TRIO Identity Token is a utility token that prevents Theft, Fraud, and Money Laundering.
Other payment means such as Fiat and alternative Crypto, require additional investments to mitigate risks of Theft, Fraud, and Money Laundering.
These investments include:
Cybersecurity Infrastructure: This includes investments in hardware and software systems, firewalls, intrusion detection and prevention systems, network security appliances, encryption tools, and secure data centers.
Security Operations: institutions often maintain dedicated security operations centers (SOCs) or employ third-party managed security service providers (MSSPs) to monitor and respond to cyber threats.
Compliance and Regulations: institutions must comply with various regulations, such as the Payment Card Industry Data Security Standard (PCI DSS), the General Data Protection Regulation (GDPR), and industry-specific regulations.
Staff Training and Awareness: Investing in cybersecurity training programs and awareness campaigns for employees is crucial.
Third-Party Security Assessments: institutions often engage third-party firms to conduct security assessments, penetration testing, and vulnerability scanning to identify potential weaknesses in their systems.
Cyber Insurance: Some institutions purchase cyber insurance policies to mitigate potential financial losses from cyber incidents. The cost of cyber insurance premiums can be a part of the overall cybersecurity expenses.
These cyber security investments are far from being perfect. For example, fraud prevention filters in e-commerce sites have a significant false rejection or false decline rate (~10%).
Up to 90% of declined transactions are legitimate orders (source Alte).
For $1 in losses due to credit card fraud, merchants lose $13 to false declines (source Javelin).
62% of merchants report their false decline rates increased over the past 2 years (source Alte).
1 in 6 US cardholders has experienced at least 1 false decline (source Javelin).
32 % of customers who are falsely declined choose not to shop with that merchant again (source Javelin).
Consumers tell 15 people on average about poor brand experience (source AmEx).
There is an additional factor to consider while comparing the usage of TRIO tokens with Fiat currency infrastructure. E-commerce reviews are an important driver for marketing and sales. Fiat infrastructure reviews are often fraudulent because of the difficulty of correlating these reviews with actual purchases. TRIO infrastructure reviews are fraud-free by design, giving a significant boost to sales. According to dixa.com :
79% of customers put as much weight on customer reviews as do on personal recommendations.
On average, reviews produce an 18% uplift in sales.
86% of people hesitate to do business with a company with too many negative customer reviews.
The number of Testnet TRIO tokens provides an effective Goodwill measure for the E-Merchants.
In summary - there is an additional cost involved in using Fiat or Crypto payments as opposed to using TRIO Token payments. This cost reduces the merchant's bottom line.
It is assumed that the product or service will cost $100 or 100 TRIO at the business launch. Then taking into account that the cyber-security (false declines) and marketing (lost reviews) cost of using Dollar Infrastructure is $28/year, while for TRIO the additional cost is 0, by design. The merchant may decide to promote TRIO infrastructure usage by selling the same product for 90 TRIO. In other words, TRIO will appreciate in utility vs. $, although its TRIO exchange rate will remain fixed.
The rate of appreciation will reflect the global savings from the elimination of online financial crime as well as savings in cyber security and marketing expenditure and resolving cyber solutions imperfections. These savings are estimated to be in Trillions of $ or about 3% of Global GDP. This appreciation trend is a constant manifestation of the built-in utility of the TRIO token.
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