It's a merchant account with real-life validation (via KYC procedure) and ratings system built on top of the user (custom) block-chain, that will guarantee an authenticity with reputation (think eBay accounts). That way customers will be assured they are buying from a reputable merchant, and could rate dealings with this merchant for other buyers to see. We are looking to use some of the POS blockchain capabilities to assist with prevention of possible ratings gaming.

This will be also a great example to user block-chain, showing the potential to various applications on top of Crypti's main chain.

As per the transcation fees, to motivate merchants do the extra KYC effort and open their business to the ratings system, Crypti will compensate them with a portion of the transaction fees, for transactions sent to these validated addresses.