I did a short comparison last week. I will be glad to answer more questions and point out to more differences.
Thank you for sharing the info about Nxttycoin. After reading a little bit about Nxttycoin I think Gems main advantages are the following:
1) Gems reward system is built on top of the bitcoin blockchain, thus the Gems wallet inside the app will support not only easy transfer of Gems but also bitcoins. Every Gems user automatically gets his own wallet, protected by the passphrase chosen on registration. The social network username is an alias to the Gems address, making sending & receiving Gems and bitcoins between users as easy as possible. One of our main goals is to
bring bitcoin to the masses. We think this goal is important to everyone in the crypto community and will help the Gems network to be successful.
My guess is that Nxttycoin will be driven mostly by nxt supporters - what do you think?2) Gems reward system is totally different than Nxttycoin. All of Nxttycoins have all ready been distributed (correct me if Im wrong please), plus they reward users with a 5% interest every month. Gems has a much more viral marketing model. We know that in order for a messaging app to grow and reach a critical mass, the Gems network needs to grow quickly and incentives users to invite their friends. Thats why Gems will be rewarded for introducing new users to the network. Gems also reward users for being contributing to the Gems social network by texting and in other ways that will be published.
3) I think that Gems economic model is more carefully thought out than Nxttycoin. Google and Facebook base 99% of their revenue on targeted advertising. Networks monetize users by exposing them to content. With Gems: Sending content between friends is free but sending unsolicited content or advertisements costs Gems. This economic model achieve 3 goals:
Stopping spam.
Controlling ads.
Creating real demand for Gems in the market. In our opinion after studying other successful messaging apps the main attraction to the currency will be driven by 1) user growth and 2) text usage. As these two figures grow the demand to buy Gems in the market by advertisers will grow.
The way this works is:
- Advertisements and unsolicited messages are opt-out.
- Advertisers must trade and buy Gems in order to operate.
- Spam kept under control since unsolicited messages aren't free.
- Advertisers pay you for the right to contact you.
- Gems revenue is recycled back into the network as future air drops.
It's important to note that Gems users have a choice, if users want to stay anonymous (not expose any of their info, "self destruct messages" etc) or they wish to not receive any “spam” they can do that. If users accept to receive unsolicited messages or to share more info (in order to get better targeted advertising) they can choose to and will be rewarded with Gems paid by the advertisers.
What is Nxttycoin economic model? 5% interest makes the supply bigger, how do they plan to make the demand bigger?4) There are two ways to register to the Gems app. The "anonymous route" (register will be similar to skype) and the "normal route" (register will be similar to WhatsApp). Each route has its advantages, crypto users I am sure will prefer to stay completely anonymous and will have an easy way to contact their anonymous friends (much easier than bitcointalk PMs I think
) but they will have to add them one by one. While other users that don't mind exposing their phone number to their friends, will help the Gems network grow much faster because the app will have access to their contact list (like in WhatsApp) and thus connecting them to friends that are all ready using the app will be done instantly.
How is Nxttycoin planing to grow their network?There are more smaller advantages I can think that Gems has over Nxttycoin but the above are the main ones.
In addition, Gems, too much monetary aggregates, pre-sale ratio is too low.
More details about the pre-sale will be exposed soon, we are thinking hard on ways to reward early adopters. It is very important for us to quickly build a strong community.
If the community has good ideas we would love to hear them!
Hi Dev,
You seem to forget Nxttycoin. It is also based on the social network software, and appeared earlier and more mature.
So, Gems is not the first such coins.
I don't know when Nxttycoin devs started working on Nxttycoin but you can be sure that advertising the BTT thread is not when we started working on Gems. Nxttycoin is a very interesting project and we wish them "good luck" and much success!
