Why and the what of smart contracts on blockchain …
Smart Contracts are a term originally thought to be coined by Nick Szabo in the mid 1990s. He is a renowned computer scientist and cryptographer. Basically he thought smart contracts could combine protocols with user interfaces to formalize and secure relationships over computer networks.
Years later bitcoin came about and then ethereum and the concept of a Turing compete blockchain platform opened up this smart contract concept to the rest of the world. Smart contra today can be thought to leverage and convert a contract into logic and computer code, stored and replicated on a technology system like blockchain, and under authority and supervision of the distributed decentralized computer network.
How Smart Contracts work
A contract enforced and defined by cryptography and in some instances , computational gas costs(ethereum). They are self executing, rules-based programmatic code and built within a if-then-else logic tree. Think of a real estate or eBay or Craigslist transaction by two or more parties exchanging funds and the entire process is automated and secured within a smart contract Escrow released payment cycle. And these payments are only release based on the logic within that smart contract.
Think Voting transparency and storage possibilities. Digital healthcare identity’s and medical records stored on blockchain. And many more people are cases.
Smarter contracts automate away the complexities of third party payments and inefficient processes. The strength is the blockchain network, private or public , which provides some form of distributed immutability and security, reliability, and transparency.
As a business or organization you feel secure and comfortable in your knowledge that relationships between customers, vendors , partners , contractors and employees are built within this automated intelligent secure smart contract blockchain network. An Optimized efficient and less manual process without the need for paperwork .
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Reddit Launches some loot tokens for reputation and rewards on ethereum.
2 new types of loot tokens have been created. It’s a token on the Ethereum blockchain that is earnable within a community rather than purchased. They signaled that their plan to pivot the company’s monetization strategy more towards crypto. Interesting tidbit. And This overall initiative is referred to as “Community Points” and builds on the early experiments from /r/Ethtrader donuts.
What are the two loot tokens called?
Reddit launched “Moons” ($MOONS)
for /r/Cryptocurrency and
“Bricks” ($BRICKS) for /r/ForniteBR
I wonder how they plan on getting away with “bricks” considering LEGO uses bricks and such and doesn’t really like when people use their lingo for business revenue.
The tokens are available on specific subreddits on the new Reddit theme and in the app.
Users will be able to access the tokens in their Reddit “vault” an in-app ERC20 wallet available on both iOS and Android.
Basically a crypto wallet in a sense.
Reddit will distribute these tokens initially based on Reddit Karma to represent compensation for the value that users have contributed to the community overtime.
Reddit itself will keep a portion of the tokens in each subreddit, and award a small portion to the community moderators for managing the subreddit.
On the launch day there will be an initial distribution of 50M tokens covering previous activity in the subreddit, and then the remaining tokens will be distributed month over month diminishing with each monthly distribution until it hits its cap of 250M tokens for each individual subreddit.
Reddit has indicated that the community will also have some ability to govern the model of distribution with in each independent subreddit.
What can you do with Reddit Loot ?
The Community Points Program issues a type of loot token on the Ethereum blockchain. So you can earn loot in the community as well as redeem it within the same community.
One major usage is using these tokens to tip other users. You can also buy badges and awards, take part in weighted polls, or buy a special membership to each particular subreddit (that gives you a colored user name, specialty loyalty badges, and the ability to embed gif replies in your comments.)
Economics of the loot tokens
The economic model has three key points:
1) Number of tokens issued diminishes over time, and can only be earned from human effort.
2) All future human effort earns less tokens than all prior human effort. There is a hard cap of 250M tokens in a subreddit. There will never be more than 250M $MOON tokens.
3) Every time $MOON tokens are used to buy badges, memberships or for any other action on Reddit, they are burned. (destroyed !).
The price of an asset increases as supply lowers and demand increases
So the more active a community is and the more value it creates for its users, the less tokens will exist over time.
Tokens will have a lower supply, but, a greater demand.
Any other usages ?
Moons and Bricks are both ERC20 tokens on the Ethereum blockchain, you can do whatever you want with them.
In the Reddit app your wallet is a full Ethereum wallet that has a private key and recovery phrase. You are able to use that wallet anywhere you would normally use an Ethereum wallet by exporting it.
This means that once you claim your tokens you own them and no one else has access to them. Not even Reddit.
While these tokens started their journey with Reddit, they ultimately represent value created within a specific interest group, and could start to proliferate across other mediums.
If you want to list your tokens on exchanges to sell, you can do that too.
While Reddit is very likely to continue exploring new features to redeem these tokens for, the tokens are fully decentralized and can be used by anyone in anyway.
Interesting stuff and use case.
- Zcash Foundation plans to bring its privacy features to the Cosmos ecosystem.
- The project will utilize “pegzones” to add an anonymity layer to cross-chain transactions.
- This will allow shielding assets, transfers and staking across blockchains.
- It will be possible to move Zcash from one blockchain to the other.
Blockchain being used for music and streaming and payments . Grammy-nominated singer Akon will launch his forthcoming token using Stellar’s blockchain.
According to an update , the Akoin cryptocurrency ecosystem will use Stellar’s network as its basis. Akoin co-founder and president Jon Karas said the decision was made in part due to the shared values between his project and Stellar.
“ Akoin selected Stellar’s distributed, hybrid blockchain due to a shared vision for creating global financial inclusion, particularly in areas such as Africa.”
The update claims Akoin will be compatible with Stellar wallets and interoperable with all digital assets and currencies currently supported by the Stellar network. Karas highlighted the Stellar Network’s “efficient cross-asset transfers of value” as a benefit for Akoin and said users will be able to instantly swap from one currency to another.
In addition, users will be able to exchange mobile phone minutes, which have become a popular means for exchange in certain parts of Africa, for Akoin and other currencies on Stellar’s network.
According to a spokesperson for the project, Akoin will not be a stablecoin and instead have a fluctuating price. He said,
“ Akoin is not a stablecoin, but we will provide access to other leading stablecoin offerings within our eco-system.”