An Introduction to the Economic
Landscape of XTRABYTES™
Written and researched by Golden
Contrary to what most cryptocurrency projects seek to accomplish, XTRABYTES™ is building a platform that will bring the benefits of decentralization to a variety of everyday tasks (beyond simply serving as an alternative payment processor). Consequently, XTRABYTES™ intends to provide blockchain solutions that offer greater functionality than currently found in other cryptocurrency projects.
Although decentralized P2P payments have long been the mainstay of the crypto industry, we seek to substantially improve their accessibility. In particular, we intend to broaden the scope of payment options available to individuals who engage in a variety of different types of transactions.
Accordingly, we’ve identified various payment mechanisms suitable to such interactions (all of which retain unique technical requirements). Among the many payment methods identified are:
- instant peer-to-peer payment
- automated payments linked to smart contracts
- fee-less micropayments
Combining these payment methods in one coin typically necessitates technical compromises. At XTRABYTES™, we believe it’s far better to simply incorporate two coins to meet this need.
By allowing for two coins, we’re able to provide users with access to two blockchains (both of which are compatible with one or more specific payment methods) that each have their own technical specifications.
Moreover, our platform enables us to link different types of payment methods to different types of users. While some of these transactions will occur on the client-side of the platform, others will take place on the server-side. This is one of the primary reasons we created XFUEL.
Although we have faced continued criticism about creating a second coin, we appreciate the fact that community members did not have this information and so could not accurately judge this decision.
By retaining two different blockchains, we’re able to optimize the many different payment methods that our platform will require. As you can see, XFUEL was not created simply as a means to pay for work and development.
XBY & XFUEL
The big question on everyone’s mind is “How do XBY and XFUEL fit into the network?”.
To start we need to identify the main entities that will make up our network:
- STATICs & STATIC owners, as the backbone of the network, provide the services needed to run the network. In addition to providing storage and computational power, they also oversee the addition of new information to the network.
- dAPPs & dAPP owners, offering STATIC-provided services in a user-friendly way, facilitate network access and help users benefit from its decentralized nature.
- Users and others looking to take advantage of a fully decentralized network in various aspects of their daily life.
So who will use what?
The short answer: users will use XBY to use the dAPPs and dAPP owners will use XFUEL to pay for the services offered by the STATICs.
All dAPPs developed by XTRABYTES™ will be built on this principle and this will also be a requirement for any dAPP that is run on our network.
To give a simple example:
Someone developed a dAPP that allows people to book a service. However, the app requires data storage & P2P transactions. The user who wants to book the service will pay the dAPP owner in XBY. And the dAPP owner will pay for the data storage and P2P transaction service in XFUEL.
This will create 2 markets, a market between the users and the dAPP owners for XBY and a market between the dAPP owners and the STATIC owners for XFUEL.
As the network grows so will the number of people using dAPPS. Likewise, dAPPs that require STATIC-provided services will grow as well. Together, we expect these dAPPs to have a positive influence on the supply/demand equilibrium of XBY and XFUEL.
Besides the service fees the STATIC owners will receive from the dAPP owners they will also receive the transactions fees for both the XBY and XFUEL transactions.
On top of that, both coins can be used to register a STATIC node or buy a future XIP token (tokenized shares of XTRABYTES™ Intellectual Property). This would have the added benefit of including STATIC owners in the XBY market and users in the XFUEL market.
The intrinsic value of both XBY and XFUEL is considered equal, meaning that; where both XBY and XFUEL can be used for the same purpose in the network, 1 XBY equals 1 XFUEL. (For example 1 XIP = 1000 XBY = 1000 XFUEL, or level 1 STATIC = 500k XBY = 330K XBY + 170k XFUEL).
We expect that the market value for both coins will achieve equilibrium as a result. However, it’s ultimately the market that will determine the price of both coins and savvy traders will find themselves able to profit from fluctuations between these markets.