Behold Keoken: a New Bitcoin Cash ‘Smart Layer’ for All Things Commerce
At the vanguard of technical advancements in the fledgling BCH ecosystem is the Keoken platform, a new second-layer protocol set to widely broaden the types of commerce possible via the underlying Bitcoin Cash blockchain. The second-layer protocol will give BCH a “smart layer” capable of rivaling the commerce capabilities of Omni, Ethereum, and Bitcoin’s RSK.
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The Keoken Vision
The possibilities of creating tokens and decentralized apps on the Bitcoin Cash blockchain have now been considerably broadened thanks to the new Keoken platform, an implementation of a second-layer protocol that will allow “more advanced transaction types” via BCH.
Relying on “Bitprim-Node advanced features” developed by the Bitprim team, Keoken will facilitate “digital asset accounting,” i.e. tokenization via stored states, and a “secure smart contracts platform” atop Bitcoin Cash.
The platform is honed in upon commerce’s varied avenues, and as such, makes use of so-called Transaction Formats (TF), or “pre-defined transaction models.” Per the Keoken whitepaper:
“Real world transactions have several basic commonly used transaction types (Cash, Credit/Debit Cards, Bank transfer, Letter of credit, bank checks, futures and others). There is also a wide range of commonly used transactions that do not have a monetary nature like securities, titles of ownership and others. While the Bitcoin platform has a well proven system to transact in a native coin, it lacks (or it is too complex to execute) more sophisticated types of transactions or the use of any other assets but its native token. Bitcoin ensures transactions to be non-reversible, trustless and with a good level of censorship resistance, while in commerce, it is sometimes desirable to make one or more of those features flexible in favor of convenience, therefore increasing usability and adoption.
Parties involved in a commercial transaction have to be free to determine the level of trust or reversibility they feel comfortably accepting at the time of executing said transaction. Freedom to define the rules for using their transactions is one of the pillars of the Keoken protocol.”
Accordingly, Keoken use cases will run the gamut, including everything from reserved funds to decentralized exchanges. Auctions, trusts, and beyond are now set to be natively possible on Bitcoin Cash.
Looking Under the Hood
With a list of influences in “Omni/Mastercoin, RSK/Ethereum, Decred, Dash, CounterParty, EOS and others,” Keoken’s developers have outlined in their whitepaper the platform’s governance model, funding mechanism, and native KEO token.
KEO tokens are at the center of that triumvirate, as the tokens will be used to conduct governance within the open-source protocol and to cover fees on the associated platform. Such governance cannot alter transactions, as KEO tokens will be focused on “voting rights over protocol changes.”
As explained in the whitepaper:
“For governance purposes, KEO holders willing to participate in the decision making process have to choose a delegate from a list of users that had expressed his intention to be a delegate. A number of 21 delegates will be chosen within the next two weeks (2016 Blocks). Only delegates are authorized to vote and a minimum of 15 votes are required to approve a change. There is a two-day (288 blocks) veto period following any change approval. If said change is voted against by 50%+1, the approved change shall be vetoed.”
Beyond governance, the Keoken platform will also not conduct all of its transactions on-chain, as many of its transactions will be stored off-chain through being “merged into a single transaction to reflect the latest state.” This dynamic opens up the possibilities of avoiding “storing transactions that will not be relevant in the future forever on-chain.”
The platform will also collect fees into a “special account” controlled by no single party for later use by the community:
“[U]sing the governance voting process […] It may be decided to either destroy those tokens, distribute them proportionally to Keo holders, fund the platform requirements (development and others) or any combination of those options or something completely different.”
New Kinds of Transaction Possibilities
The platform makes possible an array of new functionalities. Some of the more interesting capabilities include the following:
- endorsable transactions
- a signal system for compromised wallets (a “Compromised Key Message”)
- guarantors, which can honor failed payments of payees
- a vault, wherein users have security-minded spending restrictions
- temporarily reversible transactions (“reversible for a determined time”)
- transaction throttling limits to limit account behavior
- community votes
- Corvina Storage, wherein “TXs with regular hash commitments to the blockchain [can provide] fast bootstrapping of new nodes or light wallets”
The second-layer protocol marks a decisive pivot toward facilitating mainstream commerce upon Bitcoin Cash, per Bitprim CEO Juan Garavaglia.
99% of business transactions are based on standard recuring transaction formats not contracts. #KeokenTokensOnBCH
— Juan Garavaglia aka Juju (BCH Comando 比特币 现金 突击队) (@GaravagliaJuan) July 26, 2018
What’s your take? Can this new second-layer protocol help take Bitcoin Cash to the next level? Let us know in the comments section.
Images via Bitprim Project Inc., Pixabay