As always we try to address all questions and matters regarding our project.
This is the summary of the AMA with CryptoDiffer team that was held on 27/11/2019 at 13:00 UTC
Q1: You have recently reduced your Net Total Supply From 1B 2key Tokens to 600M 2Key Tokens. Why you took this big step & what inspired you to do so? What will be the impact of this massive step on the token holders?
A1: In short — this step will make the early adopters more meaningful in the network.
As we near the 2key main-net launch and token distribution, we have received an incredible volume of feedback and suggestions from both community members and industry veterans, about not just our product, but also the design of the token, its distribution, and in particular the long-term pool that is meant to fuel continued growth.
After working on the math, and executing incredible foresight, we have reassessed the future pool and cut by 76% (!) We’ve also made other changes to the token metrics without changing the token price or lockups, which resulted in a cut to the total amount of tokens by 40%!
We believe this act will make the 2KEY token be much more valuable over time due to its limited total supply, and for us the team, as our compensation is given in 2KEYs at most, it’s a big factor as well.
You can read more on the blog post we published last week.
Q2: Do you have any plans to attract non-crypto investors to 2Key chain , and how? What are the actions to increase awareness around 2Key Network in non-crypto space?
A2: First, 2key is not a chain, it’s a dynamic blockchain sharding mechanism allowing to form off-chain “Shards” per contractual context. It’s a 2nd layer mechanism, and while we will eventually introduce POS mining for browsers helping maintain the 2key Multi-Party-State-Networks, 2key is not a chain per-se.
Second, we don’t have investors, but participants. 2KEY is a utility token and you may purchase it to become part of the network, and have a stake in the economy. Our goal is to fuel a participate-in economy, which produces a network effect in economic value, and this is why we aim that as the participation grows, the market cap of the economy will grow. We are building many bridges, as well as on-boarding and off-boarding bridges from fiat and to fiat, which will enable to participate with fiat as well, seamlessly.
As the fiat onramps and offramps mature, our biz dev efforts will expand to non-crypto companies, solopreneurs, SMBs, SMEs. We also are working on B2B offerings e.g. SDKs, share widgets, which will be easy to integrate by enterprises, not necessarily in the crypto space.
We are also creating on-ramp off-ramp and bridges to Fiat credit card use with Simplex, Carbon. money, and other solutions, to have non-crypto users taking part in the network capabilities.
We want 2key to be one of the biggest platforms to help bring mass adoption to the small crypto space that’s why we built 2key in a way that anyone can use it without having a crypto wallet until he earned a reward! We’re creating an address for users on our nodes, and they can have a regular web 2.0 experience until they need to withdraw their rewards.
Q3: Why are 2key’s Smart Links, which enable a project’s supporters to directly share in the rewards of a marketing or fundraising goal, a superior and more cost-effective method than traditional advertising or promotion?
A3: At the most basic level, Smart Links allow an integration-free, code-free, multi-step referral and conversion tracking mechanism, as well as economic compensation models mechanism, embedded directly into the links themselves.
Up till now, advertising on the web is highly opaque and non-transparent, as it relies on tracking which is embedded granularly inside private domains (servers). We’re migrating the tracking of the web from siloed integrations within servers, into the links themselves. Moreover, Smart Links are basically HTTP links that embed smart contracts allowing us to embed economic models onto link sharing.
Current referral solutions are non-transparent, require the business to have a website/app, pay hundreds of dollars a month, have code integration skills, software maintenance skills, and even then they only serve for 1 step referrals, whereas SMBs often start out with a very small supporter base and need the network effect of multi-step referral to make referrals work for them. Also, SMBs would rather not integrate code, they sometimes don’t even have a website/app, and with smart links — the flow of payments for referrals is strictly result driven and transparent, so as a referrer or converter, you don’t need to trust the business that you are paid as you should.
The links people use today on the web generate the value to the link owners and publishers (traffic sources), while 2key links generating value to the people engaging with them and sharing them.
It’s a new world where we take the P2P connection to the value layer.
Re-distribution of wealth.
Q4: Don’t need to have a web 3.0 address or cryptocurrencies in advanced, anyone that receives a 2key link can engage and participate, even with a credit card. Can you tell me more about that, how does it work? That’s amazing!
A4: The nice thing is that it's already working on 2key test-net! At test.2key.io try it! Here is one link from a campaign anyone can start with.
Basically, that’s part of the patents we have, and the 2key protocol at work. When you get a Smart Link, someone shares with you on that link a special secret called the State Hash — which triangulates you into a special position in the state machine of the underlying smart contract of that campaign. the smart link also includes a code hash, which the browser uses to download and validate the 2key protocol code.
With the protocol, the browser can immediately become a node in the MPSN of the campaign, and then validate the state hash and create a new state hash, all this is done utilizing pure cryptography, so no servers are required for managing this state. It’s quite amazing, and we have a technical demo video to explain this in detail, welcome to watch it here.
There’s also a drill down on how the cryptography works for the referral part of the Multi-Party-State-Channels, from our talk at Ethereal Summit 2019.
Q5: I’m doing online marketing, so I’m very interested in referral links and I like the problems 2KEY will solve. But what will you do to make 2KEY popular? What are the project challenges to be addressed in the near future?
A5: Well, popularity will come if we are able to offer a new utility for end-users, one that genuinely empowers participants financially and socially. We’ve put a lot of work for setting up a new distribution and conversion-driving solution that can be used for a host of conversion types, with zero risk, transparency, set-your-price, pay only per-result, and a 1 sum game all-around — win-win for everyone.
We believe this will empower any business that CAN use it. So our main goal is to make sure every business CAN use it easily, which is also our main challenge — both the product-market fit, to understand which verticals, geographies, use-cases and cultures will show traction, and making the product as seamless to use for those users.
We have few ways how to make 2key scale and get adopted by online advertisers and marketers, 2 of them are:
- Starting in Q2 2020, 2key will have an ongoing 2key campaign where anyone can invite people to the network, as users or contractors, and gin 2KEYs as rewards, so we will always have a 2key for 2key campaigns.
- Second is, when using 2key, we are not forcing any of the players on the platform to have 2KEY Tokens in advance or even to claim rewards in 2KEY. we just incentivizing them to do so, but they can choose to withdraw rewards with DAI for example.
We think these two (along with many other methods we are building) will create an easier, faster adoption and usage for the network.
Q6: You have recently reduced your Net Total Supply From 1B 2key Tokens to 600M 2Key Tokens. Why you took this big step & what inspired you to do so? What will be the impact of this massive step on the token holders?
A6: We’ve actually worked hard to design an internal circulation mechanism and hedging mechanism, which allows participants to enjoy stability against downwards fall in 2KEY.
When you participate as contractor or converter, as long as you purchase the referral budget with ETH, or make monetary conversions (purchases/ donations, etc..) with ETH, the value of 2KEY at that time is auto-hedged for you, so you are guarded against instability. You don’t have to withdraw your payments as DAI, but it will then be an option you can always opt-in for if you want.
Q7: What’s the major drawback 2Key team faces while developing the product? What're your competitive advantages over others?
A7: We have many frictions as we’re developing both the protocol and the product, in an ecosystem during genesis, everything is extremely wonderful and challenging, and we’re breaking barriers, and inventing solutions everywhere we go.
Q8: Upbit hacking today startled the world of crypto and scared the investors especially about their KYC information.
What are your securities to avoid these hacking?
A8: We are constantly working to enforce security. I would say that for every day we work to advance the functionality of the product, we work 2 days to make it more secure, and half a day to make it look nicer. There are no 100% guarantees, but the more battle-tested the platform, the better it will become.
Q9: What vision of 2key?
What are the 2key obstacles in achieving the vision and mission? And has it been solved?
A9: Our vision is to expand human potential by empowering people to connect directly, collaborate freely and share in the success they helped create. By combining our technology with blockchain and smart contracts, we aim to build a technology that fairly rewards collaboration, transparency and honesty.
We aim to unleash the potential of human networks to achieve great things by working together. We’re building the technology to give small players who do great things the power to build on their reputation to grow and become more successful. We want to give everyone the opportunity to use the power of online referrals, by giving back some of the immense benefits of online sharing back to the people who share.
I believe we just made the first step towards this vision :)
Q10: What types of ROLES can participants play in 2key Network and how can they earn REPUTATION? Also is it possible to buy it?
A10: This is such a good question we actually made an infographic for it:
Reputation is earned or lost based on their actions in the network (for example- a person reported as a spammer will lose reputation, and referer with high conversion rate will earn it)
Reputation is not something you can buy, only earn or lose based on your actions on the network as one of those players.
Q11: Why does 2KEY think referral networks need to be decentralized?
A11: There is no referral network.. That’s the main reason we think it should be decentralized. There are only referral B2B SDKs. When you refer a new client for Uber, you will maybe get a free ride, but beyond that, there is no network effect, you get no reputation, and there is no network. You will never know the name of the company that sold the referral software to Uber, and as a referrer, you will get a fraction of what you are worth. The entire point in building a Global Referral Network — is to create a social-economic network that creates a new kind of network effect — in economic value and social power powered by a common interest of every individual participant in seeing the market cap of the economy rise.
The human brain is actually a global referral network — each brain cell receives 10K signals of information a second, and has to choose, very selectively when to relay them (refer them) onwards, and to which cells in its network. When you get this type of closed network of multi-step referrals you get the mind. We’re aiming to promote a similar network effect, but on the human network level.
Q12: What role does 2KEY play in the 2KEY Network?
A12: 2key as the legal entity conforming to the current world centralized regulations, acts as a default integrator in the network, which is open for other integrators to join.
Q13: What motivated u guys to start this project? Do you have a word of encouragement for the community?
A13: The times are changing. When the old web was built, we didn’t have enough computation power at each person’s fingertips, so an architecture of master-slave was chosen for the human web. The time of masters and slaves is drawing to a close. We now have enough computation power at the hands of the people, to form a new kind of web, one that dissolves and disrupts the two types of centralized powers dictating our lives — central banks, and central servers.
This revolution is real, and it’s happening. Forget about the USD price, that’s like asking for the price of digital photography measured in Kodak shares in the 1970s. Web3.0 is designed to disrupt central banks, so don’t imagine it will be a smooth ride measuring it in the value of the most centralized pyramid scheme fiat currently existing — the USD. Instead — look at the actions of enterprises, companies, countries, this is a new world, and as everyone, every one of us, starts to participate, and once the networks empowering people to start rising, you will see more and more a return of financial power and social power to the people.
Q14: What is the meaning & difference between Upgradable proxy Contracts, Non-Upgradable regular Contracts & Non-upgradable proxy contracts?
A14: Better start here.
Q15: What technology is used to protect users’ data from hacking? Have you ever been exposed to hacking? I think security is the most important thing what about you? (What is the most important thing you are focusing on?)
A15: Depends on the data, there are multiple mechanisms in play, and we’ll continue to make them better as we become more battle-tested in production. We employ a lot of cryptography and try to adopt the best practices wherever possible. Some of our solutions are novel cryptographically, as the Multi-Party-State-Network solutions, which you can look into on the Ethereal summit video I shared, others are more centralized servers for caching and centralized services like KYC, which we try to employ best practices from. We agree that this is paramount, and we will continue to invest resources to make our platform as secure as possible.
Q16: In such a big competition, what strength of 2key to provide the best in the market?
A16: The most critical problem is that the underlying infrastructure itself is being developed, the ground is moving under our feet. We guard against that by developing our own infra, and making sure we are ready to roll regardless of the other moving pieces. Whenever we see a mature enough technology that can be integrated we do so, but in general, our de-risking is to make sure we don’t just have a product, but the infra to run it, and not just have a protocol, but a product so that users and value can stream in.
Q17: 2key is currently running on the Ethereum blockchain. How do you deal with the problem of scalability and are you going to create your own blockchain and switch to it in the future?
A17: 2key is a layer 2 to ethereum so we don’t have any scale problems, the opposite, we are solving scalability issues to ourselves, and later we want to solve for others as well.
We are not planning on building a new layer 1 blockchain, but we do explore launching 2key protocol on more blockchains as 2key protocol is agnostic.
Q18: Which programming/coding languages are supported by 2Key smart contracts?
A18: 2key smart contracts are written in Solidity, and they are all open on our Github for review.
Please check our smart contract page.
Q19: What is the development plan of $2Key in the next 1 to 2 years?
A19: We have a super detailed road map, being updated frequently. Please check it out here.
That’s all for this AMA, thanks for being with us, for more FAQ go here.
