eNAIRA
All you need to know about eNaira
What is eNaira?
eNaira is a digital payment platform based on a special type of blockchain. Unlike the one that powers cryptocurrencies, the digital ledger that holds the eNaira is not a decentralised system. Therefore, the first thing to note is that eNaira is not a cryptocurrency. Nonetheless, like the cryptocurrency, every single eNaira is coded, which means that it is traceable. The second thing to note is that, like with your physical wallet, you get out what you put into it. It is not speculative.
How eNaira works
Imagine that John has an account in Revel Bank.
He is interested in eNaira. He signs up on the platform.
He creates a personalised electronic wallet. He goes to his bank and transfers money from his account to his eNaira wallet.
Imagine that Gynette Ltd is a service provider or a trader selling products. Gynette has an account in Lepons Bank.
Gynette Ltd sign up on eNaira platform and creates an electronic wallet.
Gynette provides services to John and issues an invoice.
John signs into his eNaira electronic wallet and transfers the money owed to Gynette Ltd.
In the same way, randy Mr. Spaghetti who has an eNaira wallet transfers money to Miss Busty who also has an eNaira wallet. She is able to buy cosmetics from Freaky Salon that also has a wallet.
In all cases, the process is concluded without the exchange of physical currency notes.
As long as there is money in the wallet, John or Mr. Spaghetti could continue to spend their eNaira. When the balance is low, they would need to transfer more funds through their bank accounts.
How it differs from bank transfers
The transfer is between two eNaira wallets held on the same platform. It is instantaneous.
Notifications are sent and received of the transaction.
No bank transfer and no third parties are involved. John does not need to know the bank that Gynette uses. So, there are no bank charges on the transaction.
How it differs from cash payment
Unlike a physical wallet and hard cash changing hands, in the case of digital wallet, no actual currency notes are exchanged.
Similarities with cash in wallet
Even if they are mostly grouped together in various denominations, the Naira in the physical wallet have reference numbers. So does each eNaira. More important similarity is that you can only spend what you have in a physical wallet. It is the case also with a digital wallet. There can be no negative balance.
