An improved scalable ecosystem for global adoption: TomoChain Review
By Inkarias - 2020-05-24
What is TomoChian?
TomoChain is a blockchain aimed at solving the scalability problems that other blockchains, such as Ethereum, may encounter. Development is therefore focused on maintaining optimal capacities in the event of high demands on the network but also at the level of its security. Furthermore, Tomochain offers several incentives to use the services to develop a passive income with the implementation of staking and masternode solutions.
|Block Time:||2 sec|
|Max Supply:||100 000 000 TOMO|
|Premine:||12 000 000 for TOMO Team16 000 000 for Partners|
|Masternode Collateral:||50 000 TOMO|
TomoChain is a Vietnamese project whose design dates back to the end of 2017 and whose ICO took place in March 2018. The official TomoChain ICO took place from March 1 to 4, 2018 and raised the equivalent of $ 8,500,000 to fund the ecosystem for a total of 55,000,000 on 100,000,000 TOMO sold. TomoChain is a blockchain that wants to solve the scalability problems encountered by other blockchains, like Ethereum. The ETH network, the blockchain most used for smart contracts and DApps (decentralized application), currently allows only a limited number of transactions per second. This figure is exceptionally low and has already raised concerns in the past: network congestion and exorbitant transaction costs for network members.
To solve this problem, TOMO wants to authorize a number of transactions per second which will ultimately be greater than what VISA allows (between 10 and 20,000 transactions per second). TomoChain has already implemented it by making more than 2,000 transactions per second using a new transaction verification system called Proof of Stake Voting, namely POSV. The other selling point of TomoChain is its total compatibility with Ethereum: all the smart contracts and dapps developed for and on top of Ethereum can be operated by TomoChain and can benefit from the scalability allowed by its PoSV architecture. Finally, TomoChain distinguishes itself by developing its own ecosystem, and already created various strategic partnerships for the long run in the fields of blockchain and investment.
TomoCoin, fuel of the ecosystem
The ecosystem that is currently being built around TomoChain works thanks to its own native currency: TOMO coin. The coin and its blockchain form the basis of the project and make it possible to remunerate the masternodes and the stakers in charge of producing the transaction blocks and securing the network. The current circulating supply of TOMO is around 70 million coins for a maximum supply of 100 million units which will be reached within few years following the issuance of block rewards. Regarding the distribution of the supply, the project was funded under the ICO model as stated above. From the original 100,000,000 coins minus sales, the remaining 45 million coins are distributed as follows:
- 12 million for the team, which are gradually released over the next years
- 16 million for strategic partnerships to promote the Tomo ecosystem
- 17 million used as block rewards. (The $ 17 million TOMO reserved for rewards blocks are distributed non-linearly on a yearly basis).
Amongst these 17 million specified for block rewards during the first years of blockchain existence, the allocation is set as follows:
- 40% to masternodes
- 50% to stakers voting for masternodes
- 10% taken by the “Tomo Foundation” to fuel the ecosystem and fund the future growth and development of the project and derivatives.
Proof-of-Stake voting consensus
he two most commonly used consensus mechanisms are proof of work (PoW) and proof of stake (PoS). Although PoW is very secure, it uses a lot of energy to ensure this security and remains terribly slow, for example in the case of Bitcoin. Although PoS does not offer the same security as PoW, it does offer similar guarantees such as with little cost and drastically lower energy costs. TomoChain wants to use a hybrid system called PoSV (“Proof-of-Stake Voting”). There are many similarities to PoSV compared to other protocols such as DPoS (Delegated Proof of Stake) with EOS and PoS Ouroboros in the case of Cardano. In this hybrid system, TomoChain uses double validation to create, verify and vote for blocks. This is similar to what the EOS blockchain does with its voting and masternode system, although EOS is much more centralized than TomoChain.
POSV, Staking and Masternodes correlation
At TomoChain, transaction blocks are produced by a batch of 150 masternodes elected by all of the TOMO token holders (the stakers). To operate a masternode, investors must stake 50,000 TOMO, and submit an application on the masternode management interface "TomoMaster". This graphical interface lists all the masternodes that have applied, as well as their specification in terms of hardware and their performance. The TomoMaster interface is not only intended for masternode holders and is also the interface for interacting with this smart election contract. Any holder of TOMO can connect to TomoMaster and vote for the masternode they want by placing their tokens on the masternode in question. The weight of each holder's vote is proportional to their stack. We can see how many tokens are stored on each masternode, the first ones here having more than 400,000 TOMO.
Holders can decide to change their vote every 30 minutes (900 blocks), and even remove their coins from the smart election contracts whenever they want. When they withdraw their TOMO from the smart election contract, their coins are frozen for a period of 48 hours. When a masternode decides to stop its services, the TOMO 50,000 in collateral is frozen for a period of 30 days. Where TomoChain comes to innovate compared to other projects like EOS, it is that the holders are financially encouraged to vote in an active way for the most effective masternodes. Indeed, the holders placing their assets in the smart election contract receive 50% of the block rewards each time the masternodes for which they voted validate a block. These 50% are distributed among all the holders having bet on the masternode in question, and the masternode itself captures a part of these “staking rewards” via the 50,000 TOMO that it set aside to initiate the masternode (in addition of its 40% “masternodes rewards”). Masternodes that are not among the top 150 receive no rewards, and holders who voted for them either. This pushes holders to vote for the best performing masternodes, to be sure to get rewards.[caption id="attachment_8890" align="aligncenter" width="1209"] https://new.tomochain.com/protocols-products[/caption]
Finally, staking its TOMO on a masternode becomes for the holder an investment decision subject to different strategies that are beneficial for the ecosystem. Indeed, any holder can play it safely by voting for the best performing masternodes. He will be sure to get rewards, but his reward will be diluted among the many holders who have also bet on these masternodes. It can also adopt a riskier strategy by voting for a masternode at the limit of the top 150. If said masternode confirms its place in the top 150, the holder will be one of the only ones to have voted for the latter and will get a lot more consistent with staking rewards (the risk being that the masternode does not enter the top 150).
However, it is important to know that the average hardware level needed for operating a masternode on TomoChain is extremely high, which can easily dissuade the investors from directly contributing to the consensus. Indeed, the average masternode system has 16 cores, 32GB of RAM and an uptime of 100%, performance billed at nearly $320 per month from the major VPS providers. This barrier to entry is inversely proportional to the number of masternodes authorized on the network, a concept that is found in all crypto projects.
In more details, the network of masternodes has been designed to answer some specific criteria to ensure stability and long-term value. In order to have a full masternode, investors must deposit 50,000 TOMOs in the Voting Smart Contract directly on a TomoChain-specific Dapp. Then, receive enough votes from the token holders to be in the top 150 of all masternodes (150 being the maximum number of masternodes on the TomoChain network). The TomoChain masternode holders create the blocks and are rewarded by receiving a certain number of TOMOs. Compared to the 21 EOS masternodes, TomoChain is much more decentralized and has a much lower probability of a "handshake attack". (This type of attack occurs when a block creator and a block checker both agree to create and validate an invalid block). When a new block is created, for it to be valid, it must have two signatures (the creator of the block and the validator of block). The block validator is chosen at random from the 150 masternodes. If the creator of the block and the verifier of the block both try to attack the network and the block seems valid (before the next block is created) another block validator (double validation) will verify that the block is actually valid. If it is not valid, it rejects the block and creates a new block in its place.The complete guide to apply to be in the top 150 nodes can be found here: https://docs.tomochain.com/masternode-and-dex/masternode/apply-your-node
Various ways to stake and develop a passive income with Tomo
Staking as masternode operator
Following the process stated above, running and operating one of the top 150 Masternodes generates high ROI, as the operator is rewarded with the largest share of newly generated TOMO, along with TOMO from transaction fees. This ROI is rounded at around 30% annually.
Staking as standard staker
- Direct Staking: Staking TOMO on a Masternode can be done directly using a wide variety of wallet options including Trezor, Ledger, Metamask, TrustWallet, Atoken and TomoWallet. However, TomoWallet is the official mobile wallet of TomoChain that enables users to vote/unvote on Masternodes and track rewards effortlessly.
- Indirect Staking: Investors can either stake solo or via third-party services. TomoPool is a service that allows stakers to pool their funds together to launch a Masternode. Stakers earn a share of the Masternode infrastructure rewards so the ROI is typically higher than direct staking. Also, the minimum staking requirement is only 10 TOMO, as opposed to 100 TOMO when directly staking. We can also quote the Pool-X solution to stake Tomo as our team already presented an article about it here: https://mastersofnodes.com/binance-staking-vs-kucoins-pool-x-vs-crypto-com/
- Soft Staking: Soft staking can be done by depositing TOMO directly on certain crypto exchanges and/or wallets. This solution is quite similar to a staking service/pool staking even is generally lower compared to any other way of staking. The added value of this proposal is that TOMO is liquid and can be traded on the platform or withdrawn at any time in a few clicks.
- Staking on DApps: As an Ethereum-like ecosystem with solidity language implemented, Tomochain can be used in various DApps in the blockchain ecosystem, including some to stake and develop a passive income. As example, we can quote MaxBet, a Dapp from PigFarm team, that has proven to generate the most profit for investors and holders. The betting procedures are completely random and transactions of each win or loss are recorded with no lock-up period.
Extra information (Extracted from official Tomo information feed):
“In case you vote for a Masternode Candidate which is NOT a top 150 ranked Masternode and if it is not showing signs of gaining votes, you will need to unvote from it and wait for 96 epochs (48–50 hours) to be able to vote again. Voting for a lower ranked Masternode will earn greater rewards but may require you to keep track of its position on a regular basis in case it happens to fall out of the top 150 position.Voting for a higher ranked Masternode will earn you fewer rewards but will most likely be safer in its ability to maintain a top 150 position.”
TomoX, TomoDex and TomoSwapWhen introducing the TomoChain , it is important to share the different ground-breaking features implemented by the team. As these solutions are deeply detailed in the official documentation, we will not go much further into the technical aspects.
TomoX is a protocol for building decentralized exchanges (DEXs). TomoX is integrated directly into the core system of TomoChain blockchain benefiting from Proof-of-Stake Voting (PoSV) consensus, high scalability s and a Masternode-Relayer architecture. In that way, TomoX will allow companies to create their own relayers (exchanges) easily. TomoX will initially support TOMO/TokenX trading pairs, with TRC20 tokens and more standards will then be gradually integrated into TomoX
The first Relayer is TomoDEX, which is supported and operated by the TomoChain company. Later on, any company can claim to have their own relayer where users can trade a set of specific trading pairs (TOMO/TokenX). This protocol will offer great possibilities in the future to accelerate general adoption by companies and investors including the ability to trade with other coins not issued on TomoChain/Ethereum but supported by TomoSwap..
Finally, TomoSwap is a decentralized token swap platform. TomoSwap will focus on both user friendliness to end users and liquidity for future financial applications. TomoSwap acts as the transactional layer to allow assets on TomoChain to be converted seamlessly between end users and other applications. Users can exchange TOMO and any token issued on TomoChain for any other tokens issued on TomoChain.
TomoZ and TomoP Protocols
Finally, two more protocols are integrated into Tomo ecosystem. The first, TomoZ, is a protocol to issue tokens based on the TRC21 standard. TomoChain’s TRC21 allows users to pay the transaction fee with the same TRC21 token they are already using. TomoZ solves a critical user adoption issue found in nearly every major smart contract platform , more specifically that Individual users must hold the native token in their wallets to pay for transactions, even when immersed in a dApp’s ecosystem.
The second protocol, TomoP , despite being still under heavy development, is a protocol proposed by TomoChain for private transactions on the TomoChain public blockchain. TomoP allows creating anonymous transactions that hide all related information on value, sender, and receiver’s addresses to preserve the financial privacy of TOMO and tokens holders on TomoChain. TomoP is the EVM-compatible private transaction protocol with very fast transaction speed that allows anonymizing the transaction sender in a transaction without requiring an intermediary.
All these solutions are completely part of the TomoChain ecosystem and brings various possibilities regarding the holding and utilization of the Tomo currency in daily services for both companies and common users.
TomoChain Team[caption id="attachment_8885" align="aligncenter" width="885"] https://new.tomochain.com/about[/caption]
Where to buy TOMO?
Tomo currency is currently listed on many crypto currency exchanges with multiple trading pairs.
- BitForex: https://www.bitforex.com/ (ETH & BTC)
- MXC: https://www.mxc.com/ (USDT)
- Binance: https://www.binance.com/ (USDT,BTC,BNB, BUSD,USDC)
- Kucoin: https://www.kucoin.com/ (BTC,ETH,USDT)
- Vinex Network: https://vinex.network/ (BTC,ETH,USDT)
- Hotbit: https://www.hotbit.io/ (BTC,ETH)
- Gate.Io: https://www.gate.io/ (USDT,ETH)
- CoinDCX: https://coindcx.com/ (BTC,USDT)
- OceanEx: https://oceanex.pro/ (USDT)
- BinanceDex: https://www.binance.org/en (BNB) against BEP5 Tomo token
- FTX: https://ftx.com/ (USD)
- Probit Exchange: https://www.probit.com/en-us/ (USDT,KRW)