WHITE PAPER ON BUILDING A REWARD BASED SOCIAL NETWORK WITH CHESSCASH AND THE CHESS BLOCK CHAIN
Jul 21 | By Michael Chukwuma Mkpadi (Co-Founder of Chess Club Live)
A White Paper on Building a Reward Based Social Network with ChessCash and the Chess Block Chain
Purpose
The Chess BlockChain is a centralized ledger for social activity on the Chess Club Live social network. ChessCash is an ERC20 token on the Ethereum blockchain. The members of the Chess Club Live community perform social actions and gain micro payments in ChessCash and can either trade them as options on the Chess Club Live social network or have them transferred to the Ethereum blockchain as ERC20 tokens. They can then be traded on a DEX using the 0x protocol. Scope The global social network requires a global system of rewarding the loyalty and activity of members of the community. This requires infrastructure such as a global social network with a global reach, a blockchain token, a database and a protocol, a market and an exchange.
Executive Summary
Typically chess websites are platforms for playing chess and sharing news about chess events and topics. There are myriad of chess websites varying from the highly informative to the sites where the information is only about the chess games and tournaments and simuls on that site. There is also another differentiation of these chess websites that are based on their architecture. They range from Web 1.0 (forum style, broadcast only), Web 2.0 (centralised two way chat, APIs, embedded code) to the new Web 3.0 (self service chatrooms, decentralized, smart widgets, blockchain) style sites. 2) The Opportunity There is an opportunity to create a mutually beneficial network for trading value between members of a chess community that does not require paying a 3rd party for providing a medium, protocol and data process flow. If we could provide services to our users for peer to peer transactions then we can lower the cost of trade and social engagement. We can also divest the savings of this approach by creating a faucet for the distribution of this value. 3) The History Chess Websites used to either be paid, partial paid, or totally free. Take for example a chess website like chess.com, they are a partial paid site which allow their subscribers to use part of their website free of charges and the "premium" part is chargeable via subscription which is typicall paid annually.
Types of Chess Websites:
Premium Paid Chess websites
Free of Charge Websites
Partially Paid Chess websites
Reward Based Chess Websites
In Premium Paid chess websites like playchess.com and Internet Chess Club, the users are made to pay for the "cost of service" up front and a service is delivered. The value that the users bring is hardly ever quantified let along rewarded. The value is amassed by the site itself and offset against their Operating and Capital expenditure and their key performance indicator is their EBITDA and number of chess users. Not much thought in sustaining their ecosystem but more in extracting as much value per user as possible in the shortest time possible.
Free of Charge chess website is a website that offers a range of chess services but no exchange of currency or token financial or non-financial. Users register and get 100% of the features without having to pay or perform a task in exchange for the service, nor be subjected to adverts. Lichess.org is a really good example.
Partially Paid chess websites is a combination of a free and a paid site and users are given a choice to remain as free users or guests or premium users or subscribers.
Reward Based Websites pay their users for using their site. This may be through cash rewards, token rewards or by unlocking features of the site the longer they remain loyal using the site.
The Solution
Chess Club Live uses a social token database to store the credentials of their users but also the balance of their reward tokens. The site has been built to post a value for each social activity, this is stored in the social token database. Users can transfer their social tokens to each other or pay for items sold in the market on the website or traded in the Forex market hosted on the Chess Club Live website. As users earn the tokens and they become substantial and qualified they can be transfered to the Ethereum blockchain as ChessCash our ERC20 token. This in turn can be traded in the Instex decentralised exchange. We are also Air Drop tokens to users who apply or influencers we sought.
The Benefits
The benefits are many but they primarily for the users since this is a decentralised social network. Benefits: Low cost of peer to peer trading The creation of digital Chess Assets, a Chess trading exchange and distributed Chess ledger The creation of social currency which values social activity such as in ChessCash Monetizing chess in an ethical socially sustainable way for example Chess Futures speculation on the outcome of chess games and events.
The Call-To-Action
The stakeholders of such an ecosystem have been identified: chess fans chess service providers service consumers FIDE The General Public Chess fans buy and sell chess products many times a year, these transaction are conducted on websites that have nothing to do with chess, such as Ebay, Paypal, WorldPay etc. However these 3rd parties take significant slice of the cost of transaction and cost of sale generally. Chess fans can engage directly with chess service providers, using ChessCash to pay for services or some other crypto or fiat currency gateway like Paypal.
About
Chess Club Live is the IP owner of Chess Blockchain and Chess Futures. Michael Mkpadi is the co-founder of Chess Club Live (https://social.chessclublive.com) which is a chess social network, he has been building a community now for over 10 years and has a vision of a chess community which is safe, open, freely value based, accountable and transparent.
