Amp offers a simple yet universal interface for verifiable collateral across collateral sections and collateral managers. While sections can be assigned to any account, application or transaction, and for transfers that can be directly verified on the Ethereum blockchain.
History and technical analysis of the crypto partnership of Ethereum and Amp
Ether (ETH) (Ξ) is a cryptocurrency whose blockchain is generated by the Ethereum network. Unlike Bitcoin, which aims to disrupt the banking system with its digital currency, the Ethereum platform’s goal is to use blockchain to replace internet third parties, particularly those that store data, transfer mortgages, and keep track of complex financial instruments.
Ethereum is made up of nodes run by volunteers across the world, and the nodes form what has been described as a ‘world computer,’ a decentralized mining network that any third parties do not govern like, for example, servers and clouds are.
The volunteers, or miners, use their computational power (gas) to run the network. It involves passing code blocks between each other and solving the mathematical problems that keep the code secure in exchange for Ether. The currency is listed on exchanges and can only be used on the Ethereum blockchain. It is used to pay for gas and transaction fees.
Ethereum is open-source, public, and highly programmable. Anyone can use or modify its software to build upon the computing platform and operating system. The platform allows developers to make their digital assets on the Ethereum infrastructure without creating their blockchain. It has given rise to hundreds of Ethereum blockchain-based tokens (such as Binance Coin, Golem, and Basic Attention Coin). In 2017, at the height of crypto-mania, Ethereum was the leading blockchain platform for Initial Coin Offering (ICO) projects, with over 50% market share.
The Ethereum concept was initially described in a white paper by Vitalik Buterin, a Russian-Canadian programmer, in late 2013. He believed that Bitcoin needed a scripting language for application development. When he could not gain agreement, he devised a new platform with a more general scripting language. Development was funded by an online crowdsale between July and August 2014, with the Ethereum system going live on 30 July 2015.
Amp platform and technology
The developers of Amp tried to avoid sophisticated tools, rebasing mechanisms, and artificial constraints, relying primarily on simplicity and transparency of financial primitives such as fixed supply and rudimentary staking mechanics. Complicated algorithmic models with numerous assets are not employed either. The emphasis is made on reliable collateral of a high quality that features self-sustaining parameters to create a better utility.
Amp offers a simple yet universal interface for verifiable collateral across collateral sections and collateral managers. While sections can be assigned to any account, application or transaction, and for transfers that can be directly verified on the Ethereum blockchain, managers provide smart contracts that can block, release and redirect collateral in those sections as needed to support the transfer of value.
The Amp smart contracts are audited by famous security companies such as ConsenSys Diligence and Trails of Bits. The open-source code of the platform can be easily checked and integrated into the third-party application or a platform.
Amp has become the first project that provided the opportunity of staking collateral and maintaining custody for their assets for the network users. Such a partition scheme and modular collateral management alleviate the introduction of the Flexa network to users and contribute to its mass adoption and decentralization. The ecosystem members staking Amp can stake tokens and earn rewards, thus providing efficiency of the system that is fundamental for innovative token networks, which are necessary to defy the traditional financial system.
The token was developed based on the Flexacoin network to alleviate innovations in the lending sector of the decentralized industry. The supply of the Amp token was created via the burning of the existing collection of Flexacoins. The coins were exchanged at a rate of 1:1. Since Amp is supported by its literal use without employing external assets, modeling its economic foundation was essential for creators. As a result, it was revealed that the business model employed by Amp is more cost-efficient in comparison with the business models widely used in the industry now.
Being collateral, the token provides the insurance for the retail payments conducted within the Flexa ecosystem. The community members can stake Amp using wallets and apps within the network to deliver spending capacity.
Merchants have to pay a small fee for each transaction lower than the interchange rate. The proceeds received from them are used to purchase the Amp tokens for their further autonomous distribution to collateral contracts. The ecosystem members get rewards based on the number of tokens staked in the system. Thanks to a successfully implemented business model, the spending throughput is constantly growing, thus affecting the value of the whole network and the Amp token, in particular.
The private sale of the Amp token was conducted in November 2020. The participants who invested in a project include Robot Ventures II, Barry Sternlicht, Volkert Doeksen, and Douwe Lycklama. Any ERC20-compliant wallet is suitable to store and manage the Amp tokens. The ecosystem members can earn rewards using the products built on Amp, for instance, Flexa Capacity. AMP can be bought on Gemini exchange, Bittrex, Poloniex, Uniswap (V2), Sushiswap, and others.
The Flexa team developed the token that worked together with the ConsenSys team to implement the project. Tyler Spalding, CEO of Flexa, informed that the team worked over the platform for half a year with a complete understanding of the value of innovations implemented on a large scale. It is expected that the developers will deploy their projects based on the Amp platform.
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