Why CEEK is Moving to Binance Smart Chain (BSC)
We’ve worked tirelessly at CEEK to provide users with an incredible metaverse experience by partnering with amazing artists and creators. While we’ve been happy with how CEEK has operated on the Ethereum blockchain to-date, it’s clear we need a change.
This year, as a way to lower user costs and transaction fees, CEEK will be migrating to Binance Smart Chain (BSC). As such, we will be converting all CEEK ERC20 tokens to BEP20 tokens (more on that in the upcoming weeks). CEEK views a partnership with Binance as the next step in the evolution of providing the best virtual and streaming experiences.
A Look at Fees
When comparing fees between Ethereum and Binance Smart Chain, it’s a no-brainer. BSC provides a blockchain network that is more efficient, and less costly than Ethereum, making it easier for CEEK to scale our metaverse in ways we cannot yet even imagine.
Let’s directly compare the transaction fees for both Ethereum and BSC to see exactly the difference between the two. At the time of this writing, the average cost of a transaction on the Ethereum blockchain is about $10.14, with an ERC20 token transfer costing $31.38.
Looking at the Binance Smart Chain we can see how transaction fees are greatly reduced on this network. On BSC, the average transaction cost is 7.457 gwei, which, depending on the transaction size, is $0.01 or lower. In fact, as you can see in the chart, the transaction fees for BSC have been steadily declining over time.
It might be obvious that low fees are important when transacting on the blockchain, but this is even more amplified when it comes to CEEK. The CEEK platform runs smart contracts to pay artists directly based on the number of viewers that attend an event on the CEEK platform, as well as users who will purchase NFTs as part of their metaverse experience.
Smart contracts are a verified, transparent, and timely method of paying artists and content creators based on fan engagement, which is an important feature of the CEEK platform. Instead of waiting months for payment, artists are paid on regular intervals; be it daily, weekly or other based on the number of fans that purchase their content.
High transaction fees would cut into the profitability of artists, thereby reducing their earnings. Let’s see how:
Imagine if 100 artists are to be paid for fans streaming their content on the CEEK platform in one day. This means, there are 100 smart contracts that trigger payment to be released to each artist based on the number of fans that have consumed their content.
Based on our previous calculations, the Ethereum blockchain would charge $1,014 daily (100 artists x $10.14 average transaction fee x 1 day) for these transactions and $30, 843 monthly extending to over $308 million monthly for 1 million artists.
Alternatively, Binance Smart Chain would require a total cost of $1 (100 artists x $0.01 average transaction fee) daily and $30 monthly and $304k for the same number of transactions. This cost savings is enormous, not only for CEEK, but also for all the artists involved on the platform.
You can see how this multiplies exponentially as users and artists increase.
The other benefit is instant liquidity to artists. Artists will easily be able to sell their BSC-based CEEK tokens for other cryptocurrencies, or, convert into fiat for withdrawal.
One upside is that we are able to transact in Realtime without delays when users make purchases. In addition, the cost savings doesn’t stop at artists. Consumers on the CEEK platform also stand to benefit from BSC’s lower fee structure. Ticket purchases, eventually NFTs will be a huge aspect of the CEEK metaverse. Users can purchase tickets to VIP events, new skins, accessories, virtual or even physical goods on CEEK. These are minted and secured through the blockchain, which requires smart contracts to be executed when they are bought and sold.
Imagine trying to purchase a new skin for your CEEK avatar at a cost of $0.99, but the transaction cost to purchase the skin is $10 or $30. The transaction fee would cost more than the NFT itself! This is completely unsustainable. Fortunately, by using BSC, transaction fees are reduced to a negligible amount, making it easy for users to make purchases without having to deal with high gas fees along the way.
CEEK + Binance = A New Mega-Metaverse
The decision to switch blockchain network is never easy, and we thought long and hard about how this change would affect CEEK and our end users. After careful consideration, it’s clear that going from an ERC20 token to a BEP20 token is about speed, scalability, and improved network capability for our utility, and the Binance Smart Chain provides the best network for us to grow in user adoption without experiencing network congestion or increased transaction fees.
We are currently working on completing the process of transferring to Binance Smart Chain. To help our token holders, we are building an easy-to-use interface where CEEK ERC20 tokens can easily be transferred to CEEK BSC tokens.
Masternodes — CEEK masternodes are now on BSC. All masternode-related tokens are converted to CEEK BEP20 tokens and can be retieved via masternodes.ceek.com
1) Install Metamask
2) Configure BSC as here: https://docs.binance.org/smart-chain/wallet/metamask.html
3) Import old wallet via phrase, private key or by connecting Trezor/Ledger
4) Choose BSC Network
5) Use metamask for accessing masternodes.ceek.com
Voting, Artist and Payment integrations and bridge UI will be available soon. We will continue to update you as these progress and give you ample information on how to manage this process in future posts. Thanks for your continued interest and support.