Crunchfish provides a patented layer-2 offline payment solution designed for payment network providers as well as payment service providers. The company’s Digital Cash solution enables survivability in the face of failure in case of fluctuating internet connections and system failures by striking the perfect balance between security and scalability whilst integrating offline payments in an online world.
Crunchfish leads the innovation race for offline payments with online settlement.
Protected areas
Offline payments
Trusted Client Applications
Proximity interaction
Priorities from 2018.
*Includes positive International Preliminary Reports on Patentability (IPRP)
Offline payments ensure economic resiliency by enabling transactions to occur even in environments with no or unreliable internet or service connectivity. From rural merchants in remote areas to urban customers impacted by network or service disruptions, the ability to perform offline transactions is rapidly becoming an essential feature of modern financial ecosystems.
Despite their growing importance, current offline payment systems face several challenges:
Recognizing these limitations, Crunchfish has engineered a modular offline payment system combining interoperability, security, and scalability into a streamlined architecture that may be integrated with any type of underlying payment scheme.
In the paper “The design philosophy of the DARPA Internet Protocols” published in 1988 by David D. Clark from Massachusetts Institute of Technology outlines that the internet fundamentally is “a packet switched communication facility in which a number of distinguishable networks are connected together using packet communications processors called gateways which implement a store and forwarding algorithm”.
Crunchfish Digital Cash is inspired by the design philosophies that was developed by the Defense Advanced Research Projects Agency (DARPA) in the 1970s and became the internet as we know it today. It is an incredible robust protocol based on packet switching. This is how Crunchfish Digital Cash works for payments. He also outlines seven secondary design goals for TCP/IP, for which Crunchfish Digital Cash has an equivalent and patent-pending Trusted Application Protocol (TAP). Crunchfish Digital Cash is based on the same design principles and may deliver for digital payments what the internet has done for digital communications.
Any public good in the society like the internet, electricity or telecom must be carefully designed to continue working despite temporary outages of the service. It is hard to understand why digital payments, certainly also a public good, is not as robust as other public goods. Digital payments service must be as robust, inclusive and private as cash payment.
Offline wallets are the payer component, allowing users to initiate and sign offline transactions securely. In peer-to-peer payment scenarios, offline wallets acts also as receiving components, enabling consecutive offline payments. Crunchfish Digital Cash Offline Wallet is a secure and scalable component that executes within a Virtual Secure Element providing an isolated runtime execution environment.
Crunchfish Digital Cash Offline Wallets supports various other proximity interaction methods (NFC, Bluetooth, Ultrasound), catering to different use cases and ensuring broad compatibility. The QR-based interaction method is highlighted below for its effectiveness in accommodating low-end devices and as a reliable backup system.
The payer displays a QR code representing their offline wallet transaction, which the payee scans to complete the payment.
A merchant or payee presents a QR code with a payment request, which is scanned by the payer. The payer generates the offline transaction and displays a QR code representing their offline wallet transaction, which the payee scans to complete the payment.
Whether using a software-based virtual secure element, a trusted execution environment (TEE) or an embedded secure chip, offline wallets must at least guarantee isolated runtimes and encrypted storage for sensitive data at rest.
However, operational challenges are present for large-scale deployment of hardware-based solutions, including monitoring, upgrades, and compliance.
The architecture enables offline wallets, offline terminals, and the backend servers to communicate in a standardized way across multiple proximity and remote APIs, including:
The PKI framework ensures data end to end security across all communication channels, enforcing the same standards
The alignment of offline wallets with the operational capabilities of standard e-wallets presents a transformative approach to initiating payments. By leveraging security, convenience, and accessibility, offline wallets can provide essential functionalities for users, mirroring the reliability of online payment methods.
In a world where connectivity is not always guaranteed, offline wallets stand to bridge the gap, enabling users to engage in digital transactions smoothly, irrespective of their location or connectivity status. This evolution not only broadens the reach of digital payments but also fortifies financial inclusion on a global scale.
Offline terminals are the receiving component, an integral part of the payment rail infrastructure provided by the payment networks. They act as universal receivers of offline payments, ensuring that merchants, payees, and the backend across the ecosystem, can seamlessly verify and accept offline transactions regardless of the type of offline wallet used by the payer.
Like EMVCo systems, the modular design separates terminals and wallets, ensuring interoperability and standardization.
The benefits are a clear modular separation between receiving and paying components reduces implementation complexity and standardized specifications (e.g., for offline terminals and offline wallets) that foster competition and innovation within the ecosystem.
The Reserve, Pay, and Settle approach optimizes offline payments by leveraging existing rails for online settlement rather than relying on separate reconciliation layers. The modularity of this unique approach of offline payments combines the interoperability of EMVCo card payments with the programmable flexibility of Ethereum smart contracts, delivering a comprehensive framework for secure offline transactions.
The Reserve, Pay, and Settle approach optimizes offline payments by leveraging existing rails rather than relying on separate reconciliation layers:
The proposed Reserve, Pay, and Settle approach for offline payments aligns closely with Ethereum’s smart contract-based systems, emphasizing programmable constraints, secure execution, and standardized interactions.
The benefits of this Reserve, Pay, and Settle approach is a trusted framework where offline payments rely on cryptographic trust mechanisms, just like Ethereum’s smart contracts, to ensure integrity during execution, mitigating risks such as double spending. The Ethereum smart contracts operate universally on the blockchain via standardized protocols. Both approaches prioritize transaction security, leveraging isolated execution environments and cryptographic validation to maintain transactional integrity. Conditional offline payments introduce advanced use cases similar to programmable systems on Ethereum, such as escrow, pay-per-use models, or government-disbursed subsidies with strict conditional rules for usage.