Bitcoin’s Proof-of-Work took the world by storm, its software protocol elegantly does 2 things.

1) Requiring “work” before any specific party is able to get the rights to decide the next transactions in the Bitcoin network.

2) The party providing the proof-of-work would get rewarded for block rewards and also the transaction fees of Bitcoin transaction.



It is an elegant economic incentives that work in spite of and because of human nature. It is using the best of and the worst of human nature against and for the goodness of humanity.

If a party intends to circumvent the system, this party is forced invariably to increase the work capacity to contest for the rights to decide the next transactions in the Bitcoin network. However, in doing so, not dependent on its volitions, forces this party to protect the network as well. Other parties intending to keep this ill-intentioned party in check has to increase the work capacity to keep this ill-intentioned party in check. Again no grand volition is required for this act, just enlightened self interest.

By very virtue that this increase of work capacity in the Bitcoin network, requires great amount of financial resources, making it almost financially intractable for any party to bring the Bitcoin network down. The security of the Bitcoin network does not depend on the goodness of the parties involved, and yet collectively they check and balance against one another from foul play – creating a system that ironically trusted by tens of millions all over the globe.

However, the work in the proof of work is basically economically useless beyond the Bitcoin network. The work in the Bitcoin network is basically to find leading zeros in sha256 hashing algorithm. Other than the work being difficult (thus used to check and balance all parties), it really has no other economic value at all.

Katalyst is the first innovator to think of a more generalized version of “work”. Katalyst calls it the Proof of Loyalty. The “work” is real work defined in a market. As a result of a generalized version of “work”, it would protect, secure and also add value to the network very much like proof of work does only that the work are real economic activities rather than just finding leading zeros in a hash – this means that the economic activities are useful even outside the blockchain environment.

The first use case of Katalyst would be in OToken. A blockchain platform focused on disrupting Hollywood – decentralizing global entertainment.


OTokens are being rewarded for performing activities positive to the blockchain ecosystem. Namely they are as follows;

  • Participation in proof of loyalty, thus ensuring security for the blockchain.
  • Rewarding users for sharing news about entertainment news.
  • Rewarding users for help others install new instance of the wallet.
  • Rewarding users for voting / liking / commenting on news.
  • Reward producers for making short films.
  • Reward users for using tokens to pay to watch movies

We intend to use Proof-of-Loyalty on Ezi-Wallet. 


We are going to use this payment system to disrupt the rest of the payment solutions that are going to be implemented. Like Grabpay, etc. Only way to deal with them given that they are the incumbent is to disrupt them with a technological strength they do not yet have – Blockchain.

Similarly, the “work” done in the Proof of Loyalty allows the parties involve to accumulate the respective rewards in the form of cryptographic tokens. The accumulated number of tokens a party can be internally exchanged for cash credits, or alternatively they may withdraw out to a crypto wallet so that they may exchange it for something else.

What we hope to achieve by this protocol is to generalize the principles to extend to other economic activities which we believe would achieve the purpose of securing and adding value to the blockchain platform. At the same time, what is more meaningful is that the economic activities are meaningful and valuable in the real economy, not just an economical activity of finding leading zeroes that is difficult for difficult sake.

We are looking for open source developers that would develop various manners in which real world economic data may be recorded and thus able to record it on blockchain and realize Proof of Loyalty potential in the world.

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