Re-Inventing The Link
WhitePaper
Version 1.3
July 2019
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1
Table of Contents
Section 1
Introduction4
1.1. Executive Summary 5
1.2. The Problem12
1.3. The Vision13
1.4. The Solution14
Section 2
Introducing 2key's Technological Innovations15
2.1. Brief Description of 2key's Innovations 16
2.2. In Depth - The 2key Protocol and Multi-Party State Networks
21
2.3. In Depth - 2key Links24
2.4. In Depth - 2key's Multi-Step Tracking25
2.5. In Depth - General Incentive Model For Online Sharing
31
Section 3
2Key Network36
3.1. 2key Network Vision Outline37
3.2. 2key Network Technology Outline39
3.3. A 2key Campaign Journey, Step-by-Step41
3.4. Types of Players on 2key Network42
3.5. Types of Incentive Models on 2key Network43
3.6. Real World Use-Case Examples46
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Section 4
Token & Tokenomics48
4.1. Introducing 2key’s Token Economy49
4.3. 2key Token Distribution - Diagram52
4.4. 2key Token Distribution - In Depth53
4.5. 2KEY Token Valuation Mechanisms55
4.6. Reputation Economy Overview57
4.7. In-Depth: Rewarding Reputation 59
Section 5
Team62
5.1. Core Team63
5.2. Advisory64
5.7. Legal Disclaimer66
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Section 1
Introduction
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Executive Summary
1.1
Executive Summary
INTRODUCTION
Online link sharing generates huge economic value. When we take an active
role and share links with our friends, we're advertising the products, services,
or content related to them. In the current online reality, however, we don't
get to share this value and so our sharing remains random, impulsive and
largely unproductive.
At the same time, small businesses, organizations and freelancers are
struggling to identify and reach the right audience without going through
centralized platforms such as Google or Facebook and risking their budgets
on costly online campaigns that often fail to lead to conversions.
It doesn’t have to be this way. We’re all connected by no more than six degrees
of separation to one another. So that if we collaborate, we could potentially get
links to their potential audience without relying on a centralized platform.
This could be achieved if we forwarded links from one person to another
with the specific goal of finding the right audience for them. The key is to get
people to actually behave in this way, on a large scale.
The 2key network enables businesses, organizations and freelancers to
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Executive Summary
bypass the centralized platforms and collaborate directly with their fans and
supporters. It is based on groundbreaking blockchain technology that makes
it possible to use some of the value generated by online sharing to reward
the people who share, instead of giving it away to centralized platforms. The
uniqueness of 2key’s incentivisation mechanism is that it rewards EVERY
person in referral chains leading up to conversions, each for their relative
contribution.
When each person gets to share the benefits of the value they helped create,
a whole new way of connecting people and information becomes possible.
2key’s innovative incentivisation mechanism creates a powerful network
effect and turns the human network itself into the best online ‘targeting’
mechanism in the world.
THE 2KEY NETWORK
Our starting point for building 2key network’s technological infrastructure
were regular HTTP web links, the most ubiquitous feature of the current
world wide web. Our goal was to create a decentralized network, in which
each link has the power to independently track, record and automatically
reward every participant it has passed through when it generates a result.
Because the 2key network is decentralized, we designed it so that each
link on the network will act independently as a type of smart contract that
rewards participants who have shared it when certain conditions are met.
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Executive Summary
One of the important advantages of the 2key links is that they are regular
web links combined with smart-contracts, so that anyone can effortlessly
use them through their regular web-browser without requiring any technical
knowledge.
To achieve this, 2key network combines three unique 2key innovations with
blockchain technology. First, 2key developed a technology called multi-step
tracking, which can be seamlessly embedded into regular links, enabling
them to automatically track and record each person they pass through.
(more on this topic in section 2.4.)
Second, we developed the 2key protocol, which seamlessly embeds smartcontracts within regular web links. This allows each link to encapsulate
agreement terms and carry them out independently, just like a smart contract.
On the 2key network, this technology is used to define and distribute the
amount of the reward that each participant who has shared the link will
receive, in case the link leads to a desired action, such as someone making
a purchase, leaving their details or investing in a project. (more on this topic
in section 2.2.)
Third, to make the entire network more efficient, the 2key protocol will
enable participants to create, through their regular web browsers, multiparty state networks. The great advantage of these decentralized multiparty p2p networks is that they will allow users to connect directly and
dynamically update contracts in real-time, enabling rapid transactions
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Executive Summary
among participants, which are then synchronized with the main blockchain
layer. (more on this topic in section 2.2.)
The 2key network will offer a online tool that every small business,
freelancer or individual can easily use to advance their goals through human
collaboration. Creating a link on the network will require no technical
knowledge or complex code installation. This will offer a new world of
possibilities for the entire long tail of businesses, who currently have no
viable online alternative to reach the people who may be interested in what
they have to offer (more on this section 3).
At the same time, the network will offer every participant a new possibility
of effortlessly monetising their social knowledge and connections by
forwarding the right links to the right people, and being rewarded for their
efforts and contribution to the people they know.
To optimize the network’s efficiency and prevent its abuse, 2key developed
another unique technology which combines game-theory with artificial
intelligence to create a complex system to calculate a dynamic individual
‘reputation score’ for each of the network’s participants. In very general lines,
each participant’s reputation increases when they participate in a successful
link-sharing trail and decreases whenever a link they shared is ignored or
reported as spam. The percentage of the reward that each participant will
receive for successfully sharing links will be strongly influenced by their
reputation score (more on this topic in section 4.3).
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Executive Summary
2key network opens up the untapped potential of human networks to
rapidly search and identify the right individuals for achieving specific goals
or tasks. It offers a way for humans to collaborate in transmitting the right
information to the right people by simply rewarding each person on the
network for active participation and intelligent decision making. By offering
a simple new and effective tool for online collaboration, the 2key network is
creating a new source of value, offering people a new method for achieving
goals that weren’t possible before.
2key network is an entirely decentralized blockchain network, governed
by the 2key token (2KEY), the network’s utility token. As tokens, 2KEYs
incorporate a specific set of rules, which enable the network’s self-governance.
The network’s economy is based on intensive research in token economics
and game theory. It is designed to serve the functionality of the network as
well as the long-term viability of its economic model.
2KEYs will be the tokens used for all activities on the 2key network, such
as creating campaigns, rewarding participants or purchasing services from
the network’s integrators (more on the different players on the 2key network
in section 3.3). The token economics model applies a complex system of
incentives designed to motivate users to optimally combine participating in
the network and staking 2KEYs.
An important part of our token economics model is hardwiring the business
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Executive Summary
model of network integrators, among them 2key Ltd., with the viability of
the 2KEY token. Necessarily, the more people conduct transactions on the
platform, the higher the value of 2KEYs will be, which naturally aligns 2key’s
interests with those of investors and the community. But in addition, our
model is specifically structured to ensure that the profits made on the 2key
network will also increase the standing value of all 2KEYs (more on our token
economics model in section 4).
B. THE PROBLEM WITH MARKETING PIXELS
Online referral marketing programs were an attempt to create a more organic
alternative by rewarding people for recommending stuff online. But these
solutions were they’re technologically limited. They were based on ‘pixel’
technology which came with its own set of issues:
• Pixels require costly and complex integration
and expert knowledge for their operation, so they're ineffective for the
long tail of businesses.
• Pixel-based solutions require a (relatively high) monthly fee
Whether or not they create results. So businesses risk investing in them
without seeing returns.
• They require businesses to have a working website or app
Preventing small businesses and solopreneurs who don’t have one from
using the technology
• Pixels can only track user behavior within the single website or app
on which they are installed. Which means they can't track the user
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Executive Summary
journey across the web and provide actionable insights.
• They can't create a network effect
Word-of-mouth gains momentum by passing from one person to
another, yet current referral solutions use a direct reward system that
offers no incentive for working in collaboration.
• They don't invoke trust
By rewarding referrers per result, these solutions promote unreliable
referrences, which quickly lose reliability and become ineffective.
RISING AD
COSTS
A RT I F I C I A L
TA R G E T I N G
NO
A LT E R NAT I V E
and smaller profit
margins for businesses
Inaccurate, unnatural,
un-organic
to Google /
Facebook duopoly
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The Problem
1.2.
The Problem
A . T H E P R O B L E M W I T H A L G O R I T H M - B A S E D TA R G E T I N G
The massive online advertising industry has been practically taken over.
The Google-Facebook duopoly controls over 70% of the market,
using
their enormous scale to collect data and deliver targeted advertising. Yet
algorithm-based targeting creates a multitude of issues, three of which
particularly stand out:
• Businesses and organizations can’t directly interact with their customers.
And are forced to pay increasing sums for exposure, often without results.
• Robotic targeting is remarkably inaccurate.
It’s still difficult for robots to figure out the right audience for stuff,
resulting in extremely low average click-through rates.
• Growth through robotic advertising is inorganic.
Algorithms create a customer base that’s not connected through social
connections, so that it’s weaker and less sustainable in the long run.
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The Vision
1.3
The Vision
It’s been shown that every person is connected to every other person in the
world through other people, by a maximum of six degrees of separation. So
to get information to the right people through a human-based network, the
trick is to find the right people. We set out to enable effective and accessible
referral sharing based on human social intelligence, rather than algorithms.
The 2key network will:
• Incentivise people to collaborate in getting campaigns to the right
audience. By continuing to share them until they produce results.
• Focus people’s natural tendency to spread information towards
achieving real-world goals.
• Directly reward the people sharing campaign-links, rather than the
platforms they share them through.
• Offer simple, risk-free access for using the power of referrals and pay
only when campaigns generate value.
• Protect participants from being bombarded by irrelevant or unreliable
advertisements, information or referrals.
• Enable people to exchange information directly in a decentralized
network that isn’t controlled by any centralized server.
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The Solution
1.4.
The Solution
By combining 2key’s technologies with blockchain and smart contracts, 2key
can now place entire referral campaigns in regular HTTP links. So each link
on 2key network can act as an independent smart contract, which defines
the campaign’s goals, and the rewards for achieving them.
As people share the link, the link tracks and records each person who shared
it. Each time the campaign achieves a result, the link automatically unlocks
the pre-defined reward and distributes it among all the people who’ve
shared it.When each participant is rewarded simply for getting the word
out, information spreads virally and campaigns rapidly reach their ideal
audience to generate results
The 2key network offers a referral solution that’s fair, accessible and effective.
Everyone wins. Campaigners get a powerful tool for using referrals to achieve
their goals, while the people who share the campaign finally have a way for
being rewarded for their online sharing.
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Section 2
Introducing 2key's
Technological
Innovations
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Brief Description of 2key's Innovations
2.1.
Brief Description of 2key's Innovations
The development of blockchain protocols and the Dapps that run on them is
highly interdependent. That's why we’re developing both the 2key protocol
and the 2key network at the same time.
The 2key network is the first Dapp implemented on top of the 2key protocol.
It combines three 2key innovations, offering an entirely new model of online
collaboration. Potentially, 2key protocol can also support other applications
in the future.
1. THE 2KEY PROTOCOL
2key protocol acts as a bridge between regular web browsers and blockchain
networks. It enables people to easily use smart-contracts through their
regular browsers without entry barriers or complex code implementation.
The 2key protocol is seamlessly embedded into regular HTTP links, creating
cryptographically signed links that can be shared across the web just like
regular links.
As they are being shared among participants, 2key links connect the browsers
they pass through into an ad-hoc blockchain state-networks, consisting of
multiple participants. These networks allow participants to deploy a smart-
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Brief Description of 2key's Innovations
contract among them and update it in real time through their regular web
browsers.
2 . M U LT I - PA RT Y S TAT E N E T W O R K S
In general, state networks are second-layer blockchain networks, which
enable people to perform some transactions more rapidly and effectively by
taking them off-line.
2key enables participants to ‘create’ state-channels through cryptographically
signed links (embedded with the 2key protocol). These state networks are
different because they can include multiple participants, allowing them to
dynamically interact off-chain. Another great advantage of the 2key statenetworks is that they enable people to create state networks ad-hoc, without
requiring prior knowledge of the parties involved.
3 . M U LT I - S T E P T R AC K I N G
Multi-step tracking is an innovative technology that enables regular HTTP
links to automatically track and record every person who shares them.
The technology is effortlessly embedded into regular links, allowing the links
to independently track and record every person who shares them. This makes
it possible to reward each person who shared the link once a result is achieved.
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Brief Description of 2key's Innovations
Multi-step tracking is at the core of the 2key network. It enables the network
to reward each participant individually for their relative contribution to
collaborative efforts. When each person knows that their small contribution
will be tracked and rewarded, each person has a strong motivation to
collaborate towards achieving common goals.
4. 2KEY LINKS
2key has created two distinct technologies that can be seamlessly
embedded into regular links: the 2key protocol and multi-step tracking. A
2key link is a link that's embedded with these two technologies. In fact, this
means that the link is embedded with a smart contract and can act as a store
of value, which automatically unlocks this value in case certain conditions
are met.
2key link is deployed per referral campaign by the campaign initiator (the
“link creator”), who deposits value in the form of 2KEY tokens, as a potential
reward for completing the contract. With the 2key link, the campaign smart
contract constructs a multi-party state channel spawning from the initiator
of the campaign to the referrers, while 2key’s multi-step tracking technology
records each person who forwards the link.
In this way, referrers are guaranteed their reward in case the link reaches
its target audience and generates results.There is no need for exchange of
commitments, as the 2key link itself acts as commitment.
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Brief Description of 2key's Innovations
5. 2KEY NETWORK
The 2key network is a new kind of referral solution. It is based on people
collaborating and sharing information with the goal of getting campaigns
to their ideal audience. What makes the 2key network different is its
unique incentivisation model. The 2key network rewards each person who
participates in a campaign’s success, so that people can trust that they'll
be rewarded if the campaign generates results, even if they’re not the ones
directly responsible for conversions.
By rewarding people for simply getting the word out about campaigns, 2key
network generates a type of online virality that’s focused on achieving
results. Campaigns on the 2key network are targeted by the people who
share them, who can rely on their social knowledge to estimate which links
might interest the people they know.
By combining 2key’s proprietary technologies with blockchain and smart
contracts, 2key network is able to track the journey of campaign-links
through the web and reward people according to their efforts. It also combines
a powerful incentive model that strongly incentivises people to share links
with people who are interested in the campaigns they share and powerfully
discourages spamming.
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Brief Description of 2key's Innovations
6 . A L G O R I T H M I C G A M E T H E O RY B A S E D I N C E N T I V E M O D E L
The novel algorithm computes a reputation score for each of the participants,
rewarding productive referees according to the value generated by their
online sharing and penalizing spam and irrelevant-information sharing.
Combining thousands of factors, the model rewards each participant
individually for the value they generate across time by their online sharing,
ensuring the optimal incentivization for participants to use judgement in
choosing the people with whom to share the links.
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In Depth - The 2key Protocol and Multi-Party State Networks
2.2.
In Depth - The 2key Protocol and MultiParty State Networks
The 2key protocol is the technology that enables 2key links to independently
carry out smart contracts. The process begins with a link creator who
generates a campaign. To do this, the link creator must insert a commitment
for payment to referrers into the contract, which will be unlocked and
distributed to referrers in case a result is achieved.
At the moment of campaign generation, the newly generated 2key links are
automatically embedded with the 2key protocol. The protocol is embedded
within the links’ front-end code, transforming these regular HTTP links into
cryptographically signed links that hold within them a smart contract and
the commitment of payment for its completion. In other words, the links
turn into a store of value.
As the links are passed on during the campaign,people interact with them,
clicking on them and sharing them with others. Whenever a browser opens
the link, the 2key protocol automatically connects it with the last and next
browser who interacted with the link. In this way, the network of connected
browsers grows as the link is shared. The 2key protocol connects these
browsers into ad-hoc state networks that can act out the smart contract for
the campaign.
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In Depth - The 2key Protocol and Multi-Party State Networks
Because the 2key link itself contains a smart contract and stores value, the
browsers can create off-chain state-channels through which they can act
out the smart contract without touching the 1st layer blockchain for the
majority of the contract's life cycle. This ad-hoc browser’s network is created
per contract. It has the qualities of a state network because it is decentralized
and allows participants to play out smart-contracts off-chain and then sync
with the main blockchain network.
Yet the networks created through the 2key protocol have the significant
advantage of allowing multiple people to participate in these state networks,
without requiring any previous knowledge of the parties involved. These
upgraded state-networks are called Multi-Party State Networks.
Browsers that participate in the network will be able to advance the state of
the contract, off-chain, by simply sharing it with others. Upon conversion or
finalisation of the contract, participating browsers will submit the signedlinks to the main-chain, synching it with contract’s new state and rewarding
referrers for their actions.
We are now working to expand the 2key protocol to enable a general multiparty state channel solution. As the network grows, storing all of the
information in a single link will be limiting. We are now building an option
of moving this information to a centralized storage, currently using IPFS. In
the future, the 2key signed link will contain a single hash that represents
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In Depth - The 2key Protocol and Multi-Party State Networks
the entire state at the moment of interaction, transaction or state change
request. We are aiming for the 2key signed link to ultimately become a small
piece of javascript that will use specific IPFS hashes and state hashes to
direct browsers to load larger javascript codes from a decentralized storage.
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In Depth - 2key Links
2.3.
In Depth - 2key Links
2key links are links embedded with the 2key protocol. They're basically
a short javascript containing a Code Hash and a State Hash [~ js://{codehash}&{state-hash}]. They're not location based and don’t have any IP
reference.
The Code Hash is a Merkle-web hash dictating the code required to download
from decentralised storage (e.g. IPFS). This code contains the actual Dapp UI
and the 2key protocol cryptography, which turn any browser they reach into
a peer in a decentralized ad-hoc p2p network. As the link is shared across
the web, this p2p network grows to include each browser that has touched
the link. This browsers’ network can then play out the smart contract offchain, in a pure front-end-2-front-end decentralised manner.
The State Hash is a transaction request or state change request propagated
between participants in the campaign network, thus advancing the contract's
state graph.
2key’s unique novelty is building multi-party state networks through these
cryptographically signed 2key links. We can do this because each 2key link
carries a commitment for a payment for a path of referrals.
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In Depth - 2key's Multi-Step Tracking
2.4.
In Depth - 2key's Multi-Step Tracking
A . O V E RV I E W
2key network offers a simple online tool for creating referral campaigns that
offer a new level of targeting, have zero entry barriers and pose no risk for
contractors. Our revolutionary multi-step tracking technology makes the
2key network possible. It enables simple links to track every person who has
shared or interacted with them, forming a record of link-sharing chains.
On the 2key network, multi-step technology is seamlessly embedded within
regular web-links, which are also embedded with smart contracts. Thanks
to the integration of these two technologies, the links on the 2key network
are able to independently track and record the participants who share them.
This is essential, because when the campaign achieves results, the links can
then unlock the reward and distribute it automatically among every person
who shared the link with the right people.
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In Depth - 2key's Multi-Step Tracking
B . P I X E L - L E S S T R AC K I N G
Current technology relies on pixels for tracking online referrers. Yet pixels
require complex integrations and constant management and can only be
installed within a specific website or app. Pixels can only track people who
enter the sites or apps in which they’ve been installed, but they cannot track
the entire trail of people who shared a single link across several sites and
apps.
Multi-Step technology enables entirely pixeless-tracking with zero
integration requirements. The tracking is performed not by specific sites or
apps, but by the links themselves, as they are being shared. With multi-step,
each person who shares the links, anywhere on the web, is automatically
tracked and registered, charting full referral chains from beginning to end.
C . M U LT I - S T E P T R AC K I N G I N AC T I O N
A campaign is started by a contractor who shares actionable links with a
first group of people, this first group is link’s ‘sourcing seed.’ Each person
in the group can now act as a referrer and share the link with people who
may be interested in it. A sequence of consecutive referrals forms a referral
chain. The link is intended to reach someone who will be interested to take
action through it, such as purchasing a product, signing up for an event
or subscribing to a publication. People who take action through the link
are called converters and by their actions they unlock the reward for the
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In Depth - 2key's Multi-Step Tracking
campaign.The spread of information within a campaign is charted within a
referral graph which is a directed acyclic graph (DAG) updated in real time.
Each person receiving the contract is registered as a referrer by default.
Referrers can share the link (or the contract’s code) through any channel of
online communication, with anyone they wish. This creates a new group of
referrers, who can then continue to send the link onwards to one or more
addresses on web3.0 or web2.0, who can then relay the contract further, in a
branching out tree-like manner (actually a one-directional graph), until the
link reaches the converter.
D. C H A RT I N G R E F E R R A L C H A I N S
The contract’s referral network (refnet) is a tree-like unidirectional graph
charting the link-sharing trail. Each refnet’s starting point is the contract
creator, from which it branches out to the first group of referrers and from
them to the people they’ve shared the link with and so on, ending at the
point of conversion.
Each refnet graph includes the following data:
1. generated conversions,
2. generated value,
3. average branching-out-factor,
4. weighted net level (weighing over the branching out, seeing where
most of the energy in the branching out is located),
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In Depth - 2key's Multi-Step Tracking
5. average conversion rate per level
6. average reputation of the ref net
7. conversion contribution strength - projected contribution of the
influencer to conversions that arose on the refnet.
A referrer’s refnet is the individual sub-tree of the refnet, which charts the
tree of referrers originating with each referrer. Its starting point is the first
referrer in the chain, then branching out and charting the entire net spanned
from the initial sharing. The referrer’s refnet generates information on the
referrer, that is then used in the calculation of their reputation score (see
section 4.3).
E . M U LT I - S T E P T E C H N O L O G Y FO R W E B 3 . 0 . - I N T R O D U C I N G
AC T I O N R E F E R R A L C O N T R AC T S ( A R C S )
The web3.0 core architecture generates a new micro-economy around
each campaign smart contract. This is facilitated by the Activation Referral
Contract (ARC) token - a new ERC20 token type minted in dynamic balance
for each campaign.
ARCs are the 2key network’s means of computing value for each participant
in a campaign. Each link in a campaign has a pre-defined number of ARCs.
When the first person receives the link, the links still has its total number
of ARCs. When they share the link, some ARCs stay in their web3.0 wallet
and the rest move on to the person with whom they’ve shared the link.
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In Depth - 2key's Multi-Step Tracking
Each person in the chain keeps a certain number of ARCs and forwards the
remaining along with the link to the next person.
The ARCs act like the breadcrumbs trail left by Hensel and Gretel in the
Grimm’s fairy tale. When the link achieves a result, it distributes the reward
among the people who hold the ARCs and so they act as a means of recording
the path of link sharing.
This means ARCs only hold potential value, which can only be unlocked if
the campaign is successful.
For anyone using a web3.0 wallet supporting ERC20 tokens, ARCs make
referring as easy as passing along tokens.
On the pure web3.0 front, anyone using an ERC20 compliant client (e.g.
metamask), should be able to refer ARCs onwards and fulfill (i.e. convert)
campaign required results directly via the ARCs in the wallet, as these ARCs
are in themselves smart tokens directly associated with the 2key campaign
contract. In this pure approach the web3 address of the participant is their
client wallet address, but their social ID to be associated with it will still have
to be explicitly extracted via some decentralised sovereign ID provider.
F. M U LT I - S T E P T E C H N O L O G Y FO R W E B 2 . 0 .
For those using web2.0 browser, passing forward a 2key links is as easy as
sharing other regular internet links.
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In Depth - 2key's Multi-Step Tracking
Behind the scenes, when a person clicks a 2key link on their regular browser,
the browser is automatically invoked to join an ad-hoc decentralized network
for interacting with the link’s campaign contract. In fact, the link turns the
browsers and wallets sharing it into nodes in a small network of people who
interact with the link, so that each can receive and refer ARCs with others
who have interacted with the link.
Participants can then use their browser to generate a secure wallet with a
private key stored in a local storage (similar to Metamask, but which doesn’t
require the plugin or extension installation). Or they can connect the browser
to an existing external wallet (such as Metamask).
2key network will enable explicit Identification via federated or sovereign
ID providers to ensure that the network is used by real humans. This will
give everyone who joins the possibility to begin collecting social capital and
reputation points from their first interaction with 2key. It is also crucial for
maintaining a secure network layout against a host of attack vectors, bot
schemes, collusion networks etc.
Another way for participants to join the 2key network is through 2key’s
mobile apps, which act as full 2key nodes and also function as a dedicated
and secure 2key wallet and an ID proxy to the same types of ID providers
mentioned above.
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In Depth - General Incentive Model For Online Sharing
2.5.
In Depth - General Incentive
Model For Online Sharing
A. WHY ARE WE BUILDING OUR OWN INCENTIVE MODEL?
The goal of every 2key contract is to find and reach its target audience. A
contract offering tickets to a music concert, for example, is created with the
goal of finding and reaching the people who’ll buy tickets to the concert.
That’s what the 2key network is for.
So each contract can be viewed a ‘search task,’ because the link is ‘searching’
for its target audience. From this perspective, each person who forwards the
link is collaborating in this common search task of getting the link from its
source to its target audience.
Because every person in the world is actually connected to every other person
through a chain of acquaintances with no more than five intermediaries, the
trick is to find the right six people, or less, to carry the link from its source to
its destination.
To do this, people have to be motivated to forward each other links and use
their judgement when considering who they’re forwarding the links to.
Lastly, people have to be motivated to continue forwarding the links they
recieve, until the links reach their target audience.
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In Depth - General Incentive Model For Online Sharing
To motivate people in this way, we’re building the 2key general incentive
model for online sharing. The first secret ingredient to creating strong
incentivization to act is to reward each person individually, according to
their own actions and contribution.
To do this, we’re using 2key’s multi-step tracking to precisely track and
record each participant's individual contribution. When a result is achieved,
the 2key incentive model is in charge of distributing the reward among all
the participants who contributed to the ‘search task.’
If we use the example of a contract for concert tickets again, let’s imagine that
it’s been forwarded by four different participants until it reached a person
who’s actually purchased tickets. Should each participant be rewarded
equally? Should the last participant receive a greater percentage than the
others? Or maybe the first participant?
The 2key incentive model is using game theory and AI to answer these
questions in a way that distributes the rewards on the 2key network so
that each participant is optimally motivated to contribute to the network’s
efficiency by forwarding the right links to the right people at the right time.
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In Depth - General Incentive Model For Online Sharing
B . T H E C O N C E P T O F A N I N D I V I D UA L R E P U TAT I O N S C O R E
The model is based around the concept of a personal reputation score,
which is assigned to each person upon joining the 2key network and then
dynamically updated with each new campaign the person participates in.
The reputation score takes into account hundreds of different parameters.
People who share links that lead to conversions strengthen their reputation
scores, for example, while those sharing links that aren’t forwarded weaken
it. Reliability, general participation, token staking, steps to conversion and
many other parameters all influence each person’s reputation score.
In fact, each reputation score is made-up from a number of reputation subscores, in different domains of life. So that a participant on the network can
have a high reputation for recommending classical music, and at the same
time have a low reputation in recommending destinations for ski vacations.
The taxonomy used for the reputation score is the IBM Watson (formerly
AlchemyAPI) taxonomy of ~1.5K categories, which are divided into 4 layers
of categories and sub-categories spreading into all domains of life.
C . 2 K E Y ’ S A L G O R I T H M I C G A M E T H E O RY B A S E D I N C E N T I V E
MODEL
Assisted by world-leading scientists in algorithmic game theory, our team is
building an incentive model that is both personalized and dynamic.
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In Depth - General Incentive Model For Online Sharing
The percentage of the reward given to each participant when they participate
in a successful campaign is highly dependant on the participant’s individual
reputation score. So participants have a strong incentivisation to keep their
scores high.
Just like a person’s reputation in life, 2key’s reputation score keeps track
of past actions and productivity, while at the same time being flexible and
responsive to each new action taken by the participant. It is a form of ‘social
credit,’ which offers real tangible value to the person who accumulates it
through their actions.
If you’d like to learn the technical details of our unique incentive model,
please check out our incentive model technical document.
D. G A M E T H E O RY A I
In parallel, we’re developing a new branch of algorithms that fuse game
theory with machine learning. We’re assisted by world-leading scientists in
algorithmic game theory in building a general incentive and compensation
model for online sharing. Moving the web to a general proactivity incentive
model is a big step, and requires developing a dedicated technological
framework.
The lack of big-data sets on individual contributions to value-generation
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In Depth - General Incentive Model For Online Sharing
through online sharing has meant that game theory and machine learning
haven’t been fused so far.
The 2key network will produce the framework and datasets to enable the
development of game theory AI models for online sharing and our vision is
to lead the front in this field.
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In Depth - General Incentive Model For Online Sharing
Section 3
2Key Network
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2key Network Vision Outline
3.1.
2key Network Vision Outline
2key network combines three technological innovations to offer a new model
for targeting online campaigns. The 2key model is based around people who
share campaigns about stuff they like with their friends and acquaintances.
Even though people naturally share links all the time, they don't do it in a
coordinated way to achieve specific goals.
2key network aligns the interests of campaigners with the interests of the
people who share and forward the links to their campaigns. In this way, every
person who recieves a link to the campaign will incentivised to contribute to
its success by getting the link to the right people.
On the 2key network, campaigns get from their origin to their audience
through the people who share them. When a campaign achieves a result,
it rewards each person individually for their relative contribution. So if a
campaign is shared between four people until it produces a conversion, each
of the four people who shared it will be rewarded. This is very rewarding for
the people who share, and very effective for campaigners.
The people who share a campaign are called ‘referrers.’ That’s because
the 2key network applies a reputation-based incentivisation system that
encourages people to only share campaigns for stuff they know and believe
in. Each participant’s reputation score strongly influences their reliability
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2key Network Vision Outline
and how much rewards they’ll be able to get from each successful campaign.
Each time someone shares a campaign, they’re putting their own reputation
on the line, because if others report them as spammers, their reputation will
be damaged.
Businesses can use the 2key network to search for employees with specific
skills or for investors with specific interests, online publications can use it to
find new subscribers, artists can search for students interested in specialized
art workshops, drug companies could find new test subjects with special
conditions, the possibilities are nearly endless. The 2key network is a tool
for finding the right people through collaboration and social connections.
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2key Network Technology Outline
3.2.
2key Network Technology Outline
The 2key network is a decentralized blockchain network, based on an
infrastructure of smart-contracts on the Ethereum network. The tracking,
recording and rewarding of participants’ behaviour is carried out by the code
itself, so that campaign costs are nearly eliminated.This allows to re-direct
campaign budgets back to the people who share the campaign’s links and let
them participate in the campaign’s success.
The 2key protocol works behind the scenes to place entire campaigns on
smart contracts and fuse these smart contracts to regular HTTP links. So that
links are produced per campaign, containing all the details for its execution.
Campaigners don’t need any technological background to create campaigns
in minutes, they only need to define their goals and allocate the amount of
rewards they wish to invest in achieving them. 2key network takes care of
the rest.
Each link on the network is also embedded with multi-step tracking
technology which enables it to register on the link’s front-end code each
person who shared it. This means that each link on the network operates
independently, tracking, recording and automatically rewarding each
participant’s contribution. When links achieve a conversion, they unlock
some of the reward embedded in the smart-contract and automatically
distribute it among all participants who’ve shared them.
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2key Network Technology Outline
To optimize this system even further, the rewards are not equally distributed
among all participants. 2key is now leading the front in developing a general
incentive model for online sharing based on game-theory and AI. The model
combines thousands of factors to reward each person precisely according to
the value they’ve generated on the network across time, in order to promote
participation while making sure that people use their intelligence to relay
onwards reliable information to the people who are genuinely interested in it.
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A 2key Campaign Journey, Step-by-Step
3.3.
A 2key Campaign Journey, Step-by-Step
S T E P 1 - G E N E R AT I N G A C A M PA I G N
A campaign begins with a campaigner, who creates a 2key campaign contract
by defining the campaign’s goals and rewards for referrers. The 2key network
automatically creates a campaign link embedded with smart contracts and
multi-step tracking technology, which enables them to carry the campaign
out independently.
S T E P 2 - S P R E A D I N G T H E C A M PA I G N
The campaigner now shares the link to their campaign with the first group
of people (friends, existing clients, colleagues etc.), who can now share it
with other people, who can then continue to share it and so on. Until the link
achieves a conversion. The entire chain of referrers who share the link is
tracked and registered by the link itself.
S T E P 3 - AC H I E V I N G R E S U LT S A N D R E WA R D I N G R E F E R R E R S
Once the link achieves results the smart contract automatically unlocks
some of the reward set by the campaigner and distributes it among the chain
of people who shared and distributed the campaign.
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Types of Players on 2key Network
3.4.
Types of Players on 2key Network
There are four type of roles participants can play in the 2key network:
• Campaigners - Anyone can define a target and create a contract
for achieving it on the 2key network. The network will seamlessly
embed the contract within a 2key SmartLink that will carry it out
independently.
• Referrers - referrers are network participants who relay links from the
creators which to others who may be interested. They must employ
judgement and relay the links only to people who may be interested in
them or may know others who are. If the link reaches its target, they’ll
receive a share of the reward.
• Converters - converters are the potential destination address for
the links. These are the potential customers, employees and other
target audience, which the links aim to reach. When converters take
action through the link, such as leave their details, make a purchase
or download an app, the smart contract unlocks the reward and
distributes it backwards to each person in the trail of people who are
responsible for the link reaching the converters.
• Integrators - Integrators are optional service providers on the 2key
network. Contractors may choose to use their services to ensure
transactions, uphold dispute resolutions, prevent abuse, provide KYC
services and much more. We intend integrators to take a share of the
rewards for successful conversions as payment for their services. 2key Ltd.
will also act as an integrator on the network, probably the first, and we plan
to provide competitive offers and remain the top choice for link creators.
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Types of Incentive Models on 2key Network
3.5.
Types of Incentive Models
on 2key Network
Campaigner will have the option of choosing the type of incentive model for
their campaign out of the following three alternatives:
1 . P R E - S E T VA N I L L A M O D E L
The campaigner can choose how to divide the rewards for their campaign
amont referrers out of the following types of pre-set vanilla models:
Equal
Equal distribution among all
participants in the chain
Equal + 3X
Equal distribution among all participants,
except the last one who receives 3 times the rest
Growing
Each participant in the chain gets
50% more than the one before him
Manual
Choose how much to keep for yourself
and how much to pay forward.
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Types of Incentive Models on 2key Network
2 . DY NA M I C PA RT I C I PA N T- C H O I C E M O D E L
This model each person who shares the campaign the choice of how much
of the reward they wish to keep for themselves and how much they choose
to pass on to others.
3 . G LO B A L I N C E N T I V E M O D E L B A S E D O N G A M E T H E O RY A N D A I
We’re fusing game theory with machine learning to create the first general
incentive model for online sharing. The model is designed motivate
participants to use their energy, intelligence and social connections to relay
links to people with interest in them and at the same time prevent spamming.
It does so by distributing the rewards for a link that achieves a result
individually, according to the relative contribution of each participant in the
referral-chain.
The model takes into account dozens of parameters such as the position in the
referral chain, relative result delivery-time, a referer’s past references in this
domain and, most importantly - each participant’s calculated ‘reputation score’.
The reputation score is dynamic, reflecting the productivity and relevance
of each participant’s link-sharing activity across time. Participants with
high conversion rates will gradually improve their reputation scores, for
example, while those sharing irrelevant links or spamming, will rapidly lose
reputation points.
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Types of Incentive Models on 2key Network
When a link achieves a result, each participant will receive a percentage
of the reward that’s highly influenced by their reputation score, strongly
incentivising participants to target wisely the links they share.
Read the technical details of this model here.
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Real World Use-Case Examples
3.6.
Real World Use-Case Examples
So what kind of things can people actually DO with 2key network? The
following list offers a few examples:
• Selling Tokens. Projects that have already issued their tokens can get
the word out about their project and promote token acquisition.
• Crowdfunding a Project. Any project looking for crowdfunding can
create a campaign aimed at reaching investors and receive investment
in Bitcoin or Ether.
• Organizing and Carrying Out Airdrop Campaigns. The 2key network
is perfect for creating hype around projects, getting the word out
about upcoming airdrop campaigns and automatically organizing the
distribution of tokens during the campaign.
• Collecting New Leads. 2key network enables creating campaigns for
collecting the details of people who are interested in specific products,
services or events.
• Getting New Subscribers.For those offering online publications or
services based on subscriptions, 2key network can be used to expand
their reach and get new subscribers.
• Finding Patrons. Artists and creators can use the 2key network to share
their gift with the world and find patrons to support them.
• Selling Tickets to Events. Anyone organizing an event can use the 2key
network to get people to know about it directly from their friends and
sell tickets.
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Real World Use-Case Examples
• Spreading the Word About a Cause and Receiving Donations. 2key
network is perfect for finding people who’d like to support a certain
cause and collect their donations.
• Launching a Petition. A 2key petition can be created to sign people
up in support of different causes. Widely distributing the petition will
be easy using the 2key network.
• Distributing Content. 2key network can be used to incentivise people
to share specific content.
• Acquiring Valuable Information. Organizations can create 2key
campaigns that reward people for filling in questionnaires and polls
and get the information they need in no time.
• Boosting Installations. Any business that aims to increase the
installations of their new app or game, can use the 2key network to
get to increase the number of installations.
• Finding the Right Employees. Any business or organization can
easily use the 2key network to search for precisely the employees
they need.
• Selling Online Products. Different online goods can easily be
integrated with a 2key contract and be sold through the 2key
network.
• Sell Offline Goods. 2key network is also ideal for reaching customers
for offline goods and enabling online transactions.
• Create a Competition. Businesses or others who’d like to encourage
participation in all types of competition will be greatly assisted
by using a 2key network contract to let people know about the
competition and encourage participation.
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Real World Use-Case Examples
Section 4
Token &
Tokenomics
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Introducing 2key’s Token Economy
4.1.
Introducing 2key’s Token Economy
Everything on the 2key network runs independently by the code embedded
in the network’s smart-contract infrastructure and in the 2key tokens’ code.
Basically, 2key tokens (2KEYs) are ERC20 tokens, built specifically as the
2key network’s native utility currency. They’re needed for all activities on
the 2key network such as launching campaigns or rewarding participants.
2key’s tokenomics are designed to ensure 2key network’s efficiency and create a
strong link between the network’s performance and 2KEYs value, so that people
holding them will always gain value from 2key network’s overall success.
The In the current age of social media people’s reputation, connections and
social impact have great potential value, yet this value is difficult to monetize.
The 2key network offers a solution. It tracks each participant’s sharing
activities and can measure the number of conversion they lead to. According
to this information, it then assigns each participant a dynamic ‘reputation
score,’ which changes and improves as they share more campaigns with
their friends.
The reputation score of each participant strongly influences their earning
power on the 2key network. Basically, people with a higher reputation score
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Introducing 2key’s Token Economy
can earn more 2KEYs than people with lower scores. This architecture
means that people who positively contribute to the 2key network can gain
more from using it. By tying together reputation and value in this way ,our
tokenomics provide an innovative solution for measuring and rewarding
social influence.
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Introducing 2key’s Token Economy
4.2. 2KEY Token Applications on the 2key Network
2KEY tokens are ERC20 utility tokens, used for all other activities on the 2key
network. We’ll mint a final number of 1 Billion 2KEYs, to uphold and operate
2key’s smart contract system.
They'll be used for the following activities:
• Launching contracts. campaigners will have to own 2KEYs in order
to launch campaigns. They'll need to include within their contract
the total amount of 2KEYs to be used as rewards, which will only be
unlocked when the campaign achieves results.
• Receiving rewards. referrers who share campaigns and generate results
will receive their rewards in 2KEY. By choosing to keep to them or use
them on the 2key network, they’ll also receive periodical rewards.
• Charging integrator fees. 2key network integrators will receive fees for
their services in 2KEYs. 2key itself will offer its services as a campaign
integrator and the network will be open to anyone offering their
services for optimizing campaigns.
• Paying the network tariff. A small network tarriff will be charged out of
each transaction. These tariffs will be transferred directly into a 10-year
deposit smart contract, after which the 2key network community will
decide together whether to release or burn them.
• Obtaining staking compensation. Staking 2KEYs means saving a
certain amount of them in your wallet. It’s necessary for launching
campaigns, but also worthwhile for participants thanks to the various
staking compensation rewards.
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2key Token Distribution - Diagram
4.3.
2key Token Distribution - Diagram
A final number of 1 Billion 2KEY Tokens will be minted, and will be used to
operate and maintain the 2key network. This is how we’ll distribute them:
40% Long Term Reserve
Future reserve locked for
3 years minimum
22% Economy Kickstart
15% Token sale, 1% Bounties, 6%
Liquidation supply for exchanges
20% Community Rewards Pool
Active participation rewards &
economy scaling - distributed
over a decade
12% Team
Vesting quarterly over 2 years
with 6-months lockup
6% Advisors, Partners and
Eearly contributors
vesting quarterly 2 over years
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2key Token Distribution - In Depth
4.4.
2key Token Distribution - In Depth
• Economy Kickstart - 22% (220m 2KEYs), which will be distributed in the
following way:
– 15% (150m 2KEYs): will be sold, in chronological order, via seed
round, private sell, and lastly IEO phases to early adopters of the
network. 2KEY official price at this stage - USD0.06 (6 cents).
– 1% will be reserved for bounties and social mining during the first
3 years of network launch - released over 12-36 months from DD.
– 3% will be used for liquidity depth in the 2key exchange contract
– 2% will be reserved for DEX liquidity depth.
– 1% will be used by the 2KEY official Market Makers for their active
liquidation operations.
• Team - 12% (120m 2KEYs), which will be locked for 365 days, then
distributed over a 2 year period in 25 equal portions vesting monthly.
• Advisors, Partners & Early contributors - 6% (60m 2KEYs). 3rd parties
and contractors, advisors and early contributors supporting the
development, marketing, and growth of the 2key network. Locked for 90
days, then distributed in 52 equal portions vesting weekly.
• Community Rewards Pool (Mining) - 20% (200m 2KEYs) will be used to
reward 2key network users for active participation and staking in the
network and economy. Lock - Distributed over a decade - 2% each year.
starting at DD + 90 days.
• Long Term Reserve - 40% (400m 2KEYs). tokens dedicated for future
use, might be used in the future for conducting additional token
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2key Token Distribution - In Depth
distributions and for POS mining in the General Purpose 2key protocol
(browsers as miners in MPSN). Locked for 2-5 years. 10% (100m 2KEYs)
unlocked after 2 years and another 10% (100m 2KEYs) unlocked
annually on the DD date conditioned on token price exceeding token
sale price.
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2KEY Token Valuation Mechanisms
4.5.
2KEY Token Valuation Mechanisms
A final 2key’s valuation mechanisms create a strong connection between
2key network’s performance and the value of 2key tokens (2KEYs).
FO R M U L A
Token valuation is calculated according to the formula used to
evaluate currency:
M*V=P*Q
INDEX
M= Token supply
The amount of tokens in circulation that aren’t locked and can be freely
traded or used.
V= Velocity of exchange
The amount of times a token changes hands in a certain period of time. This
amount will increase as more people join the network, yet 2key network has
a mechanism in place to contain it from increasing significantly.
P= Token price level
Amount of tokens needed to purchase an average good or service on the
2key network. The goal is for the price level to decrease with the growth of
the network as this will indicate a rise in the value of the token.
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2KEY Token Valuation Mechanisms
Q= Quantity
Amount of products traded in a certain period.
M*V= 2key’s economy monetary supply
The amount of tokens multiplied by the amount of times a token is used on
average in a certain time frame, results in the amount of tokens used within
that time frame.
P*Q= Network GDP- the amount of products sold multiplied by the average
price level per product, results in the total value that was transacted on the
2key network in a certain time frame.
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Reputation Economy Overview
4.6.
Reputation Economy Overview
2key network offers is a new way for measuring and rewarding social impact.
Every participant forwarding links on the network can be viewed as a smallscale influencer and their degree of influence can be fully tracked and
measured, based on the number of conversions their sharing leads to. This
degree of influence is represented on the 2key network by each participant’s
‘reputation score.’
The reputation score is calculated according to a complex model, details of
which will be published in a separate document. In general, a participant’s
reputation improves the more successful referral chains they participate in
and the closer they are to the conversion itself. Reputation points are lost if a
participant receives negative feedback such as being reported as spam or if
is sharing simply leads to many dead-ends that don’t result in conversions.
An important aspect of reputation on the 2key network is that is is highly
specific. Small-scale influencers specialized in specific fields can be more
effective than more well known ‘general’ influencers. Reputation on the 2key
network is based on a 1600 category taxonomy, divided into 4 different levels.
This means that each participant on the network can accumulate reputation
according to their specific area of expertise, experience and influence.
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Reputation Economy Overview
The 2key network rewards participants’ good reputation with real value.
The token economy model includes various reward mechanisms for higher
reputation scores. A participant with a higher reputation score will gain
more tokens from each successful conversion, as well as receive various
periodical bonus rewards for maintaining their high reputation. This ensures
a strong connection between a participant’s reputation and their capacity to
gain rewards from the 2key network.
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In-Depth: Rewarding Reputation
4.7.
In-Depth: Rewarding Reputation
The 2key network distributes reputation rewards according to each
participant’s ‘reputation score,’ which is made up of two different elements:
participation reputation and staking reputation.
Participation reputation is based on a participant’s behavior on the 2key
network, while staking reputation reflects the average amount of 2KEYs held
by a participant in a given time period.
A high reputation score is rewarded by two separate mechanisms. First,
participants with a past record of good recommendations earn more tokens
from each conversion. Second, a network reputation reward periodically
rewards all participants for their accumulated reputation score during a
given period.
To calculate this periodical reward, we are using the concept of an Eligibility
Score (ES). Eligibility scores are calculated each month, taking into account
the three previous months. The months are marked as follows:
M0 = The previous month
M-1 = The month before the previous month
M-2 = The month before M-1
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In-Depth: Rewarding Reputation
At the beginning of September, for example, the eligibility score will take
into account reputation from M0 (August), M-1(July), M-2 (June).
For each of the 3 months, the 2key network automatically calculates the
following values for each participant:
Accumulated Participation Reputation (PR)
Based on behavior on the 2key network, for example, number of points
earned from conversions, percentage of successful sharing, any reports on
spamming etc.
The precise rules of participation reputation will be published in a separate
paper.
Accumulated Staking Reputation (SR)
In the case of staking reputation, the points gained for each month will
basically be a sum of the amount of tokens held each day for the days of the
month. For example, if you held 30 2KEY for 2 days, you would get 60 points
for that month. The precise rules for determining the staking reputation will
be published in a separate paper.
The eligibility score (ES) will be calculated for each participant according to
the following formula:
ES=((PR)(SR))M0 +((PR)(SR))M-1*0.5 +((PR)(SR))M-2*0.25
The formula rewards both participants who stake tokens and those who
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In-Depth: Rewarding Reputation
participate productively, while the greatest rewards go to participants who
contribute to the network AND stake their earned 2KEYs.
The network reputation rewards pool will also be used for 2key network’s
self-marketing campaigns such as signups, installs and user onboarding
campaigns, contracted by 2key.network itself. In these campaigns,
participating converters and referrers will gain reputation and rewards for
bringing in new active users to 2key network.
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Section 5
Team
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Core Team
5.1.
Core Team
2key is a global project, our team members are based in 7 countries spread
over 3 continents, bringing together leading talents from the fields of
blockchain and algorithms, finance, big data, machine learning, smart
contracts, and game theory. Together, we’re building the technology for
a new future of sharing, one that incentivises collaboration, honesty and
trust for the benefit of all.
Erez Ben-Kiki
eiTan LaVi
Founder, CEO
Founder, CTO
Product design specialist, 8 years of
Director of Data Science @Keewee,
experience in the financial industry
Head of NLP, Algorithms R&D @ Wochit
Udi Ben-Reuven
Andrii Pindiura
Chief Scientist
Director of Engineering
IDF cyber unit commander, co-founder @
Senior Tech Lead. Enjoys tackling
Algotech, Senior architect @Checkpoint
engineering problems and design.
and 14 other team members: Click Here to view them
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Advisory
5.2.
Advisory
Dr. Reshef Meir
Nimrod Lehavi
Dr. Roey Tzezana
Algorithmic Game Theory
Founder and CEO
Author, Futurist
Specialist at Technion -
@ Simplex
Institute of technology.
Guy Zyskind
Stas Oskin
Sebastian Stupurac
Founder and CEO
Wings Foundation
Wings Foundation
@ Enigma
Co-Founder
Co-Founder
Shai Mohaban
Idan Lakritz
Blockchain Investor
Token Economics
and Advisor
Specialist
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Advisory
We’re heading towards a
future in which people will
share the benefits that are
generated from using their
data and information.
With the right tech, that’s not only possible
but also more productive for everyone.
2key aims to be at the forefront of this
revolution, creating an entirely new kind
of relationship between campaigners and
audience, one in which everyone is on the
same side.
JOIN US!
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Legal Disclaimer
5.7.
Legal Disclaimer
This whitepaper has been prepared by 2key New Economics Ltd. (“We” and/or “2key” and/or “Company”) and is for
information purposes only and may be subject to change. We cannot guarantee the accuracy of the statements
made or conclusions reached in this whitepaper and we expressly disclaim all representations and warranties
(whether express or implied by statute or otherwise) whatsoever, including but not limited to:
• any representations or warranties relating to merchantability, fitness for a particular purpose, suitability,
title or non-infringement;
• that the contents of this document are accurate and free from any errors; and
• that such contents do not infringe any third party rights.
We shall have no liability for losses or damages (whether direct, indirect, consequential or any other kind of loss
or damage) arising out of the use, reference to or reliance on the contents of this whitepaper, even if advised of
the possibility of damages arising.
This whitepaper may contain references to third party data and industry publications. As far as we are aware,
the information reproduced in this whitepaper is accurate and that the estimates and assumptions contained
herein are reasonable. However, we offer no assurances as to the accuracy or completeness of this data. Although
information and data reproduced in this whitepaper are believed to have been obtained from reliable sources,
we have not independently verified any of the information or data from third party sources referred to in this
whitepaper or ascertained the underlying assumptions relied upon by such sources.
As of the date of publication of this whitepaper, 2key tokens have no known or intended future use (other than on
2key platform which is still under development).
No promises of future performance or value are or will be made with respect to 2key, including no promise of
inherent value, no promise of any payments, and no guarantee that 2key will hold any particular value. Unless
prospective participants fully understand and accept the nature of 2key’s business and the potential risks
associated with the acquisition, storage and transfer of ERC-20 tokens such as 2key tokens, they should not
participate in the token sale.
2key tokens are not being structured or sold as securities. 2key tokens hold no rights and confer no interests
in the equity of 2key. 2key tokens are sold with an intended future use on 2key’s platform and all proceeds
received during the token sale may be spent freely by 2key on the development of its business and the underlying
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technological infrastructure.
This whitepaper does not constitute a prospectus or disclosure document and is not an offer to sell, nor the
solicitation of any offer to buy any investment or financial instrument in any jurisdiction. 2key tokens should not
be acquired for speculative or investment purposes with the expectation of making an investment return.
No regulatory authority has examined or approved any of the information set out in this whitepaper. No such
action has or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication,
distribution or dissemination of this whitepaper does not imply that applicable laws or regulatory requirements
have been complied with.
Participation in the token sale carries substantial risk and may involve special risks that could lead to a loss of
all or a substantial portion of your contribution. Further information about the risks of participating in the token
sale is set out in the Token Sale T&Cs. Please ensure that you have read, understood and are prepared to accept
the risks of participating in the token sale before sending a contribution to us.
The token sale and/or 2key tokens could be impacted by regulatory action, including potential restrictions on the
ownership, use, or possession of such tokens. Regulators or other competent authorities may demand that we
revise the mechanics of the token sale and/or the functionality of 2key tokens in order to comply with regulatory
requirements or other governmental or business obligations. Nevertheless, we believe we are taking commercially
reasonable steps to ensure that the token sale mechanics and issue of 2key tokens do not violate applicable laws
and regulations.
C AU T I O N R E G A R D I N G FO R WA R D - L O O K I N G S TAT E M E N T S
This whitepaper contains forward-looking statements or information (collectively “forward-looking statements”)
that relate to our current expectations of future events. In some cases, these forward-looking statements can
be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”,
“seek”, “believe”, “potential”, “continue”, “is/are likely to” or the negative of these terms, or other similar expressions
intended to identify forward-looking statements. We have based these forward-looking statements on current
projections about future events and financial trends that we believe are relevant to our financial condition, results
of operations, business strategy, financial needs, or the results of the token sale.
In addition to statements relating to the matters set out here, this whitepaper contains forward-looking statements
related to 2key proposed operating model. The model speaks to our objectives only, and is not a forecast, projection
or prediction of future results of operations.
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Forward-looking statements are based on certain assumptions and analysis made by 2key in light of its experience
and perception of historical trends, current conditions and expected future developments and other factors it
believes are appropriate, and are subject to risks and uncertainties. Although the forward-looking statements
contained in this whitepaper are based upon what we believe are reasonable assumptions, there are risks,
uncertainties, assumptions, and other factors which could cause our actual results, performances, achievements
and/or experiences to differ materially from the expectations expressed, implied, or perceived in forward-looking
statements. Given such risks, prospective participants in the token sale should not place undue reliance on these
forward-looking statements.
NOTE:
THIS
DOCUMENT
PROVIDES
AN
INITIAL
S U M M A RY
OF
C E RTA I N
BUSINESS
E S S E N T I A L S U N D E R LY I N G T H E C O M PA N Y ’ S P R O J E C T. T H I S D O C U M E N T I S E X P E C T E D T O
E V O LV E O V E R T I M E , A S T H E P R O J E C T P R O C E E D S , A N D T H E C O M PA N Y T E A M M AY P O S T
M O D I F I C AT I O N S , R E V I S I O N S A N D / O R U P DAT E D D R A F T S U N T I L T H E F I NA L D O C U M E N T I S
P R E S E N T E D P R I O R T O T H E DAT E O F T H E P U B L I C T O K E N S A L E .
P U R C H A S E O F C O M PA N Y T O K E N S I S S U B J E C T T O E X E C U T I O N O F A N AG R E E M E N T W I T H
T H E C O M PA N Y O R T O K E N S S A L E T E R M S A N D C O N D I T I O N S . C E RTA I N O F T H E T E R M S A N D
C O N D I T I O N S D E S C R I B E D H E R E I N A R E S U B J E C T T O Q UA L I F I C AT I O N S , L I M I TAT I O N S A N D /
O R E X C E P T I O N S A S S E T FO RT H I N S U C H AG R E E M E N T A N D / O R T E R M S A N D C O N D I T I O N S .
T H E S U M M A RY C O N TA I N E D H E R E I N I S Q UA L I F I E D I N I T S E N T I R E T Y BY R E F E R E N C E T O T H E
AC T UA L T E X T O F T H E FO R M O F AG R E E M E N T A N D / O R T E R M S A N D C O N D I T I O N S P R O V I D E D
BY T H E C O M PA N Y A N D P R O S P E C T I V E P U R C H A S E R S A R E R E Q U E S T E D T O C A R E F U L LY
REVIEW SUCH DOCUMENTS.
R I S K FAC T O R S
You should carefully consider and evaluate each of the following risk factors and all other information
contained in these Terms before deciding to participate in the Token Distribution Event. If any of the following
considerations, uncertainties or material risks develops into actual events, the business, financial position and/or
results of operations of the Company and the maintenance and level of usage of the Tokens could be materially
and adversely affected and the Tokens may have no utility or value.
DEFINITIONS:
1.1 “Token Distribution Event” means the initial transfer by the Company or the Token Entity of Company Tokens,
following the date hereof, to purchasers of Company Tokens who have paid consideration for such Company
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Tokens in the form of, including but not limited to, other types of Blockchain Tokens, such as ETH and BTC,
or another cryptocurrency, cash or a combination thereof. Notwithstanding the foregoing: (a) any other future
tokens agreements, pre-commitments and pre-sales of Company Tokens and (b) a transfer of Company Tokens
for no consideration or in consideration for work or services provided to the Company or the Token Entity or any
affiliate, in each case, shall not be considered a Token Distribution Event.
1.2 “Blockchain Tokens” means digital cryptographic tokens, typically virtual currency (also known as
“cryptocurrency” or “digital currency”), that are implemented on a Blockchain. Blockchain Tokens may, but are not
required to be, (1) transferrable on peer-to-peer networks, such as a Blockchain network, and/or (2) governed by
rules regarding an inflation schedule or any starting quantity of initial supply, as well as any programmed rights
or obligations set forth prior to launch and widespread circulation of said Blockchain Tokens.
1.3 “Tokens” means the Blockchain Token that the Company intends to develop and referred to as the “2key
Token” or such other name that may be decided upon by the Company.
1.4 “Available Information” the website located at https://2key.network and any information contained within, and
any information served from the 2key.network domain and together with the whitepaper, litepaper, technology
abstract and other documents published on 2key domains, referred to as the “Available Information”).
R I S K S R E L AT I N G T O PA RT I C I PAT I O N I N T H E T O K E N D I S T R I B U T I O N E V E N T
There is no assurance of any success of the Company’s Token Distribution Event or business platform that is yet
to be fully developed as envisaged by the Available Information
The utility of the Tokens hinges heavily on the performance of the Company’s Token Distribution Event and
business platform that is yet to be developed and the continuous active engagement of its users and success
of its contemplated business lines. There is no assurance that the Company’s Token Distribution Event will be
successful or that its business platform that is yet to be developed will gain or continue to gain traction. While
the Company has made effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies
raised in the Token Distribution Event will be sufficient for the development of the Company’s business platform.
For the foregoing or any other reason, the development of the Company’s business platform and launch of the
anticipated Token functionality may not be completed and there is no assurance that it will be launched at all. As
such, distributed Tokens may hold little or no worth or value.
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The funds raised in the Token Distribution Event are exposed to risks of theft
The Company will make every effort to ensure that the funds received from the Token Distribution Event will be
securely held. Further, the Company may make every effort to ensure that the funds received by it from Token
Distribution Event will be securely held through the implementation of security measures. Notwithstanding
such security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of
hacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the Token
Distribution Event website, in the smart contract(s) on which the Token Distribution Event relies, on the Ethereum
blockchain or any other blockchain, or otherwise. Such events may include, for example, flaws in programming
or source code leading to exploitation or abuse thereof. In such event, even if the Token Distribution Event is
completed, the Company may not be able to receive the cryptocurrencies raised and the Company may not be
able to use such funds for the development of the Company’s business platform. In such case, the launch of the
Company’s business platform might be temporarily or permanently curtailed. As such, distributed Tokens may
hold little worth or value and this would impact their trading price.
R I S K S R E L AT I N G T O T H E C O M PA N Y
The Company’s business platform that is yet to be developed
Any events or circumstances which adversely affect the Company or any of its successor or affiliated operating
entities may have a corresponding adverse effect on the Company’s business platform that is yet to be developed,
including but not limited to the development, structuring and launch of the Company’s business platform. Such
adverse effects would correspondingly have an impact on the utility, liquidity, and the trading price of the Tokens.
The Company may be materially and adversely affected if it fails to effectively manage its operations as its
business develops and evolves, which would have a direct impact on its ability to develop, maintain or operate
the Company’s business platform and/or develop, structure and/or license any Token functionality
The financial technology and cryptocurrency industries in which the Company competes have grown rapidly
over the past few years and continue to evolve in response to new technological advances, changing business
models, shifting regulations and other factors. As a result of this constantly changing environment, the Company
may face operational difficulties in adjusting to the changes, and the sustainability of the Company will depend
on its ability to manage its operations, ensure that it hires qualified and competent employees, and provides
proper training for its personnel. As its business evolves, the Company must also expand and adapt its operational
infrastructure. The Company’s business will in part rely on its blockchain-based software systems, cryptocurrency
wallets or other related token storage mechanisms, blockchain technology and smart contract technology. All of
these systems, tools, and skillsets represent complex, costly, and rapidly changing technical infrastructure. In
order to demonstrate continued ability to effectively manage technical support infrastructure for the Company’s
business platform that is yet to be developed and the future functionality of the Tokens, the Company will need to
continue to upgrade and improve its data systems and other operational systems, procedures, and controls. These
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upgrades and improvements will require a dedication of resources and are likely to be complex and increasingly
rely on hosted computer services from third parties that the Company does not or will not control. If the Company
is unable to adapt its systems and organization in a timely, efficient, and cost-effective manner to accommodate
changing circumstances, its business, financial condition and/or results of operations may be adversely
affected. If the third parties whom the Company relies on are subject to a security breach or otherwise suffer
disruptions that impact the services the Company uses, the integrity and availability of its internal information
could be compromised, which may consequently cause the loss of confidential or proprietary information and/
or economic loss. The loss of financial, labor or other resources, and any other adverse effect on the Company’s
business, financial condition and/or operations, would have a direct adverse effect on the Company’s ability to
develop maintain or operate the Company’s business platform and/or to develop, structure and/or license the
anticipated Token functionality. Any adverse effects affecting the Company business or technology are likely to
also adversely impact the utility, liquidity, and trading price of the Tokens.
The Company may experience system failures, unplanned interruptions in its network or services, hardware
or software defects, security breaches or other causes that could adversely affect the Company’s infrastructure
network, and/or the Company’s business platform that is yet to be developed
The Company is not able to anticipate when there would be occurrences of hacks, cyber-attacks, distributed denials
of service or errors, vulnerabilities or defects in: the Company’s business platform that is yet to be developed, in
the smart contracts on which the Company or the Company’s business platform relies, or on the Ethereum or
any other blockchain. Such events may include, for example, flaws in programming or source code leading to
exploitation or abuse thereof. The Company may not be able to detect such hacks, cyber-attacks, distributed
denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to
efficiently cope with multiple service incidents happening simultaneously or in rapid succession.
The Company’s network or services, which would include the Company’s business platform that is yet to be
developed and, if successfully structured, developed, licensed and launched, the Token functionality, could
be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity
downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software
viruses or attacks by unauthorized users, some of which are beyond the Company’s control. There can be no
assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future or that
the Company’s security measures will be effective. The Company may be prone to attacks on its infrastructure
intended to steal information about its technology, financial data or user information or take other actions that
would be damaging to the Company and/or holders of the Tokens. Any significant breach of the Company’s
security measures or other disruptions resulting in a compromise of the usability, stability, and security of the
Company’s business platform that is yet to be developed may adversely affect the utility, liquidity and/or trading
price of the Tokens.
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The Company may in the future be dependent in part on the location and data center facilities of third parties
The Company’s future infrastructure network may be established in whole or in part through servers which it owns
and/or houses at the location facilities of third parties, and/or servers that it rents at data center facilities of third
parties. If the Company is unable to renew its data facility leases on commercially reasonable terms or at all, the
Company may be required to transfer its servers to a new data center facility, and may incur significant costs and
possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or
interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication
failures.
Additionally, the third-party providers of such facilities may suffer a breach of security as a result of third-party
action, employee error, malfeasance or otherwise, and a third party may obtain unauthorized access to the data
in such servers. The Company and the providers of such facilities may be unable to anticipate these techniques
or to implement adequate preventive measures.
The Company or the Tokens may be affected by newly implemented regulations
Distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related
businesses and activities are generally unregulated worldwide, but numerous regulatory authorities across
jurisdictions have been outspoken about considering the implementation of regulatory regimes which govern
distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related
businesses and activities. The Company or the Tokens may be affected by newly implemented regulations relating
to distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrencyrelated businesses and activities, including having to take measures to comply with such regulations, or having
to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come
at a substantial cost and may also require substantial modifications to the Company’s business platform that
is yet to be developed and/or the anticipated Token functionality. This may impact the appeal or practicality
or functionality of the Company’s business platform that is yet to be developed and/or the anticipated Token
functionality for users and result in decreased usage of and demand for the Company’s business platform and the
Tokens. Further, should the costs (financial or otherwise) of complying with such newly implemented regulations
exceed a certain threshold, maintaining the Company’s business platform that is yet to be developed and/or
developing, structuring, licensing and/or launching the Token functionality may no longer be commercially
viable, and the Company may opt to discontinue the Company’s business platform that is yet to be developed
and/or the anticipated Token functionality, and/or the Tokens. Further, it is difficult to predict how or whether
governments or regulatory authorities may implement any changes to laws and regulations affecting distributed
ledger technology and its applications, including the Company’s business platform that is yet to be developed
and/or the anticipated Token functionality, and/or the Tokens.
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The Company may also have to cease operations in a jurisdiction that makes it illegal to operate in such
jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to
operate in such jurisdiction. In scenarios such as the foregoing, the utility, liquidity, and/or trading price of Tokens
will be adversely affected and/or Tokens may cease to be traded.
There may be unanticipated risks arising from the Tokens
Blockchain Tokens such as the Tokens are a relatively new and dynamic technology. In addition to the risks
included in the above discussion of risk factors, there are other risks associated with your purchase, holding,
and use of the Tokens, including those that the Company cannot anticipate. Such risks may further appear as
unanticipated variations or combinations of the risks discussed above.
Disclaimer
The presentation of the Available Information is solely for informational purposes. Anyone interested in
purchasing Tokens and participating in the Token Distribution Event should consider the various risks prior
to making any kind of decision in respect of the Token Distribution Event. The Available Information does not
comprise any advice by the Company or by the Company Representatives, or any recommendation to any recipient
of the Available Information, by the virtue of any participation in the Token Distribution Event or otherwise.
The Available Information does not necessarily identify, or claim to identify, all the risk factors connected with
the Company, the Company’s business platform that is yet to be developed, the Tokens, the Token Distribution
Event, any future Token functionality or the Available Information. All the participants must make their own
independent evaluation, after making such investigations as they consider essential, of the merits of participating
in the Token Distribution Event and after taking their own independent professional advice. Any participant in
the Token Distribution Event should check with and rely upon their own investment, accounting, legal and tax
representatives and consultants in respect of such matters concerning the Company, the Company’s business
platform that is yet to be developed, the Tokens, the Token Distribution Event, any future Token functionality and
the Available Information and to assess separately the financial risks, consequences and appropriateness of the
purchase of Tokens, or if in any doubt about the facts set out in the Available Information. A purchase of Tokens
comprises considerable risk and might involve extraordinary risks that may lead to a loss of all or a significant
portion of monies or monetary value utilised to acquire Tokens. Participants in the Token Distribution Event
are urged to completely understand, be aware of and accept the characteristics of the Company, the Company’s
business platform that is yet to be developed, the Tokens, the Token Distribution Event, any future Token
functionality and the Available Information. If you are not prepared to accept any or all of these Terms or the
risks set out in these Terms then YOU ARE URGED NOT TO PARTICIPATE IN THE TOKEN DISTRIBUTION EVENT
. No guarantee or assurance is given by the Company or by the Company Representatives that the Company’s
proposals, objectives and/or outcomes set out in the Available Information will be achieved in whole or in part.
You are urged to consider whether participation in the Token Distribution Event is suitable for you having regard
to your personal and financial circumstances and your financial resources.
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No Offer of Securities or Registration
The whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute
an offer of securities or a solicitation for investment in securities in any jurisdiction. No person is bound to enter
into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted
on the basis of all or any part of the Available Information. Any agreement in relation to any sale and purchase
of Tokens is to be governed by the terms and conditions of such agreement and no other document. In the event
of any inconsistencies between the terms and conditions of that agreement and the Available Information, the
terms and conditions of the agreement shall prevail.
No regulatory authority has examined or approved of any of the Available Information. No such action has been
or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution
or dissemination of the Available Information does not imply that the applicable laws, regulatory requirements or
rules have been complied with. The Token Distribution Event and/or the Tokens could be impacted by regulatory
action, including potential restrictions on the ownership, use, or possession of such Tokens. Regulators or other
competent authorities may demand that we revise the mechanics of the Token Distribution Event and/or the
functionality of the Tokens in order to comply with regulatory requirements or other governmental or business
obligations.
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