Info Technology Crypto: Bazista E-commerce decentralized money of online trading in the world

This document sets out the basic provisions and principles of operation of a new trading platform that will enable users throughout the world to buy andsell any goods and services by using different cryptocurrencies when making transactions. A c o m p l e x r a t i n g s y s t e m incorporated into our service,encouragement for participation in sales of other users’ goods and proper transaction support by the Bazista team minimise risks and make the purchase and sale process even more transparent and attractive than ever before.

Even though we are not the first or last to try to realise our ambition, we are full of optimism and ambition to rank among those who develop new infrastructure, come up with and implement bold ideas and decisions that at the end of the day help make people’s life easier around the world. A good example for us is the success of Amazon and Ebay companies that have forever changed the trading rules in the B2C and C2C sector. Today we would like to introduce you to the platform that will allow taking a significant step forward in the electronic commerce industry. By using new payment instruments and state-of-theart technologies of data exchange and storage we have created the platform enabling the simple and safe online exchange of goods and services, the Bazista platform.

This document describes major features of the project:

Describing the platform structure and functional to exchange goods and services for cryptocurrencies and digital assets.
Role of own security tokens when it comes to creating a unique loyalty system.
Implementing the system of receiving additional income due to creating user’s advertising campaigns and mutual cooperation between users on the platform.

What is Bazista ???

Bazista is an E-commerse platfrom which uses decentralized money to lower the berriersof online trading for any person in the world.

How it works

Mission

We state our aim as being to create a simple and safe platform enabling the

exchange of goods and services, with a wide range of infrastructure solutions offered to users and holders of cryptocurrencies and digital assets. Using cryptocurrencies and digital assets for the settlement of accounts between our platform users allows ensuring transparency of transactions, and creates new ingenious ways to make money due to capitalising user activity on the internet. We believe that the main purpose of cryptocurrencies is to make payments, in particular with the aim of making transactions relating to the purchase and sale of goods and services, which is the key aspect of human economic activity. So we make it our task to not only make life easier for internet users but also to increase loyalty and drive up demand for cryptocurrencies at large. Due to Bazista it won’t be long now until real goods and services are available in exchange for cryptocurrencies and digital assets.

Bazista’s Advantages

Advantages for Buyers

-Payment in a few clicks A platform user can purchase the goods they like without having to register themselves (see “Payment of Goods”).

-No hidden commissions Owing to using cryptocurrencies as an instrument of exchange, platform users can avoid additional expenses associated with conversion of fiat currencies on classical C2C platforms (e.g. for cross border trading), which will allow saving 1.5–3% of the paid cost on average.

-Tax free Considering that the status of cryptocurrencies is not clear in most

jurisdictions, it is vital to note that exchanging goods and services for cryptocurrencies is non-assessible, which contributes to reducing buyers’ expenses.

-Instant payments Our platform will enable all holders of cryptocurrency assets to use them as an instrument of purchase of different goods by substantially reducing time expenditures when a transaction is made.

-Using internal tokens Holders of BZS tokens will also be able to buy promotional goods in exchange for tokens at a discount of up to 70% of their initial cost. It will become possible owing to forming a special reserve fund within the platform (for more detailed information see “Business Model”).

Advantages for Sellers

-Low commission or commission free transactions

Commissions collected by the platform for making a transaction are just 4% of the final cost of the goods. Placing goods on the Bazista platform will allow reducing costs due to low commissions or commission free transactions by depositing BZS tokens on the account balance (see section “Storing Tokens”)

-Instant payments

By using cryptocurrency as an instrument of exchange for the goods and

services offered, you will also avoid time expenditures associated with control and checking of payments through local and international regulators.

-Additional marketing tools

Moreover, you will have no trouble creating your own CPA network within the platform where you will be able to regulate fees for users that will sell your goods.

Advantages of creating advertising campaigns

-As previously mentioned, the platform provides a system of fees for those who

will sell other users’ goods and services. This feature is implemented due to a

unique number in the member area and UTM mark. If a buyer links to the

platform page showing the particular advertisement, with a link generated as

part of this program, and makes a purchase, a user that posted such link will get a fee pursuant to the conditions of the advertising campaign (for more detailed information see “Business Model”).

Market

Today we can see annual growth of a share of e-commerce throughout the world. According to eMarketer, in 2017 a share of online shopping will increase to $2,290 billion, and by 2021 it will stand at 16% of the total of world retail trade.

According to experts, China is expected to continue to hold leading positions as a driving force of the world e-commerce market (26% per annum), in particular due to export retail online trading. Other developing countries, such as India (24%), South Korea and Indonesia (over 20%), are expected to show high rates of growth. Demography and rapid extensive use of mobile

According to analytics,the following are TOP10 countries for the number of (fixed and mobile)

internet:

China — 710 million users,
India — 350 million users,
The USA — 277 million users,
Japan — 110 million users,
Brazil — 110 million users,
Russia — 84 million users,
Germany — 72 million users, Indonesia — 71 million
users,
Nigeria — 71 million users, Mexico — 59 million
users.

In addition to this the platform involves two types of pricing:

A fixed price. when selecting it a seller states the cost of goods in the

cryptocurrency they have selected. Irrespective of changes in the rate of that

currency against the US dollar, the price of the goods will remain unchanged.

Free pricing. in this case a user also chooses a cryptocurrency approved for payment, but is able to state the price for the goods or service in dollar terms. Thus the cost of the goods in the cryptocurrency chosen will change pursuant to the rate of that cryptocurrency against the US dollar.

It is important to know the pricing conditions set out in the particular advertisement also apply to the cost of the delivery of goods or service in terms of the said advertisement.

Payment of goods

For users who were the first to log into the platform we created the system enabling the purchase of the goods you like in just a few clicks. To use the system a user has to choose the goods they are interested in, to make sure that a fixed price is set for delivery, and to click the “Buy” button after which a user will be prompted to enter information related to delivery and their contacts and all that remains is to transfer to the wallet address the appropriate currency from their personal wallet (existing outside the Bazista platform) and check email. All necessary information and a link to complete will be sent to the email address you provided.

It is strongly recommended that you provide accurate information since in case of any dispute in terms of each transaction the arbitration will refer to the information in your profile and can require the said information to be confirmed.

Please take a closer look at the methods and specifics of payment of goods and services on the platform.

Since the Bazista platform offers sellers to accept payment for the goods and services in any cryptocurrency of your choice, this leaves traces on interaction with a buyer when a transaction is

made. When choosing an advertisement a buyer can found that the payment accepted for such goods

Varies from time to time. It means that the free pricing system applies to this advertisement. In the event of change in the rate of the selected cryptocurrency against the US dollar, the price of the current goods or service will also be changed proportionally.

Remain s static. in spite of change in the rate of the cryptocurrencies against the US dollar. In this case a buyer should understand that the fixed pricing system applies to the advertisement and a seller intends to obtain the exact amount of cryptocurrency stated by it in spite of volatility and any market change (if the payment is accepted in any of cryptocurrencies shown, its cross rate against other cryptocurrencies does not affect the cost of goods and service either).

Is accepted in any one or several cryptocurrencies. When accepted in several cryptocurrencies, the goods mentioned in an advertisement can be paid in any one or several cryptocurrencies (accepted by a seller in terms of any particular advertisement). In this case a seller can at its discretion choose the method of payment acceptable to it and make a payment in the cryptocurrency chosen.

Completing a transaction

After the agreement is made between a seller and a buyer, the amount necessary for completing a transaction will be blocked (deposited) on the platform until the transaction is marked by a buyer as completed. At standard conditions this deposit term cannot exceed 45 consecutive days, and unless a buyer marks the transaction as completed or opens a dispute in terms of the current transaction during the said period, the amount will be automatically released from deposit to a seller.

Business Model

This chapter sets out basic mechanisms of financial composition of the platform, standard and additional commissions, the cost of additional services, conditions and amounts of bonuses and benefits granted to Bazista users, and principles of operation of marketing campaigns created within

the platform.

Standard commission

The overwhelming majority of C2C trading platforms work for a fee as a commission for a transaction made. An average amount of such commission of the goods sold (exclusive of additional charges). Such system is widely spread and accepted by interested persons so we will keep it on our platform but thanks to refusal to use fiat currencies and all related expenses we will reduce commissions for transactions up to 4% of the transaction made. This

commission will be used for covering operating expenses, expenses associated with the service of the platform and the financing of budgets. Moreover, 10% of the amount of that commission will be transferred to the reserve fund.

Reserve fund of the platform

As already discussed, 10% of the standard commission of the platform due to the transaction made will be transferred to the special reserve fund. The money kept by the reserve fund will be spent on the purchase of goods and services that will be sold on special terms to all platform users in exchange for internal tokens. This way we will gradually buy out our own tokens in exchange for liquid goods and services provided. This business model states its aim to increase users’ loyalty to the platform on the one hand, and to add value to BZS tokens on the other.

Keeping tokens in a BZS

For users that provide additional support for tokens, the Bazista platform is here to put forward an additional offer. For those who keep their BZS tokens in their account the standard commission of the platform has reduced.

Subscription

Profit generation on the platform

UA (User Acquisition) Target audience

C1 (Conversion)

Av. Price (Average price)

Average payment count (APC)

Revenue calculation

Revenue was calculated on the platform pursuant to the following formula:

R = UA x C1 X Av.Price x APC

R = (2,900,000 * 2.48%) * ($95.45 * 4% — 10%) * ((2,900,000 * 2.48%)*21.38%*3.58

+(2,900,000 * 2.48%)*78.62%*1) = $383,477.44

Cost of goods sold

(a) Cost per action

When forecasting costs of goods sold with respect to the platform we were guided by the average payment rate per action (sale) equal to 30% of the platform income amount. This indicator is equal to $3.43 * 30% = $1.03

(b) 1sCOGs (Cost of goods sold for the first sale)

As an additional instrument for bringing in Bazista platform users, we offer users already registered to bring in new users and get 60 BZS tokens for every user brought in. Since the price of 1 BZS is equal to around $0.03 (at the time of ICO), then according to our forecasts the amount paid per 1 new user will

make 60 BZS x $0.03 = $1.8.

CM (Contribution margin)

CM = R — CPA — 1sCOGs

CM = $383,477.44 — (71,920 * $1.03) — (71,920 * $1.8) = $179,943.84

FC (Fixed costs)

This section sets out the projected amount of fixed costs since we admit probability of the actual amount being different from that stated below.

Approximate salary expenses stand at $120,000

Approximate other expenses stand at $25,000

Profit before tax

P = CM — FC = $34,943.84

Conclusions

(Based on our forecasts and statistics suggesting the rate of e-commerce and cryptocurrency market growth we can conclude that by the end of the first operating year the Bazista platform will return to profitability.

BZS token

Reasons

From the theoretical perspective, the Bazista platform could limit its features to different crypto-currencies that already exist. Why did we decide to create and use our own auxiliary token within our platform despite both intense competition and associated risks?

-The single internal token is here to set the stage for the Bazista developing platform-based single standards. The successful funding will contribute to promoting the complex development of the platform.

-Loyalty Improvement System and Bringing In New Users Owing To Creating Mutually Advantageous Conditions. An extensive and flexible structure of the turnover of own tokens within the platform will allow implementing a wide range of fee options for buyers and sellers.

-Bold undertakings require non-conventional funding methods to be used for getting an actual chance to affect the market that already exists. Selling own ERC20 tokens will allow creating new income flows for developing and supporting theplatform, and will assist in building well-developed infrastructure for all those who use crypto-currencies.

BZS support and development within the platform

BZS is initially created at the stage of the fund-raising campaign. Then it will

include different functions within the project.

Using a token

1.To sign up to the platform, a user has to fill in a form and enter personal data on the website. After registration is successfully completed, unique account addresses will be generated in the member area, including those for BZS tokens. A new user intending to use the functional in full and additional benefits of working with the platform will have to top up their account with the use of BZS tokens.

2.To this effect one may send tokens directly to a generated wallet address or earn tokens through actions within the platform that will be detailed below. Users will not be able to buy goods and services on special promo until the minimum amount of internal platform tokens is available in their account.

3.Users can buy and sell goods or service by creating fixed-value advertisements or creating an auction. The platform will process rates and decide the winner pursuant to the rules set by the platform and participants. To activate additional services when posting fixed-value

advertisements or by type of auction, a seller will have to use additional BZS tokens pursuant to the platform rules.

4.Users can keep their tokens on the platform and exchange them for other participants’ goods and services.

5.The system will offer bonuses to participants that opt for keeping BZS tokens on the platform. So when the amount kept in the account balance exceeds 15,000 BZS tokens, a user will be offered a lower commission collected for making a transaction. As the number of BZS tokens that will be kept by a user in their account increases, different kinds of bonuses and privileges will be offered. Bazista will reward users showing their loyalty to the system. A user will still be able to spend/transfer tokens but if the balance of tokens deposited on the platform is below the minimum set by the platform, the premium conditions will be changed.

Emission and distributing tokens

Issuing tokens and the process of their public offering will be arranged through the smart contract on the Ethereum blockchain. At the time of crowdsale a total of 440,000,000 BZS tokens will be issued. This quantity is final and no additional rounds of emission will be provided for.

Tokens will be issued within the framework of the smart contract delivering the ERC223 standard that gives the edge over ERC20 earlier developed. It is important to note that in case of incorrect transaction of tokens to the address of the smart contract not providing for the handling with the same they can be recalled by using the token Fallback function that will help prevent any loss of tokens.

1 ETH = 11 000 BZS

Distributing tokens

321 200 000 BZS (73%) will be available during the crowdsale
66 000 000 BZS (15%) will remain with the Bazista team
17 600 000 BZS (4%) is the reserve for marketing campaigns within the platform
13 200 000 BZS (3%) can be obtained within pre-ICO
13 20 0 000 BZS (3%) will be given to the project advisors
8 800 000 BZS (2%) will be paid within the bounty campaign

Pre-ICO

The conditions of obtaining tokens under the pre-ICO programme provide a bonus of 30% of the initial number of tokens obtained. This programme involves several offline rounds of investment. We are also considering initiating a round of investment online. The options, date and time of online round will be included in the document as soon as detailed information on the programme is available.

13200000 BZS

will be available under the pre-ICO programme

Crowdsale

The information on the exact date of crowdsale and all related updates are available on bazista.io

Bonuses on tokens during crowdsale: