The appearance of digital currencies on the market gave hope that they would become a convenient and effective means of payment. What prevents this?

Problems & Solutions

The problem of the auction model of fee
Imagine that you have come to a restaurant where at the entrance you have to indicate what tip you are willing to pay to the waiter so that he will serve you as quickly as possible. How? Your choice, but if you guess wrong, you will sit for a very long time.

– What kind of nonsense? you say.
- Of course! we say.

Indeed, this should not be the case, but this is exactly how everything is arranged in classical cryptocurrencies based on blockchain technology - your willingness to pay a commission for processing your transaction is not a guarantee that it will be completed in the shortest possible time. This problem has been resolved in SDN.
Deterministic fees
The technology of acquiring digital currencies in the SDN network is based on the Proof-of-Customer consensus protocol, which excludes competition between network nodes. The right of a node to process a transaction is determined by the user who created it.

Payment transaction execution logic:
  • SDN nodes pre-announce rates (i.e. fees) for their transaction processing services
  • The user of the SDN network independently selects the node to which he entrusts the processing of his transaction, based on known tariffs, and creates a request for the processing of his payment by this node
The problem of using «gas»
So, you're in a restaurant and you're ready to try and guess the tip size so that the waiter serves you as quickly as possible, but it turns out that this restaurant has its own currency for tips: dinner must be paid in one currency, and tips in another! And you have no options - this is how all the restaurants in this world are arranged.

- What a blessing that this is a fictional story and fictional restaurants - you say.
– We agree! There are no such restaurants! we say.

Unfortunately, this is exactly how everything works in existing cryptocurrencies: you have a cryptocurrency, but in order to use it, you also need «gas» - the internal cryptocurrency of the network to pay the commission. This problem has been resolved in SDN.
No «gas»!
An unlimited number of currencies can be used on the SDN network, but users do not need to have any «gas» to make transactions with them. All commissions are paid by clients in the currency of the transaction.

Figuratively, this can be compared with the situation when gas for a transaction can be extracted from any digital currency of the network. In this regard, this solution is called «Gas-From-All» in the SDN network.
The problem of critical user mistakes
We should probably leave our strange restaurant, because further analogies with digital currencies will become completely insane.

Even with all the desire, it is impossible to imagine that in a restaurant you can somehow pay incorrectly and it turns out that your money has been destroyed or gone to another restaurant.

Nevertheless, the situation when the money went to a non-existent address or to the wrong network is a completely common thing for cryptocurrencies that exist today. In the SDN network, we have tried to protect our users from such errors.
Mistake protection
The main payment instrument in the SDN network is a digital banknotes. It is a digital analogue of a paper banknote.

In order for the user of the SDN network to receive a payment, he must issue a unique digital bill to the payer. It is impossible to make a payment without having an invoice issued by the payee.

Thus, payments using digital banknotes eliminate the common problem of existing cryptocurrencies, when user funds go into the «emptiness».
The economic model problem
One of the significant obstacles to the mass penetration of cryptocurrencies into all spheres of life is the resource-oriented nature of their business models, due to the peculiarities of blockchain technology.

Indeed, the main source of profit in the industry is the material, energy or financial resources on which various types of mining or staking are based.

Such a model certainly has the right to exist, but it makes the cryptocurrency industry a closed club and reduces its potential for economic scaling, the basis of which is accessibility to a wide range of entrepreneurs.
Global business model
In the ecosystem of digital currencies in the SDN network, the main resource that generates income for entrepreneurs is the paying customer. This means that the SDN network is a business tool that makes it possible to earn money primarily for those entrepreneurs and companies that have a wide audience of loyal customers.

There is no mining or staking in the SDN network - the user chooses the node that will process it. This means that any entrepreneur and any company that already has loyal customers can add another one to their products and services - payment processing in the SDN network.

Thus, unlike existing cryptocurrencies, which are focused on a limited community of miners and validators, the business model of the SDN network is focused on the global community of entrepreneurs.