Databits

What is Databits?

Databits is a counterparty token that holders can trade in the exchanges or use to buy augmented blockchain-based creatures, skins, and relics.

The token is backed by the Bitcoin blockchain with the target of giving users ownership of the virtual world. If you prefer specific augmented creatures, Databits allow you to reach the creator and buy them.

Consider Databits as a layer of augmented reality added on top of the Bitcoin blockchain to extend the technology to the community.

Databits platform and tokens were created by Kyle Haffenden and Michael Deon in 2016. The duo claims that this was the first ever blockchain based augmented reality game in existence.

Their idea had previously been rejected until 2016 when they presented the concept in Shark Tank Africa. Michael points that his commitment to work on augmented reality games is in line with his childhood dreams of helping to revolutionize the gaming industry.

The Databits tokens are part of the augmenters’ ecosystem and responsible for the virtual economy.

An initial 100,000,000 tokens were created and released into the market. 70,000,000 of the tokens were sold on the initial coin offering while the augmenters company held the remaining 30,000,000.

Their report indicates that though the targeted one million was reached, not all the tokens targeted for sale were sold.

The price performance of Databits token in the market shows that the price started at $0.1 in March 2017 before climbing steadily to reach $1.4 in June 2017. T

his was more than 1000% growth.

Then, the price took a downward trend to $0.4 in July 2017 before gaining slightly in August and sinking further to $0.3 in November the same year.

On January 13^th, 2018, the price of Databits token had grown to $2.33; the highest point its history.  But the gain was short lived because the price took a sharp downward turn declining steadily to reach $0.1 in September 2018.

What is the problem that Databits Solves?

Since 2009 when Satoshi Nakamoto released Bitcoin, many cryptographers, financial experts, and other professionals have been looking for ways to take advantage of the fast-growing sector. However, many challenges and issues have been standing on the way to effectively transition into the blockchain niche. Here are some of the problems that Databits aims to address.

• Limited blockchain technology expansion outside the financial sector

Though many blockchain applications have been created since 2009, there are still a lot of sectors that are not covered. Most of the platforms largely concentrate on the financial sector. One of the sectors that have lagged behind is the augmented reality. While efforts to introduce the augmented reality niche into the blockchain niche have been ongoing, little breakthrough had been achieved until Databits augmented reality layer was added on the Bitcoin blockchain.

• Limited adoption of the blockchain technology in the community

While the use of blockchain technology has been impressive, experts have indicated that the penetration is below par. Many people still do not understand how blockchain operates or even adopt it in their lives. Databits targeted to enhance the blockchain use by reaching more people, especially in the gaming niche especially the augmented reality area.

• The high cost of sending value across the globe

For many people who want to send value from one part of the globe to another, the process is lengthy and expensive. Banks have to verify the sender and recipient in line with Anti Money Laundering procedures. This makes the transactions to take long before they can be effected. The high cost arises from the fact that the services are offered by profit based organizations.

• The strict regulatory regime

One of the major issues stifling the blockchain niche is lack of clear regulations. Because cryptocurrencies do not have a clear definition, many administrations are feeling threatened. Therefore, they have threatened to pass very harsh regulations. Databits sought to address this problem by using a different type of token other than the common designs in the market today.

How does Databits Solve the problem?

To address the outlined issues, Databits development team opted for a more radical approach. Here are some of the methods used to address the issue.

• A new token economy model

This is the most comprehensive solution to the outlined issues that Databits has adopted to address the blockchain issues. Instead of using the standard model tokens, the founders opted for utility tokens. These are the tokens designed to provide users with access to the product or service. When people buy the tokens either in the exchanges or during ICOs, they can use them to purchase services in the respective platform at a discount.

In the case of Databits project, a total of 100,000,000 tokens were released to the market. Therefore, how does the utility Databits token work? The utility token operates in relation to the game economy. The first step involves buying a package using fist currency in an app store using in-app functionality.

The package comprises of key elements such as creatures, $Databits tokens, consumables, and game creatures. When playing the supported augmented reality games, the player battles others and gets rewarded for wining. There is also an option for bidding creatures that were purchased in the package.

• A system of two tokens in one platform

To make the platform more appealing to users, Databits features two tokens. Database token ($DTB) is the standard token while Databits Tether ($DTBT) is the off-chain token. The Databits Tether is a stable token created to help lock the value of a player’s funds and prevent it from the market volatility. If you want to use the Databits Tether tokens, they have to be redeemed to the standard Databits tokens.

• The Databit’s diverse features

To help take the blockchain niche to the community, make gaming more enthralling, and workable, Databits operates with the following list of features.

1. Databits token reserve: This is a reserve that the Databits Company uses to keep the tokens in a different wallet. As more $DTBT get released into the game, the reserve will continue to grow. When a user wants to withdraw, the corresponding $DTBT in reserve is destroyed.
2. The augmenter store. This is a store where users are allowed to buy creatures, packages, and consumables.
3. Consumables. This is a collection of gaming assets that users can access on the network.
4. The trading hub. This is a platform that allows players to exchange the creatures. You will need to have $DTBT to buy the creatures.

• The blockchain network

Though the Databits Company does not indicate how its decentralized system works, it insists that all transactions are done on a peer2peer basis. This implies that when you send value when trading or running gaming transactions, the process is peer2peer. By removing the centralized and profit-seeking organizations, it implies that the transactions are cheaper compared to the conventional financial organizations.

What makes Databits better than it’s competitors?

The growing blockchain niche has opened the gate to severe competition in the industry. Databits, like other blockchain based projects, has to win trust from the audience for a bigger market share. Here are some of the things that make Databits better than its competitors.

• The project targets a niche that is less trolled. As more cryptocurrencies target the financial transaction niche, one of the best strategies to win a bigger market share is venturing into a less explored area. By focusing on the augmented reality gaming niche, Databits has carved itself a niche where operations are near monopoly.
• While the topic of cryptocurrency regulation has become a hot potato in the blockchain niche, Databits appears to have crafted a workable solution without choking itself. By making its native tokens to be utility tokens as opposed to the standard models, the development team has managed to comply with all the regulations including the anti-money laundering and know-your-customer requirements. This means that traders and gamers can use the tokens without worrying about going against the law.
• The tokens have done relatively well in the market. Though they have not grown to reach the levels of Bitcoin or Ethereum, the performance is impressive. For example, by the close of the third quarter of 2018, Databits market capitalization was $3.1 million at a price of $0.1. This puts it well ahead of other more popular tokens such as ThoreCoin with a market cap of $2.9 million and Bezop with $2.5 million.
• Databits provides users with an easy way to hold value without worrying of high volatility. If you simply want to save funds, the best option is using Databits Tether that is less prone to price changes. However, you need to appreciate that the Databits Tether can only be used for holding and will not yield much even when the price of the other tokens grow.

How can Databits be categorized?

Databits is a high-risk cryptocurrency network targeted at bringing the augmented reality technology into the blockchain niche. The focus of the founders to take the augmented reality to the blockchain is helping to expand the crypto niche to ensure that everybody has a chance to reap associated benefits.

What is Databits’s vision on Security?

The main vision of Databits on security is to provide users with a reliable and highly secure augmented reality gaming platform. This is achieved in two ways. One, the platform is operated as a layer on the Bitcoin blockchain. This helps to ensure that all the tokens enjoy the Bitcoin level security.

The Databits system follows the recommended anti-money laundering and know-your-customer procedures. This has helped to ensure that all the users joining the platform can be positively identified to lower the risk of attacks and use by high-risk parties.

Even with the platform’s efforts, it is important to appreciate that important components especially privacy are lost. This could be a major undoing at a time when many blockchain based platforms are working on enhancing anonymity. For example, most cryptocurrency networks are working on integrating Decentralized exchanges, ring signatures, and The Onion Router system to enhance anonymity.

Examples of Databits’ use cases/ applications.

When blockchain platforms are created, the primary goal is expanding their applications to ensure that more people can join and find meaning. However, some tokens such as Databits come with limitations because they are specifically attached to the respective niches. Here are the main use cases of Databits.

• Buying augmented reality creatures in the Databits ecosystem. This is the primary use of the Databits tokens. Developers create these reality creatures and release them into the Databits ecosystem for the gamers to buy.
• Trade the Databits in the markets. Like other cryptocurrencies, Databits tokens can be traded in the markets that list them. One of the top markets that can be used to trade the tokens is Bittrex. To trade in the exchange, you are required to open a trading account, identify a good crypto pair, and start trading. Note that a transaction fee will also be required when trading in the market.

NOTE: While the model presented in the Databits appears impressive, there are serious gaps that have been identified by experts and the community. These gaps point at the imminent threat of direct manipulation that could result in huge losses. Here are three of these gaps:

1. The project lacks a clearly defined operational algorithm. Apart from the indication that it is applied as a layer of the Bitcoin blockchain, there is no mention whether it also uses proof of work, proof of stake or other consensus algorithms.
2. The process of tokens release into the market remains unclear. Unlike other networks such as Ethereum and Bitcoin Cash that outline the mining procedures and how new coins are released; there is no mention of mining in this case.
3. One component of the white paper that has struck the community hard is the incentives. The community has raised the alarm that the incentive model has the characteristic of a pyramid scheme.

These concerns indicate that though the network is indeed high potential, there is a need to approach it with greater caution. Experts recommend that users should spread the investment across different cryptocurrencies to keep all associated risks as low as possible.

https://www.augmentorsgame.com/wp-content/uploads/2017/11/22112017-DatabitsWhitepaper-v2.0-.pdf

https://coinswitch.co/info/databits/what-is-databits