HorusPay (HORUS) is an EOS blockchain platform that hopes to cash in on international payroll with a global payments portal and a cryptocurrency.
Horus’s plan is to offer a standardized global payroll system that can operate in many countries at once. They will do all the payroll paperwork and reporting in the HorusPay blockchain. However, national payroll vendors will make the actual salary payments in fiat currency.
Vendors will access HorusPay via an application program interface (API). The API and Smart Contracts will allow companies to pay employees and vendors in different countries.
HorusPay (HORUS) claims it can eliminate Middlemen from International Payroll
Companies can make payments to payroll vendors in cryptocurrency which HorusPay claims will allow for same day disbursements. That means employees can receive money within 24 hours of submitting a timecard.
Added benefits HorusPay claims it can offer include reduced workforce, consolidated global payroll deadlines, and standardized payroll reports. Interestingly, HorusPay claims it can help companies eliminate middlemen from the payroll process.
HorusPay can eliminate middlemen by automating data input and creating a blockchain payroll ecosystem. Moreover, HorusPay claims it can reduce payroll expenses by up to 40% by eliminating middlemen.
The idea behind HorusPay (HORUS)
The potential market for HorusPay’s products is huge because more companies are operating in multiple countries than ever before.
For example, companies like Microsoft and Amazon have extensive operations in India. Oil companies like ExxonMobil operate in dozens of countries. Additionally, more companies than ever are using contractors and vendors such as software developers.
However, global payroll is still slow, expensive, and inefficient. For example, international wire transfers can cost up to $65 each take several days to reach their destination.
On the other hand traditional bank transfers using an automatic clearing house (ACH) are usually free or cheap. However, HorusPay claims ACH deposits can take four to five business days to clear. In addition, a person needs direct access to a bank or a bank account with a digital wallet to receive ACH payments.
HorusPay hopes to change that by using the EOS blockchain to disperse funds quickly to payroll vendors in different countries. The payroll vendor will disperse the funds quickly in fiat currency.
Is HorusPay (HORUS) a Good Cryptocurrency?
HorusPay is built with the EOS blockchain which is not compatible with the Ethereum blockchain. However, HorusPay (HORUS) is part of the Bancor on EOS network.
Bancor on EOS is designed to allow fast conversation between EOS and Ethereum-based cryptocurrencies with the BancorX protocol. Thus it is possible to convert HorusPay (HORUS) into Ethereum (ETH) and Ethereum Request for Comments (ERC) tokens.
Unfortunately, there is apparently no fast means of converting HorusPay (HORUS) into Bitcoin (BTC), Ripple (XRP), or fiat currencies. Notably, I could not find HorusPay in CoinSwitch cryptocurrency exchange aggregator.
The CoinSwitch aggregator is a protocol that allows users to trade on a wide variety of exchanges without an account. Thus, CoinSwitch offers trading in over 300 cryptocurrencies and over 45,000 potential pairs of cryptocurrencies.
However, CoinSwitch offers trading in EOS (EOS) and Bancor (BNT). Thus you could convert HorusPay (HORUS) into Bancor or EOS and trade those coins through CoinSwitch. On the other hand, that process is cumbersome and limited.
Is HorusPay’s (HORUS) Global Payments Platform Possible?
There are some serious technical problems that could prevent HorusPay’s (HORUS) solution from becoming reality.
For instance, the blockchain scalability problem seriously limits the speed and volume of cryptocurrency transactions. For instance, the Ethereum blockchain is limited to 20 transactions a second. Thus, Ethereum lacks the capacity for a global payment system.
However, the EOS team claims their blockchain can transmit 1,275 transactions a second, Trustnodes reports. Hence, EOS can distribute cryptocurrency payments to several hundred or several thousand employees at once.
There HorusPay’s blockchain and cryptocurrency payment system is technologically feasible. HorusPay is feasible because it is built in EOS. Notably, Trustnodes claims EOS can handle 800 to 990 transactions a second when it operates at slower speeds.
Will the Oracle Problem Throttle HorusPay(HORUS)?
On the other hand, the so-called oracle problem prevents blockchain systems like HorusPay(HORUS) and EOS from connecting directing to many financial system.
To explain, they wrote most financial software years or decades ago before blockchain was invented. Therefore, most payroll and banking computer systems cannot communicate directly with blockchain solutions.
Thus, an American company could use HorusPay (HORUS) to send payments to employees in Nigeria but cannot disperse them. The employees might not receive the funds because their banks cannot receive cryptocurrency.
Under those circumstances, a company will have to distribute digital wallets or some other mechanism for employees to receive cryptocurrency. In particular, an API that allows employees to spend cryptocurrency at brick and mortar merchants will be necessary.
Has HorusPay (HORUS) solved Blockchain’s “oracle problem?”
Interestingly, HorusPay could solve the oracle problem by outsourcing it.
Instead of trying to solve the oracle problem, HorusPay passes the problem along to in-country payroll vendors. Those companies have to convert the cryptocurrency and distribute the payments through the local system.
The obvious problem with this solution is that it requires a local payroll vendor with a solution to the oracle problem. If there is no such vendor, HorusPay will not work in that country.
Potential solutions for the oracle problem local vendors include point-of-sale (POS) terminals that accept cryptocurrencies like EOS (EOS) and Ethereum (ETH). For instance, PundiX (NPXS) is developing POS terminals for Ether (ETH) and ERC tokens.
Why HorusPay (HORUS) may not work
Other solutions include cryptocurrency debit cards like that offered by TenX (PAY). However, the major card operators, Visa (NYSE: V) and MasterCard (NYSE: MA) are hostile to cryptocurrencies. In particular, MasterCard CEO Ajay Banga keeps dismissing cryptocurrency as “junk.”
Hence, a more realistic solution is a protocol or application programming interface (API) that converts cryptocurrency into fiat currency instantly. Notably, several companies; including CoinSwitch, TenX, Bancor, Ripple (XRP), and Uphold, claim to offer such solutions.
Uphold, in particular claims it can convert Bitcoin (BTC) into a variety of cryptocurrencies. Moreover, Uphold claims it can make bank transfers in Yuan, Euros, US Dollars, and Pound Sterling.
Thus Uphold could be a logical partner for HorusPay if it takes EOS (EOS). On the other hand, CoinSwitch has an API and it converts EOS.
How valuable is Horus Pay (HORUS)?
The value of HorusPay (HORUS) is very limited. For instance, HORUS had a Coin Price of 0.7¢ and a Market Capitalization of $6.471 million on 28 November 2018.
HORUS was the 352nd most valuable cryptocurrency with a 24-Hour Market Volume of $3,005 on that date, CoinMarketCap estimates. In addition, there was a Circulating Supply of 872.861 million HORUS and a Total Supply of 1.2 billion Horus on the same day.
Hence, HORUS is a bargain for those who believe in it. However, I advise against buying HORUS because of its theoretical nature.
Why EOS is better than HorusPay (HORUS)
Instead, I like EOS (EOS) which is cheap but has a lot of value, because its creators seem to have solved the blockchain scalability problem. For instance, EOS had a Coin Price of $3.28 on 28 November 2018.
Yet EOS had a Market Capitalization of $2.975 billion and a 24-Hour Market Volume of $855.762 million on the same day. Thus there is a lot of demand for EOS. In addition, there was a circulating supply of 906.245 million EOS and a Total Supply of 1.006 billion EOS on the same day.
In conclusion, buying EOS could help you profit from HorusPay (HORUS). If Horus succeeds, it will increase the demand for EOS by creating a market for HORUS.
EOS is a better bet than Horus because many companies are working on solutions for it. Thus investing in an ecosystem is a smarter move than investing in a solution-specific coin like HorusPay (HORUS).