Breaking Barriers in Blockchain with Koinos: a Free-to-Use Blockchain

TL;DR:

• Koinos has pioneered the first free-to-use blockchain with a new resource model based on “Mana,” a regenerative energy used to execute transactions. Each KOIN token is “born” with 1 Mana, which is what gets used by the blockchain but which regenerates, allowing perpetual usage.
• Free to use and offers a three-second block time, which means a near real-time experience for both applications and users. Instead of paying gas fees, KOIN tokens are temporarily locked when the blockchain is used. If all of a user’s Mana is consumed, they can either wait for the Mana to regenerate or get more KOIN.
• First general-purpose blockchain with proof of burn consensus, which has the benefits of proof of work and proof of stake. With proof of burn, the size of a miner’s rig is based entirely on how much KOIN they have burned.
• Koinos has a unique modular design that allows for unprecedented upgradability. Performance improvements and features can be added seamlessly without the need for hard forks.

Blockchain technology continues to interest the tech community and the general public. People are curious about where it is going and how it will impact our future.

With its ability to provide secure, immutable records and automate complex processes, blockchain technology impacts applications across various sectors, including finance, supply chain management, gaming, and more.

Like all new technologies, however, blockchain faces significant challenges that must be overcome to unlock its full potential. For game developers and creators, blockchain transactions’ high costs and complexity are seen as barriers that slow innovation and make it harder for Web3 technologies to become widely used.

Fees Limit?Scale

Transactions are free in Web2 applications because of their centralized nature. However, Web3’s decentralized environment relies on nodes to uphold a consensus layer.

The consensus layer is a key component that helps all the computers in a blockchain network agree on the current state of the blockchain. With this agreement, the network is smooth. This layer keeps everything in order and ensures all transactions are correctly recorded and validated.

Various solutions have been proposed to overcome scalability issues, including scaling systems for creating off-chain channels that allow faster and more cost-effective transactions. The current leading solution to facilitate free transactions has been a gasless model.

Gasless blockchains help minimize fees?—?which can add up, especially for frequent traders?—?and streamline the transaction process, reducing the typical friction encountered in blockchain interactions.

This enhanced user experience, mirroring the ease of use found in traditional web2 applications, is crucial for attracting non-crypto-native users. By eliminating gas fees and reducing transaction costs, such platforms can rapidly onboard new communities, fostering greater adoption and participation in the NFT space.

The Koinos Advantage

Koinos has solved the most significant issues affecting blockchain developers?—?their economics and computational resource costs?—?by creating a free-to-use, developer-friendly, and upgradable blockchain.

Blockchains should allow free-to-use options if dApps are to widen their user base. But how does Koinos offer these services free of charge, and how can it be more accessible to developers?

How Koinos is Fee-less

Koinos uses “mana,” which solves the halting problem by building on Ethereum’s “gas” concept. Mana is an attribute of the KOIN token users use to engage in transactions without fees. Like the mana/life force in many video games, it replenishes over time.

The KOIN token was released using a mining process similar to Bitcoin’s but on the Ethereum network, with 100 million KOIN available for mining. When the Koinos main net launched on November the 5th, 2022, it used the existing KOIN balances on Ethereum to set up initial token amounts. KOIN tokens are created at a 2% rate to incentivize block producers without fees.

If a user’s mana is fully depleted, they can simply wait for it to recharge over five days to continue making transactions without buying more KOIN. Once mana is used, the associated KOIN token is temporarily locked and cannot be transferred until the regeneration period is over.

Mana Users and Transaction Types

The use of mana within the Koinos model entices two broad types of users: average consumers and those developers and applications/users who conduct a large number of transactions.

• The average user can conduct transactions on the blockchain for free using the mana attached to their KOIN token.
• Developers and application(s) users who undertake a large volume of transactions can make a certain amount of transactions for free within a period based on their current mana supply.
• When an application or developer undergoes many transactions, the business model works similarly to an API rate limiter. Therefore, to maintain free transactions, developers and applications must scale their KOIN supply or subscribe to a paid tier of Koinos Pro, which will contain a “Mana fountain.”

Maximum Accessibility for Ultimate Compatibility This approach has allowed developers to build, scale, and monetize their applications more effectively, creating a more vibrant and diverse dApp ecosystem. Unlike competing platforms, Koinos has built a general-purpose Layer 1 (L1) blockchain that is free for users and developers and does not require the traditional model’s gas fees.

As of 2024, Koinos Group is targeting indie game developers. Their large user base can utilize the gas-less blockchain with in-game rewards, non-fungible tokens (NFTs), and trading.

Expansive Market Potential

During Q1 2024, the blockchain gaming sector saw significant growth, with 119 new titles added. Immutable emerged as the most popular destination, fueled by its upcoming Polygon-based Immutable zkEVM infrastructure, attracting many games, including migrations from Polygon’s legacy PoS blockchain. Ethereum L2s like Arbitrum and Blast also gained popularity, with Blast drawing attention through its Big Bang competition, which engaged over 3,000 builders. Notably, 27% of games adopted a multichain approach to broaden their audience reach.

Koinos is currently focusing on the gaming experience because it is a sector that will benefit most from integrating Web3 tech and their novel Mana-based design. Due to its unique design, they are making it easier to go from idea to revenue generation in no time.

Big Blockchain Game Report: Q1 2024?—?Big Blockchain Game List

Epic Games, a leading platform for PC game distribution, has recently reported that it now features 127 blockchain games , nearly twice the number listed at the close of 2023. This collection includes prominent titles like MetalCore, Parallel, Blocklords, Star Atlas, Apeiron, Nyan Heroes, and Shrapnel.

Rather than being like their Web3 counterpart, the real value of Web3 developers lies in their ability to provide technological advancements that highlight Web3 gaming’s unique advantages rather than creating games to compete with Web2 in terms of direct sales. This is crucial for Web3 gaming’s future and will enable it to secure a solid foothold within the ever-growing gaming industry.

The Team behind?Koinos

The Koinos Group was formed by the team that previously developed the highly successful Steem blockchain and Steemit.com . The team brings a rich background in scaling blockchain technologies to over 2.4M users and handling over a billion transactions.

The team is led by CEO Andrew Levine , who has extensive experience in blockchain technology and community engagement, starting from his early work with Giverhub. Key team members include Michael Vandeberg and Steve Gerbino , who have substantial engineering backgrounds from Steemit and other tech enterprises, and COO Ron Hamenahem , who brings over a decade of design and IT expertise.

Concluding Thoughts

Moving away from the conventional transaction fee model, Koinos has introduced a sustainable, regenerative economic system that delivers a frictionless user experience that people won’t even know they’re using a blockchain.

Koinos stands out as a forward-thinking platform that eliminates all barriers to blockchain adoption. As the platform continues to evolve, its emphasis on user-friendly, developer-friendly, and free-to-use blockchain services could attract a massive audience, from developers and miners to ordinary people simply seeking fun and owning digital assets.

References

This is a repost of Pione3rs — Issue #15 written by Aly Madhavji on Medium on August 2, 2024.