The TRAC coin (Trace token) serves as the native utility token for the OriginTrail Decentralized Knowledge Graph (DKG), primarily enabling payments for network services, providing collateral for node operations, and facilitating value transfer within its ecosystem.
Key Use Cases of TRAC Coin
TRAC plays a crucial role in maintaining and expanding the OriginTrail network, which aims to organize the world's most important data. Its utility spans across several core functions:
| Use Case | Description |
|---|---|
| Fee Payment | TRAC is utilized to cover the fees associated with publishing and updating "Knowledge Assets" on the Decentralized Knowledge Graph. This ensures the immutable recording and accessibility of verifiable data within the network. |
| Collateral/Staking | Node operators within the OriginTrail DKG are required to provide TRAC as collateral. By "staking" or "delegating" TRAC, these nodes increase their likelihood of being chosen to host specific Knowledge Assets, for which they can then receive compensation, thus incentivizing network stability and data availability. |
| Value Transfer | Beyond its protocol-specific uses, TRAC also functions as a transferable asset, allowing for the direct transfer of economic value between participants within the OriginTrail ecosystem and the broader digital asset market. |
Detailed Functions of TRAC
The multifaceted utility of TRAC is fundamental to the operational integrity and incentivization model of the OriginTrail network:
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Enabling Data Publication and Updates: When entities, be it businesses or individuals, seek to add verifiable data points, known as Knowledge Assets, to the OriginTrail DKG, they use TRAC to pay the required network fees. This transaction fee structure ensures that resources are allocated efficiently and that the network remains resilient. It directly supports the process of creating and maintaining a decentralized, interconnected web of verifiable information.
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Incentivizing Network Participation and Reliability: TRAC serves as a crucial collateral mechanism for DKG nodes. Node operators "stake" or "delegate" TRAC tokens to signal their commitment and readiness to store and manage specific data sets. The amount of TRAC staked can influence the probability of a node being selected for data jobs. This system ensures that nodes are reliable and motivated to maintain data integrity, as their staked TRAC can be affected by malicious behavior or poor performance, while good performance leads to compensation.
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Facilitating Economic Exchange: As a cryptocurrency, TRAC also functions as a medium for the transfer of value. Users can send and receive TRAC tokens, enabling economic transactions both within and outside the direct functionalities of the OriginTrail protocol. This allows for liquidity and interoperability, making TRAC a versatile digital asset within the blockchain space.
