat transfers, but have a frontend that accepts SmartCash. You convert to fiat on coinbase. Then the backend transfers the fiat from a bank via skrill, paypal or whatever.


@Solarminer Thanks for the input. All good points. The Fiat to Crypto dilemma when using VISA/Mastercard is as you say a real minefield. Using a recognised KYC service provider in a friendly offshore jurisdiction will go a long way to satisfying the usual problems associated with this industry, and we really don’t want to go down that route in any case. We are trying to get away from banks wherever possible.

From my perspective the ultimate objective of a project like this is to get SMART into the hands of ordinary people who have forsaken the traditional banking environments who have let them down. Most of the world saw this in 2007/8 with the financial crisis, which was in my view caused by the greed of bankers and the complicity of governments who were so far in their pockets that they couldn’t regulate them effectively. In Zimbabwe and Venezuela we have seen even more stark everyday visceral effects of centralised, corrupt, incompetent monetary policies.

The profit motive, and self interest, coupled with community governance and a sound, mathematics based economic model will go a long way to creating a unit of exchange that can be a world wide digital currency. This is especially when it is freely changeable with what people are currently using as a store of value or everyday currency. In many cases its inherent exchange ability will be what people value over other currencies, whether government issued or decentralised. I think SMARTdirect will play a role as a bridge between these worlds.