Different people have different strengths. Business people have a unique view of our world: they can spot opportunities and come up with ideas on how to make life easier for others. As of lately most of the time these ideas are creative applications of technology to various problems. Unfortunately, only a small percentage of business people truly understand technology well enough, especially when it comes to cryptocurrencies. Hence the latest push for tokenized securities, when it is quite obvious that the best form of organizing a purely digital business is a DAO.
Today we are going to talk about tokenized real estate as applied to the digital world. The most expensive digital real estate is space on the blockchain. GasToken allows you to tokenize this real estate in order to use it later or sell to someone else.
For example on Ethereum it costs about 0.035 ETH to store 1 KB of data, which roughly translates to $5 / KB, or $4,820,000 / GB ↩︎
The idea behind GasToken is simple, and it exploits a particular mechanic of EVM blockchains (such as Ethereum, Ethereum Classic and a number of others). When you store something on the blockchain (i.e. you send a token to a new address, or you create a new order on Saturn Network), you pay for this storage, as expressed in gas. When you delete something from the blockchain, however (for example you cancel your order on Saturn Network), the blockchain rewards you for making it smaller (the information is still stored in previous blocks, but only the archive nodes persist it).
GasToken is a smart contract that has two methods available to anyone with some money on the blockchain. The first method is mint. When you mint a token, the smart contract generates dummy data and stores it on the blockchain. It is wise to call the mint method when gas price is cheap, so that you can tokenize cheap gas and save it for later.
Reduced Fees For Your Trading Transactions
The second method is free, (although burn would be a much better name for it). When you burn a gastoken, the smart contract deletes some of the previously stored data and the blockchain rewards you for doing so by generating some gas for your transaction. The more tokens you burn, the more gas gets refunded within the transaction. Keep in mind that gas refunds can pay at most for half the gas cost of a transaction, so freeing more tokens is only worthwhile if we're planning on spending lots of gas to begin with.
There are two variations of GasToken deployed by the original team: GST1 and GST2. Their only difference is what kind of dummy data they store and free during the mint and burn phase. Those who are interested in learning more should consult with the project's website.
Why did we decide to write about GasToken?
Well, firstly it is a great idea - both technically as well as in a business sense. We firmly believe that as our society becomes increasingly more digital, tokenization of various digital goods will play a much larger role in our lives. And secondly, in a future release of Saturn Protocol we will integrate GasToken as a mechanism to pay reduced fees for your trading transactions.
We have also released a GasToken Miner
If you would like to start minting your own GST1 or GST2 tokens, we have released a GasToken Miner which supports Ethereum and Ethereum Classic. You can find the tutorial on our forum, which will walk you through the steps you need to follow to install it and start minting tokens. Remember unlike "traditional" mining of coin or tokens, mining GST1 or GST2 does not require any intensive CPU or GPU use from your device! All you will need is some Ether in your wallet to get going.
We would love to see some feedback!
As this process is very new, it would be great to start a discussion around your settings and results then we can try to figure out the optimal mining configuration! And if you have any ideas for new features then we would love to know.
Stay tuned, and Happy Trading!