Frequently Asked Questions about Blockchain, cryptocurrency, engagement tokens and THX Network.
Releasing your own blockchain token is a unique new way to unite your community and give back to your fans. By providing infrastructure and tooling, THX Networks enables boosting engagement and increasing revenue for creators, communities, athletes, brands and others. Explore some of the exciting use cases in our documentation.
A blockchain is a public database that is updated and shared across many computers in a network. "Block" refers to data and state being stored in consecutive groups known as "blocks". "Chain" refers to the fact that each block cryptographically references its parent. In other words, blocks get chained together. The data in a block cannot change without changing all subsequent blocks, which would require the consensus of the entire network. For more information, check out the public resources provided by the Ethereum blockchain.
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Well known crypto currencies are Bitcoin and Ethereum. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Crypto wallets store your private keys (similar to a password), keeping your tokens safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum. Wallet management is a crucial part of web3, that a lot of web2 users don’t have experience with. That’s why THX Network manages users’ wallets for them, in a very secure way. When users claim rewards for the first time, a wallet will be automatically created. Users only need to remember a traditional e-mail & password combination or login through Single Sign On to access their wallet.
Technically, “token” is just another word for “cryptocurrency” or “crypto asset.” But increasingly it has taken on a couple of more specific meanings depending on the context. It’s most often used to describe all cryptocurrencies besides Bitcoin and Ethereum (even though they are technically also tokens). An engagement token is a variation which is used to reward interaction, instead of functioning as a means of transferring direct monetary value, like cryptocurrency most often does.
Time is one of the most valuable currencies there is, so rewarding users for their time is valuable in itself. That being said, in most use cases users will be able to use their tokens to redeem rewards or NFT’s, which gives the tokens even more value, especially for fans and community members! Think of engagement tokens like the loyalty points you earn from your favorite retailer. Not directly exchangeable for money, but you can save up for some sweet benefits.
We’re discovering this together as we go, to be honest. We’ve explored some exciting use cases in our documentation, but ultimately it’s up to the creators and communities of the tokens. They decide the type of utility they want to provide for their users and community members.
Conditional rewards can only be claimed once per platform user ID, meaning that if you have the same Twitter account connected to multiple THX accounts, only one of these accounts will be eligible for claiming the conditional reward.
When a user claims a conditional rewards we ask the user to connect their external platform account so we can validate the expected user behaviour through the platform API's on behalf of the connected user.
Very good question! You’ve surely heard about the massive amounts of energy that some blockchain projects use. THX Network is worried about this as well, which is why we’re building on the Polygon sidechain, which is the eco-friendly blockchain that’s scaling Ethereum. Learn more about Polygon and THX Network’s efforts of being a carbon positive company.