Learn more about Bee Token.
Bee Token Review
When investing in virtual currency, you need to do your research. We provide you with reviews of each world top cryptocurrency out there, so that you can find the best crypto coins to invest in for you. This review of Bee Token consists of three chapters: origin, technology and pros & cons.
Bee Token is the central idea behind the Beenest – the first of its kind attempt of establishing a decentralized, home sharing cryptocurrency network. The proposed home sharing system is built upon a set of Bee protocols and dApps. Bee Token is the tool running these two pillars of Beenest.
It launched in January 2018.
We first need to understand dApps and Bee protocols to understand how Bee token and Beenest work.
- The concept of dApps is also critical to understanding the idea of Bee Token and Beenest. dApps are the decentralized apps built on the ethereum block chain technology.
- The Bee protocols build on the same Ethereum technology. These are essentially open protocols that can be used further for developing future sharing based applications.
Beenest is built on the pillars of dApps and Bee protocols. It enables home sharing by connecting guests and hosts and charging zero commission. Bee Token is basically an ERC20 utility token. This is a technical standard that denotes smart contracts on the Ethereum block chain. The combination of these pillars and this cryptocurrency empowers the home sharing system in the following ways.
A payment system: The Bee protocols enables two authentic parties to utilize the P2P system to send and receive funds. The protocols then hold these funds in the form of Bee Tokens until an actual service is exchanged between the parties. The payment system is secure thanks to the technology.
An Arbitration system: The arbitration system of Bee nest is also decentralized. It not only resolves issues but also provides incentives to expand the network of arbiters. Moreover, it provides negative incentives to keep the scammers at bay.
A reputation system: This is parallel to the credibility check of a conventional system. It works by combining an authentic digital fingerprint protocol on the blockchain, along with the rating provided by the transparent and unchangeable review + score by P2P parties.
- Since you use the Bee token within the Bee network to promote good behavior and punish bad ones, it creates a network effect. It incentivizes the token holders to bring genuine references. This leads to healthy market growth of bee token users.
- Bee token holders can watch over the emerging Bee protocols so that the future developments are also compatible with their versions.
- The success of other P2P based networks like Uber and AirBnB shows that the Bee token has a good profit potential.
It might take time to educate people to be able to use digital currency for an everyday thing like home sharing.