Why DreamTeam Tokens are Exceptional
In this article we are going to unveil what technically makes DreamTeam Token (DREAM), the token of esports, different than other tokens and ICOs you may have heard about. While our token distribution event may have looked like a regular ICO with the common ERC20 token, we’ve done something special.
What are Tokens?
In the modern world of cryptocurrency, tokens are simply a kind of electronic cash. The difference is that you don’t need a bank to store them: they are stored in a global decentralized ledger, blockchain. As well as with regular currency, you can buy and sell tokens, and, most importantly, use them for a purpose. The use case of almost all tokens that are issued around the world today is to circulate in particular a business, platform or web service.
If you think that tokens are something new and terrible, think again. Our world is already full of tokens:
- Currencies of different countries are tokens. In order to buy something, say, in Ukraine, you need Ukrainian Hryvnias. When you buy something in Ukraine with your dollar credit card, you are charged in dollars, but a bank exchanges it into Hryvnia behind the scenes.
- You then exchange those “tokens” for another type of “tokens”, which, for example, may grant you access to a public transit or your favorite cinema.
- Any form of discount can be considered tokens. You can use discounts in particular places and trade them for other “tokens”.
- Any item, like stamps or fridge magnets, can be considered tokens!
Of course, the more tokens we have, the harder it is to manage all of them. But eventually, everything will always be compared to the most stable token (as it is today for USD or EUR).
Typically, tokens are launched over existing blockchain platforms which support smart contracts. The most typical token today is known as ERC20 token, which operates over the popular Ethereum blockchain.
What are Ethereum and ERC20 Tokens?
Ethereum is a global platform for building decentralized applications. On top of Ethereum, everyone can create and use smart contracts. Smart contracts are global, unchangeable programs that always run deterministically, in a way they were programmed.
In terms of a blockchain platform, token is a smart contract that manages who has how many tokens and prevents tokens from being created out of nowhere. Thus, the total supply of tokens is always fixed, hence they have value.
ERC20 is a token standard, or a specification of the token smart contract. It tells the technical details of how the token must be implemented in order to be compatible with token exchanges, different applications and so on. For example, you can compare the ERC20 standard to a plastic card. All plastic cards around the world comply with a single card standard and have the same shape and properties. The same is with ERC20, it is a standard for “electronic cash”, or tokens, which allows everyone to use this token in the same way.
The ERC20 token standard defines two basic abilities regarding managing tokens, which creates a complete framework for decentralized applications:
- Transferring tokens from one account to another.
- Adds ability for the token owner to allow someone else to transfer their tokens.
In fact, aside from tokens, Ethereum has its own currency, Ether. Ether is used to pay for all transactions in the network. While Ether may seem odd, it is required for the blockchain to operate and makes the whole Ethereum platform secure and unbreakable.
The Need of Ether
The need of Ether to transfer tokens is not just about how Ethereum was made. To keep any decentralized network (today’s blockchains) running smoothly, it requires support and that doesn’t come free. The payment usually comes in the form of some kind of cryptocurrency fee or computing power. If everyone made transactions without paying network fees, the network would be spammed with millions of transactions and, eventually, reach its peak capacity.
In Ethereum, you must pay a fee in Ether for any network state change, thus rewarding miners for including your transaction into the block. Fees in Ether are paid for each transaction, including transferring Ether, deploying smart contracts and executing smart contract functions.
Managing two crypto assets instead of one creates more problems both for users (they have to manage two assets instead of one) and application owners (as each little complication drastically drops the number of users). This way, it introduces quite a big inconvenience for users: in addition to the tokens they want, they also need to get Ether somewhere. Imagine spending dollars and then being asked to also hand over some Hryvnias.
Taking into account that current Ethereum is made of nearly 97% different ICOs and transactions that utilize ERC20 tokens, an inconvenience about holding Ether makes those projects highly narrowed only to those users who are experienced enough in terms of Ethereum, and not useable at all for the masses.
So Why are DreamTeam Tokens Special?
As simple as it is, you don’t need Ether to transfer DREAM tokens! Furthermore, the tokens themselves are secure and 100% controlled by you. No worries: the token we’ve developed is an ERC20-compatible token, which means the full compatibility with any third-party applications, exchanges and services.
Instead of paying a fee in Ether, you can choose to pay it in DREAM tokens. This is way more convenient, as you may already have some DREAM tokens. All operations that the ERC20 token standard allows can be made by paying a fee in DREAM tokens.
This opens almost endless opportunities for DreamTeam token uses, because it becomes easily acceptable and transferable just like Bitcoin, Ether or any other cryptocurrency.
If you want to know more about the details of DreamTeam token implementation, you are welcome to read my technical article. I hope you enjoy reading!
About DreamTeam
DreamTeam — infrastructure platform and payment gateway for esports and gaming.
DreamTeam is the ultimate teambuilding and skill-growing platform that solves problems for hundreds of millions of gamers who want to build, grow, manage and monetize their teams. And with the unlocking of blockchain and smart contract technologies, DreamTeam is building a one-of-a-kind payment gateway for players, teams, tournaments and sponsors.
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For more information on DreamTeam, please visit token.dreamteam.gg.
