Summary of the Key Questions
Raised during THEKEY Mainnet Launch AMA and Korean Community AMA
THEKEY MVP/Mainnet Progress Report was released on November 30th one month ahead of the schedule with a high design standard after extensive experimentation and evaluation. And the relevant code has been uploaded to GITHUB for beta testing.
In regard to the progress achieved and the future development plan, Catherine Li, Chairwoman and CEO of THEKEY, held AMAs on Reddit on December 7th and Korean NEO*NEP5 Telegram community on November 12th , which were warmly welcomed. Here is the summary of the AMAs.
Q1. How much can the government and individuals save through THEKEY’s pension service?
Guizhou pilot is using BDMI technology to authenticate the survival status of the pensioners to ensure the accurate disbursement, avoid risk of fund fraud, waste and abuse. There will be an estimated 30% reduction in manpower saving, and it meant to fundamentally reduce or eliminate the fund fraud, waste and abuse. For instance the deceived, lost, or criminal personnel will not receive pension due to the IDV service; for 400,000 retired public servants in Guizhou, 4 million RMB can be saved in 1 month.
Q2. Is mainnet interfaced with government data to do the verification?
Mainnet is interfaced with government data for IDV. THEKEY is connected with personal identity data of 210 million people in 66 cities, authenticated by the relevant government authorities on a real-time basis. For the verification process, please refer to the appendix 2 of THEKEY MVP Mainnet Technical Report (https://www.thekey.vip/#/AnnouncementDetail/6a98ac0f472f6a98ac0f4731asw10735).
Q3. How will the hospitals or insurance companies obtain TKYs to facilitate the transaction? Is there any incidence for them to purchase a huge amount of TKYs in advance?
TKY is the only method to settle smart contracts signed between the participants in THEKEY Ecosystem. Hospitals, insurance companies or other service providers can obtain TKYs from the individual users by providing services to them, or they can purchase TKYs from open markets such as exchanges.
The hospitals and insurance companies surely need to and have the incentive to purchase/acquire TKYs in advance in order to pay TKYs to the IDV service provider. Take insurance companies as an example, using BDMI can significantly save their cost in insurance underwriting and claim settlement.
Q4. Do you plan to create your own chain? Do you have already a consensus in mind?
Currently, we are still using the NEO consensus mechanism for MVP purpose. However as I mentioned in the THEKEY MVP Mainnet Technical Report (https://www.thekey.vip/#/AnnouncementDetail/6a98ac0f472f6a98ac0f4731asw10735), I do think there’s any existing consensus mechanism is suitable for large-scale industrial application of THEKEY IDV services and we are planning to build our own public chain in the not-so-distant future. Please stay tuned.
Q5. Do you have any plan to create stable coins to help ordinary people avoid the price fluctuations in the transactions?
There’s no such plan for us to create a stable coin at this moment as it requires substantial financial and manpower cost. When it comes to stable coin, we’ll consider taking RMB digital coin as our stable coin for services related with the government. However, even if there’s RMB digital coin, TKY and other cryptocurrencies will also be needed for different ecosystems.
Q6. Do you have a solid plan regarding the database scalability concern that will eventually face when wider deployment is in flight?
We are aware of the scalability issues that we are facing right now. As I ever stated, the current consensus mechanism has the following drawbacks:
• Multi-scenario application 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, such as patients’ medical image/footage, etc..
• The business logic can only be realized via Smart Contracts and DAPP development, severely limiting or negating the possibility for extreme platform capacity.
• Governance logic of virtual world does not suit the real world.
In regard to the abovementioned problems, we have worked out the technical solution and are endeavoring on the real world deployment with extensive experimentations and tests. We will keep you updated about the progress.
Q7. What is THEKEY’s solution to the token velocity problem?
First, we don’t necessarily agree with the theory of token velocity problem. And on the other hand, TKY can request Validators to hold minimum amount of TKYs (for example, at least 20millions TKYs) to become eligible as Validator in THEKEY Ecosystem. This will reduce velocity.
Q8. If the ban in China last longer than expected, is there an alternative set in place for citizens to obtain TKY tokens?
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. I believe in the near future the high quality cryptocurrencies will be utilized in China, which includes TKY. We are currently in discussion with the Central Bank for a solution to enable Chinese citizens to participate in the ecosystem.
Q9. Are you confident that THEKEY’s Guizhou Pilot program can get approval from Chinese government? What is THEKEY’s strengthen that can impress China?
We’re EXTREMELY confident that THEKEY can get approval from China government due to the following reasons.
First of all, BDMI is one of the most fundamental infrastructures of digital economy of China, which is the future development direction. As you are aware of, THEKEY is the only IDV service provider invited to attend the International Competing Bidding officially launched by the People’s Bank of China and Nanjing Municipal Government.
And the other reason is that TKY as the cryptocurrency will lower the trading cost, increase the trading efficiency, and promote the intelligent level of transactions.
Q10. Is there any update information with regards to the conversations with the Chinese Government?
THEKEY has been communicating and working together with Chinese Government constantly. Currently we are participating in the International Competitive Bidding co-launched by the People’s Bank of China and Nanjing Municipal Government.
Q11. As the mainnet is launched what is the updated roadmap of BDMI? What can we see in the future?
After the mainnet launching, our next step will be, naturally, to make our BDMI a real production case. According to the roadmap in THEKEY MVP Mainnet Progress Report (https://www.thekey.vip/#/AnnouncementDetail/6a98ac0f472f6a98ac0f4731asw10735), we are now running a pilot project in Guizhou Province, to set up a solid system to provide IDV service for Social Insurance. The government will evaluate Guizhou Pilot on June 30th, 2019, and then BDMI will be deployed all over China.
In the future, BDMI technology will be applied in each and every aspect of our life. People will no longer need ID card, passport, keys, credit card, even mobile phone for making payments, opening bank accounts, applying for loans, receiving pensions, and paying medical bills.
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 token) is the only method by which to settle smart contracts signed between all participants across THEKEY Ecosystem. THEKEY mainnet was launched in November, 2018. TKY is currently tradable across a number of exchange platforms such as HitBTC, Bit-Z, KuCoin, Lbank, Coinrail and LATOKEN.
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