FAQ

Find answers to common questions about Ethereum, security, privacy, trust, and how our rewards platform works.

What is Ethereum?

Ethereum is a decentralized, open-source platform built on blockchain technology.
Launched in 2015, Ethereum not only enables the creation and transfer of its native cryptocurrency, Ether (ETH), but also allows for the development and deployment of decentralized applications (dApps). Its flexible and robust infrastructure has made it the backbone for much of the Web3 ecosystem, including decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).

How does the platform handle security?

Security is a top priority, especially in the Web3 environment where managing permissions and access is crucial. Once an organization is created, only accounts explicitly authorized by that organization can administer its smart contracts—no other user or organization has access.

Because our platform is hybrid (not 100% trustless), users place their trust in the organization that issues and manages the tokens. However, the platform is designed so that no outside party—including other organizations or even Cryptotrophy administrators—can interfere with an organization’s contracts.

This model ensures that the value and integrity of each token program depend entirely on the issuing organization and its commitment to its users, providing clear boundaries and protection for all participants.

How is privacy protected for organizations and users?

Organizations are required to handle user data with the highest standards of privacy. Only essential, non-personal information—such as a wallet address or ENS name—should ever be uploaded to the blockchain. Personal data must never be included.

Before participating, users must provide consent, and organizations must ensure that any link between a user’s account and their personal information is securely maintained off-chain. Under no circumstances should personal information be recorded on the blockchain without the user’s explicit authorization.

This approach safeguards user privacy, complies with data protection regulations, and keeps sensitive information secure at all times.

Is the platform fully trustless?

Most companies are centralized entities and, in most cases, their points systems are managed centrally without public interfaces for users (like an API).
The advantage of blockchain comes from tokenizing assets or points: while the value of a token may still depend on the issuing organization (and remain centralized), secondary trustless markets for those tokens can emerge.
In these secondary markets, exchanging a reward for another asset is trustless between the two parties—trust in the value of the prize relies only on the reputation of the organization that issued it.

Example: In a gaming app, a player might win a branded “Reward NFT.” The player does not have to trust the game administrators, only the well-known brand issuing the reward. On a secondary market, the value of the NFT is linked both to the reward itself and to the brand’s reputation.

What happens when a user redeems tokens for goods or services?

A user can accumulate tokens or exchange them for goods or services. When redeemed, the token is either burned or returned to the issuing organization, and the user receives an NFT as a certificate for the prize or the associated value.

Can organization tokens be exchanged for cryptocurrency (ETH)?

Each organization can decide whether its tokens are redeemable for cryptocurrency (such as ETH). This encourages loyalty while ensuring all users receive value for participating in your campaigns.

How does the platform connect the blockchain to external systems?

Our platform is hybrid, connecting blockchain with external systems using Chainlink.
Chainlink is a decentralized network of oracles that acts as a secure bridge between smart contracts and external data sources, enabling seamless and reliable integration between blockchain and real-world data.