GeoDB is proud to announce that it will be implementing Binance Chain as its second layer in the part of the protocol that distributes rewards to users at GeoCash and other future applications connected to GeoDB. This implementation will allow GeoDB ecosystem participants to execute operations at high speed and low transaction costs.
The decision to add a protocol layer in the form of the Binance Chain has been made due to its technical advantages and a high growing ecosystem of the Binance network. After the implementation is finished, GEO holders will be able to choose which protocol to use to operate with their GEOs to transfer, trade, and use various DeFi tools.
“Binance Chain is one of the most growing ecosystems today. We are happy to offer more than 250,000 users who have downloaded the GeoCash app to use the universe of Binance Chain applications for their GEO transactions.” — says Luis Gelado, CEO of GeoDB.
As mentioned earlier, Binance Chain implementation will open new markets for GEO token and significantly improve the operational part of GeoDB applications and reward system functionality. In the first stage, GeoDB planned to allow its users to claim their rewards directly on the Ethereum Mainnet. But as DeFi exploded, both Ethereum price and gas prices have been increasing significantly, which has brought certain challenges for the process of allocating rewards in the form of GEO and switching to the Mainnet environment.
Second layer solutions allowed GeoDB and its users to access Ethereum value and ethos without paying for the high gas cost that currently governs the protocol. Binance Chain is a sidechain of Ethereum, where gas costs are lower than in the Mainnet. Thus, it becomes a really attractive option from where the protocol can distribute token rewards without giving away the network effects of having a token available on the biggest DeFi blockchain where all the magic happens.
So, what is the actual flow of rewards in the Binance Chain?
First, tokens will be transferred from GeoDB in the Ethereum Mainnet to a smart contract we call “a bridge.” Ethereum and Binance are two different blockchains; by default, they are like islands isolated from each other, and one can not know what is happening on the other side. That’s why we call them bridges.
When tokens are deposited in the Mainnet bridge, they will appear in the Binance Chain. As long as the tokens are in the Binance Chain, they will have a tethered amount in the Mainnet bridge. Then, these tokens in the Binance Chain will also be deposited in the smart contract responsible for distributing the tokens to the users. When users turn on their mobile devices and open a GeoCash wallet, they will be able to see how the rewarded tokens count increasing, and at some point, they will decide to claim them as being true owners of their income. Claiming these funds have a cost: the feared blockchain fee, which is up to February 2021, rising as high as $50 for standard transactions in Ethereum Mainnet. But remember, we are not operating in the Ethereum Mainnet; we are in the Binance Chain, a second layer solution with much lower fees, lowering a $50 transaction fee to negligible cents (as long as the Binance Chain remains uncongested and scalable). From there, it will be easy to trade your tokens in the market at any time. If for any reason you wish to go back to Ethereum Mainnet (hello there, whale!), you can do so by using the bridge: any transaction that burns tokens in the Binance Chain will generate the right to claim an equivalent amount in the Ethereum Mainnet.
Still confused about what is going on? We know that a picture speaks a thousand words, so we prepared a little schematic to help you understand this concept quickly and easily.
About Binance Smart Chain
Binance Smart Chain is a sovereign smart contract blockchain delivering Ethereum Virtual Machine (EVM) compatible programmability. Designed to run in parallel with Binance Chain, Binance Smart Chain retains the former’s fast execution times and low transaction fees while adding Smart Contracts functionality to support compatible dApps.
For more information on Binance Smart Chain, visit https://www.binance.org/#smartChain.
GeoDB is a decentralized peer-to-peer big data-sharing ecosystem, which returns value to its creators, the users.
GeoDB creates bridges between current isolated participants and aims to solve the huge big data industry’s existing inefficiencies.
Users receive GEO tokens in exchange for their anonymous data, which can later be exchanged to other crypto-currencies or, once we launch our full network, use it to acquire goods and services.
Currently, GeoDB is releasing all of its network apps; GeoCash currently has over 250k+ users and growing. To learn more, visit geodb.com.