Gems is an encrypted messaging app on top of a reward system that will reward its users and enable cryptocurrency to be traded between them.
In the latest episode of Epicenter Bitcoin, Brian Fabian Crain and Sebastien Couture were joined by Daniel Peled, CEO and Founder of Gems, and Tom Kysar, Marketing Lead at Koinify to talk about a project that aims to revolutionize social messaging and take cryptocurrency mainstream.
Daniel Peled first joined the Bitcoin ecosystem a little over a year ago when he noticed it gaining traction. After studying closely, he began to see potential in blockchain technologies and started learning everything he could regarding Bitcoin and altcoin innovations.
The advent of Counterparty's platform on top of the Bitcoin blockchain inspired Daniel and others to start a new project that would utilize Counterparty's new innovative tools. Their aim was to bring Bitcoin and cryptocurrency to a wider audience.
After brainstorming the best way to hook mainstream users, they realized they needed a very simple and intuitive user experience. They wanted something with a network effect that people would continue to use and were able to narrow it down to a messaging application. Similar to WhatsApp, it had to be simple and fun to use but with the added bonus of cryptocurrency. They call it GEMS.
“If you're not paying for the product, usually you are the product."
- Daniel Peled
Generally, it is the users of social networks that generate all the content and actually build the network, yet all the revenue often goes to a very small group of founders. When WhatsApp sold for US$19 billion, its 400 million active users didn't get anything out of it. GEMS is seeking to create a new model by rewarding the users who build and participate in its network.
“If we can make social networks change, we've done a very big percentage of our mission and if not, I'm hoping we're able to take them down […]”
- Daniel Peled
In addition to unlimited free Instant messaging that is encrypted end to end, the GEMS team plans to send the value of the network straight to the users in the form of crypto-tokens called, you guessed it, gems. These gems are listed on the Counterparty asset exchange as “XGEM."
To those who are new to cryptocurrency, the gems will serve as an introduction to the benefits of using cryptocurrency. It will take seconds for new users to set up their GEMS wallet where they can immediately start receiving gems and sending gems to their friends. In addition, the users will have the option to send and receive bitcoin as well. This creates the potential for a smooth transition into bitcoin and cryptocurrency use.
The gems can easily be acquired by using the app and referring friends. Every day, 27,500 gems will be air dropped and distributed between users according to their relative network contributions. These gems, which are limited in supply (100 million total gems will be created) will be valued for their utility within the application where you can use them to purchase various things.
One of the main uses of the gems will in effect become a form of spam prevention, a huge issue in social networks. Users will be required to pay in order to send unsolicited messages and advertizing to users outside of their friends list. On the other hand, users can also choose how many unsolicited messages and ads they want to receive and how much it will cost to make it worth their while. This gives the users the option to profit from their exposure to ads, or opt out entirely for an ad-free social networking environment.
The GEMS token (XGEM) will be open for purchase on Monday, December 1 at 9:00AM PST and the sale will close on January 5. The presale is hosted by Koinify, a crypto funding platform focused on decentralized applications (DApps) and autonomous corporations (DACs).
About Epicenter Bitcoin
Epicenter Bitcoin is a show about the technologies, projects & startups driving decentralization and the global cryptocurrency revolution. Every week hosts Brian Fabian Crain and Sebastien Couture talk to some of the most influential people in the cryptocurrency space about their projects and get their perspectives on recent events.
You can take part in the live Google Hangout on YouTube or download the audio version after the fact on SoundCloud, iTunes and other podcast apps.
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