GIFTO protocol aims to become a decentralized universal virtual gifting protocol, the brainchild of the successful Asia Innovations Group, the parent company of popular live-streaming app Uplive and several other popular social games.
GIFTO protocol is expected to be a decentralized version of Uplive’s virtual gifting economy. In Uplive, fans buy virtual gifts designed and created by Uplive’s in-house team of designers with an in-app digital currency called diamonds. GIFTO will decouple the gift creation, curation, and revenue share process from centralized platforms like Uplive and put control in the hands of virtual gift creators, curators, content creators, and fans.
The transaction flow is expected to work as follows. First, virtual gift creators will design and create virtual gifts (an ERC-721 compliant token). Second, curators will review and approve gifts, making sure they comply with the protocol’s rules and copyright law. Third, content creators will curate a list of approved gifts that their fans can send to them. Fourth, fans purchase GIFTO tokens on cryptocurrency exchange or inside of special wallets like the GIFTO wallet in Uplive. Fifth, fans purchase virtual gifts with their GIFTO tokens and send the gifts to their favorite content creators.
GIFTO takes a “public-chain/private-chain” approach because of Ethereum’s transaction throughput limitations, and so is not completely open source.
The public part of the protocol lives on the Ethereum blockchain. GIFTO tokens are ERC-20 compliant tokens that can be used to purchase virtual gifts. The team intends for virtual gifts to be ERC-721 compliant tokens with complete smart contract functionality. The ERC-721 virtual gifts are expected to have the following metadata: creator, owner, price, gift ID, URL, metadata, and transferability.