Questions

Why hasn’t Giant  used the popular initial coin  offering (ICO)  mechanism? Why does Giant think creating its  own  blockchain is a  better idea than using the Ethereum network? We’ve been  receiving these  questions regularly and most believe using an ICO or the  Ethereum  blockchain would’ve optimized the creation of the  Giant.Exchange  platform. In this document we would like to clarify  Giant’s decision  towards making for better security, scalability and  stability. 

Security

It is no secret that Ethereum, while  being one of the cryptocurrency  market locomotives, still suffers from  security issues. With Solidity -  the programming language of Ethereum  smart contracts, crippling  problems like Immutability, reentrancy  attacks, pilfering  are now  common knowledge. Millions of dollars lost  from Ethereum’s second most  popular wallet Parity, a stark reminder of  these issues. With Giant, it  made sense to design a financial system  without inheriting the  mistakes of the past. 

DApps first

Additionally,  Ethereum smart contracts do not fully respond to the  needs of the  upcoming binary options exchange - the most notable of  them is the  deletion restriction. Our system will clear itself of any  old binary  options which were closed long ago and did not raise any  questions from  the community since then. This measure will provide a  great help in the  ongoing process of the system scalability improvement  - as the time will  go on, we are not going to see database overloads  caused by the  obsolete information. 

Typical Giant smart contracts will be easier  to reprogram for  various trading purposes - you can read more on our  special ‘Binary  option’ and ‘Oracle’ smart contracts in Doing Business on Giant.Exchange. 

The  Giant products - Giant.Exchange, Giant.Bet and Giant.ColdStake -  are  aimed at the new markets, and two of them are focused on bets.  Giant  Coin was never considered a magic ‘Bitcoin killer’ or ‘Ethereum  killer’ -  its economic environment is made in such a way that GIC will  become a  good payment tool in these applications (DApps). Our own  digital  currency will make the current smart contract infrastructure  possible to  appear. The experienced senior Devs at Giant recognize how  to achieve  this with minimum efforts, highest standards and maximum  value. As a  result, Giant development is moving faster than most  realise aiming to  complete milestones ahead of schedule, like the  recent move to PoS. 

Less crypto hype, more actual business

The  current market of digital currency is far from ideal - the news  based  on the rumors are capable to serve as a catalyst for coin price  motion.  Social engineering schemes such as ‘pump-and-dump’ are  increasing the  uncertainty among all crypto investors - potential and  active alike. The  Giant economy must not be harmed by this unhealthy  situation. In order  to become a good means of payment, the  cryptocurrency used in  Giant.Exchange must not be volatile - and this  cannot be said about  Ethereum with its yearly price motion...  

Source: Coinmarketcap.com 

This  graph visibly illustrates that Ethereum, while having the  system of  smart contracts, cannot ensure the safe future of  Giant.Exchange and  other projects.All ICO projects which use the  Ethereum platform  depend on the coin price news. In addition, ICOs may  or may not release  their projects after raising the money. The whole  ‘first money, then  product’ principle leaves a great room for various  fraud schemes. 

Even  Ethereum creator Vitalik Buterin himself criticized the current   mechanism of initial coin offerings, warning that 90% of them would   eventually collapse. Not even the fact that most ICOs are based on   Ethereum has stopped his correct remarks. 

Giant has been launched  with the direct founders’ investments.  Afterwards, the mastenode portfolio has been covering the current  expenses. Our team wants the  project to succeed no less than all other  network participants. 

The stable price of Giant Coin (GIC) will depend on several factors. First of them is the high level of project management,   the second long-term aspect is competition with similar projects in  the field of binary options and betting. Both these fields are still  very  new for blockchain developers, but it’s only a matter of time  before  someone else decides to create platforms similar to  Giant.Exchange and  Giant.Bet. In fact, there are already some  Ethereum-based binary options projects and they were thoroughly  analyzed by the Giant team. This is  why we should be ready to implement  new upgrades and increase usability  to stay relevant. 

More decentralization equals more benefits

When  we are imagining decentralization, hardly anyone of us thinks  of  hundreds of projects based on only one blockchain structure such as   Ethereum. Another argument for the Giant independence would be   interesting for those who actively follow the market evolution: we can  state with certainty that the Giant blockchain had summarized the best from the current leaders. Previously, these innovations were used separately in different projects. 

One  of such inventions is the wide system of masternodes. The  modified  legacy structure from Dash solves one of the most pressing issues - investors are becoming separable from the project creators and this prevents the conflict of interests. The distributed emission does not allow anyone to have a monopoly over the coin emission and thus potentially dictate the economic will to network newcomers. The development team doesn’t have the network majority, this is why it has a  solid reason not to fail the expectations of other community members. As a result of this measure, the Giant blockchain and all projects based on it will get a community with a natural interest to keep the whole decentralized enterprise in a healthy state. Many of the readers  might  have already deduced where this is going: Ethereum doesn’t have masternodes, and choosing its blockchain would have erased everything we just described. 

We have already described the benefits of decentralization: voting and proposals system will make sure that the democratic majority has approved every new change. This greatly varies with what we are seeing on traditional Web platforms for content creators and social media: their owners with an   undisputable authority can change the interface and other key features at will. 

Considering all the aforementioned, the principle of  masternode  self-governance from Dash and the concept of smart contracts  already  shown in Ethereum make Giant one of the few production-ready  fintech  projects where both these two technologies are practically applied. 

Conclusion

Yes, we did not open our own ICO and  yes, we did not use the  Ethereum blockchain structure for the reasons  you have just read: ICOs  are unreliable both as an investment process  and as a technological  invention, while Ethereum lacks a good masternode  system and its smart  contracts environment is known for security issues. The system of masternodes, on the other hand, can solve trust  issues between the project founders and investors. For many years, these issues are haunting the sphere of corporate finance. Thanks to the  masternode  technology, we can state with certainty that the project team  is on  equal terms with other participants and nothing will change this  in the  future. 

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