Cointelegraph follows the development of a brand new blockchain from its inception to the mainnet and beyond through its series, Inside the Blockchain Developer’s Mind, written by Andrew Levin of the Koinos group.
In my previous article, I explained from first principles what is needed to create a truly free decentralized social application (DApp) and how Koinos is that solution. In this article, I explained that to provide a truly free DApp, it must be possible for someone other than the end user to provide the network resources (“mana” in the case of Koinos) needed to run a given application. smart contract.
Now that we understand why Koinos is designed the way it is (to support free experiments), I’ll explain in more detail how it works. One of the innovative features of Koinos is its new fee-free mechanism, called “mana”, which allows KOIN holders to use the blockchain for free without having to pre-stake their tokens or even think about what they are doing. . It is the core technology that allows people to use blockchain for free.
Koinos is designed around the idea that from the moment someone acquires KOIN, they should be able to perform actions on the network while Koinos gradually and temporarily locks small amounts of their tokens, the “ charging” effectively as an opportunity cost instead of an explicit fee. Mana is how the system quantifies this opportunity cost so that users can trade time (opportunity cost) for network resources, replacing the need for a token-based fee like the gas model of Ethereum.
Related: Inside the Mind of Blockchain Developers: How to Build the Next Great Social DApp
This creates a fun and playful user experience for the blockchain, but what about decentralized applications on the blockchain? As the native currency of the Koinos blockchain, only KOIN will have the mana users need to use the blockchain freely. But if KOIN is the only token with mana, wouldn’t users have to acquire the token to use any Koinos DApps and wouldn’t that look a lot like a fee? Yes, it would.
While the user experience is certainly superior to actual charges, since the user will only have to make this purchase once, it still creates friction in the DApp user experience. From our work on Steem, we have seen that this requirement, combined with the requirement to purchase usernames and consciously stake large numbers of tokens, were major barriers to adoption. That’s why we designed Koinos from the ground up to solve this problem while addressing several other significant issues, like poor scalability and limited programming language support, along the way.
Related: In the mind of the blockchain developer: what is a testnet?
To solve the problem of allowing people to use DApps without having to first acquire any token, Koinos allows smart contract developers to specify who will pay mana when executing the smart contract (“Payer/Payee Semantics”). It can be the user, the developer, or someone else – like a large stakeholder – who wants to help the DApp succeed.
This unlocks a new ability we call “mana sponsorships”, which simply means any account can “sponsor” the mana needed to fulfill a contract. A developer can use this ability to set themselves as the mana provider for the contract. Then, when someone tries to use their DApp, they can do so without having to acquire KOIN first.
This allows for another leap forward in user experience compared to other platforms and may be sufficient for many decentralized applications, but our mission is not simply to create a better user experience than other platforms. forms – it is accelerating decentralization through accessibility.
While mana sponsorships allow developers to provide the mana users need without diminishing the developer’s token balance, developers are still required to acquire KOIN. When their DApp usage is low, this amount of KOIN may be insignificant, but as usage increases and the price of KOIN rises, this requirement can quickly become burdensome. Perhaps most importantly, enterprising developers should believe that their app will see widespread adoption (otherwise they would have no incentive to build it) and so the prospect of having to spend a fortune on KOIN might even deter them from building the app in the first place.
This is where the “mana DApp” comes in and completes the frictionless user experience, which maximize accessibility. While the KOIN token is the only cryptocurrency that contains the mana used by the Koinos system as payment for network resources (i.e. “base” mana), DApps can use the exact same coded create your own mana on their own token.
This demonstrates the unparalleled composability from Koinos. Since the entire Koinos system is written as smart contracts, any part of the system (like the mana subsystem) can be copied by DApp developers and exploited in their app.
DApp developers can use the mana in a small KOIN pool to seed their initial user base or subsidize a certain amount of “freemium” usage of their DApp, but then require users to exchange their KOIN for a crypto- dedicated currency (their “DApp Token”) with its own mana that will be consumed when using the DApp, allowing them to continue using the DApp for free.
This enables frictionless onboarding of users while creating an economically sustainable path that turns users into stakeholders and gives the DApp developer the KOIN they need to meet their growing demand for Koinos network resources.
This is a very organic and scalable mechanism because the developer doesn’t have to try to predict how much KOIN they will need and buy that KOIN before they even have users. Additionally, large stakeholders can support growing DApps without overcommitting resources. They can only tap the amount of mana they deem necessary to prime application and bring it to the point where it acquires the necessary mana organically from its users and new stakeholders.
Related: On the Mind of Blockchain Developers: What’s the Ultimate Scaling Solution?
At Koinos Group, it is never enough to solve a single problem. We are always looking for ways to solve a problem while unlocking additional abilities that make the blockchain even more powerful. The system I’ve described in this article emerges entirely from the simple payee/payee semantics already running on the Harbinger testnet. Not only do they allow free DApps, but they also create an organic path for developers to acquire the extra mana they will need to support their DApp’s growth. while giving large stakeholders a way to invest in growth and value creation without sacrificing any of their symbolic stakes. It’s a win-win-win.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research when making a decision.
The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Andrew Levin is the CEO of Koinos Group, a team of industry veterans accelerating decentralization through accessible blockchain technology. Their core product is Koinos, a costless, infinitely scalable blockchain with universal language support.