TomoZ explained: a leapfrog toward Blockchain Mass Adoption
Since its mainnet launching in late 2018, the TomoChain ecosystem has been equipped with many tools and frameworks to be friendlier with non-technical users. Our latest add-on, TomoZ, is a big step forward. TomoZ — with Z standing for Zero — is the new protocol enabling holders to transfer TomoChain-based tokens without using TOMO as the transaction fee. Together with the new token standard, TRC-21, these two innovations are diverting the blockchain technology to a more practical, user-friendly future. Let’s look at a simple example to understand these concepts.
1. Alice’s dilemma
2. What is TRC-21?
3. What is TomoZ?
4. How TomoZ and TRC-21 standard work together?
5. TomoIssuer
6. The possibilities with these new concepts
1. Alice’s dilemma
There is Alice, and Alice came up with a mind-blowing idea of using blockchain for her business. Naturally, she needs to issue her token which she names ALI. She has been researching which public blockchain to use, but she faces an industry problem: all the current public blockchains require token holders to pay transaction fees in native token. If ALI is issued on Ethereum, ALI holders need some ETH in their wallets to power the transactions. They need to go on exchanges, do KYC, purchase ETH, withdraw ETH from exchanges — all the technical, time-consuming tasks that do not relate to their business with Alice at all. This headache has built a great barrier for non-technical, general users, and may suffocate Alice’s blockchain business idea. This isuntil TomoChain, with its TRC-21 and TomoZ combo, comes onto the stage.
2. What is TRC-21?
TRC-21 is the new standard which defines a new type of crypto token which can be transferred among token holders without TOMO in their wallets. TRC-21 changes the token transaction fee flow from “transaction maker pays masternode in TOMO” to “transaction maker pays the token issuer by the token itself, and the token issuer pays masternode in TOMO”. TRC-21 is expected to be the new standard token for the whole blockchain industry.
Comparing to TRC-20 (similar to ERC-20), TRC-21 token is equipped with some new features such as:
· [function] issuer(): returns the address of the token issuer.
· [function]estimateFee(): Estimate the transaction fee in terms of the token that the transaction makers will have to pay.
· [event]Fee(): define the fee for transactions.
Detailed instructions on how to create TRC-21 token can be found HERE.
TRC-21 is a token template — or smart contract template, meaning it cannot run on TomoChain if we don’t have a protocol to work with it. That protocol is TomoZ.
Reading the below post to learn more about the differences of the Token Standard on TomoChain platform: TRC20, TRC21, and NFT tokens.
3. What is TomoZ?
TomoZ is embedded in the TomoChain mainnet and defines the process of how TRC-21 tokens run in the network. We call it fee-by-any-token protocol, and it does just that. Here are some of its highlights:
1. TomoZ only works with TRC-21 tokens.
2. The token issuer defines the transaction fee in the issued token. This fee is flat to all transactions, and it is configurable.
3. The token issuer deposits a certain amount of TOMO to power all the transactions in the ecosystem. Considering that transaction fee in TomoChain is near-zero, 1 TOMO can power millions of transactions, a small amount of TOMO is enough to sustain the ecosystem for years. When the TOMO is running out, the token issuer or any community member can deposit more TOMO to the smart contract to keep the ecosystem running.
4. How TRC-21 and TomoZ work together to solve Alice’s problem
If Alice issues ALI as TRC-21 token, all of her worries no longer exist. When ALI is issued, Alice configures the flat transaction fee for ALI token as 2 ALI, and Alice needs to deposit some TOMO to her wallet to pay the transaction fee to the masternodes. Let’s say Bob is an investor of ALI tokens, and he owns a number of ALI. Now if he transfers 100 ALI tokens to another person, Candice, Candice will receive 98 ALI, and 2 ALI is deducted as transaction fee. Alice will receive 2 ALI from this transaction, and her TOMO wallet will be deducted a small amount of TOMO for transaction fee.
In short, this model reduces the complexity of blockchain adoption. Bob and Candice do not need to know about TOMO or TomoChain, they only need to know about ALI token and Alice, with whom they do business.
Alice’s concern seems to be properly addressed. Now she can go ahead to work on her blockchain project. However, Alice is not a blockchain engineer, thus she needs a blockchain engineer to build the smart contract.
Or does she?
In fact, it does not make sense to pay thousands to hire a blockchain programmer just to issue a simple token. So we say, let’s simplify the process, let there be TomoIssuer!
5. TomoIssuer
TomoChain team took a step further to build a tool, named TomoIssuer, to bring TRC-21 and TomoZ to every token issuer’s fingertips. TomoIssuer is a website that enables anyone, even without any programming skills, to be able to issue their TRC-21 tokens within a few minutes.
More information about TomoIssuer can be found here.
6. The possibilities of these new concepts
Almost any tokenized business requires tokens to be issued. With the tools I have described in this article, token issuance is now just a few clicks away, and even the most non-traditional blockchain users can join this ecosystem. Here are some examples of the endless possibilities.
Fund-raising: It used to cost thousands of USD to write a simple smart contract. Not anymore. Anyone can now issue their own tokens in minutes with a minimum fee. It has never been easier to do STO/ICO/IEO on a public blockchain.
Personal tokens: singers, actors, idols, celebs can all issue their own tokens pegged with special benefits for their fans. Token holders can have discount concert tickets, early updates, exclusive trailers, etc.
Blockchain Specific
(1) Reduced Friction and Increased Intuitiveness for Tokens — Any existing Token issued on a blockchain, regardless of its function no longer has to rely on the native token itself. Users can freely perform transactions without the need to always hold the second token. This is great for existing TomoChain users, but also for users who have never held TOMO before.
(2) Stable Coins — Though related to (1), the fact is that the use of Stable Coins requires holding a native token typically to pay gas. Issuing TRC21 Stable Coins will eliminate that concern. The fee will be paid in the stable coin itself. When we consider DeFi applications to the Blockchain Ecosystem and to the Larger Wider Ecosystem outside of BlockChain THIS can be a major problem solver.
Wider Ecosystem
(3) Virtual Currency for dApps — Similar to virtual currency on free to play games on mobile and Facebook. The difference is there is a transparent, economic limit to the supply so there can be a real economic value derived from it
(4) Loyalty Points — Due to the nature of Blockchain, loyalty points can be transferred from one customer to another. Also, they can be exchanged for one vendor/system for loyalty points with another vendor/system. This cannot happen under the current closed system
Are you thinking of other ideas to utilize these technologies? Please let us know in the comment section below.
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