THEKEY Crypto & Raiden Network
Now I may not express my feeling very vocally for this platform, but it’s the first smart contracts platform that laid the foundation for the variety of smart contract and their subisdaries that we have today. If you haven’t guessed by now, the platform I am talking about is Ethereum. Also my other favorite smart contract platform has some big news, THEKEY which Is developing on the NEO platform is developing BDMI “blockchain based dynamic mulit-dimension identification. Mouthful and I’ll get to that in a bit.
But first Ethereum, now Vitalkik Buterin is brilliant, and of course as the first iteration of a smart contract platform, their will be issues. Ethereum has been faced with the scaling issues a lot quicker than bitcoin, and in it’s current form, the network cannot handle the full force of smart contract transactions if the world was to fully adopt.
Introducing a solution…the Raiden Network. So the Raiden network is an off=chain solution for performing peer-to-peer ERC20 token and ether transfers based on state channel technology. Brainbot Technologies, a smart contract and blockchain consultation conpmany, is the ones behind the Raiden Network and have been actively developing it since 2013. If you familiar with the lightning network for bitcoin, the Raiden Network is supposed to do that for Ethereum.
To try and explain this as simply as possible, the Raiden Network is implemented as an extension to Ethereum where raiden and ether nodes run sperately and communicate with each other only to manage deposits or settle token transfers.
Similar to how a bar tab works, which I know a thing or two about. You only pay the total to the bar when you are don for they day, instead of going through the entire payment process each time your purchase a drink. You can think of this bar tab as a state channel
A channel is one-to-one for example me to joes bar, but the bars can be linked together to form a networks. So users can pay anyone in the network. Check out his picture to show that though even though F only has a bar tab of channel with A, but anyone in the network can pay F by interacting with the channel involving A. So If E wanted to pay F, they would first interact with B, B would then interact with A, and then A would finally interact with F.
The obvious use case for the Raiden Network is payments. It allows a user to transfer ether and any ERC20 token. With the Raiden network, it will help Ethereum scale from 25 transactions per second to more than 1 million transactions per second.
The thing that worries me about the raiden network is Plasma, which is being developed by Joseph Poon of the lightning network and vitalik buterin. It’s essentialy a series of contracts that run on top of the ether blockchain which enforces the validity of the state in the side chains where the majority of computations are performed. But the raiden network says that similar to sharding, it will have latency and fee problems.
The price is sitting pretty right now, currentely up 13 percent to 1.69 cents. The current market cap is 84 million dollars, which puts it in the top 100 coins. The circulating supply is nice, with 50 million ciruclatin right now, with a total of 100 million. This is if a big if, that the raiden network is implemented on Ethereum. If it is used widely and works will see NEO type gains. 1 raiden network token could easily be at 10 dollars soon. Most of the volume for raiden is coming from Binance, and unfortunately I took all my funds out of there. I have been using token.store to trade my raiden tokens, and it’s been going great.
Now moving onto NEO, and THEKEY. So what is THEKEY? Again, they are developing a second generation Virtual Identification solution for the internet via BDMI or Blockchain based dynamic multi-dimension identification.
BDMI is composed of two major components of tech: dynamic identification technology and blockchain technology. What happened is THEKEY has made a breakthrough in dynamic identification technology which has 38 copyright patents protecting the breakthrough. Instead of setting up a centralized database, THEKEY deploys the DMI system in the IT centers of governments. THE DMI is based on ETL technology, which enables the data extracted to be transformed to a uniform format to be uploaded, then the data needs to be standardized for communication and terms because different industries and goverments use different terms.
Next it moves to a primary user index module which is used to build up a search dictionary, which can easily be used to find all the relevant files of every individual.
Then it moves to a data warehouse solution module where all individual files are properly stored so that once an IDV process is triggered, the relevant files can be found. After that is the IDV engine, it’s function is to complete the IDV service which embraces the four modules described above. When the IDV process is triggered, the biometric data sent by the user will be verified by the IDV engine against the biometric data fo the same user but authenticated by data stored by government authorities.
With this system, centrally collected data could be processed, transformed, and easy to exchange among different systems.
Afterward, the data will be encrypted with a hash algorithm in the blockchain for decentralized applications. Data ownership verification, authorization, pricing, and payment will all happen on the blockchain.
So it all seems good, but is their a working product? Well the team is deploying mobile social insurance payments in 41 cities, covering a population of 130 million people. The team has real time Unicom in 66 cities for government identification data for use with it’s id product development.
Now why did the key decide to use the NEO blockchain?
NEO provides technical support to THEKEY. The smart economy NEO put forward is comprised of Digital Asset, Smart Contract and Digital Identity, which is an entire ecosystem. Digital identity is an indispensable element of NEO smart economy. THEKEY share the consensus with this idea and is willing to provide digital identity application for NEO ecosystem, in order to co-establish the digital identity system together with NEO. TheKEY has said they are happy to provide more digital identity applications on NEO in the future.
The THEKEY Ecosystem will be a decentralized autonomy community, which will consist of three components of participants, (Validator, Service Provider and Individual User) Smart Contracts and TKY Tokens. THEKEY token (“TKY Token”), as a major component of the Ecosystem, is the only method to settle smart contracts signed between the participants in THEKEY Ecosystem. Since every aspect of life is in need of identity verification, like security check, access permission, medical treatment and shopping etc. the utility of TKY token will be extremely high.
There will be 10 billion TKY tokens, and what I like about this project is only 8 percent is going to the project team, 51 percent are going to the ICO(power to the users), 20 percent are reserve funds, and 21 percent are used for the ecosystem.
Public Distribution starts somewhere in November and December, but as a project that satisfies Chico Crypto’s Three Pillars for a successful crypto project: this gets the chico crypto seal of approval.