What is APPC?
APPC is an open protocol designed for mobile app stores to address three core problems within mobile advertising, in-app purchases, and app approval flows. With APPC, there is more advertising and IAP (in-app purchase) revenue being stored in the overall app ecosystem leading to more value in the app economy. Additionally, the issues of trust and transparency are addressed due to APPC being an open protocol.
APPC are also referred to as AppCoins, and they can be directly integrated into existing mobile application ecosystems which include app stores, users, developers, advertisers, and OEMs. Furthermore, AppCoins can be distributed across any mobile platform such as Android or iOS. App stores act as oracles of the smart contracts in the APPC system. The smart contracts are directly associated with the APPC platforms core transactions.
Today, advertising relies on middlemen which increases the cost per user acquisition for developers willing to pay for advertising. But only 4% of downloads are triggered by advertising. In-app purchases often rely on payment methods which are not accessible to many potential users. Currently, only 5% of users purchase items in-apps.
Centralized app stores have very little to no transparency, and censorship can also become an issue as well. There are concerns in regards to cybersecurity, quality assurance, and the handling of personal data when it comes to centralized app stores. In turn, the trust of developers and users can be negatively impacted, which can affect the quality of the overall app ecosystem.
The APPC protocol includes a Proof-Of-Attention system which allows users, app stores, and OEMs to receive tokens through the POA concept as a reward. In this way, the developers creating content can be assured their apps have been successfully installed by users. After which, the users will be able to reinvest their APPC tokens through in-app purchases to create a positive loop to boost the economic growth of the APPC system.
Because developers are willing to pay for app installs through advertising, but the high costs, and large percentage of fraud in today’s current model discourages developers to pay for that advertising. With APPC, the developers can create a smart contract that can be used to publish ad offers through a specific app store.
The Proof-Of-Attention system is responsible for the tracking of app installation and usage to reduce fraud. AppCoins will initially be launched in partnership with Aptoide – a third-party app store with 200 million active users.
Advertising mobile apps through the APPC protocol means developers will pay for ads, and the users will be rewarded for paying attention to advertisements. Because developers will pay for users attention in their app at a predetermined threshold of time such as 1-minute.
Users will receive 85% of the ad revenue in their personal wallets, which will then be used for purchases within the app. The app stores will receive 10% of the revenue for distributing the app software and acting as the oracle of the smart contract. OEMs who choose to distribute the AppCoins in their hardware will receive 5% for pre-loading the software and adding their user base to the ecosystem.
The price of items will be catalogued in the blockchain using a developers private signature. Users will pay for in-app items with AppCoins they can earn through advertising or paid for with another currency such as fiat. Once a user pays for an item, the payment is stored on the blockchain allowing them access to their item.
Developers will receive 85% of the IAP (in-app purchase) transaction directly to their wallet from the users’ wallet. Over time, the price of items can be adjusted by the developers over the lifetime of the app allowing for flexibility when pricing. App stores will also receive 10% of IAP revenue, and the last 5% will be for OEM’s who pre-load the app stores using APPC.
Developer Reputation Ranks
Each developers in the system will be associated with a rank based on their reputation. What this means is that, the apps associated with a single developer will all be tied directly to the reputation of that publisher. In addition to already available tools including comments, rating, and the ability to flag for potential malware, the reputation system acts as an automated governance system for app approval based on developer ranking.
The purpose of developer rankings are to increase efficiency and quality assurance during the app approval process. In addition, the ranking associated with a developer will allow for more system transparency. The system is stored in the blockchain, which the app stores have access to. The community/industry manages the “Chain of Trust” by cooperating in specific way such as voting.
There are there different ranks a developer can be attributed with, they range between Trusted, Critical, and Unknown. A trusted rank conveys the developers apps are safe, a critical rank denotes the apps are considered unsafe, and an unknown rank referring to preliminary developers who are yet to publish an app.
There will be varying levels of Trusted between level 1 and level 3. The level of trust will be calculated using the amount of IAP and transactions associated with the app. Because top games and apps will have more transactions, they will enjoy a higher rank. In addition, there will a dispute system added to settle any disagreements.
The App Store Foundation
The vision behind APPC is to form a community of app stores that adopt the APPC token to provide higher financial and operational benefits to the core stakeholders in the system. The entire app community benefits from the improved efficiency, transparency, and the mitigation of digital ad fraud through improved trust models.
The ASF or App Store Foundation will be created to ensure the independence and sustainability of AppCoins and its ecosystem. Over time, the ASF will continue to support the development and open governance of the project. In addition, the ASF will promote the adoption of APPC to app stores, OEMs, and developers.
AppCoins act as a medium of value exchange, the purpose of which is to unite a circular economy of app stores, OEMs, developers, and users through it’s ERC-20 protocol APPC. By doing so, the APPC token provides more value to everyone in the app ecosystem who is contributing, and the token does so in a trustless decentralized manner.
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Investing in cryptocurrencies and Initial Coin Offerings or ICO’s is a highly risky as well as speculative financial maneuver. This article is not a recommendation by Black Moon Research or the author to invest in cryptocurrencies or ICO’s. Since each individuals situation is unique, a qualified professional should always be consulted before making any financial decisions. Black Moon Research makes no representations or warranties as to the accuracy or timelines of the information contained herein.
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