There is a lot of talk and hype surrounding Simple Token (OST) and the information can be hard to digest. So what’s all the talk about? What is Simple Token? Is it really that great or is this a cryptocurrency that is going to crash and burn?
There are all good questions, all of which I’ll be answering in this newbie friendly guide. I’m not going to be getting deep into the technology or anything like that. This is meant to be an all-encompassing overview so that people can understand what Simple Token is, what it does, whether or not its worth investing in and so on.
What Is Simple Token?
Simple Token calls their service “the bridge between blockchain and mainstream consumer apps”. And this is a good way of putting it.
Simple Token is a blockchain service that allows developers to launch their own branded cryptocurrency tokens on an Ethereum side-chain. In simple terms… it allows companies, businesses, developers, etc. to create their own cryptocurrency easily and without having to deal with all the technical aspects of it.
As the name implies, Simple Token is a “simple” token. It allows token creators to focus on the token ecosystem rather than be caught up in all the more complicated matters.
Token creators will be able to decide everything that goes on with their tokens… the banding, how much they want in circulation, the price of each token, how the tokens will be distributed and used, etc. And…this will all be able to be done on an easy to use interface…
So What Is OST?
OST is the cryptocurrency that Simple Token uses to fuel their platform. I know that probably makes no sense but basically it is what token creators have to use to pay for their own cryptocurrencies.
So if a company wants to create a token called XYZ coin they will have to pay for their coins with OST. This is part of what gives their coins real value, because they are worth a certain amount of OST and if OST has value then so does their coin.
When a company goes to mint their coins, they will stake their OST in a smart contract on the Ethereum blockchain. The value per XYZ coin that is minted can be whatever the company wants it to be. If they want every 10XYZ coins to be worth 1 OST then they will have to stake 100 OST coins to be able to mint 10,000XYZ coins which they then can distribute as they want to.
Does It Have Real Uses?
Simple Token does have real use cases already. There are already apps that are using this service to brand their own tokens.
There are plenty of different uses for banded tokens.
Example: On the official website they give an example of the Pepo app, which is an app similar to the site Steemit where users can create content and earn money from it.
Pepo allows users to earn Pepo coins when they join as well as when they receive upvotes on their content from other users. This encourages a healthy ecosystem of good content creation because there is a monetary incentive to do so.
This is just one example of many possibilities of what could be done with a branded token for an app. Just take a look at frequent flyer miles and other loyalty rewards programs and how good they are doing. This is the type of thing that branded tokens like this are going to be great for.
As far as user adoption goes I believe that there is a LOT of potential here. There are a lot of businesses out there that are looking for way into the crypto space but don’t have the know-how get in and develop their own coins. Simple Token makes this possible and I see no reason why this wouldn’t catch on.
One of the major concerns however is the issue of scalablity. Will the network lag once there become many people using Simple Token’s service? The Crypto Kitties app was nearly a catastrophe that completely bogged down the entire Ethereum network and since Simple Token runs on the Ethereum blockchain won’t the same happen here?
The answer is No, the same thing won’t happen. The reason for this is because of technology behind it all. Simple Token uses OpenST which is a side chain solution to the scalability issue. In a nutshell OpenST makes use of side chains that are separate but connected to the Ethereum blockchain and what this means is that they don’t bog down the entire Ethereum blockchain. Of course it is still very early on and only time will tell, but at least that is the theory and it seems to be working so far.
Should You Invest In Simple Token?
What it the answer to this question ultimately depends on is whether or not you believe in the project. There are plenty of real use cases for a serviced like this… the demand is there. The questions if you think the Simple Token has what it takes to grow and evolve with what comes in the future.
If you have looked into the team being it all I’m sure you have faith here. The team has a lineup of golden Indian software engineers and the head of operations, the CEO, is Jason Goldberg who has been around for a while in the internet marketing industry and was even the the CEO of Fab.com for a number of years. Now Fab.com has nothing to do with blockchain or anything related to it, but it goes to show that he can run a business and help it grow exponentially. Him along with the solid tech team behind the project should fair well.
The price of OST
There will be a total supply of 800,000,000 OST. that is a rather large supply but still not even close to coins like Ripple that have supplies of 100 billion. So its on the high side but still has potential.
Of course the demand comes from user adoption. You and I may buy it just to hold onto it to make money as the price increases, but the real use is to buy it to be able to mint uniquely branded cryptocurrencies.
How to Store Your Simple Token (OST)
Simple Token (OST) is an erc20 token that runs on the Ethereum blockchain, as mentioned. Because of this it can be stored in any full-fledged Ethereum wallet.
As always, leave any questions or comments you have for me below and I’ll get back to you soon 🙂