Vault Logic aims to disrupt obsolete current atms by deploying multi-use smart kiosks where users can pay their bills top up cell phones in minutes, cash cheques, send gift cards and much more by paying through fiat and cryptocurrency.
Douglas Scribner, the co-founder of Vault Logic talked to BlockPublisher about the challenges he has faced in deploying Vault Logic’s ATMs. Currently, Vault Logic has 8 atms, deployed at different locations in the U.S, Douglas also gave his exclusive insight in to Vault Logic’s goal to deploy 500 atms in the next 1-2 years, how the company is making sure that the atms are fool-proof from hacking and to take Vault Logic overseas by installing atms worldwide.
- What are the challenges that you have faced initially?
Douglas: This is something that was with a partnership of ours, we borrowed a design which was pretty good but we had some other requirements that we wanted to implement. Designing pretty much from scratch, a brand new machine costs a lot of money moreover, raising money and to keep money flowing has always been a challenge. We are raising funds as we have got a security token offering (STO) coming up and we are offering accredited investors, 25% of all the crypto revenue from the first 500 machines.
We have got a couple of teams who work remotely, our CTO Oliver Goretzki, who was with me at ‘Watch My Bit’, is leading the charge. We have developer teams from a couple of countries and it is the same team for over a year and a half, which also has background of ATM industry.
- The machines that are currently working at different locations, how were they funded?
Douglas: For the most part, self-funded but that is going to change. We are already receiving investments and we are already acquired, so we have already in a way had a lot of success. The company was acquired by a parent company ‘Mantle’ which people will hear a lot more about in the future. Ours smart ATM is a multi-use kiosk that will deal in bitcoin, Litecoin, Ethereum, Bitcoin Cash. We have also integrated the ‘Waves Platform’ and we can add other coins as we go along.
- What challenges have you faced in terms of regulations and laws that are applied on ATMs?
Douglas: The good thing about having a multi-use kiosk that allows third party money service businesses to build apps is that third party money service businesses are the ones who are required to get their permissions to operate their apps on our platform. We provide a hardware in a software open API platform, filled with biometric scanners, front-facing cameras, NFC, Bluetooth, advertising screen and all kinds of different sensors. These money service businesses require licensing and every state is different. In some states, bill payment is completely unregulated and anyone can pay bills just through ATMs whereas, in other states it may require a little hoop to jump through when it comes to crypto. I know there are several states that are very onerous when it comes to some of the regulations and we are not necessarily the ATM provider, it could be any ATM provider. If a guy owns 50 ATMs at every gas station on highway 94 from Minneapolis to Montana, he already has an ATM license and the permissions required to dispense bank ATM cash. This person could get our machine in those gas stations through his same license and now this person has not only his old ATM business which always works but now he has got about 4 times the revenue from other revenue streams that this machine provides.
- How Vault Logic is making sure that the ATMs are safe and difficult to hack than the rest?
Douglas: We always will have to be on the lookout for hackers and we have employed pen testers and white hat hackers to try to break into our system.The system is designed by an engineer who knew what he was doing and has that tested before. It is not impossible to hack and we will always be going to look for someone who can help us find those vulnerabilities.
I’m positive it will be hacked, the reality is atms get hacked and we have some pretty good security in our system. We have got backups and some really great methods in place. This does not mean there is not going to be anyone you will figure out how to physically hack it. We have to be very always vigilant like any ATM company, we have got to be very cautious and as new threats appear, we will have to figure out a way to neutralize any threats through software patches updates and maybe some hardware updates. But our machine is different than most bitcoin ATMs. Ours has much thicker steel and once the outer doors are opened, there are more vaults on the inside.
- Great! What shall we expect from Vault Logic in the near future?
Douglas: In one to two months, we will deploy 20 to 50 brand new ATMs in the field, possibly at some high-profile locations. We have got 70 machines on stand-by and ready to be deployed which they will be once we pull the trigger, it will be just a matter of weeks. We have several partners who have all kinds of locations lined up and we are taking in investment and moving forward with this plan to have up to 500 machines in the next 1-2 years. There are only 4,000 crypto ATMs in the world and 2500 of them are in the US, we want to have our first 500 ready to go within a year or 18 months.
First 50 to 500 machines will be in the U.S. but that will not stop us from working on relationships with other countries and manufacturers overseas. Our ATMs deployment in the US can happen at the same time as we make arrangements and do partnerships with other companies in other countries.