What is Safecoin?
Safecoin is a digital token that is generated automatically by the SAFE Network and stays on the SAFE Network. The Network will autonomously confirm account balances to Wallets and allow transactions to take place. Safecoin is transferred using the digital signature of the coin’s last owner. This operation is ‘network atomic’; in other words, the Network ensures that all copies update to reflect the transaction. This is a different approach to the blockchain mechanism employed in other projects, such as Bitcoin.
What’s the use of Safecoin in the SAFE Network?
Safecoin is the currency of the SAFE Network. It is an incentive mechanism that rewards Users and developers, as well as providing access to network services.
Without any human intervention, the SAFE Network pays out Safecoin automatically to Farmers (users who join the Network by contributing their computing resources) and to Builders (application developers, who get paid automatically depending on how much their applications are used).
In addition, Core Developers who improve the core SAFE Network codebase can also earn Safecoin by providing bug fixes and new features.
Safecoin only lives on the SAFE Network. It is stored in a User’s wallet and can be used to buy network services, such as increased storage space and access to network applications. There is no set distribution time for the 4.3 billion Safecoin produced during the life of the SAFE Network.
How do I buy Safecoin?
Safecoin won’t be issued until the Network goes live so they cannot be purchased at the moment. Currently you can buy MaidSafeCoin which will be swapped on a 1-to-1 basis for Safecoin when released.
MaidSafeCoin is listed on the Bitcoin blockchain and can be purchased on a number of exchanges including:
Why not just use Bitcoin?
Bitcoin is completely unrelated to the SAFE Network and cannot be generated or distributed by the SAFE Network. Safecoin is generated in response to network use (stored data being retrieved or apps are created) and is the digital currency of the SAFE Network.
How is Safecoin valued?
The value of Safecoin will be set by the market. In other words, the demand to acquire Safecoin will be driven by the demand to buy things on the Network using Safecoin (e.g. other currency, products, services etc). Whilst simply viewing data on the Network will be free, Safecoin will be needed to buy distributed data storage and for communications. Farmers should earn more than enough Safecoin to enable them to use the Network. Those who earn more than they need will likely sell excess Safecoin to the exchanges.
It is worth noting that the generation and distribution of Safecoin will be entirely network-led, meaning that a great demand for Safecoin will result in a large volume being created, while low demand will lead to minimal coins being generated.
How is Safecoin distributed?
The total number of Safecoin that can exist on the SAFE Network is 2^32, or just under 4.3 billion. 5% of that total has been allocated to compensate early investors who backed the Network development in the early days. A further 10% was sold to crowdsale participants in early 2014. They received MaidSafeCoin (a blockchain-based token that will be exchanged for Safecoin on a one-for-one ratio when the Network launches). At that stage, the holders can use Safecoin however they wish.
Beyond that, Safecoin will come into and go out of circulation in a continuous flow as follows:
All new Safecoin are generated as a part of the farming process and distributed to Farmers, App Builders and the Core Developer pool according to their individual algorithms, as described below.
Safecoin is distributed as the product of a successful “farming attempt.” The sequence leading up to a successful farming attempt starts when a Farmer’s Vault accurately delivers up stored data when the data is requested. When this is successfully done, the Vault seeks to qualify for a farming attempt. The chance of gaining a farming attempt is regulated by the network Farming Rate (FR) which prevails at that moment, and adjusts the ease or difficulty of gaining a farming attempt, depending on prevailing network conditions (availability or scarcity of storage resources).
Farmers qualify for farming attempts at 100% of the Farming Rate (FR) (as modified by Vault performance ranking).
App Builders qualify for farming attempts at 10% of the FR
The pool from which Core Developers are rewarded for their contributions qualifies for farming attempts at 5% of the FR.
What is MaidSafeCoin?
MaidSafeCoin is a proxy token that was released during MaidSafe’s crowd sale and will be swapped for Safecoin on a 1:1 basis when Safecoin is released.
MaidSafeCoin is listed on the Bitcoin blockchain and can be purchased on a number of exchanges including HitBTC and Bittrex.
How do I buy MaidSafeCoin?
In essence all we have to do is buy bitcoin and exchange it for MaidSafeCoin. There are a few simple steps required to do this.
Create an OmniWallet.
Purchase bitcoin using your preferred vendor.
Create a trade account on an exchange which lists MaidSafeCoin (e.g. on Bittrex).
Send bitcoin to the trading account.
Trade bitcoin for MaidSafeCoin.
Withdraw / Transfer to OmniWallet.
MaidSafeCoin is now in your OmniWallet!
Where can I store MaidSafeCoin?
As MaidSafeCoin is built using the Omni protocol on the Bitcoin blockchain, it can be stored in any wallet. They may not be visible within all wallet software (due to lack of Omni support) but the MaidSafeCoin will be OK there as long as your machine and private key for that address are secure and you will be able to view them using omniexplorer.info.
To create a new Omniwallet or open an existing one visit omniwallet.org.
How will MaidSafeCoin be converted to Safecoin?
Once the SAFE Network goes live, MaidSafeCoin can be exchanged for Safecoin at a ratio of 1:1. This will probably be achieved by sending MaidSafeCoin to an unspendable address, thereby burning them. In return, an equal number of Safecoin will then be issued to the sender’s User account on the SAFE Network.
What is Farming?
Safecoin is given as an incentive to users for providing their resource to the network. This resource is their: storage space, CPU, bandwidth and online time that enable the encrypted chunks of network data to be stored and retrieved from their computer.
The process of providing resource and receiving Safecoin in return is called ‘Farming’.
Each piece of encrypted network data is stored in a Farmer’s ‘Vault’, a data storage and management location on the Farmer’s computer which they cannot read, or access. The SAFE Network is designed to self-manage these resources.
How will farming work in practice?
When a user of the network requests some data, for example by browsing a website, a number of things happen: First, the client software makes a request for the required data chunks. This message (a GET request) is then propagated across the Network and when the chunk is found there is a competition between the Vaults in that Section to deliver it to the Network where it will be routed back to the requester. The first Vault to deliver will have a chance of being rewarded with Safecoin. This is described as a Farming Attempt.
Farming Attempt means: by delivering data chunks when requested, a Vault occasionally gains the opportunity to make a Farming Attempt. This consists of sending a validated request to a random Safecoin address. If an owned Safecoin already exists at that address, the Attempt fails. If there is no Safecoin there, one is created and awarded to the requesting Vault (i.e. a successful Farming Attempt has been made).
Farming is therefore when a Vault delivers data chunks that it is storing to the network and earns Safecoin in return.
The probability of gaining a Farming Attempt is dependent on the farming rate, which is a variable related to the quantity of available storage resources in the Network.
What is stopping a hosting provider from farming?
Nothing. Everyone is welcome to farm and thereby contribute to the network. To prevent centralisation, the use of one huge farming rig will be economically discouraged as compared to running multiple smaller nodes. The Safecoin earning algorithm is based on a Sigmoid curve, in that all Vaults earn, slowly at first and the rate increases as the Farmer stores up to the network average. The earning rate also takes into account the rank of the Vault, a process whereby the network scores the usefulness of each node from 0 (being the worst) to 1 (the best).
The Safecoin farming rate is ultimately the result of the network rate (a balance of the demand and supply on the network) multiplied by the Vault rank. The network rate will start to level at 20% above average, thus discouraging massive Vaults which would bring centralisation to the network’s farming process.
What’s in it for developers?
15% of all Safecoin earned will be allocated to the developer pool. This will ensure the developer community is highly motivated and rewarded for providing free-to-use applications as their revenue model. It is proposed that developers are able to use the SAFE Network to publish their applications. These application developers are called Builders and the network will reward use of these applications by paying the Builders in Safecoin based on the application use by users of the system. This is possible since the application developer can insert their own network immutable wallet address in their application. This creates a fully automatic revenue model for both open source projects, private individuals and application development companies. Developers who contribute code that enhances or fixes bugs in the SAFE Network that are accepted into the master branch of the codebase will also be able to earn Safecoin.
Reasons for developing on the SAFE Network:
Get your apps everywhere
No API key—just download our code and start using it
Extremely low customer acquisition costs and no infrastructure costs
Apps that adapt in real-time to changes in demand
Provide security, privacy and anonymity to all your users
As a developer how do I get involved?
On top of our informative and helpful Dev Forum, the SAFE Network has a dedicated developer hub that is the hub for all development resources.
Visit the DevHub
Why is the SAFE Network open source?
Because the SAFE Network has the potential to become a vital part of the lives of every connected person on the planet, MaidSafe are 100% committed to ensuring that all software is released under an open source licence. This encourages innovation and helps prevent any single person, company or organisation gaining control over the technology.
What open source licenses does the SAFE Network use?
All SAFE Network and MaidSafe code is made available under GPLv3, BSD or MIT license.