Proposal “DASH-TEXT-SMS-WALLETS“ (Active)Back

Title:DASH TEXT - SMS Wallets for Everyone (Exclusively for Dash) - FIRST STAGE VENEZUELA
Owner:LorenzoReyC
Monthly amount: 36 DASH (9338 USD)
Completed payments: no payments occurred yet (3 month remaining)
Payment start/end: 2018-07-18 / 2018-10-16 (added on 2018-07-11)
Final voting deadline: in 12 days
Votes: 297 Yes / 29 No / 6 Abstain
Will be funded: No. This proposal needs additional 183 Yes votes to become funded.
Manually vote on this proposal (DashCore - Tools - Debugconsole):
gobject vote-many 3983c42cf2f76e435278cdc9b48abe2162ec804f4f4b7a9d09cda87b7ac30076 funding yes

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Proposal description

                                                                    https://i.imgur.com/2LNboWjm.png
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Hello Dash Community! We are excited to introduce you the proposal for Dash Text - The first SMS wallet service exclusively for Dash!                                  https://i.imgur.com/4126V28h.png
                                

                                                   

                                                                https://i.imgur.com/Y6yD303.png

1- MAIN OBJECTIVE:
Dash Text will be the first service to offer Dash Wallets over SMS, it is the fastest and easiest way to receive Dash, and it is one of the most practical applications for people, specially in developing countries where smartphone access and internet access is limited. Our goal is to provide easy access to Dash for everyone.
2- THE PROBLEM and VALIDATION:
Only around 40% of people in Venezuela have smartphones, this means that there are still millions of people who can't use Dash even if they wanted to. We plan to change that. Source: https://newzoo.com/insights/rankings/top-50-countries-by-smartphone-penetration-and-users/
3- THE SOLUTION:
An SMS Wallet service that allows anyone to create and manage a fully functional Dash Wallet only by texting, no need for registration, or downloads, or any hassles, just text and start Dashing, no internet connection required!

                                     https://i.imgur.com/D839jNu.png

4- WHO ARE WE:
 
                                  https://i.imgur.com/cNfQR9xl.jpg

Lorenzo Rey:  Project Lead. I am an Electronic Engineer, CTO of Dash Help (Support Center) and Dash Merchant - Massive Adoption Program. I am also a spokesperson for Dash in Venezuela and Latin America, I've been the speaker in Dash Caracas conferences, in Dash Youth conferences and presentations, and in events such as the Crypto Latin Fest. I've worked with Rodrigo from Dash Brasil, and with Sam Barbosa, Developer of the Dash Core Team. I've also been an advisor for many other projects such as Dash Trip, Dash Youth, Agrocognitive, and more. DASH Forum: LorenzoRey, Telegram: LorenzoRey,  Discord: LorenzoReyC Ig: LorenzoReyC Tw: LorenzoReyC
Alejandro Echeverría: Mechanical Engineer, co-founder of Dash Help - Support Center and Dash Merchant Venezuela. He is also advisor for some teams in the Dash Community like Dash Argentina and Dash Youth Venezuela. Dedicated himself to make profitable business models (Easymed, TuGruero- https://tugruero.io/, Ctrl+C-USB). DASH Forum/Discord: AlejandroE. Linkedin: https://www.linkedin.com/in/alejandro-echeverrria-b739b1101/).
Carlos Echeverria:  He´s got a degree in Business Administration from UNIMET (Universidad Metropolitana) in Caracas, Venezuela. He has been in charge of the finance and administration of all above companies as equal business asociated. (Ig: carlosjem1993. Tw: carlosjem. DASH Forum/Discord: carlosjem/ Linkedin: https://www.linkedin.com/in/carlos-echeverria-081a57a9/).
Carlos Heinze: Production engineer from USB (Universidad Simon Bolivar) in Caracas, Venezuela. He has been in charge of the operations of customer service, call center support and logistic of all above companies as equal business asociate. (Ig/Tw: @nachoheinze. DASH Forum: Carlos Heinze. Discord: CarlosH, Linkedin: https://www.linkedin.com/in/carlos-heinze-43483ab8/).

5- BUDGET: We did the lowest budget we could, understanding the fall n the Dash price. In this sense, we are requesting just the 0.58% of the monthly available budet.

                               https://i.imgur.com/QE8FHXB.png

6- ALLIES:
We will work in alliance with some Venezuelans and teams that have been funded by the Dash treasury, in this way we will work aligned and coordinated to achieve the same goal: massive adoption of Dash in Venezuela. Following are the allies:

- Dash Help - Support Center: led by Alejandro Echeverría (AlejandroE). Dash Help is the first support center of Dash (and any cryptocurrency) in the world. Prividing assistance to 6 countries already via phone calls, chat, and ticket support. All the assistance and problem solving about Dash Text will be channeled thru Dash Help.
-Dash Merchant Venezuela: led by Alejandro Echeverria (AlejandroE). Dash Merchant Venezuela is a massive adoption program for merchants to accept Dash as payment method for their products and services. We will help small merchants who don't have PCs or Smartphones so they can accept Dash as payment with our SMS Wallet service.
-Dash Youth: led by Santos Bermudez ([USER=22264]@Santos Bermúdez Ruiz[/USER]). Dash Youth Venezuela is an organization focused on spreading knowledge about cryptocurrencies and the DASH Network by giving a series of lectures for students of Middle Schools and Universities. We will work with them teaching students on how the can receive and send Dash without internet connection or smartphones.


Security FAQs

1. Is Dash Text Secure?

  - Absolutely, Dash Text is secure enough for its purpose, understanding that cryptographic keys are not stored in the user's phone, similar to how an exchange works. You should remember that this is a product for casual use and to move small amounts, we do not encourage anyone to use Dash Text wallets as their primary wallets, you should always hold your funds in more secure wallets where you control the cryptographic keys, such as the Dash Core (QT) Desktop wallet.

2. What happens if my phone is stolen or I lose it?

  - You do exactly the same as you would normally: call your cellphone company and ask them to freeze your phone number (report it as lost or stolen), that will immediately block access to your Dash Text wallet, once your number is re-enabled on a new phone, you will have access to your funds again.

3. Who holds user keys?

  - Keys are generated using the users phone number as seed when the system receives the first SMS. We do this using Blockcyphers API, which is a respectable blockchain solutions company that is allied to Dash. 


Contact Information:
Email Address: hola@dashtext.com
Website: www.dashtext.com
Social Media: 
-Facebook: Dash Text
-Instagram: @dashtext
-Twitter: @dash_text

Thanks for reading our proposal. Leave us your comment and questions. Thanks for support!

https://i.imgur.com/Oe07J3sm.png

Show full description ...

Discussion: Should we fund this proposal?

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3 points,2 days ago
My concern for this project is security. My concern stems from the fact that this will be a single point of failure for a large group of users. Of course, I expect the server(s) to be well protected from external attack.

What many might not realize is the possibility that the people who run the project hijack the funds themselves, and claim that the attack was external. Please realize that if you vote YES on this project, we are trusting individuals to behave like a bank by holding the funds of others in a protected manner. I still have not decided how to vote on this project and I invite @LorenzoReyC to comment on my concern.
Reply
0 points,1 day ago
Hello Edward ! We understand your concern and it is a valid one. We wish there was a way to do this in a completely trustless way, however that's not possible. It's important to mention that this service will not hold as much funds as an exchange for example, and the DAO has funded exchange projects in the past. Products and services on top of Dash require people to trust in them, and the reputation and credibility of the creators is at stake, you as a platform owner know that.

You know who we are and how committed we are about getting Dash everywhere because we know this will help some many people, why would we attack our own product? Also claiming that an attack was external doesn't save your reputation, you still messed up security-wise if you get hacked, and people will not trust you.

We appreciate all comments regarding security and we are taking all the necessary steps to make Dash Text as secure as possible.

Thanks again for your comment Edward we hope you can keep supporting us.
Reply
1 point,1 day ago
I am assuming this is a for profit business ?
If so incentives short (hacking) vs long term (growing the business and profit margin), that the key problem to solve.
Furthermore by becoming public and use of various Technic's such as time locks, multi signature wallets, publicly know company and people, audit's and dare I say regulation. Should mitigate some the problems.

But honestly I don't think the amount of money that can be stolen is high enough, potentially the profits could go an 100x per year if this becomes successful, only the owners of this proposal are incompetent would that make sense.
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1 point,1 day ago
Hello A_node_to_a_Master ! No at the moment this is not a for profit business, it can become that in the future, but we don't feel like we should be charging people extra fees (aside from the network fee) to use the service, when it scales it definitely can become a business, maybe some form of ads? We do not know that yet, we just want to get this into people's hands and make it grow, then we will see when and how to become a for profit business.

But yes we are happy to be audited on our security measures and are open to recommendations, can't say I'm not overwhelmed at people's focus on security, that's a good sign because it shows how committed the Dash community is in making sure products are secure enough.

But it is also important to remember that this is a very inexpensive proposal to get an initial product running, as we scale, so will our security measures, just like any other internet business or service.
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0 points,1 day ago
I think setting spending/receiving limit's should set low is a measure I would take as well.
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1 point,1 day ago
Yes this is something that is in our scope, however we can't stop people from sending X amount of Dash from outside the system into the system, but once inside we can. We still will be communicating that these are wallets made for microtransactions and we do not advise people to store all their funds in them.
Reply
1 point,1 day ago
@LorenzoReyC I agree with @ec1warc1 on the importance of security. What security expert have you got to check the security of the system you intend to setup? What happens if there is a security breach and funds are taken? Who will refund the people who may lose funds?

I think this project is most definitely going to be a target by people or organizations that don't want DASH established. What the will do is hire hackers to find a weak spot and hack the system. Bear in mind that even top crypto exchanges have been hacked, and they have full time security staff.

I hear what you are saying about there will be only small amounts on the platform, but if thousands of wallets are hacked that could add up to quite a tidy some of money. Also many thousands of people could get a bad image of DASH as not being secure if this service is not 100% water tight.

Do you, or anyone else involved in this project, need a money handling license for this project?

Is there a limit set on the wallets?
If so how much?

If no limit is set then for sure some people will chance it with larger amounts.

How will the users be made aware of the risks involved with using this service?

This project has to be extremely secure in order for it to have a positive outcome. Otherwise thousands and potentially millions could have a bad experience and that could reflect on the security of DASH as a currency as a whole. That could have a devastating effect on the image of DASH as a secure currency. DASH at the moment is ultra secure however ec1warc1 has raised an important point that needs to be very carefully addressed.
Reply
1 point,1 day ago
Hello Deepblue, we have an expert in security advising us, he was a famous hacker and now he helps businesses with security. We haven't been funded so we only have the prototype right now, and its hosted on a PC, but when we get the funds and set up everything he will be supervising and will make a statement regarding our security level, but it is also important to remember that wallets will be held by BlockCypher, not us, we control them, create them, and sign transactions from them via APIs, but we do not own the servers where these wallets are stored. We do not have the funds to build a blockchain solutions company ourselves, it is faster, cheaper, and wiser to use a respected company to do this who actually has invested probably thousands of dollars in security, however we have no say in their inner security measures, but security is the most important thing for their business model and it hasn't suffered any type of hacks.

We do not need a money handling license for this project, licenses are needed in Venezuela for people who want to run exchanges, but also, as I mentioned before, wallets are held by BlockCypher, not us.

Regarding limits, we cannot stop someone from sending a lot of money into one of these wallets from an exchange or from a Desktop Wallet for example, what we can do is put limits once inside the system, we haven't decided how much yet tho, because if we say the limit is 30$ for example, what happens if one person worked a lot, got payed in his Dash Text wallet and now has saved 100$ to get a smartphone? he should be able to pay for it with Dash Text. On the other hand, if the limit is too high, it is effectively like having no limit for the most part, so we want to do this right and we haven't decided yet.

I was talking about this with Sam Barbosa and he agreed with the challenges of limits and that it could lead to some problematic situations, his opinion was that the work should be at communicating effectively that these wallets should not be used for large amounts, and we agree, but this doesn't mean we won't put limits, we just haven't decided how much or if we should be allowing larger quantities based on a users frequency of use.

Users will be made aware via our social media and our website, we're also considering sending a periodic SMS to people with recommendations and tips, we do not want to be annoying with this tho, maybe once a month is good enough, we'll see.

We really understand this concern and we agree completely, however we also feel that some people are talking about security levels on a scale that is out of the current scope, security is expensive and it becomes more important as you grow, we will not have millions of users and millions of dollars in our system at launch, and we're also confident that a big part of the security is on BlockCypher who are a company worth millions and is running many services that handle more money than Dash Text probably will for a good while.

Thank you so much again for your feedback Deepblue, would love to chat in private as well, you always have great ideas, Im on signal if you want to talk to me about anything. Me, Alejandro and the rest of our team really respect you and value your advice.
Reply
0 points,12 hours ago
Hello Lorenzo, I would be happy to discuss your project on call.
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2 points,2 days ago
I recently participated in some meetings, where the use of the GSM system (basic system of mobile phone) and sending of SMS were discussed, in the world and the statistics of the operators were very conclusive.
Today the people has a smartphone, with a minimum 3G connection to the Internet. and they communicate through the Internet through wsapp, telegram, web services, etc.
(The first 3G networks were introduced in 1998 (UMTS and CDMA2000 tech.))

Access to a second-hand smartphone or low-cost is very easy.

There are already projects in BTC and BCH of little success that cover this small market of use.
Ejem: https://cointext.io/regions/
In addition, they have support to several continents not only Venezuela (country).

The worldwide decline of GSM technology, based on the new LTE wireless connection technologies, means that creating investments that depend on technologies that are going to have a reduced use, is not the best option for investment and growth.

I don't see ROI creating this type of investments in local infrastructure, (as it is) that I think:

a) It can only be exploited in a geographical area
b) It does not have a road map of self-sufficiency, which without funds from the dash treasury, would not be viable over time.

In addition, the problem continues of not being able to use neither InstandSend or PrivateSend, which is disruptive and differentiating characteristics of Dash.. And more, when in the future the default shipping protocol can be InstandSend.

I think, that the focus is to train people in the use of Dash in smartphone, globally, from LATAM, AFRICA, USA, EU, etc. Thank you for your proposal.
Reply
0 points,1 day ago
To my knowledge bitpesa uses a similar sms-pay service and it's doing very well. (please correct me if I am wrong).
Reply
0 points,1 day ago
Yes sorry, you're wrong.
Bitpesa is a 'centralized' FinTech company that connects with financial networks such as: m-pesa, swift, paypal.. through website (don't have smartphone app for simplicity), and uses the Bitcoin network, to transport value. It is a fintech company similar to uphold company, oriented to Africa and the idiosyncrasy of the African people.

Its profile of target clients are export companies or people that require currency changes (international remittances /Cross-border B2B Payments). Although they have other products.(exchange)
https://www.youtube.com/watch?v=b_6auY_IF3Y
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0 points,3 days ago
This will approximately double the number of people who can use Dash in Venezuela. It also looks like a good pilot project for how to spread Dash into the rest of Latin America. And, relatively speaking, this is a cheap proposal from a proven team with professional looking promo materials. Easy yes for me. I suspect the SMS/dumb phone method will be useful for a significant percent of the population in Venezuela for the next three years. So two or three years down the road, it won't matter if this method becomes obsolete, Dash will be the overwhelming winner in Venezuela at that point anyway.

Does your economic model require modest levels of on-going support or does it become self sustaining after 90 days? I'm still a yes either way, just want to know the details.

Full speed ahead in Venezuela. solarguy
Reply
1 point,2 days ago
Hello stillcantstop!

You're totally right and we agree completely with what you said!

Regarding the economic model, we wouldn't want to charge people extra fees, so it will require modest levels of on-going support. However, we do feel like down the road when we have a large username, there could be a viable ad-based business model. The last thing we want is for the service to become annoying or intrusive with ads, so this is something we're just thinking about and that could be possible in the long term, nothing conclusive.

Thank you so much for your support !
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2 points,4 days ago
I think this is a very elegant and smart solution to people using DASH in masses in any country where there is a security risk with carrying a regular smartphone. If you think about it is more secure than using the DASH wallet on a smart phone because unfortunately at the moment in Venezuela people with smart phones are targets to be robbed. Instead if people have a cheap low end phone people can feel secure about using DASH because who wants to rob a low end phone? It's just not worth it, and it's not cool either. The more beat up old phone the better. At university I used this strategy myself for protecting my high end racing bike from theft. It was originally in a beautiful opaline green colour and it always got a lot of attention. Bikes were stolen every day and I noticed they were always the cool looking bikes. I knew the days were numbered for my bike unless I did something. So I took a can of paint and sprayed it making sure the paint job was pretty uncool and messy. My bike looked terrible after it. It was the uncoolest bike of all in the bike shed. In fact I got comments on how ugly my bike was, and how I could even ride it. The great thing was for the entire time at university my bike never once was stolen or damaged, but I enjoyed all the benefits of a high end bike.

I learned this important lesson:

Uncool = secure.

My question however is how will people secure their funds on the low end phones? e.g. is there a password they can use to unlock funds. Could they se tup a dummy account just in case someone forces them to reveal their password, they could reveal a dummy account password that has minimal funds in, but their real account has their full amount in. If they are forced to give the password for their SMS wallet they could give the dummy account with like 2 cents in. This could be an enhanced security measure to perhaps consider? The ability to create dummy wallets.
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1 point,4 days ago
Hello Deepblue thank you for your comment, definitely agree and enjoyed the story about the bike !

We hadn't considered dummy accounts until now because we will be promoting these wallets to be used with low amounts. The idea is that you have the majority of your funds in some form of cold storage or in your PC at home, and you periodically fund your Dash Text wallet from there.

However I think dummy accounts are a good idea to consider and would enhance security, we will explore this idea further!

Thank you so much for your support and your ideas once again, we really appreciate it!

-Lorenzo Rey
Reply
-2 points,3 days ago
You honestly think people who can't afford a smartphone in 2018 will be willing to learn how to transact with the Dash blockchain via SMS? How naive! If 40% of venezuelans have smartphones, that's millions of people, focus on them instead.
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2 points,3 days ago
Hello dashed! Yes they are willing to learn, we've seen them, they know that Dash is a tool for financial freedom and that can help them escape the disaster of the Venezuelan Bolivar, they are willing to work and get paid in Dash, but currently many of them just don't have a way to get payed. With Dash Text they will have an easy way to get paid and to help us with massification.

We hope to gain your support, and thank you for your comment!
Reply
1 point,5 days ago
I have a few questions:

1). At the point of sale, how is an end user going to pay a merchant using Dash text exactly? How do they inform their wallet, via their phone, where the Dash funds will go?

2). Regarding giving away $1 tips, I believe someone claimed the cost of a sim in Venezuela was 50cents. If this is true, then someone is incentivised to keep buying Simcards and receive $1 tips in Dash. What is your approach to mitigating fraud?

3). How viable is it for this demographic of people to sign up on one of the exchanges offering Dash to buy more Dash after successfully interacting with this service? Would they likely have bank accounts?

4). Is it possible to explore ways whereby this service could be expanded to offer users the option to buy Dash with mobile credit? I think that would make Dash Text a game changer.

Good luck!
Reply
2 points,5 days ago
Hello ageless thank you for your comment! Regarding your questions:

1) The simplest (but not the only) way is for the merchant to also have a Dash Text wallet, so that the client can type the merchants number and pay that way, the command is "SEND (amount) (phonenumber)".

However the merchant can also simply text their address to the client so the client can copy/paste it and use the command "SEND (amount) (address)"

Important to mention that all of this information will be on our website www.dashtext.com, but the Dash Merchant team will be teaching merchants all about Dash Text, and the Dash Help - Support Center will solve all doubts and issues people may have as well.

2) Good question ! SIM cards are cheaper than 1$, however, even tho you will not need any registration process or give any personal information to use Dash Text, in order to get the tip, we will be asking for people's names, email and phone number and other basic info, so as to avoid people wanting to get many tips for themselves, that helps us to also get some statistics about what kind of people are most interested in the service.

3) Yes, since Venezuela is almost a cashless society, most people have bank accounts because that's the only way to pay for stuff besides crypto. We hope people get incentivized to buy more Dash after using it, but we believe the majority of people will be more incentivized to work for Dash, rather than to buy Dash with their VEF, which we think is even better, get paid in Dash, then spend your Dash, using the local currency less and less over time.

4) Using mobile credit to buy Dash directly would be awesome but implementing it brings many problems, we're still evaluating it tho, however most people in Venezuela buy mobile credit in kiosks and pay with debit card. We're preparing a project to get kiosks to also sell Dash this way, so just like people go and buy mobile credit at the local kiosk, they will also buy Dash credit in the same kiosk, and it can be sent to their Dash Text wallet or to their mobile Dash Wallet app (Android or iOs). We'll share more information about this probably in a few weeks.

Thanks again for giving us your insight, we really appreciate it!
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0 points,5 days ago
Thanks for your answers. Fully support your efforts and hope you can eventually scale this out. Might need to watch out for 2). / make it more stringent
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1 point,4 days ago
Will definitely take a look again at 2). Thank you so much for your support!
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1 point,6 days ago
Great proposal...I think it's important for other MNOs to realize that SMS is ideal in places like Venezuela and parts of Africa. It may not make sense in a "first world" context in terms of security but it's a big deal where people have to use something easy and quick to transfer small amounts of money.
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0 points,6 days ago
Hello cedbrown thank you for your comment and you are totally right, there are counties that need it more than others, but it is convenient for everyone regardless of where they live, we hope we can take this to as many places as possible, but one step at a time, we do think it would be awesome to have it in the US but after Venezuela were probably gonna target Africa and other Latam countries!

Thank you so much for your support !
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0 points,6 days ago
Would you consider doing a text service in the US after Venezuela?
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1 point,6 days ago
I think it would make sense for them to expand to other LATAM countries or African countries before trying to set this up in the US.
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0 points,6 days ago
Yeah, however we have already been approached by people in the US who want to help us set it up over there, it's probably gonna happen down the road at some point but we think other countries need this first, just like you mentioned.
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0 points,6 days ago
Aon second thought, I agree
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0 points,6 days ago
*On*
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0 points,6 days ago
The info is very light, do the idea is simply great
1) Who is going to build the software for it
2)How long will it take
3) Do merchants have to do anything special ? or just have regular phone-number as well
4) Are there any costs for users using this service ?
Reply
1 point,6 days ago
I see you found those answers in our post but I will respond to them here anyways hehe:

- We built the software for it, it's still on the MVP stage (minimum viable product) and there's much work to be done and to make it better.
- 4-5 weeks after funding we should have everything hosted and working including the website.
- No, merchants can receive payments in any wallet they have. Although it would be easier if they had their own Dash Text wallet since they can receive with their phone number instead of the address.
- No additional costs.

Thanks again for you support!
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0 points,3 days ago
thank you
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0 points,6 days ago
Nevermind, I did not realize the page was have loaded.
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0 points,6 days ago
Hello A_node_to_a_Master! Thank you for your support !
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