Recently, Cosmos released Inter-Blockchain-Communication (IBC), which allows for transfers of tokens between blockchains. This opens up many opportunities for the Cosmos Ecosystem. On top of IBC, a decentralized exchange, the Gravity DEX, will be launched soon. This allows transfers of tokens for IBC enabled blockchains. This is great for issuing tokens, as it allows for being decentralized at the start. Hence, we want to give our tokens directly into the hands of users and fellow Cosmonauts.
On Trust Price Protocol (TPP), anyone can sell a unique item for an independent price. It is based on the philosophy of Wisdom of The Crowd, and we believe that a group of diverse and independent people can determine the best price, even when compared to a single expert. Different perspectives cancel out any subjectiveness. TPP revolutionizes markets that have a lot of arbitrage. From collectables to real estate. In these markets, knowledge is the key between a scam and good deal. Therefore, it makes sense to enable knowledgeable people to jointly estimate prices of unique items. In many markets there are middle men, because trust is lacking. Accordingly, there is a need for non-knowledgable people to get value for their money, without extra cost.
With TPP, by having…
- Independent price estimators
- Photo verification of items
- A feedback system
- Estimator comments
- A history on the blockchain
…users can be assured of getting the right price.
The status quo
Current marketplaces, like eBay, are filled with ads and low quality postings. And most importantly, the platforms are not aligned with the interest of the user. They earn money from fees and placement options. On the contrary, Trust Price Protocol believes that all sellers should be treated equally and fees should only exist to pay for computation power and to prevent spam. Fees on TPP transactions are nearly zero. That’s right, placement on TPP costs nearly nothing (e.g. converted to USD, for a seller $0.04, and for a buyer $0.02).
Furthermore, pricing is a big issue in current marketplaces. How do you know a seller set a reasonable price, or if a buyer made good bid? The answer is information. But what if you are the kind of person who wants to get rid of something and does not have the time or knowledge to gather information? This is why TPP creates independent prices. With TPP, for the first time in history, anyone can rely on independent people on item specific information. People with knowledge can provide their opinion and estimate a price. After which, a final price is aggregated and revealed to everyone. The placement also includes other useful information like the estimator comments, seller details, previous reviews, and the placement date.
Recent developments
During the last month, next to testing, a lot of progress has been made regarding user experience, token economics, and further blockchain developments to make the API more scalable. These developments make us more confident about launching the chain.
The most exciting addition is auto-deletion of expiring items. Now, items that are not bought after a set period of time (currently 30 days), will be automatically removed from the blockchain. After each block, validators check if there are items expiring at the time of the block. In that case, the items gets deleted and estimators are refunded their deposits. This makes the blockchain more scalable, as less storage is needed. Also, it allows for a better user experience, as items that are not interesting are removed.
Moreover, in the marketplaces, transaction history is now added to the account section. Here, transactions are sorted by time and are easily recognizable by transaction type. Further, it is interactive, as item details and actions are also available here. Additionally, it is possible to query transactions of other accounts. The transaction history provides a simple way to view whether a seller/buyer is trustworthy.
Strategy
The TPP token derives its value from the marketplaces that are built on top of it. Therefore, marketplaces are in simultaneous development so that 1) the blockchain is scalable and has features that make sense and 2) the blockchain gains adoption. The strategy is to focus on one category first, tailor it to the audience’s need and use this knowledge to disrupt other unique item categories.
We chose watches as a first category because of 5 reasons. First, the market lacks transparency, trust, and fees are high. This is a perfect situation for TPP to disrupt the industry. Second, the industry is big, as it is an estimated $5 billion industry, and one of the largest eBay categories. Thirdly, selling and buying watches is difficult. Buyers are beware of scams and are hesitant to buy from a seller directly. With TPP, by having photo verification and estimator comments, buyers can be assured the watch is worth the price. Fourthly, there is a lot of industry specific knowledge, thereby making the entry barrier large. Through shared knowledge and the possibility of earning TPP tokens, TPP provides a great place for enthusiasts. Lastly, watch owners may want to get into crypto in an easy and secure way. Conversely, crypto investors may want to buy something that is less volatile, while still holding value over time.
Future developments
In the near future, TPP will be upgraded from Cosmos SDK v42.4 to the to-be released v43.0, allowing for a Rosetta API integration. This allows exchanges, like Coinbase, to communicate with the TPP blockchain, which can enhance adoption.
To conclude
By creating independent prices that allow for more transfers of unique and secondhand items, we build a circular economy. TPP is fast (even faster than current centralized servers) and has near zero fees. Further, The TPP blockchain adds value through transaction history and independent data. It will enable next-gen marketplaces for unique items, while also rewarding knowledge. Be sure to check out our website for more information.
