Raised during THEKEY AMA on September 14th
As stated in “The Darkest Moment”, many of the early players of cryptocurrency and blockchain industries have entered a downward spiral. During these seemingly darkest moments, and in between the shock and panic shared by most everyone in the field, we however envision a bright future ahead of THEKEY.
In face of the “The Darkest Moment”, and in regard to the progress achieved and the future development plan, Catherine Li, Chairwoman and CEO of THEKEY, held an AMA on Reddit on September 14th. Here is a summary of some typical questions raised by the community members.
Q1. Can you confirm 100% that TKY token will be used for every transaction?
TKY as utility token will be irreplaceably used in THEKEY ecosystem by participants to obtain the IDV service and it’s the only method to settle the smart contract in THEKEY ecosystem.
Q2. Have you decided on a consensus mechanism?
Currently we are working hard on the development of mainnet, and using the NEO consensus mechanism for MVP purpose. However I do think there’s no existing consensus mechanism suitable for the large- scale industrial applications of THEKEY’s IDV services in the near future due to the following reasons:
The application of social insurance data across diverse scenarios requires a multi-consensus mechanism, and the current single-consensus mechanism is not sufficient to meet this requirement.
There is a strong correlation between performance and the consensus mechanism.
Security of whichever platform we would choose would be beyond our scope of control, leading to safety and/or security risks to data, funds and patients.
Current platforms have not been designed to handle the sheer amount of data that will be involved with serving tens, then hundreds of millions, of customers — then more.
Healthcare insurance’s business logic can only be realized via Smart Contracts and DAPP development, severely limiting or negating the possibility for extreme platform capacity.
Our project team is working hard on a possible solution and I am quite confident that THEKEY will be utilized in the real world applications in the near future.
Q3. Can you provide a general overview for how a typical user will use TKY? For example, will users need register on the TKY network? How will they make transactions with TKY for medical services?
Please check the THEKEY MVP/Testnet Progress Report (https://www.thekey.vip/#/AnnouncementDetail/6a98ac0f472f6a98ac0f4731asw10705) and the White Paper (https://www.thekey.vip/#/WhitepaperDownload) for the detailed instruction of TKY use.
Please be noted that as proved from our MVP, TKY cannot only be utilized for IDV purposes, but can also pay for the medical bills.
Q4. Based on estimated numbers or numbers from actual use in the “test cities” you’ve been involved with, can you provide (in dollars) how much some basic services cost? The cost of creating an initial BIDV or the cost for a client to request information on an individual?
IDV could be applied in various application scenarios, such as credit service for banks, underwriting and claim settlement for commercial insurance companies, and the IDV cost also varies in different application scenarios due to different requirements for the data. For instance, each IDV conducted for credit service costs around 2–3 USD, and the claim settlement costs around 5–15 USD.
Q5. What reasons/incentives will individuals and companies have for holding the TKY token?
Compared with fiat, tokens are the most cost-effective way to solve the smart contracts. I believe token with utility is of great value, and the price will go up in the end. For the projects with great products, the token price might be low temporarily, but it will surely increase in the end as the project develops. Currently the priority for THEKEY is to increase the value and development of the project itself instead of only increasing the token price.
Q6. Why should the government or any other companies be interested in a price increase for TKY token?
TKY as utility token will be used in THEKEY ecosystem by participants to obtain the IDV service. There is a supply and demand economy for this kind of tokens. Since TKY token has fixed total amount, the supply and demand of TKY will impact its price.
IDV service fee is paid by TKY. Dynamically the number of TKY needed for IDV service can be adjusted based on the economic model by each IDV provider. TKY is divisible with 8 decimals and the price will not deliberately stay low.
Q7. Since you always state that TKY is for mass adoption, why can’t we buy TKY with fiat money?
Like most of the other cryptocurrencies, TKY is not tradable from fiat directly. However, it can be exchanged from KRW directly on Coinrail, and USDT/TKY trading pair is available on Kucoin.
As the use of the cryptocurrency will increase the efficiency and lower the cost during pier-pier transaction, as well as ensuring data security, so I believe cryptocurrency will be eventually used in China.
Q8. Is mainnet release still on track? Once mainnet is released how soon do you envisage it being deployed for real world usage i.e. in one of the pilot cities?
The mainnet will be launched on time with highest quality, and the real world usage will be VERY VERY soon.
Right after the release of our MVP product, we were granted with a national award (http://markets.businessinsider.com/news/stocks/thekey-mvp-testnet-won-a-national-award-at-the-china-international-big-data-industry-expo-2018-1026408670). Besides, we are working closely with Chinese statutory healthcare insurance scheme, which is the largest insurance scheme in the world (1.4 billion people covered) and entered into cooperation with Chinese Government on Research into Social Insurance Blockchain Applications(https://nulltx.com/thekey-enters-into-cooperation-with-chinese-government-on-research-into-social-insurance-blockchain-applications/). So we are very confident on this.
Q9. With all the improvements, if the status of cryptocurrency is still banned, there is no clear future for the project. Do you think that China still considers cryptocurrency illegal, or it may be better for the cryptocurrency?
It is true that ICO is banned in China, but the government never said the blockchain technology and cryptocurrency are illegal. On the contrary, the Chinese government is embracing the blockchain technology and exploring the cryptocurrency applications due to the advantages cryptocurrency can bring, such as improving efficiency and lowing costs.
Recently, THEKEY has entered into cooperation with Chinese government on the research into Social Insurance Blockchain Applications (https://nulltx.com/thekey-enters-into-cooperation-with-chinese-government-on-research-into-social-insurance-blockchain-applications/) and won a national award at China International Big Data Industry Expo 2018 (http://markets.businessinsider.com/news/stocks/thekey-mvp-testnet-won-a-national-award-at-the-china-international-big-data-industry-expo-2018-1026408670). I believe in the near future the high quality cryptocurrencies will be utilized in China, which includes TKY.
Q10. Why are you so confident? Are you sure that THEKEY will be used in China?
Yes, I’m very confident. Both of the blockchain technology and cryptocurrency will undoubtedly enhance the efficiency, lower the cost and thus bring benefits to the people and society, which will also play an important role in more complex application scenarios related with people’s life and social economy.
As I said in the New Year Speech, the bubble will burst in the end, but the technology is still developing. More details please refer to my statement in “The Darkest Moment” (https://medium.com/@thekeyvip/the-darkest-moment-43894890a47b).
Q11. How is the revenue generated after THEKEY’s commercialization?
The revenue will be generated from the IDV services provided by THEKEY as well as the TKY token price appreciation due to the token supply and demand economy.
About THEKEY
THEKEY is a decentralized ecosystem of Identity Verification (IDV) tools integrating national big-data and the blockchain. THEKEY’s project team is now developing its identification verification (IDV) tool with blockchain using its proprietary Dynamic Multi-dimension Identification (BDMI) platform, uniquely using Personally Identifiable Information (PII) that has been exclusively authorized by the Chinese Government. THEKEY token (TKY) is the only method by which to settle smart contracts signed between all participants across THEKEY Ecosystem. THEKEY testnet was launched in May 2018, and its mainnet is scheduled to be released at the end of this year. TKY is currently tradable across a number of exchange platforms such as HitBTC, Bit-Z, KuCoin, Lbank, Coinrail and LATOKEN.
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