Mercury Protocol strives to enable a more secure and private social network to form on the blockchain.
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What does the company/project do?
The Mercury Protocol is a suite of smart contracts that enable a more secure, more private social network to form on the blockchain, instead of isolating the network in centralized servers.
By creating a tokenized social ecosystem, applications can leverage tokens to incentivize meaningful interactions while users can utilize them to gain access to premium services.
When applications build on the Mercury Protocol, they can charge GMT tokens for premium services or award it to active users for positive participation.
Dust, the messaging app created by the company, will be the first application to utilize the Mercury Protocol. Broadcast is on the pipeline and will be the second app integrating with the protocol. Any application on the protocol can communicate with another application on the protocol.
What are the tokens used for and how can token holders make money?
GMT tokens are used for unlocking premium services for applications built on top of the Mercury Protocol.
Users are rewarded GMT for being active on these applications and networks. This creates an ecosystem that encourages active participation on the apps built on top of Mercury Protocol.
As GMT tokens are needed to perform different functions for applications built on the Mercury Protocol, the more usage those apps have, the more valuable GMT tokens should be.
- Good ICO structure – there is no bonus/discount to ensure a level playing field.
- The messaging app industry is large. WhatsApp was acquired by Facebook for $19 billion back in 2014. Snap Inc. also has a market cap of $19 billion as of October 16, 2017. If Mercury Protocol is successful, the upside can be substantial.
- The company already has a functioning product, Dust, for a few years.
- According to the white paper, the biggest differentiation of Mercury Protocol over currency players (Messenger, WhatsApp, WeChat, etc.) is that it does not collect user information and monetize it. However, we are not sure how many users actually care about this, as long as they can use all the necessary functions for free and enjoy the user experience.
- Since the messaging industry is large, it is very competitive. The industry also enjoys enormous network effect, so most users would not want to try a new messaging app when none of their friends are using it.
- If Dust and Broadcast are not popular after integrating with Mercury Protocol, it would be difficult for third party developers to take the plunge and build applications on top of Mercury Protocol.
- The project will implement state channels and oracles – looks like it is a pretty complicated project and may face a lot of challenges during development.
- The use case is rather limited compared to Status, its closest competitor. Status’ use cases include running dApps, sending payments, storing cryptocurrency, which cannot be done by the Mercury Protocol.
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