The benefits of integrating blockchain into payment systems and accounting are numerous. It weeds out the intermediaries and makes it cheaper and more efficient for users. In this edition of coin spotlight, we will discuss a DeFi project cum payment protocol called Request Network that helps you easily raise an invoice, request payments, and get paid in your preferred digital currency. Before going into details of the protocol, let’s check its price performance.
REQ, the native token of the Request protocol, showed up in 2021 at $0.029 (₹ 2.20), and year-to-date, it has grown by over 10 times in value. It is currently trading at the $0.40 (₹30.32) level, and during the year, it has made an all-time high of $1.08 (₹81.86).
Key Token Metrics
- Coin Rank: 154th
- Coin Market Capitalisation (as of 15th Dec 2021): $397 million
- Coin Market Dominance: 0.02%
- Coin Economics: Deflationary
- Coin Burn Rate: Transaction fees collected are burned
- Total Coin Supply: 1 billion REQ
Technical Analysis: REQ Price Prediction
The overall trend looks weak on the daily chart as REQ is continuously losing its gains over the past one month. Currently, REQ is finding support at the 78.6% of Fibonacci Retracement indicator, where it is also coinciding with the 50 Day EMA line.
If it breaks below the support, we might witness a pullback down to the $0.18 (₹13.644) level. In that case, it might wipe out all the gains of the past one month. To break higher, REQ needs to clear above $0.45 (₹34.11) and $0.53 (₹40.17) levels with strength. However, we may see REQ prices consolidate in the present zone.
As there is no established price trend and pattern in REQ, we may see large deviations; therefore, you need to be cautious while making your buying decisions.
A Brief About Request Network
Request Network is a decentralised protocol for creating, requesting and receiving payments in your preferred digital currency including ETH and ERC-20 tokens. The protocol works similar to online payments system major, Paypal. The only difference between the two platforms is Request Network capitalises on blockchain technology, which makes the process of payments faster and cheaper. It is designed to support global transactions in a P2P fashion without censorship.
Request Network has a suite of financial tools on the platform that enables crypto-focused organisations and freelancers to manage invoices, expenses, auditing, payroll, and accounting.
Here’s a simple breakdown of how Request Network works:
Before making your first payment request or creating an invoice, you need to sign up on Request Network. Once your account is created, you can start making payment requests and create your first invoice.:
- Once the invoice is created, Michael broadcasts the request invoice to Susan through blockchain
- Susan receives the payment request and pays it in one click
- Michael receives the payment in his preferred digital currency
As the entire process happens on the blockchain, the data is securely stored and can be later accessed for audit and tax purposes.
Unlike Paypal or any other payment system, which charges a hefty service fee and commission for the exchange rate, ranging from 5 to 10%, there are no charges involved in payments received through Request Network, except the network fees, which is quite unsubstantial.
Request Network is not just restricted to requesting and receiving payments; one can also use it for online purchases, IoT payments between machines, business to business invoices, etc.
Fact Check: IoT in the blockchain is an emerging trend, where all the data shared are processed through a blockchain network, creates a tamper-resistant record, and enables autonomous payment transaction between two devices.
REQ Coin Economics
REQ is an ERC-20 tokens with an initial supply of 1 billion tokens, but due to the burning of tokens exercise, the circulating supply is a bit less and decreases every day.
On Request Network, to create a new payment request or invoice, you need to pay a small transaction fee in REQ before broadcasting it to the network. These fees are aimed to discourage people from using it maliciously, and the collected fees are burned periodically and taken out from the circulating supply.
Other utilities of REQ tokens include governance and staking. Additionally, users holding REQ tokens can also avail discounts once they become available in their respective products.
Request Network Future Growth Potential
Request Network is rapidly adding new products to its portfolio to bring new customers into the network. It has successfully integrated to Chainlink oracles to enable crypto payments for invoices generated in fiat value.
The roadmap of the Request Network also looks exciting with work under progress for salary payments, escrow, payment streaming, partial payments, integration with the QuickBooks, Zilliqa chain, compound interest, etc. The roadmap suggests that it has plans to become the one-stop solution provider for payments related activities for organisations and businesses.
As of July 2021, the total registered business on Request Network has crossed the 4,200 mark. Since September 2020, a cumulative $92 million of cryptocurrency payments have been done through the Request Invoicing App, showcasing a surge in adoption.
As per the Request Network dashboard, the number of transactions on the platform has almost doubled in the last 90 days, and all the metrics are showing an increasing trend.
As DeFi is rapidly moving forwards as an alternative to the traditional financial system, crypto projects like Request Network hold a lot of potentials. It enables businesses and freelancers to take the benefits of DeFi, without incorporating many changes to the existing processes.
Keep a watchful eye on the REQ token, as its adoption can fuel a big rally in the future.
Want to explore REQ? Download the CoinSwitch Kuber App and start your investment journey with just ₹100.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
Table of content
Subscribe to Our Newsletter with exclusive content.