Victor, a decentralized shopping platform that was first unveiled at the NEO ❤ Amsterdam event on April 14th this year, has released the technical version of its white paper and states that a commercial version is on its way.
The technical white paper summarizes the problems and opportunities of e-commerce. It’s stated that the industry has grown quickly from $1.5 to $2.8 trillion over the last four years, and that it is expected to reach $4.1 trillion by 2020. Although there’s more money changing hands and more products listed than ever before, there’s also an unprecedented number of competitors who all struggle to get their messages heard and audiences to act.
The other problem is that of data – specifically the tightening laws and regulations that govern data control and ownership. European GDPR laws that came into effect on May 25th, 2018, are one example of how the control of data is shifting from centralized monopolies back into the hands of consumers. It’s further claimed that, due to these changes in e-commerce, there’s now a “clear need” for a platform that will empower shoppers and merchants in a decentralized ecosystem; a platform that will connect shoppers and merchants together in a “fair, secure, and transparent way.”
In response to these changes in regulations and market trends, Victor is a proposed solution. With it, consumers can control how they share their personal information with merchants in exchange for receiving highly personalized product recommendations, along with financial incentives. Data such as the user’s web history and interactions will be recorded transparently within the application, forming a ‘snapshot’ of the person’s digital identity. And because all information is submitted voluntarily and to the user’s mutual benefit, Victor will comply with all present data collection laws.
Victor intends to stay compliant with privacy laws by encrypting all personal information in the application. Also, no private keys are stored or identified within, thus making it impossible to read or access the user’s personal data without explicit permission by the owner.
The two primary functions of Victor are the facilitation of transactions and the storage of personal data for the mutual benefit of both shoppers and merchants. For merchants, they get access to rich-profile data that allows them to serve targeted advertisements to niche consumer segments. While shoppers get highly-personalized product recommendations and financial rewards for sharing their personal information.
The app ‘s economy is powered by VCTR and V.VCTR tokens with each having their separate use cases. VCTR tokens serve as the rights for licensing and rewards, and will be listed on reputable exchanges, while Victor’s V token (V.VCTR) will not be purchasable or exchangeable outside of the ecosystem. V.VCTRs are described as “multi-utility tokens that will serve participants as a medium of exchange,” and are therefore the primary currency within the application. Consumers are rewarded in V.VCTR for sharing their personal data and interacting with the platform, and those tokens may then be redeemed with merchants directly for discounts.
Consumers can earn V.VCTR by sharing their personal information (data points) through a number of use cases. For example, by browsing the Shop Feed within the application, filling out surveys, purchasing a product with embedded rewards, staking personal information and completing their personal profile.
Merchants, on the other hand, consume tokens for several reasons, such as for user acquisition, activation or retention, and may also be used to unlock premium merchant features. The use of tokens by merchants ties into the application’s ‘freemium vs premium’ model.
Victor is a free service for both consumers and merchants with a paid upgrade component. So while merchants can list their products on the platform at no cost, they must credit their accounts with Victor tokens if they want to reward consumers for sharing their personal data. Additionally, as more Victor tokens are added to the merchant’s balance, the more they can incentivize the desired behaviour of their customer segment.
The consumer’s personal data in Victor is controlled and shared with a personal profile. To ensure security, a private key is used for authentication, unlocking vaults, and providing access to merchants. Numerous data points can be stored and shared, like personal data, social profiles, preferences, and a profile currency balance.
Victor will also include a secure data wallet for sending and receiving Victor tokens and to manage requests from merchants to read their data, along with an inbox of messages sent to an anonymous, auto-generated email address.
Victor is working towards releasing its MVP before it will announce its first funding round. Although it’s uncommon for projects to release an MVP before raising funds, the team states that it’s important its users and investors are familiar with the look and feel of the product beforehand. The next step in the project’s development is the design stage and the Victor team will keep the community posted on its progress.
Victor is also building a network of strategic partners and advisors – although it cautions it’s too early to be announcing names, it says it consists of a “solid team of experts.”
Finally, the priorities for the team are as follows: secure a partner to help with the design and development of its MVP; finalize contracts for advisors; and to finish and publish its commercial white paper, which will include its token dynamics, private sale information and growth plan details.
The white paper can be accessed at this link.
More information on Victor can be found at the below links.