2key Network — Telegram QUIZ & AMA — November 03
On Tuesday, November 03, we had the pleasure to welcome to our Telegram chat:
Erez Ben Kiki, CEO & Co-Founder, and
Eitan Lavi, CTO & Co-Founder.
We asked them questions about the development of 2key Network.
Some sentences have been slightly edited for readability but the meaning has been conserved.
Summary
2key network is a decentralized referral network that helps people, businesses and organizations reach their ideal customers and spark action. Users can target the audience of the links by 3 parameters: age, gender, and country.
2key Network takes transparency a few steps ahead, validating real humans by their web 3.0 address.
2key Network is the first-ever crypto/blockchain product to get approval from Zoom to be on their marketplace.
Introduction
Q — Alex Raffin from GAINS: Can you give us some background about who you guys are, what you’ve done, and what 2key is at a high level?
A — Erez from 2key Network: I’m Erez, Co-founder, CEO of 2key.network. We started the project about 3 years ago, with a mission to redistribute the wealth generated by people sharing information (links) online.
A — Eitan from 2key Network: I’m Eitan, CTO of 2key. I come from a finance and online products background, and have been a fulltime crypto enthusiast and working at for the past 4 years.
Product
Q — Alex Raffin from GAINS: Can you tell us what 2key Network is about in a few sentences?
A — Erez from 2key Network: 2key network is a decentralized referral network that helps people, businesses, and organizations reach their ideal customers and spark action. It works by giving people the opportunity to directly exchange links that they recommend and allow the links to reward every person who shared it with crypto.
Our goal is to make you earn money from sharing any type of weblink. Our protocol embeds an economic model (a smart contract) on regular links, enabling them to keep track of their entire referral chain, and to also record what economic value was ultimately generated from the sharing. This way, the value from your sharing, once achieved, can be shared back with the referral chain of every link leading up to the conversion event (someone reading the content on that link’s site, purchasing a service, sign up, etc).
Q — Alex Raffin from GAINS: Can you tell us how much you’ve achieved so far, with some numbers? How many people are using these links?
A — Eitan from 2key Network: There have been around 30K users who signed up so far. Since launching the main service in May this year, we’ve had over 1.3K campaigns created, 28.2K links converted to SmartLinks. There were more than 600K unique visitors to these links, creating more than 104K conversion events. In the last 30days, we’ve seen 367 new pages created, 295 new campaigns launched, 600 new links generated, 32K new visits, and 5.6K new conversion events.
Q — Alex Raffin from GAINS: Is it more transparent? Are the results better if you spend $100 on an advertisement with a 2key link compared to Google or Facebook ads?
A — Eitan from 2key Network: With 2key, you only pay per result achieved. You pay that to actual humans, not to the Facebook /Google tax shelters. With Facebook and Google, you mostly pay what they require. With 2key, you set your own price.
The cool thing about 2key is that even if you spend $100 on Google or Facebook, you can still feed that with a SmartLink wrapped around your target URL, so you can have better transparent tracking of how that ad is performing, and who is interacting with it.
A — Erez from 2key Network: You also have full control of the links budget, life-time, method of rewards split and distribution, and more. They are really the links of tomorrow’s decentralized web.
Q — Alex Raffin from GAINS: Can you target some specific segment for example?
A — Erez from 2key Network: For now, you can target the audience of the links by 3 parameters- age, gender, and country. More specification will come soon.
Q — Alex Raffin from GAINS: Interesting, how do you get this info?
A — Eitan from 2key Network: You’d be surprised, perhaps, but if you use Google or Facebook + pay them + use them for tracking your ads, you give them the full ability to charge you whatever they want and also tell you what the results were. It’s better to track it independently, and compare. You’d be surprised.
If you pay Google to run your ads, and they’re also the ones to tell you how good the ad results were. Don’t be surprised if they tilt the odds in their favor.
Q — Alex Raffin from GAINS: Would be a major scandal if that could be proven
A — Eitan from 2key Network: The duopoly holds most of the current web’s power, so I’m not sure any scandal would hurt them. They hold all the information, they own that information, and they tilt that information to more and more own their users. The scandal is already widely in the open.
Q — Alex Raffin from GAINS: Are you able to track what happens better than Google or Facebook?
A — Erez from 2key Network: When a user wants to refer a 2key link, he will be presented by the target audience. We collect data all the time. We also have 12 validation check-ups to approve or decline the audience. It’s not 100% accurate, but way better than most solutions out there.
Q — Alex Raffin from GAINS: Why do you think people aren’t using smartlinks more if they seem to be better than traditional advertising options?
A — Eitan from 2key Network: There is a lot of product fit we still need to accomplish:
- Zero-fee SmartLinks are just out this week — Before that, it was too expensive with ETH gas prices to deploy that SmartLink with a budget campaign.
- The No-Budget SmartLink — Those are SmartLinks (SLs) that are completely free to create, they reward the only reputation per click to the entire referral chain but that reputation is translated to 2KEY earning in the participation mining weekly epochs. For these campaigns, we still need to make their creation a matter of one click: input a URL and get a smartlink. We call this Bitly 3.0, and we hope to release that soon.
Q — Alex Raffin from GAINS: How does it work if you want to create a SmartLink? Is it hard? Do you need tokens?
A — Erez from 2key Network: For now, creating a SmartLink doesn’t require any code or integration. From today also, no gas fee to deploy!! It’s a simple form, and we make it even easier to make real soon, so it will be as easy and fast as creating a Bitly link, just a matter of a few clicks.
Rising gas fees made the link creation cost rise from $±2 to up to 80! at some points (500 gwei). Fixing this was our top priority in the past couple of months
Q — Alex Raffin from GAINS: How do you technically realize zero-fee SmartLinks if there’s a Smart Contract deployed every time?
A — Eitan from 2key Network: We moved to using a singleton contract which manages all these campaigns, as a resolution layer on L1, and the contract per campaign that manages the campaign while its running is deployed on our Layer 2 and runs natively on it, with zero gas.
Q — Alex Raffin from GAINS: Can you tell us more about how the token fits into all this?
A — Erez from 2key Network: 2key token, the network native token, is the default reward token (same as BAT is for Brave). Any funds sent to 2key SmartLinks are swapped to 2key on the spot. We also launched our staking program, and reputation, involving the tokens, and soon we will introduce many more usages for the token. Read about them here.
Now that we fixed the first most important problem in the creation of SmartLinks, we are sure the usage and demand will start to scale. In the next few months, we will have many improvements in the UX/UI design that will make the whole usage way easier, faster, and smooth.
A — Eitan from 2key Network: The tokenomics of budget campaigns is elementary. Let’s say you have a campaign where you want to drive people to click on your content, and you’re willing to pay 5 cents per click. When you create the campaign you set the budget and the price you’ll pay per click, and then you need to budget the campaign with some stablecoin (DAI, USDC, USDT, TUSD, PAX, and BUSD are supported).
That entire budget is then used to purchase 2Key from the internal exchange, so this is 100% immediate organic demand. When the campaign ends, the contractor can withdraw whatever budget remains, in 2Key form (but rebalanced to keep the original $ value).
For referrers, they accumulate per campaign. Once they accumulate enough, (over 3$ worth) they can also claim. It will also rebalance their earnings to the current $ value, and they will receive those 2Key (minus $0.5 fee per such withdrawal, but you can decide when to withdraw when enough is accumulated).
Q — Alex Raffin from GAINS: Is there any burning mechanism or something similar to create scarcity and demand? So the more campaigns, the more 2key is bought from exchanges?
A — Erez from 2key Network: From DEXs (it’s automatic).
A — Eitan from 2key Network: There is an organic demand relay mechanism, which feeds that demand to the markets in an algorithmic manner, so the more traction, the more demand.
There’s Auto-Distribution — as these 2KEY bought from the single contractor get distributed to referral chains of multiple users. The act of taking the token and always distributing it to more and more people makes the token stronger.
There’s Auto-HODL — as that 2KEY remain in the contract system until the users decide to withdraw, and even then, we have incentives for users to stake those tokens.
Also, from each conversion, there’s a network fee taken, which is mostly burnt/taken out of circulation.
We launched a DEX lately. Our DEX’s marketplace and aggregator allows swaps with 504 different ERC tokens from inside the wallet! It even hosts aggregators like 1inch, but unlike many others, it will transparently show you the gas cost for any swap.
Q — Alex Raffin from GAINS: Are you now competing with Uniswap?
A — Eitan from 2key Network: This is an integration of Uniswap and other DEXs into a single place where you can compare rates and fees.
A — Erez from 2key Network: Not at all. Uniswap doesn’t always give you the best rates. Sometimes you can get better rates on other DEXs, so the marketplace makes your life easier comparing them. Uniswap is usually the cheapest.
Q — Alex Raffin from GAINS: I guess there’s some hidden light burning with all the people that will never reach the $3 limit to withdraw tokens.
A — Eitan from 2key Network: The $3 isn’t a hard number, that’s just the minimum that would make the economics of withdrawing made by us to be worthwhile, while also making the minimal fee of 0.5$ feasible for the referrer.
Q — Twitter user @Musaploto: With 2key, we can create Short Links of any website! Could you explain what the main advantages of using 2key Links are?
A — Eitan from 2key Network: Shortening the link is just a side effect of using 2key. The point of 2key links is to enable the link to become aware of its entire referral graph online. Imagine you go to Bitly, but once your link is out, you start seeing exactly how it spreads online, a full referral graph of how it distributes across the web + the ability to embed an economic model into it, to track generated value from this link and compensate referral chains once such value accrues.
Q — Twitter user @Enderdogukan67: Advertising on the web is highly opaque and non-transparent. How will 2key solve this? How will 2key generate the value to people other than link owners and publishers (traffic sources) as it currently exists?
A — Eitan from 2key Network: You can try it out and see. Just create a smartlink for some content you want to distribute, and choose how much you want to pay for each validated human reader, and then share it with your initial fan base/followers/customers. You will see from your campaign page as a contractor all the referral graphs, so for the first time you can actually see entirely what’s going on with the link, and also have direct control of what the conditions for payments are. The same goes for all referrers, you too as a referrer — get to see the full picture, but from yourself onwards, and the link auto-pays the referrers each time a conversion happens, it’s all transparent and governed by a smart contract, so you don’t have to try and make sense from the black box relations between publishers and advertisers like today, or between centralized affiliation products.
A — Erez from 2key Network: The current advertisement platforms (Google, Facebook etc.) are not 100% transparent, and keep 100% of the revenues. With 2key, you give your followers, supporters, and fans at least 90% of this budget, building stronger bonds with them, and making it way better. We also take transparency a few steps ahead, validating real humans by their web 3.0 address.
Q — Twitter user @alej_pacedo: How do you manage to offer 0 gas-costs and at the same time get profits for the platform in the process? How do you increase people’s ability to refer and win?
A — Eitan from 2key Network: The network earns when the network grows. It’s not a matter of gas fees. We don’t earn from that at all and try to eliminate it as the users don’t earn from that either.
Each time there’s a paid conversion in the network, some of the reward (10%) is taken as a network fee, most of which is burnt or taken out of circulation, and the rest is given to the human referrers along the chain.
Q — Alex Raffin from GAINS: It would be pretty cool to see it being spread geographically as well, maybe with a heatmap?
A — Eitan from 2key Network: Yeah. We have a lot of work to do to improve the graphical analytics experience for the users. The good news is we already have all that data as part of the protocol, now just need to improve its UI.
Q — Telegram user Isaaco: What do you believe will be the growth drivers for $2key token in the future? What role do you believe the community can play to make sure the 2key project succeeds?
A — Erez from 2key Network: For both points, we launched the community network earnings program. There is a good dashboard you can now use to track your results. Read more here.
Q — Telegram user Rock Minds: 2Key says it replaces the hash with a friendly SmartLink. What is the mechanism for claiming SmartLinks?
A — Erez from 2key Network: 2key protocol is the hash. It contains all the addresses that shared the specific link, in the exact order, encrypted in the link itself! That’s the beauty of 2key SmartLinks.
Q — Telegram user Jolaine #CryptoAdoption Team: The second protocol is exclusive to Ethereum. Will it be part of other blockchains such as Binance SmartChain, Polkadot, etc?
A — Erez from 2key Network: 2key is dedicated to staying at the forefront of web 3.0 and helping to move forward the decentralization movement. So when we tested the different blockchains for building the 2key network, we were naturally drawn to the Ethereum network, its amazing community of builders, innovators, and revolutionaries. We’re proud to be part of the second-largest blockchain in the world, but at the same time, we’re also working hard to give the 2key network the ability to support as many cryptographic tokens as possible. Our vision is that participants on the network will be able to have the token of their choice on the network, exchanging them in real-time through atomic swaps.
Q — Telegram user Republic and Freedom: What are the incentives and game theory associated with your reward system?
A — Eitan from 2key Network: You’re welcome to read our incentive model paper linked on the site. We’re eventually advancing towards what we call Game Theory AI — a dynamic incentive model for online sharing.
Q — Telegram user Aura II Aksia: Can a normal HTTP connection be converted to PPC SmartLinks?
A — Eitan from 2key Network: Any link can be converted to a SmartLink. The process already is free and scalable. We’re working to make it require fewer clicks to get there. All the way down to 1 click to transform an old link to a smartlink.
Q — Telegram user 🌸💮🏵️🌺🌼BRICEIDA🌼🌺🏵️💮🌸: What makes smartlinks a superior and more cost-effective method?
A — Eitan from 2key Network: The Layer 2 for 2key already works to make 2key campaigns scalable over Ethereum, It now costs $0 to launch smartlinks, refer them, earn from them, and just $0.5 to cash out your entire pending rewards from all campaigns.
Q — Telegram user Ivan Letov: What projects can be built based on the 2key protocol? How can 2key Layer 2 help solve Ethereum scaling problems?
A — Eitan from 2key Network: For now, it’s optimized for 2key campaigns just like Tesla built its own processor just to optimize for the self-driving requirements of the AI of Tesla. We do have a roadmap in place to generalize the protocol to enable any smart contract to run on it, and once we have enough traction on the core product we may branch out there.
Q — Telegram user Sen: How is it possible for the 2key framework to quit the gas commissions considering that the 2key is an ERC-20?
A — Erez from 2key Network: We developed a 2key Layer 2 that is mirrored to layer one with batch Tx once at a specific time. We minimized the interaction with layer 1 to the minimum needed. We are even going to distribute the rewards on batch Tx with a fixed 50 cents fee!
A — Eitan from 2key Network: 2key Protocol is a Layer 2 solution over Ethereum, where 2key campaigns can run for free, yet in a scalable and secure manner, via distributed, multi-party-state-networks of the browsers that touch the smart-link of each campaign. Those browsers create a state network that helps play out the state machine of the smart contract off-chain while keeping it secure. We have a few patents for these worldwide. It’s a custom-tailored Layer 2 we invented for the 2key.network, this is why it is optimized well for the 2key campaigns.
Q — Telegram user Sentung: If you guys were me, how many tokens 2key would you buy?
A — Eitan from 2key Network: Well, it really depends on your appetite for risk vs rewards. We ourselves put our entire lives on the line for this, so quite heavily invested.
As for you, if you believe in the project, then you have a chance now to buy them at a very attractive price. In general, the tokenomics are very simple, if we succeed in gaining adoption by businesses, the demand mechanisms will kick in, so if you believe in the vision, mission, values of the 2key team, and you believe we can execute, you should act accordingly.
In general, the safe bet in crypto is if you catch a good project when it’s early enough, you can buy enough for cheap that would be worth your while later on if the project succeeds. Ultimately, it’s your decision.
Q — Telegram user amila1993 martin: 2Key total supply is 599 million according to the CMC, but the maximum supply is 600 Million. Could you please explain the reason for this?
A — Eitan from 2key Network: The total supply will continue to decrease as burns take place as well as deep freezes etc. It’s all part of the tokenomics.
Q — Telegram user TsumaniX: How do 2key Network’s solutions prevent the interactions of bots with the referral links which could exploit the referral links?
A — Eitan from 2key Network: We have a lot of humanity checks in place and we’re constantly improving them. For now, it’s even too strict and seems like humans are getting locked out, so we’re changing our hidden captcha check to have a fallback of a manual captcha so you can still prove you’re human in case of doubt.
Then there are a lot of rules on what constitutes a valid link, so only after passing humanity checks and spam/fraud prevention checks, do we allow a click to be payable, which is already giving a lot more than other content distribution solutions like Taboola and Outbrain — which are multi-billion dollar enterprises, which have mostly bots generating all the clicks there.
Q — Telegram user Jade: What is the most effective way to divide campaign rewards? How does A/B testing work and how can we analyze which one leads to the highest conversion?
A — Eitan from 2key Network: The campaign launches immediately on the 2key Layer 2. It will only arrive on the Ethereum blockchain once the campaign ends.
There are several incentive models available, and each has a few parameters you can choose from, we don’t yet have an automatic AB testing system in place, but you can just do it yourself by using different incentive models or reward amounts and check which gains traction with your initial audience.
Security
Q — Telegram user ♛ Sonia: What would happen to 2key if the Graph databases were attacked or hacked?
A — Eitan from 2key Network: We run our own graph nodes, but in any case, a graph is just a logging tool. It doesn’t store the core events, those are stored on the blockchain. It merely indexes those events into a query-able format and infra. If they were hacked, we would just raise another graph, index it, and connect. We do this regularly anyway to keep fresh.
Finance
Q — Telegram user Kevin Salom 📈: How much is the fee to publish a Smartlink in 2key? Where does the money that senders earn come from?
A — Erez from 2key Network: 2key SmartLink distributes a fixed 90% of their budget to referrers, but only from approved clicks (approved results!). 10% is kept to run the network, but we have some better plans for that 10% to use in the future. We will discuss it later this year. The budget comes from the contractors (the advertisers). They send the budget into the SmartLink when they create it.
Partners
Q — Alex Raffin from GAINS: How did the Zoom partnership go by the way? Are you seeing people on Zoom using 2key for their payment solution?
A — Eitan from 2key Network: We haven’t pushed that at all since then, as Ethereum, for now, isn’t a good solution for micropayments. If you need to spend $5 in fees to purchase a Zoom session for $5, it won’t work. Currently, most Zoom users don’t own crypto so the onramps + monetary transaction fees are the 2 things to solve better before this can have an actual product-market fit.
Zoom is now widely used for remote work, but the whole scene of using Zoom to provide SMB services (yoga instructors etc.) is still evolving. Once it matures to be ready for such referral campaigns, we’ll probably also have monetary transaction scalability via rollups and also better on-ramps like Paypal.
A — Erez from 2key Network: We built the Zoom product based on our tokens product in just 2 weeks. The rising gas cost made it really expensive to use, and we decided to postpone developments on that product for now, and focus on the SmartLinks and PPC Smartlinks.
It made us really proud to get approval from Zoom to be the first-ever crypto/blockchain product on their marketplace!
Business Development
Q — Telegram user AtsTolga: What value do you aim to add to the crypto industry that will bring greater abundance to the industry?
A — Eitan from 2key Network: Our goal is to help all users online become Masters again — to help everyone regain ownership over the information flowing through them online — this means also taking responsibility for faithfully referring links online (instead of just staring at fees waiting for the robot to feed you). It also gives you the ability to monetize your information relay — make money and earn a reputation for this.
Exciting project with real adoption and users. Thanks a lot guys, you covered a lot. Where can we follow you? — Alex Raffin from GAINS
I hope we managed to answer your questions, and light info and knowledge about 2key.network. I welcome you to follow our progress as much more to come later this year. If you hold at least 1 2KEY Token, we welcome to join our first token holders meeting next week. Join us on Website, Telegram, Blog, Twitter and Medium. — Erez Ben Kiki from 2key Network
Thanks for hosting us, still a long road ahead of us, and we’re committed for the full journey. Keep on rocking! — Eitan Lavi from 2key Network
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