Thread by @CryptoEdgar_

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#StepN is a hybrid application that merges functionality from both web 2.0 and web 3.0.
I’ll try to explain how this works in practise and the advantages and disadvantages of such setup in the thread below 🧵👇.
Note: All the information is based on my observations.

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#StepN has two different wallets in which a user can hold funds. They’re called ‘Spending’ and ‘Wallet’.
The ‘Spending’ wallet has an old school web 2.0 setup where all information is, most likely, stored in databases and deployed on multiple servers in the cloud.

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The ‘Wallet’ wallet is an implementation of a web 3.0 setup in which the user creates a crypto wallet and owns the access to it by writing down his/her seed phrase upon setup. You could think of it as a lightweight version of @MetaMask .

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Every transaction that happens on a ’Spending’ wallet is stored on the servers of @FindSatoshiLab and are hidden to the outside world. This data would only be visible if #StepN decides to provide an access point such as an API.

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The upside of this solution is that the amount of required transactions to the blockchain are drastically reduced (imagine a transaction for each 0.2 energy for each user) and thus a lot of money is saved on gas costs. Also onboarding inexperienced crypto users is made easier.

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During their design phase, #StepN has decided to make the transfer of assets ( $GST, $GMT and $NFTs) only possible through blockchain transactions. There is no option to transfer assets from your ‘Spending’ wallet to another user’s ‘Spending’ wallet.

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As a result, each time you decide to transfer assets out, you create some sort of ticket to StepN in which you ask the system to copy the information from their database onto the blockchain. For example, if I transfer out 150 GST from my ‘Spending’ to my ‘Wallet’, StepN will:

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#1 Deduct this amount from my account (web 2.0 database operation)
#2 Mint/create this amount of NFTs/tokens on #Solana/#BSC
#3 Transfer these NFTs/tokens to my #Solana/#BSC wallet

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This means that if Solana is suffering from degraded performance, the team cannot perform step #2 and #3 which results in many panicking users on Discord all asking the same question:
"I’ve sent my $GST from spending to wallet but it still didn’t arrive. Did I lose my funds?"

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This also means that if users keep their assets in the 'Spending' wallet in the app and never transfer them out, there’s no way for us to track the current supply of things.
Hence some of the following questions (we have many more of course):

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* Is there any information regarding the in-app marketplace?
* What’s the current burn rate of $GMT due to user activities in the app?
* What’s the current circulating supply of $GST? Are there for example users with significant amounts of $GST in the ‘Spending’ wallet?

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Gems are an example of an in-game asset of which we've got no idea on what's happening. They cannot be transferred out from the 'Spending' wallet and no #STEPN gem NFTs currently exist on the blockchain.
We can only make estimations based on the in-app gem marketplace.

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@Stepnofficial is aware of the community concerns regarding the obscurity and sparsity of in-app data They’ve developed a solution which would bring nearly all data on-chain but are holding back the deploy as the high number of transactions would bring down the Solana network

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Conclusion:
The current solution definitely easens the adoption by non-crypto users but obscures detailed insights for adept users. StepN will give us many more opportunities once promised upgrades are implemented.

Please like & retweet if you've enjoyed this breakdown

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Two activation codes to those who made it till the end ♥️
- 62589740
- 90286080