Blockchain and cryptocurrency are promising technologies. They can disrupt the way we do business and go about finance. From the perspective of an individual or a small business, blockchain is a means to decentralise the concentration of power we see in the centralised business ecosystem. We can tap the potential of blockchain to provide equal opportunities to individuals and teams while cryptocurrencies can turn our economic model into one that is more user-centric.
The obvious question here is, if blockchain can offer such huge benefits to our society, why isn’t it mainstream yet?
There are both external and internal factors that hinder the mass adoption of blockchain and cryptocurrency.
- External factor: Most of the world hasn’t yet heard of blockchain, let alone have an understanding of the potential it holds. It’s the same as the early days of the internet, when even the likes of Bill Gates were sceptical about it.
- Internal factor: The improper design of blockchain ecosystems with economic models that financially support the community developing and using services within the network.
For the initial push towards mass adoption, we must closely understand and address the internal factor.
Lack of effective ways to monetise DApps
The blockchain industry often boasts of how supportive it is to individual developers and small businesses. The truth, however, is that developers still lack ways to monetise their DApps in a way so they may recover the development cost and generate substantial profits.
Poor incentive models for users
At this time, blockchain applications and networks must prioritise retaining their users. It will play a crucial role in how we further shape the impression of blockchain in our society. And the best way to achieve that is to incentivise users for their contributions to the network. As of now, users are either not incentivised or there are minimal rewards.
Improper fee model
Fee models in blockchain ecosystems are mostly aligned to incentivise the network creators and miners and not necessarily the users of the ecosystem.
Solutions offered by Aladin’s Token Economy
Aladin claims itself as one of the most developer-focused blockchain networks. It has a built-in software development toolkit for developers to create engaging DApps which may attract more users for them. Besides, Aladin subsidises DApps by sharing 20% of the total block rewards with the developers of the community. The rewards received by each is directly proportional to the number of users registered on their application.
Zero transaction fees
Users on the Aladin Network can avail the benefits of zero transaction fees as long as they are transacting in Aladin tokens. In the case of transacting other tokens, they must allocate 0.01% to 0.05% Aladin tokens to the transaction. The allocated amount will be sent directly to the receiver’s wallet.
Lower service cost
Zero transaction fees model also applies to developers building applications on the blockchain. When they pay a lower cost for developing applications due to no transaction fee, they can sell their services to users at a lower cost.
Block reward for voters
Users on the network are eligible for block rewards if they stake tokens and use them for voting on the network. Based on the number of votes each user casts, the network will share 5% of the total block reward with those users every 30 days.
A more developer-focused economy, zero transaction fee for users, lower service costs, and incentives for voting within the network will together ensure that more developers and users trust Aladin Network over other blockchain networks.