Kin
Two days ago, Kik (a mobile chat app), released it's website to promote Kin, the mystery "mainstream" initiative. Curious, I decided the check it out. The website has links to a 28 page white paper and registration to receive updates for the future ICO (initial coin offering). It also details the members of the team and a quick rundown on what Kin is. It is Kik's intention to bring crypto currency to their 15 million user base, and possibly the masses.
Kin will be based on Ethereum technology and handle transactions, for the most part, on the Ethereum chain. It will use the standardized ERC20 token to implement smart contracts.
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed.
Ethereum Wikipedia
They're confident from the findings of their 2.5 year program, kik points, where found users were willing to spend small amounts of time interacting with advertisements in return for points. Points that could be spent on micro transactions and games. During the course of the experiment they measured transaction rates roughly 3 times that of Bitcoin. They claim this means that their user base is already willing to use electronic transactions.
How is it funded?
The company will host an ICO (Initial Coin Offering) selling 1 trillion of total 10 trillion supply of Kin. This will fund the Kin Foundation, road map goals and other operations to get Kin off the ground. At the the conclusion of the sale the 1 trillion will represent the entire total liquid supply. 3 Trillion will be allocated to kik as the founding member of the Kin Foundation. This seems like they're giving themselves money, but if they truly plan on using to provide start up resources and technologies for their ecosystem, this could be a very good move.
What is the Kin Foundation
Kik plans to create an official(temporary?) centralized legal body. Its goal is to handle legal matters, transparent and fair government, oversight and the Kin Rewards Engine. They hope to move to a decentralized autonomous organization as soon as the technology is available. Their paper cites the Argon project and others as examples.
"The Kin Foundation is intended as an independent, nonprofit, and democratic governance body for the members of this ecosystem. "
The Kin white paper p16 1st paragraph
What is the Kin rewards Program?
60% of the entire Kin supply will be held by smart contracts and released periodically to the Kin ecosystem as an incentive. According to the paper, every year 20 percent of the remaining reward will be distributed to incentivize using the Kin ecosystem to users and developers alike, diminishing over time as it increases in value. The foundation will use up to 5% of the rewards for marketing and operations.
How do they make it easy?
Wallets are planned to be integrated into accounts. Users will only need to add another user or click on a button to transfer funds. Kik says by eliminating the need to go through the steps of setting up a wallet and getting it secure is a pulling down a big barrier between the public and cryptos.
If the Kik points program is any indication of the future activity of Kin, the expected transaction rate could overtake the Ethereum network. Their solution is to use a "semi" centralized system, arguing this is necessary because the on-chain confirmation time is much higher than those familiar with social media are accustomed to. This sub chain would allow Kik to make the speeds of the network closer to what mobile is accustomed to. And, also lets developers have access to an easy API to launch new applications.
Obviously on a public application, exchanges involving illegal acts will be prohibited but this brings up the concern on what happens when a social figure decides to use the platform but has a message that is not agreeable. While the ability to stop hate speech is attractive, how far can that power go and to what interpretation? Will Kik fold if a government finds an individual promoting a message it finds uncomfortable or dangerous? Will kik lock out the funds of an individual upon request thereby neutralizing that person's mobility?
Why will consumers use it?
Kik reasons that by introducing consumers to cryptos through earning and reward programs it will make it easier to integrate into the existing social media ecosystem. An example is tipping users for content. Others are the use premium content subscriptions, artists charging Kin to open and save photographs, and bots that can handle transactions for real goods like pizza. Their plan is to make obtaining Kin as easy as possible offering a quick door into the crypto economies. Their incentive program plans to integrate as many services as possible to the Kin ecosystem, further making their platform a convenience.
Conclusion
The implied sentiment throughout their message is banding together to make a easy ecosystem for users and developers to launch their platforms and host exchanges. And also an exchange where single companies do not hold the entire market because of advertising monopolies. At times, especially in the video, the message seems to be laid on a little thick. However, I am skeptically accepting it. Whether or not they plan to be as genuine as their vision is laid out, they are right with one thing-- They do have a large user base. And if they can entice enough developers, big brands and other content creators into their ecosystem if could turn out to be a very lucrative environment.
An easy to use API could be what is missing from the crypto currency world. If a crypto's API was as easy to use as a JavaScript plugin or library, the barriers could come tumbling down and anyone will be able to put a widget on their website or app to purchase goods or services directly. Although the centralization does raise a number of concerns.
The pre-mining and centralization might turn off the experienced crypto trader. But for the average consumer who has only heard bitcoin in passing, this may be of no concern for them. This could be an introduction of a very large an untapped demographic into the crypto economies.
Will they be able to offer a secure service? Will Kin be the service to bring crypto to the masses? Post your discussion below.