EOS Holders can Now Transfer Tokens Without an EOS Account
A new smart contract is now allowing the EOS to be held and transferred without an account, all thanks to Everipedia and Decentral Bank.
Everipedia IQ is a decentralized encyclopedia on the blockchain that is built completely on the EOS while Decentral Bank is a new project headed by Everipedia executives that are working on building a general-compute blockchain customized for stablecoins, stablecoins issuance, central bank digital currencies, Defi applications, and DLT monetary policy.
Today, the company on its medium page shared the release of the EOSIO UTXO, also called Pay2Key, contract module.
— Daniel Larimer (@bytemaster7) May 2, 2019
Currently, the tokens in EOSIO blockchains can only be transferred between EOS accounts but now the UTXO contract allows for the transfer of tokens between EOS public keys so that no EOS account is required to hold tokens and transfer them.
Similar to the Bitcoin transactions system, in order to move tokens in a UTXO based contract, one needs only the corresponding private key to the public key.
This requires a transaction fee to move the token which a ‘relayer’ with an EOS account, that could be any individual EOS account or a block producer account accepts and relays the signed UTXO message to the contract and updates the balance of the public key.
Here, the relayer is similar to a Bitcoin miner in the manner that they update the state of UTXO contract. This approach further enables any EOS account to earn transactions fees by becoming a UTXO relayer.
“We anticipate that with growing usage of UTXO tokens on the EOS mainnet, UTXO relaying can become a profitable business similar to PoW mining.”
The IQ token, which is the first one to make use of this technology can also be sent by users to the EOS mainnet account and further create IQ UTXO tokens to transfer between public keys.
Currently, LiberyBlock block producer is the first one to offer UTXO relayer services for the IQ token.