This document serves as an introduction to some possible use-cases of peermit and does not claim completeness. They can all be broken down to
- increased protection of funds
- convenient access to protected funds
- verification of authenticity of transactions
- distinction of active and owner permissions
For the sake of convenience, we describe how different partners make use of our software.
As an exchange, you hold customer funds and are obligated to protect them against malicious actors. As such you would setup multiple tiers of protection for the active role of your accounts:
- Tier 1: This tier serves as a hot-wallet from which hourly/daily deposits and withdrawals are managed
- Tier 2: This tier is a multi-signature secured account using peermit that allows your employees to access some larger amount of funds for operations and that need authorization of the CFO/CEO by as implemented through peermit.
- Tier 3: Moving funds from accounts that are in this tier request extensive verification by means of a phone call as well as 2nd factor authentication by means of email, SMS, or minutely expiring single-authentication tokens (also referred to as Google Authenticator). Depending on the business practises, we recommend to keep at least 90% of your funds stored in tier 3.
In this setup, the exchange still has sole control over the funds (via active roles) as well as full control over the actual account in case the service goes out of operations or is inaccessible for a period of time. We recommend to setup an owner role such that the board members of your company have access M keys while only N of the board members need to approve any transaction concerning your accounts.
Per definition, a decentralized exchange has no assets and does not store customer funds. Still it has customers that enter the decentralized exchange by means of your platform. In order to gain a competitive advantage, your platform could be the one that offers the most secure accounts by means of 2nd factor authentication.
In this case, the clients that make use of peermit are the customers of your platform. They setup their accounts to use peermit through your platform.
As a platform provider for a decentralized exchange you profit from this service by asking for a fee.
The customer profits from secure account setups with a multitude of features that are made available to them through the peermit software.
As a merchant that supports digital currencies you are already aware that your employees don’t need access to the digital cash register as there is no change. However, in order to reverse transactions, you might still need to give them access to be able to refund customers.
In this case, the merchant can setup an account that he fully controls and that his employees can only spend from if the superior approves or a certain 2nd factor (e.g. special refund key) is provided.
As a company, you are probably have hundreds of accounts to keep an eye on with only very few people having access to the actual funds. Delegating this access is cumbersome with some banking institutions. However, in Graphene™-based blockchains, you could setup a sophisticated set of hierarchically interconnected accounts that have their own set of spending authorities while the CFO and CEO could have access to all of these funds.
In order to make sure these setups cannot be exploited, we help you to customize a hierarchy for your business with full or partial 2nd factor requirements at any level of the hierarchy.
The board has ultimate control over everything relating to the institute. Still, sub-units of it could have access to their own budgets. On a regular basis, the budgets are moved around. These budgets need to be approved by the board. Nowadays, this approval can be given on the blockchain directly, reducing costs, time and offering an everlasting audit trail.
Alternatively, the institute’s lawyers can be the 2nd factors to those transfers to give their final o.k.
As you can see, the hierarchical account setups in combination with 2nd factor offers a massive improvement of security of funds on a blockchain. If you didn’t find your use-case in this document, but want to leverage peermit for your business, please contact us so we can evaluate your needs and find the perfect solution for you.