Frequently Asked Questions
Common questions about ColossusNet, card compatibility, regulatory status, and more.
Frequently Asked Questions
General
What is ColossusNet?
ColossusNet is a stablecoin credit card network that settles on an Ethereum L2. It turns standard EMV chip cards into Ethereum private keys, allowing card payments to settle as on-chain stablecoin transfers instantly and noncustodially. See the Overview for a full introduction.
How is this different from a "crypto debit card"?
Crypto debit cards (like those from Coinbase or Fold) run on Visa or Mastercard rails. A centralized custodian sells your crypto behind the scenes and pays the merchant in fiat through the existing card network. You still pay full interchange fees.
ColossusNet is its own card network. The card's secure element signs an on-chain transaction directly. There is no custodian, no fiat conversion at the point of sale, and in the direct debit model fees are 92-96% lower than traditional networks.
Does ColossusNet work with existing terminals?
Yes. ColossusNet is EMV standards compliant. Any EMVCo Level 1/2/3 certified terminal works with ColossusNet cards. No terminal changes, firmware updates, or new hardware required.
Does ColossusNet require a new card?
Not necessarily. ColossusNet uses dual issuance, loading the Colossus applet alongside a Visa or Mastercard applet on the same physical card. See Card Architecture for details on how this works and the regulatory basis.
Is this just for crypto people?
No. The cardholder experience is identical to tapping any other payment card. The stablecoin settlement happens behind the scenes. Merchants see a standard terminal approval. Cardholders do not need to understand Ethereum, wallets, or stablecoins to use the card.
Card & Cryptography
Why does ColossusNet use ECDSA P-256 instead of RSA?
EMV cards communicate via APDU commands, which have a 256-byte width limit. RSA-2048 signatures consume the entire APDU payload with no room for transaction data. ECDSA P-256 signatures are only 70-72 bytes, leaving ample room for transaction context. P-256 also provides 128-bit security, equivalent to RSA-3072. See Card Architecture for the full analysis.
What is dual issuance?
Dual issuance means loading two payment applets on a single card, for example a Visa applet and a ColossusNet applet on the same chip. The Durbin Amendment mandates that every debit card in the US must support at least two unaffiliated card networks, so card manufacturers already support this. See Card Architecture for details.
Can ColossusNet run on a phone (virtual card)?
On Android, yes. ColossusNet can load its JavaCard cap files into a virtual secure element on Android phones, enabling NFC tap-to-pay without a physical card.
On iOS, not yet. Apple requires root certificates from their own CA to provision applets on the Secure Element and has not opened this to third-party payment networks. In the EU, regulation has forced Apple to open NFC access, so iOS support is available there. Full iOS support globally is pending Apple's cooperation.
Does ColossusNet support Apple Pay or Google Pay?
Apple Pay is not currently supported because Apple restricts access to the iPhone Secure Element and requires root certificates from Apple's CA. Android (Google Pay / NFC) works today using open-source NFC libraries (e.g., from Arx Research).
Payments & Commerce
Does ColossusNet work for online / e-commerce purchases?
Not currently. EMV transactions require a cryptographic proof generated by the physical card interacting with a terminal. E-commerce (card-not-present) transactions do not produce this proof, so they are not supported in v1. See Settlement for planned future support.
What about agentic commerce (AI agents making purchases)?
Agentic commerce is one of ColossusNet's early target use cases. AI agents benefit from ColossusNet's properties: no chargebacks, instant finality, and deterministic on-chain settlement.
Does ColossusNet support pre-authorization (e.g., hotel holds, gas pumps)?
Not in v1. Pre-authorization requires a dual-message system with separate authorization and capture steps. ColossusNet operates as a Single Message System where authorization and settlement are atomic. See Settlement for the full v1 limitations list.
Is there an offline mode?
No. ColossusNet requires online authorization for every transaction. There is no offline approval path; this is a fundamental security invariant. See Security for details on how this is enforced.
Fees & Settlement
What are the total fees for a ColossusNet transaction?
It depends on the settlement model. See the fee structure overview for detailed tables and comparisons with traditional networks.
In the direct debit model (no issuer), merchant fees are approximately 0.23-0.45%, a 92-96% reduction compared to traditional card networks.
In the issuer-mediated model, an interchange fee of up to 2.50% is also charged (paid to the card issuer who posts collateral).
Are there chargebacks?
No. On-chain settlement is atomic and final. Once a transaction is confirmed, it cannot be reversed at the protocol level. Dispute resolution is handled by third-party insurance providers outside the transaction flow. See Settlement for details.
Can merchants convert stablecoins to fiat?
Yes. ColossusNet supports wire liquidation for converting stablecoin balances to fiat via wire transfer. See Settlement for details.
Regulatory & Compliance
Does ColossusNet require KYC/AML?
ColossusNet itself does not perform KYC/AML on cardholders or merchants at the transaction layer. Under the GENIUS Act, the KYC/AML obligation falls on the stablecoin issuer (e.g., Frax for frxUSD, Circle for USDC), not on the payment network. See the Overview for more on the regulatory framework.
Wire liquidation (converting stablecoins to fiat) does require KYB/AML verification at the liquidation provider level.
How does ColossusNet handle OFAC compliance?
OFAC sanctions screening is enforced at the sequencer level before transactions are included in blocks. See Security for details.
What is the GENIUS Act and why does it matter?
The GENIUS Act classifies stablecoin transfers as payment instrument transactions, meaning ColossusNet can move stablecoins without a money transmitter license or per-transaction KYC/AML. See the Overview for more context.
What about the Durbin Amendment?
The Durbin Amendment requires that every US debit card support at least two unaffiliated payment networks, enabling ColossusNet's dual issuance model. See Card Architecture for details.
Stablecoins & Bridging
Which stablecoins does ColossusNet support?
See Smart Contracts for the full supported stablecoin list. Token selection is an acquirer-level configuration.
Why is frxUSD the preferred stablecoin?
frxUSD (Frax USD) generates yield from on-chain treasury holdings, is GENIUS Act compliant, and provides zero basis point wire liquidation facilities for converting stablecoins to fiat.
Can I fund my account from other chains?
Yes. ColossusNet uses LayerZero OFT V2 to bridge stablecoins from any EVM-compatible chain. See Cross-Chain Architecture for supported chains and bridging details.
Does ColossusNet support foreign exchange (non-USD currencies)?
Not currently. ColossusNet supports USD-pegged stablecoins only. The on-chain validator restricts transactions to currency code 0x0840 (USD, ISO 4217). Multi-currency support is planned for future versions, with Brazil as the next target market.
Technical
Is ColossusNet open source?
The ColossusNet protocol specification is public. A provisional patent has been filed on the non-custodial EMV settlement mechanism (the method of using EMV card signatures to authorize on-chain stablecoin transfers).
What is the transaction latency?
ColossusNet targets 100ms preconfirmation from the sequencer. The total end-to-end latency from card tap to terminal approval is under 1 second. See System Architecture for the full timing breakdown.
What blockchain does ColossusNet run on?
ColossusNet operates as an Ethereum L2 (Layer 2) rollup. It uses ERC-4337 (account abstraction) for wallet accounts, ERC-7579 for modular smart account plugins, and the RIP-7212 precompile for native P-256 signature verification on-chain. See System Architecture for details.