What is Swarm City Token [SWT]? Review, insight & potential
What is Swarm City Token(SWT)?
Swarm City is a decentralized, peer to peer commerce platform on the Ethereum network. The vision for the Swarm City is extremely breath taking once you realise what it could achieve, so we encourage you to look further into it. The problem Swarm City wishes to solve is to remove third parties from the transaction and enable complete peer to peer commerce - without banks, without credit card gateways, without third parties such as Uber, Airbnb and many more organisations, that practically do very little, but usually take a big chunk of the transaction as a provision/fee for their "service". A part that Swarm City plans to eliminate, enabling the transaction between two parties in a safe and trusted way, without any third party.
What purpose does the SWT - token serve?
For all payments on Swarm City platform, Swarm City Token will be used. If more people start to use Swarm City, the price of the token SWT will raise. It's like having a share of the company in the early days, and not only making profit off selling your services to others on the platform, but also having your Swarm City Tokens appreciate in value, if the platform gets adapted.
What is a third party?
In order to understand how Swarm City works, you have to know what a third party is. For example, before the era of Cryptocurrencies, if you wanted to transact money, you needed
a third,trusted party - for example a bank, that will decredit you and accredit the money to the receiving party. But platforms like Ethereum network play the role and can completelly remove the third, trusted party. The Ethereum Network (decentralized and distributed network of computers) that is backed and secured by cryptography and mathematics, guarantees peer to peer transactions and completely removes the need of a third party, because it does it's job and it does it much cheaper - for just a fraction of the price, measured and known as gas fee.
Swarm City vs Uber
When you order a ride using Uber, there are two unnecessary third parties that will each take their commission for their service. Those commissions are often unfair as these centralized organisations have control over the majority of the marketplace and have great monopol. The two third parties in the proccess
of ordering an Uber are your credit card provider and Uber themself. When you pay for Uber, the credit card provider will take their commission for enabling the transaction, and then Uber will also take their commission off the transaction for offering the app and matching you to the driver. Average Uber commission is as high as 40%. This means you could get your rideshare for even 40% cheaper. Unnecessary third parties take too big commissions for doing too little, and this is what Swarm City could eliminate - third parties, giving wealth to the community!
What will Swarm City do?
Swarm City will be a platform that will enable complete p2p commerce transactions, without having to rely on a third, trusted party.
The development of Swarm City is divided into 3 stages:
- Terminal Terminal is the front interface, where users create their profile using a username, password and picture. Inside the terminal, users have ability to one of the key points of swarm city - to send and receive Swarm City Tokens(SWT) between each others.
- Boardwalk With Boardwalk users can create a request for whichever service it is they require, such as ridesharing. For that example, user would create a request on hashtag #needaride and complete the sale with the service provider in the Terminal - transact and finish the transaction by paying to the service provider.
- Storefront Storefront will be a graphical user interface, enabling users to request or offer a service with ease
Hashtags are marketplaces on the Swarm City platform. For food delivery, one could create hashtag #fooddelivery , where people would find a food delivery and transact between each other. Anyone can create a hashtag and maintain it. You can set up a fixed fee per each transaction on your hashtag, but then it's on you to maintain the hashtag. The reputation is isolated between the hashtags and for every successful transaction, you will gain positive reputation on that hashtag marketplace
Which services could Swarm City replace and it's potential?
Swarm City could, if it works out and gets adapted, replace many services, such as Uber, Airbnb, other ridesharing apps and much more in many other areas such as freelancing. The possibilities truly are endless. You could make a hashtag #walkmydog, where people could hire others to walk their dogs, another hashtag if you are looking for someone to mow your lawn, do your laundry, clean or service your car, do the gardening work, design you a website, do graphics design, clean your pool, deliver a takeaway, sell you homegrown food, rent an apartment,... Your imagination is the only limitation to the number of areas it could provide it's service in.
Vitalik Buterin's Father - Dmitry, is an official advisor for Swarm City
Vitalik Buterin is a currently 23 years old and is the creator of Ethereum. His father pitched him Bitcoin and got him involved in the crptocurrency space. Dmitry Buterin, his real father is an advisor to Swarm City project. He has created a multi-million dollar software company and can share his expertise in the area and hopefully help Swarm City platform succeed. Source.
Transition from Arcade City to Swarm City
The team decided to part ways due to the problems with the owner of the Arcade City company CEO. So they forked Arcade City into Swarm city, and all owners of Arcade City could swap their tokens at 1:1 ratio for Swarm City Token. It was done because the former CEO had a shady past and the team found a new leader and created a new brand - Swarm City
Parity hack. Funding lost. Community stronger than before. Development continues!
Swarm City originally raised around 77.000 Ether during their Initial coin offering in November 2016. The money raised at that time was around 700.000$, but due to the Ether price increasing rapidly, it was worth as much as nearly 20M$ at some point. Unfortenately as the 19th of July came, Swarm City funding(Ethereum) was stolen - their wallet was drained. They were using parity multisig wallet, which was kind of a standard and was
originally created by the creator of Solidity(language that the decentralized apps on Ethereum are coded in) and was used by many other crypto projects. Anyways the Swarm City team and developers, didn't do anything wrong, it was not their fault, they were just one of the unlucky teams as their whole Ethereum wallet meant for funding of the development was drained by the hacker and around 10m$ of Ether was stolen.
Irregardless, the team has decided to continue the development and promised to release a fully working platform as planned. They hold SWT themself and believe in the project, doing everything they can for it to succeed. Will Swarm City overcome all the obstacles and become the next big thing? Time will tell.
This was written for our site Satoshi Bakery https://satoshibakery.com/SWT-faucet.php
The Swarm City Tokens Faucet is not active yet at the time of this post, but should be around the end of the August. You can already claim the tokens, but they will not be paid out until then.