Why is Mass Coin Necessary?
User attention and online behavior patterns have a value. Mass establishes a unwavering market where this value is established and can be bought and sold. Mass proposes allowing market forces determine the proper relationship between the online ad industry and internet users. Using this foundational principle of capitalism will allow the value of user data to be established in a transparent and fair way.
Currently, most internet users think of their attention and online behavior as having little to no value. This assumption is essential to an industry whose annual revenue is in the hundreds of billions of dollars. The fact is that user data is valuable and is already being bought and sold. Mass allows the source of this information, the individual, to participate in the buying and selling of their attention.
However, according to current conditions, even if an individual could willingly sell their data it would not yield any significant profit. The ad industry's huge profit is based on the aggregation of million of individuals' data. There is strength in numbers, but we must first change the game. Mass creates a new network and a new market which allows a unified critical mass of users to emerge. This, in turn, will necessitate a paradigm shift in the acquisition of user data.
To make a stand one must have a solid foundation on which to leverage a position. The Mass Economy will be this leverage-able entity. It will be built and sold to willing participants who are tired of being exploited, cheated, and farmed for their valuable user data. Naturally, ad agencies will see this emerging sector of internet users and want to target them with ads. To do this they will need to participate in the network by paying Mass Coin in exchange for the data. They will do this because it will be a worthy cost of doing business. Advertising is not inherently evil but exploitation is. Mass allows for the possibility of a mutually beneficial relationship to emerge between the ad industry and the individual.
- Mass Coins are the circulatory system of this new economy.
- Mass Coins are the only acceptable currency within this economy.
- Local currency is best for supporting a local economy (see Wörgl, Austria).
- Frictionless and secure thanks to the decentralized blockchain ledger.
- Easy to use wallets.
- Integrated with top Bitcoin and altcoins exchanges.
- 100% unwavering currency once the single issuing event occurs.
- Provides a highly in-demand, scarce resource with excellent growth potential.
- Larger stakeholders are incentivized to promote system use.
The True Value of Mass Coin
Similar projects often use native coins/tokens the nature of which varies. The Mass Project clearly defines what Mass Coin is and what it is not. Let us begin with the latter.
Do not confuse Mass with a company doing a digital IPO. Mass Coin does not represent equity nor are they cryptographic shares. Mass Coin holders are not entitled to dividends in any form or revenue sharing or transaction fees within the network.
Do not confuse Mass with distributed autonomous organization (DAO). Mass Coin does not represent shares of any organization. There is no autonomous code responsible for issuing the coins, holding the money collected from the coins' sale, and contracting third parties to develop the network.
Do not confuse Mass Coin with debt. There is no interest rate or promise to pay back the principle.
Do not confuse Mass Coin with convertible notes. There is no future equity promise, and there is no vesting period. Mass Coin is ready for free trade on crypto-exchanges immediately after the distribution without limit.
Mass Coin is a form of digital currency needed to access the service provided by the network. However, Mass Coin is very different than so-called, "app coins" such as Ether on the Ethereum Network. Advocates of such coins have characterized these as "tickets to ride" within a network. In Ethereum, for example, one needs Ether to build distributed apps on the platform. In the case of Steem or Sia (and dozens of others), you also need to own native coins to do whatever it is that each network allows doing.
The problem with the above is that these "tickets" come with an additional cost and various side-effects such as mining fees or requirements to continuously contribute to the network in some way. In summary, they try to mimic many aspects of Bitcoin.
It is not clear why any of these projects liken themselves to Bitcoin; however, since Bitcoin is a functional monetary system, currency, and a payment network in one. It has proven its right to be so complex and so far this complexity appears reasonable. But why should any of the existing app coins be as intricate as Bitcoin? It is hard to answer this question. To illustrate this conundrum consider that we have not yet seen any useful distributed applications apart from Bitcoin, itself.
In addition to unnecessary complexities, we strongly question the validity of requiring additional coin emissions beyond the first. The law of nature is that "physical energy is neither created nor destroyed". This principle informs our one-time issuance approach to Mass Coin. Satoshi may have had a similar idea in mind when he set the Bitcoin cap at 21 million which is a single issuance (although intentionally not all released at once).
Mass will not hold a second emission, sale, or offering of any sort. As the network grows and as its users become more active the demand for the currency will increase which will lead to a resulting price increase. One gets his or her reward by becoming an early adopter—a believer and supporter of the network and the idea behind it. The crux of this one-time emission philosophy is that it keeps the system independent of its creator.
Now, there are some that find it necessary to connect crypto-coins to the legacy world. There are several different approaches to this concept, but all are mere shells for legal/tax purposes. For instance, the Ether pre-sale was done by the Ethereum Foundation, a non-profit organization registered in Switzerland, whose sole purpose is managing the funds raised from the Ether sale to serve the Ethereum ecosystem best. Has it helped anyone lately?
Mass Coin is a balanced combination of centrally organized governance (in the form of a Liechtenstein-registered company) and a decentralized entity component that is the tokenized ecosystem built on Mass Coin. In our case, the company is responsible for the infrastructure's development. Each stakeholder and employee is and always will be interested in the value-growth of Mass Coin, naturally.
In summary, Mass deploys modern tools to increase efficiency but does this with an explicitly balanced notion of complexity and purpose. Mass Coin is a once-issued virtual currency that uses the Bitcoin blockchain as transport, and its value depends solely on the market forces of supply and demand.
Mass Coin: Technical Implementation
Blockchain: the Trust Protocol
In recent years, “blockchain” has turned into a catch-all phrase for anything involving a distributed, public ledger or database. Blockchain technology has been hyped for use everywhere from traditional banking institutions to the healthcare industry. When first confronted by the reality that Bitcoin is here to stay and kill many of them, banks reacted with hostility and skepticism.
Today banks and financial institutions seem to agree with the Bitcoin community that the technology behind Bitcoin can provide an efficient platform for settlement and for issuing digital assets.
Curiously, though, they shy away from Bitcoin itself. Instead, they want something they have control over and doesn’t require listing transactions publicly. The problem is that the Blockchain is specifically designed to obviate private firms. The Blockchain is and will always be purely customer-to-customer. The notion of a “blockchain company” or "private blockchain" is nonsense by its very nature.
Bitcoin is not just a protocol or money; it is a new business model for open source software. Industry refusal to acknowledge this point has resulted in multiple misunderstandings, which have persisted for a variety of reasons.
The Mass team realizes that by using a true blockchain-based money not the slightest piece of monetary control will remain in private hands. Mass Coin will be left to its market forces immediately after its one-time issuance. Mass does not want to maintain any authority nor is it able to thanks to the decentralized and public nature of the Blockchain. Mass does not have to be trusted—and this is the beauty of the whole concept.
Bitcoin: the Only Safe Blockchain
Strictly speaking, there are no other fully functioning blockchains apart from Bitcoin; therefore, the Blockchain is Bitcoin. Thus, one can't really be "blockchain agnostic" at this point in time.
Moreover, some people in Bitcoin community will do their best to stifle the emergence of any serious alternative. Bitcoin is the perfect example of the so-called Lindy effect. When it was young, it was fragile and could have died multiple times. Now, every day it survives adds two more days to its life expectancy.
The essence of a blockchain is the consensus process. The Blockchain is an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof of work as well as all the previous proofs of work. Without Bitcoin's essential qualities, a real life blockchain most probably cannot take off. Alternative blockchain creators often attempt to compromise primary principles that have already proven to be viable. For example, proof-of-stake is a concept trying to marry two contradicting phenomena: blockchain as the means to get rid of the need of credibility and authority that wants to get inserted into the decision making this way or another.
The only alternative to Bitcoin worth mentioning is Ethereum, and it is many orders of magnitude less secure yet, so it is mentioned here only anecdotely. "Smart contracts" - the idea Ethereum boasts adding to the blockchain world - are not "legally binding contracts" in any part of the world, and will probably not be before long. "Smart contracts" are ordinary software with some centralised intervention. Ordinary software rarely works as expected, has bugs, and is vulnerable. Do not compare smart contracts with Bitcoin and do not expect the same level of security!
Colu.com: the Most Reliable Operator for Assets-over-Bitcoin
There are three prominent operators, namely Omnilayer, Counterparty, and Colu, as well as a handful of powerful protocols built on top of the Bitcoin Blockchain. They all allow issuance and transfers of user-created assets. This is an evolution of the Bitcoin concept often referred to as Bitcoin 2.0 or, in a more narrow sense, “colored Bitcoins”. “Colorization” is a term that stands for attaching a specific name, feature or even promise to a transaction conducted in the Bitcoin network.
Among the three operators mentioned, we consider Colu as most suitable for Mass. Colored addresses are free to create and require only a small transaction fee on issuing new coins. Assets can be locked so that no new shares can ever be created. While these features are available from several providers, Colu is the best because of its organizational structure. The company—yes, this open source protocol is supported by an Israeli corporation— is transparently funded and operated and has clear business goals. Open source community-run projects are cool but often lack direction, are unreliable and always slow. Colu supports many ongoing classes of assets and has extensive experience in the field. Therefore, using Colu brings excellent value to the Mass project.
Another important reason to consider is that Colu offers the only protocol that doesn’t take an additional “native” coin to run it. Omnilayer needs such a coin and Counterparty does as well.
Last but not least, the Colu team has been advancing towards its Lightning Network (LN) implementation aggressively. It is essential for Mass to have a micropayment capability like LN, so Colu’s progress in the field is vital for us to take into consideration.
The Wallet Infrastructure: Provided by Mycelium
A crypto-currency wallet is not an easy thing to develop. User security must be balanced with a featureful, intuitive interface. Thus, Mass is integrated with the most respected wallet team in the industry, Mycelium, to make the receiving and selling of crypto-currency seamless for Mass users.
Why not BTC?
Recently, many have been asking, “If the Mass Network runs on the Bitcoin Blockchain then why is Mass Coin necessary? Why don’t Mass users simply receive Bitcoin for their participation in this Blockchain-based system?
One of the tenets of Mass is that the price of ad placement on the network should be determined by supply/demand of ads as well as the overall health and appeal of the Mass ecosystem, itself. Again, if we were to have all of this rely on Bitcoin, in addition to the two factors above, we would be introducing the fluctuating value of Bitcoin as another variable in determining the price of ads which would make the entire system vulnerable to any turbulence within the Bitcoin space. We do not see this as a necessary risk.
We do not see the Bitcoin economy as relevant to our application. The Bitcoin Blockchain plays an important role in Mass Coin distribution and will hopefully become more vital once LN arrives. Until then, we want to embrace the liquidity and security that is available on the Blockchain but discard the volatility in order to create a stable, purely market-based value for transactions within the Mass Network.