Since announcing UnikoinGold, we’ve gotten slews questions from expert enthusiasts to crypto newcomers alike: how will UnikoinGold work, how is the token utilized and what security protocols will protect our users? As our historic token sale is closing in four days, it’s a good time to continue answering some of these questions.
Unikrn’s Unique Approach to the Blockchain
UnikoinGold’s foundation in Blockchain gives Unikrn and our community several notable advantages which we’ve discussed:
- unparalleled transparency
- additional non-wagering and wagering experiences
- offering users the ability to mine UnikoinGold by performing tasks that add value back to the platform, such as watching or playing the games you love
- the creation of a single token allows us to seamlessly expand without worrying about managing multiple currencies
- blockchain gives us the ability to build secure systems to manage a highly-regulated business like ours.
While there are obvious advantages to the public blockchain, we wanted to overcome some disadvantages unique to high-frequency businesses such as ours. First, there is the issue of speed. For example, live bets on a match require the ability to place bets in real time without worrying about the Blockchain congestion.
The other issue — and probably one of the most overlooked — the cost per transaction. With every transaction on the blockchain, including moving tokens or cryptocurrency, or calling any function in a contract, there is a transaction fee in the form of GAS. GAS is the cost to move a transaction, just like gasoline is the cost of moving your car.
With current Ethereum pricing, the approximate transaction costs in a typical smart contract is 15–25 cents. Assuming a token has a value of 50 Cents, transferring 1 token requires up to half the token’s value. The supply of our token is finite, and there will be opportunities to mine it — by playing games, watching games and other things — so transaction costs would always be a problem on the Blockchain.
We quickly realized that the current GAS price on ETH would make it unfeasible to freely transact any token on the public blockchain. I can only imagine what some of these other “Token CEO’s” are thinking when it comes to creating a strong transaction ecosystem for their tokens.
My guess: without solutions, many tokens will become zombies. Angry holders will lose large amounts of their holdings to transaction entropy. This will be specifically noticeable with all platforms that have high frequency interaction such as voting.
Introducing the Unikrn Wallet, codename Tesla.
So how has Unikrn increased speed while eliminating transaction costs? We solved it with a private ledger model, which keeps transactions on our platform off the public blockchain and avoids the transaction cost, while maintaining the exact same level of transparency .
Best of all: the user holds the key, so we don’t actually manage the tokens they hold.
GAS will still occur for any trades off our platform, such as exchanging UnikoinGold for other currencies or on third-party sites/exchanges, but any transactions within the Unikrn platform — such as betting, buying, engaging, trading — will avoid the problem altogether. We also plan to offer this same wallet to any partners who sign up to transact with UnikoinGold, imagine the possibilities!
In short, we created an internal UnikoinGold wallet, which has most of the attributes of a wallet on the public blockchain minus the friction. Our engineers are amazing, what more can I say?
Inside the Internal Wallet
You might be curious how the Unikrn wallet will work, and how you know it’ll be secure.
Users hold their wallets’ keys, meaning Unikrn cannot transact for users while they are offline. Users have full control of their balances as they need to sign each transaction, and while your wallet can receive transactions, it can never send transactions without the owning user’s initiation.
Of course, like every other wallet, there are big consequences if the user loses his or her keys — the UnikoinGold that the wallet is holding will be lost, and Unikrn cannot recover them. That’s price of security.
Our approach is similar to some other crypto wallets: the browser randomly generates a private key the first time the wallet is set up, which users confirm by sending Unikrn the public key. To allow easy transition between browsers, the user does specify a password — technically a “packing secret” — which keeps the secret safe in the client browser temporarily. The encrypted secret as well as the public key is sent to Unikrn to do the initial linking.
From then forward, transactions are signed in the client browser and sent to the Unikrn server. The transaction engine only accepts and processes transactions with correct signature as of the linked public key.
Along with AMG, our token transaction engine, our new Unikrn Wallet (aka Tesla) is an example of how Unikrn is riding the bleeding edge of blockchain and esports while building inspiring tools for our community. We will continue to prove that UnikoinGold is the decentralized token for esports and gaming, and it’s really the only esports token that matters.
Remember, the token sale ends on October 22nd, after which you won’t be able to purchase UnikoinGold from Unikrn again.