PayFair White Paper

December 2017

Decentralised Escrow and P2P Crypto-exchange on the Ethereum Blockchain

Abstract

Every one of us has faced a problem when you needed a third party to secure a transaction.
Perhaps, you may have experienced fraud. During the transaction, one of the parties may not have
met all of the requirements or may have vanished without a trace. The invention of blockchain
technology has given the opportunity to remove this issue. Our team has decided to solve this by
creating a convenient and easy-to-use decentralised, transparent and independent escrow platform
to make safe transactions.

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Contents
1 PayFair Platform 3
1.1 What is escrow service? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 PayFair Token (PFR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.4 Solutions provided by the platform . . . . . . . . . . . . . . . . . . . . . . . 3
1.5 Innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.6 Incentives for participating . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.7 Potential market share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.7.1 Brief Analysis of Blockchain and Escrow Markets . . . . . . . . . . . 5
1.8 Ensuring a transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.9 Transaction fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.10 Rating system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.10.1 Rating of Escrow-Nodes . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.10.2 Rating of contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.11 Profit of using the platform . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.11.1 Non-escrow deal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.11.2 Escrow deal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2 Crowdfunding 10
2.1 Crowdfunding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.1.1 Pre-ICO Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.1.2 ICO Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2 Bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3 Roadmap 11

4 Team 12

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1 PayFair Platform
• It is a decentralised escrow platform for making cryptocurrency transactions between
two parties. It is ensured with PayFair tokens (PFR) based on Ethereum blockchain.
• Low fees are charged for ensuring that the transaction is safe and private.
• It saves time when making a transaction, no third parties or bureaucracy.

1.1 What is escrow service?

Escrow is a financial agreement in which a third party regulates all the processes between
two exchanging parties. It makes deals safer, because money is held on a secure account and
the deposit is given only when all the requirements are met. In this instance, using an escrow
service is useful, especially if large amounts are involved, as it cannot be released until certain
requirements are met. For example, making a website. A client wants to verify the quality of
the website before purchasing, and a designer doesn’t want to share his or her work without
any guarantee that he or she receives the money.

1.2 PayFair Token (PFR)

• Ethereum ERC-20 token standard
• Creates nodes of trust in the platform
• Ensures the right to decide as well as to receive profit of every successful trade

1.3 Goals
1. Creating guarantees between contractors in all spheres.
2. Ensuring mutually beneficial relationships between all the participants on the platform.
3. Creating an independent system without developer interference.
4. Raising the social interest in cryptocurrencies.

1.4 Solutions provided by the platform

• Eliminating lack of trust between contractors.
• Regulating trade conflicts with the help of an escrow service.
• Decreasing the fees on the escrow market.
• Eliminating fraud and swindling parties.

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1.5 Innovations
• Escrow independence is achieved through escrow anonymity, thus escrow doesn’t depend
on contractors
• Decentralized escrow
• Independent system
• Rating of escrow-node and contractors
• API, open-source code
• Using popular cryptocurrencies as a means of payment between contractors
• Self-learning neural system for automatic transaction processing

1.6 Incentives for participating

• Trust-nodes receive PayFair (PFR) tokens which provide interest based on the platform
income.
• Escrow-nodes which own tokens receive an interest of every trade that it is engaged in.
• Contractors can get a mediator (escrow service).

All payments are automated and processed by smart contracts

1.7 Potential market share

• Nodes and masternodes*
• Cryptocurrency to fiat exchange service
• Domains and websites
• Freelance and online services
• Social networks
• Online games
• Escrow service for physical goods
* Using a smart contract while trading without human interaction

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1.7.1 Brief Analysis of Blockchain and Escrow Markets

Figure 1: Google Trends when searching “blockchain”

It’s been almost 10 years since Bitcoin was introduced and this is a strong indicator of its
reliability. This achievement is a good augury for blockchain technologies which are still being
developed.

Figure 2: Total cryptocurrency market capitalization

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 Figure 3: Google Trends when searching “escrow”

The total cryptocurrency market capitalization has grown 6000% since 2013. Web searches for
the term ”escrow” have been stable for 5 years.

Source: https://coinmarketcap.com/charts/

1.8 Ensuring a transaction

• Trade is ensured with deposits of each of the participants.

• Trade is made with 3 consecutive decisions of escrow-nodes

• Trade is guaranteed with a deposit of a contractor (a customer)

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1.9 Transaction fundamentals
Ecosystem is a platform for making deals and transactions.
Fee (commission) is a payment for the deal made by contractors.
Buyer – a party, interested in deal safety.
Seller – a party invited by a buyer.
Trust-node – PFR token holders.
Escrow – an independent and anonymous chain of escrow-nodes. Escrow settle the differences.
Escrow-node – trust-node in status escrow.

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1.10 Rating system
1.10.1 Rating of Escrow-Nodes
• Rating system will create a self-regulating ecosystem with reliable participants of an escrow-
chain

• Improves competency and open-mindedness

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 • Fair fee distribution between the participants

1.10.2 Rating of contractors

• When using the platform for escrow service multiple times, rating helps to lower the fees for
transactions therefore encouraging clients to use the platform more and more

• Improves mutual confidence between the parties even without escrow-nodes

1.11 Profit of using the platform

Every fee in the PayFair platform will be distributed

1.11.1 Non-escrow deal

1% fee, without taking into account contractor rating

Trust-node – 80%
Marketing, supporting ecosystem – 20%

1.11.2 Escrow deal

3% fee, without taking into account contractor rating

Trust-node – 40%
Marketing, supporting ecosystem – 10%
Escrow-node who made the decision – 50%

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2 Crowdfunding
The total amount of tokens is 100,000,000! Tokens will be transferred to the investors after
pre-ICO and ICO campaigns.

2.1 Crowdfunding
Pre-ICO 30,000,000
ICO 56,000,000
Reserved for PayFair team* 11,000,000
Bounty campaign 3,000,000
* Team funds are frozen for 12 months

2.1.1 Pre-ICO Stage

• Pre-ICO period will be held for 30 days
• Minimal target: $40,000

After reaching this amount and finishing the pre-ICO campaign, tokens will be transferred to your Ethereum
wallet.

Pre-ICO goals:
• Identifying the social interest in the project
• Creating a strategy of promoting ICO platform

2.1.2 ICO Stage

The ICO campaign will be held for 30 days. Funding will be processed through an Ethereum smart-contract.
https://github.com/payfairio/smartcontracts

ICO goals:
• Determining base token value
• Creating a financial base for further development according to the roadmap; marketing and promoting
• Fair distribution among trust-nodes

2.2 Bonuses
To encourage early investor we offer early stage bonuses

Day Bonus
1 20%
2-5 15%
6-10 10%
11-20 5%
21-30 0%

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3 Roadmap

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4 Team
Website: https://payfair.io
Telegram: https://t.me/payfair
Email: [email protected]
Facebook: https://www.facebook.com/Payfairio/
Twitter: https://twitter.com/payfairio
GitHub: https://github.com/payfairio/
Bitcointalk: https://bitcointalk.org/index.php?topic=2127946
Reddit: https://www.reddit.com/r/payfair

Denis Salangin (Founder)

https://www.linkedin.com/in/denis-salangin-21041114a/
https://vk.com/id62975354

Evgeniy Pomelov (Community manager)

https://t.me/JohnPomelov
https://www.linkedin.com/in/john-pomelov-94a41014a/
https://www.facebook.com/john.pomelov

Dmitriy Plishkin (Digital Marketing)

https://t.me/Dplishkin

Aleksey Suvorov (Lead developer)

https://t.me/Navlis23

Vyacheslav Butorin (Fullstack developer)

https://t.me/Sloker

Roman Lihachev (Backend developer)

https://t.me/RomanLikhachev

Kristina Zayakina ((Frontend developer)

https://t.me/Nuxe5

Michael Nikitin (Frontend developer)

https://t.me/MikeGood

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