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The Flexa Network and AMP Cryptocurrency Explained

I have been fascinated by crypto for a long time now, and I enjoy sharing what I have learned about it on ToughNickel.

AMP Cryptocurrency

AMP Cryptocurrency

What Is Flexa?

Flexa is a cryptocurrency payment network that makes it easier for merchants to accept crypto payments. Users can hold their crypto on an app called SPEDN, from which they can automatically convert their coins into fiat money during the payment process by simply scanning a code with the payment terminal. Transactions conducted with the app are instant and carry smaller fees, which is a massive advantage over most direct cryptocurrency payments.

Cryptocurrencies have many advantages over old-fashioned money, one of which is that they don't depend on one single entity to be made or controlled. However, they cannot be used at most retailers because it can be difficult for merchants and companies to handle payments with them.

Depending on which cryptocurrency you use, it can take quite some time for a transaction to be completed. Bitcoin, for example, can require more than 10 minutes, and even after the transactions have been processed, there is still a chance of an accidental fork in the proof-of-work blockchain.

For a transaction to be really safe and absolute, multiple following transactions must also be processed on the blockchain. Waiting half an hour for payment at the grocery store to go through is simply not an option.

Additionally, since companies still have to pay their expenses in fiat currency, they would also have to convert the crypto they receive into fiat, and the value of that crypto could change drastically during the time it takes to do so.

Collecting digital currencies that need to be spent later is very risky for merchants. This is a problem because for cryptocurrency to become mainstream, it is essential that payments with it are convenient. Flexa solves both issues and could be an essential part of making crypto mainstream.

The SPEDN app is part of the Flexa network, available on both Android and IOS.

The SPEDN app is part of the Flexa network, available on both Android and IOS.

So far, Flexa supports Bitcoin, Ethereum, Litecoin, Bitcoin Cash, ZCash, and more. When you make a payment with Flexa, it immediately converts your crypto into fiat and sends it to the merchant; this entire process takes only a few seconds. This approach makes it very easy for sellers to accept crypto because they don't need to sell the coins themselves to get fiat.

Another thing that could help make widespread adoption possible is that merchants don't need any special hardware or expansive software to accept Felxa transactions. Any physical point-of-sale terminal can do the trick. That’s why a growing list of 41K stores in the U.S. and Canada have adopted Flexa—it’s just easy for them to do so.

Surprisingly Flexa's entire payment process is actually cheaper and less complicated than a credit card payment.

The AMP Token

AMP is the native utility token of the Flexa network. It is used as temporary collateral until the cryptocurrencies are converted into fiat. See, selling crypto for money can take a few minutes because the cryptocurrency transactions that are part of it need to be confirmed by their blockchain. Because most coins can be very volatile in their value, their value could drop drastically before a transaction is complete. That’s why Flexa payments need some kind of collateral to ensure they are backed up. Should the conversion of the crypto into fiat somehow fail, some of the provided AMP is sold instead.

The collateral doesn't have to be provided by people that want to spend their Bitcoin or Litecoin via the Flexa app, but by any AMP holders that want to earn rewards in exchange for pooling their tokens. The rewards come from the fees that come from using Flexa.

AMP price performance from October of 2020 to August of 2021

AMP price performance from October of 2020 to August of 2021

Originally, Flexa had a token called Flexa Coin, but to avoid their token being treated like a share, they replaced it with a new token. AMP has a circulating supply of 42,227,702,186 coins and a max supply of 92,547,638,199. 1 billion tokens are distributed per year to AMP holders that provide their tokens as collateral as a further incentive.

The value of AMP depends on the success of the Flexa network. The more transactions are processed with Flexa, the more fees can be earned, and the higher the demand for AMP will become. Since the max supply is capped, the value will likely grow. Cryptocurrencies are on the rise, but they need to be more convenient to use, and Flexa offers some solutions to their problems, so the AMP token could become a very promising investment in the next few years.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2021 Krypton Currency