#FractalAcademy, Episode V: The Mainnet: How does it work?

How does Fractal Protocol help you? And how do you get to control (and monetize) your own data exactly?

Hello, and welcome back to #FractalAcademy. In the last episode, we had delved into the details of Fractal ID, how to KYC with it, and how having a decentralized credential could help you (check it out here). Today, we’ll take a look at Fractal Protocol: how the Mainnet works, what it means to be rewarded in tokens, the differences between the native token and ERC20 token, and give you a look at the Fractal Wallet and Protocol working in tandem.

What is the Mainnet? How does it work?

Imagine you don’t have to pay for the internet with your personal data, but the internet pays you for it. This was our vision when we launched the Fractal Protocol Mainnet on October 19th, 2021. The Mainnet was built as an open-sourced protocol so that data could be exchanged in a fair and transparent way, across multiple platforms. The goal is to rid the web of the stifling presence of big tech and empower users in the process.

With the Fractal Protocol Mainnet, you as the user, are in charge of more than just the data you create. You control who can access this data and how that data can be used. As the growth of radical data markets increase and blockchain technology gains adoption, we will see more options become readily available for users to take advantage of.

The flagship application of Fractal Protocol is the Fractal Wallet, a novel decentralized KYC wallet for all your online credentials. It is through the Fractal Wallet the Mainnet truly shines, as it is the core driver for user incentives. The Fractal Wallet is where data is collected and stored, authenticating that you have an active browser history. That information is then translated back to the Protocol, initiating the “minting” mechanism to issue the earned FCL to the user. In layman’s terms, the Mainnet is the control center of Fractal’s processes and the driving force that creates new avenues of revenue for the Fractal ecosystem.

For the purpose of iterating faster and organizing a smooth Mainnet process, we’ve built the Protocol functionality directly into the Fractal Wallet. However, our scaling strategy is focused on partnerships and an open ecosystem. We don’t want the Fractal Wallet to be a gatekeeper for Protocol participation: instead, we want to offer this possibility to existing applications, some of which we’ve already partnered with. This enables the Protocol to provide data sharing incentives to a larger audience, boosting the adoption by onboarding a whole new cohort of data providers. In addition to keeping the Protocol open-source, we are also looking into how we can make it easy for these products to participate in our incentive program. Since the point of it is to stimulate growing Protocol usage, anyone helping to achieve it will be fairly rewarded.

Rewards? Tell me more!

Speaking of rewards, the FCL distribution system is broken down into a simple formula that gives insight into how users can earn up to 500 FCL a month from browsing. Every month, we’ll distribute up to 2.5 Million FCL to all data minters. The payout is thereby calculated as follows:

To sum things up, the Mainnet will allow you to own and monetize your data while preserving your privacy. In addition, and based solely on your consent:

• The wallet will securely store data to your local device only (no central data hub that is prone to hacker attacks like we have seen so many times in the past).
• Your surfing aka “data minting” activity will be published as proof for on-chain activity (to have trustless, easily verifiable evidence so that you can be paid in real-time) without disclosing any of your personal data.
• As a reward for this data minting activity, you will get $FCL in your Wallet.

Want to see it in action? Our friend Nordic Crypto made a great review of the Fractal Protocol and Wallet working in tandem, take a look:

Two FCL Tokens?

Through the Fractal Mainnet, you’ll receive real FCL worth the same market value as FCL on our current ERC-20 listing on several exchanges (KuCoin, Bitfinex, Uniswap). There is a difference, however, between the FCL listed on current exchanges and the FCL that you will receive from the Protocol. The tokens issued from using the Mainnet will be Substrate-FCL (since we’re building in the Polkadot development environment, more precisely on Substrate as part of their prestigious builder’s program). Substrate-FCL is not yet as easily tradable as Ethereum-based FCL. We have been working diligently to build the bridge between the two blockchains using token burns, as the value of our tokens for our supporters is our top priority.

In the first quarter of 2022, we will publish our plans for the future of FCL. There are several options to address this going forward, each with different trade-offs. We assure you that the value of the Substrate-FCL will always correspond to the same value as Ethereum-based FCL. We are determined to create and execute the best strategy for the community and the Protocol, and will update you accordingly!

About the Fractal Protocol

Built on Polkadot, Fractal Protocol is an open-source, zero-margin protocol that defines a basic standard to exchange user information in a fair and open way, ensuring a high-quality version of the free internet. In its first version, it is designed to replace the ad cookie and give users back control over their data.

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This article does not include elements of any contractual relationship. This article shall not be deemed to constitute a prospectus of any sort or a solicitation for investment or investment advice; nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction.

For the avoidance of doubt, please note that the Protocol has not been fully developed. Any statements made about the Protocol are forward-looking statements that merely reflect Fractal’s intention for the functioning of the Protocol. There are known and unknown risks that can cause the results to differ from the forward-looking statements.

Fractal does not intend to express investment, financial, legal, tax, or any other advice, and any conclusions drawn from statements in this article or otherwise made by Fractal shall not be deemed to constitute advice in any jurisdiction.

Fractal’s intended purpose of the Tokens is to be used as means of payment for the services that will be offered within the Protocol (the “Services”). The purchase, ownership, receipt, or possession of Tokens carries no rights, express or implied, other than the right to use Tokens as a means to enable usage of Services in accordance with the then-applicable terms of use relating to the Services offered within the Protocol. The Tokens do not represent or confer any ownership right or stake, share, security, or equivalent rights, or any right to receive future revenue shares, intellectual property rights, or any other form of participation in or relating to the Protocol, Fractal, Service Providers or any of their corporate affiliates, other than any rights relating to the provision and receipt of Services, subject to the applicable terms, conditions or policies that may be adopted by participants in the Protocol.