Written by Malik Corbett
Monetary Authority of Singapore Recommends Blockchain Startup Chintai for License
Chintai a decentralized resource protocol (i.e. resource lending market) built on top of EOS mainnet called Chintai announced in a blog post that the Monetary Authority of Singapore (MAS) who launched a FinTec sandbox for digital asset start-ups last year has recommended Chintai to forgo the sandbox after 6 months of testing and apply directly for licensing to issue securities and trading according to the blog post. This is really great news for Chintai and EOS main-net and its sister chains (e.g. Worbi, WAX, etc.) because the approval from MAS provides legitimacy to not only Chintai but EOS as well.
Layer-two projects such as Chintai are in a good position to help scale EOS mainnet and its side chains (e.g. WAX, IQ and DAPP). First, let’s take a step back and briefly explain the DPoS model for EOSIO based blockchains.
What makes EOS.IO blockchain platform attractive is the network’s processing power. However, building dApps on EOS is challenging for developers because it’s expensive. In EOS the token provides access to a portion of the network’s two critical resources; bandwidth or NET (amount of data that can be transmitted from one point to another) and CPU (compute speed to process code). These network resources allow users to perform tasks on the network such as send EOS tokens to another user or smart contract on the network. Furthermore, the token is used to purchase a third critical resource known as Random Access Memory or RAM.
However in the EOS network, RAM is decoupled from NET and CPU. In fact, RAM is purchased from an on-chain Decentralized Exchange or DEX powered by the Bancor market maker algorithm. However, gaining access to the network’s NET and CPU resource requires that you stake EOS token. As I mentioned above, staking on EOS for the computation power needed to run a dApp or smart contract on EOS mainnet is expensive. To give you a sense of the cost to build on EOS mainnet; at current EOS prices at approximately $4.17, it costs about 64,300 EOS or $268,774 to purchase 1GB of RAM.
This is where Chintai value proposition shows itself strong; Chintai’s decentralized resource lending protocol allows for:
- Provides a lending market for dApp developers to get access to cheap computational power.
- And allows token holders of EOSIO based cryptonetworks to earn interest on their tokens by lending to developers in need of computational power.
To that end, the recommendation by the MAS is a bullish signal for EOS. Furthermore, the upcoming EOSIO based social media/publishing platform called Voice is set to launch its beta version on February 14th. If Voice is successful and can avoid any major pitfalls such as security breaches or serious software bugs then this could be a breakthrough year for Block.One (developers of EOSIO) and EOS.