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ICO Analysis: 300Cubits’ TEU

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The TEU token is a project of 300cubits, which is owned by ETH Smart Contract Tech Ltd, a company based in Hong Kong which was founded on the 10th of last month. Their whitepaper really needs some good editing, and that could be why it hasn’t generated quite so much buzz (to this author’s knowledge) on this side of the world. But we won’t take away too much from their innovation or business model on such grounds. It’s easy to get lost in a slick production or a bad one and lose out on good opportunities or miss important warning signs.

Billing itself as “a cryptocurrency that propels ships,” the aim of the TEU token is to become the settlement currency for the shipping industry. In plain terms, the white paper identifies that dishonesty is rampant within the international shipping industry, and thus it needs transparency that a blockchain can bring.

One prominent shipping executive always says that everyone lies in the container shipping industry. Lies that we do not know, but one thing we know first handed is that the shipment agreements in container shipping are often not honored. Service contracts get re-opened when the freight rates have changed so much. And it happens so often in recent years that freight rates could swing 50-100% within a year or even within a month.

In general, an immutable ledger will be a value-added application for any industry which has a lot of moving parts. TEU understands this and says that they are already adding value as soon as they become available. The shipping industry is massive, after all, and it wouldn’t take an incredibly large slice to make some good money. Moreover, as they have one success after another, they are likely to expand operations across the world. An open ledger would also allow the industry to build its own applications to interface with the TEU token. All of these opportunities mean great potential, but we don’t share the confidence of the white paper in a single release of a cryptocurrency independent of everything else.

We are not suggesting a potential. We believe the TEU tokens will instantly add monetary value to the industry, much like a capital injection. How? A certain percentage of our tokens will be given out for free to the container liners, their customers and those who actively promote the tokens for early adoption. A successful Initial Token Sale (ITS) will automatically monetarize the TEU tokens. Use of the TEU tokens by industry players will validate and enhance the value of the TEU tokens. The adoption of the TEU tokens in the container shipping industry, in return, will influence its trading activities at cryptocurrency exchanges.

Shipping Industry Problem Solver?

In general, it is preferred that solutions for industries come from within them. This way the people creating the solutions have the most intimate knowledge of the industry at hand. Luckily, leadership roles filled by Johnson Leung and Jonathan Lee are leaning on fifty years of experience between them in both banking and shipping. As we often stress here, long careers like these mean connections to the actual means to get the job done. Thus, we feel it is positive that the leadership have spent their lives in the industry they now aim to disrupt.

TEU stands for “twenty-foot equivalent unit,” which is a measurement used in the shipping industry. The contention of 300Cubits is that the shipping industry is woefully inefficient, and that fraud can be significantly reduced with the blockchain. Their goal is to become the primary settlement currency of the global shipping industry.

How Fast Will The Industry Really Adopt & Adapt?

In concept, Bitcoin, Litecoin, Dashpay, and especially Ethereum should see widespread, fast adoption amongst legacy industries. But they see anything but. The network effect of money is a well-established concept. 300Cubits approaches this project with the idea firmly in hand that they will be adding value. The industry experience of the board has them feeling that this sort of thing will take off quickly, and that their connections can help it get going, it seems. But the problem is: these are promises that are easy to break.

Market penetration is one of the hardest things to bet on, and then we’ve got things like this which are going to slow it a bit more:

Unlike the existing service contracts in the container shipping industry, the smart contracts governing the transactions of the TEU tokens are coded with a set of immutable conditions. Once committed, neither party can alter what has been agreed.

Now, what sort of parties might take issue with such a proposal?

Answer: governments and corporations which benefit from negotiable contracts, ie, whoever is on the take in the shipping industry. Like as not, the self-same people are also at the helm of a few of the companies being targeted by this disruption. While shipping customers might see this idea as totally revolutionary, and a few Hong Kong-based veterans might have a great solution they’re getting fully behind, what you’re really asking for is the whole pie. Use of the TEU token is going to be dependent on companies making use of it – being willing to sign immutable contracts, implementing technology to ensure them, and so forth. Problematic to say the least. From a technological standpoint, sounds like fun. From an investor’s standpoint, sounds like either unicorn or minotaur.

To promote the usage of TEU tokens, we will develop a community with an IT infrastructure, which we call TEU Ecosystem, interested industry participants, application developers etc., to establish the TEU tokens as the de facto cryptocurrency for the container shipping industry. The TEU Ecosystem will include Smart Contract Builder Module, Booking Module, Market Place Module and Positive Credit Agency Module.

The above all sounds great – except, well, none of it circumvents what precedes it, and all of it leaves out the obvious specter of attrition which arises from competing efforts established either in real terms or conceptually.

TEU Token Details

There will be two TEU token sales, during which 40% of the tokens are sold off. A sum total of 100,000,000 tokens will be the fixed supply of the TEU token system. The numerical distribution of this 40% gets interesting:

The amount of TEU tokens to be given out to the industry users will be based on the market value discovered after the ITS as well as its trading activities on cryptocurrency exchanges. […] Based on the value reflected in TEU token trading, industry users shall determine how many TEU tokens to be used for each shipment booking in order to provide an adequate but not excessive economic incentive to both parties to honor the shipment booking. Based on all container liners’ revenue divided by the global container shipment volume at 190mn TEU per year.

They intend to do a second run with the same numbers, a 40% distribution with amounts purchased determined based on an industry scale that most investors will have no experience with. The TEU team will retain a full 54% for marketing and development, and another 6% of the tokens for themselves. Of this marketing & development fund, they authorize themselves to give away as many as they please:

A percentage of the TEU tokens will be given out for free to a selected group of container liners and their customers, or employees of shipping industry to promote the use of TEU tokens as shipment booking deposits and the de facto industry cryptocurrency in general.

Free services don’t exactly raise the value of an offering, but in our era they don’t lower it, either, necessarily. Further, this sounds like a plan to get industry partners on board – okay, good. But, if only a sum of 40% of tokens is on the market at opening, it’s hard to see a real valuation coming out of this thing before it’s completed its second run and markets start operating on 40%.

300Cubits Long-Term Operations

The TEU token is by design like money that performs as value storage, medium of exchange and, when established as the de facto cryptocurrency for container shipping industry, unit of account. Like the use of money, the use of TEU tokens is nearly free except for the gas payment in ETH for miners in the network who ensure the integrity of the public ledger. […] 300cubits will operate on fees generated from the use of TEU Ecosystem that contains modules namely the Smart Contract Builder Module, Booking Module, Market Place Module and Positive Credit Agency Module. Except Positive Credit Agency Module, all modules will need to deploy or execute part of the smart contracts at different stages where some TEU tokens will automatically be exchanged into ETH to cover the gas fees.

Okay, so at least they intend to go down with the ship. See point below.

The Verdict

Ethereum Smart Contracts are a good business to get into at this point in history. We learned from this whitepaper and project that the shipping industry is not currently such. As to the Twenty-foot Equivalent Unit token, we’re leaning toward it being dead in the water.

Risk

  • Little oversight over distribution of initial “marketing & development” team.
  • Way too much with-held from the economy.
  • Industry adoption seems slow if at all possible – despite hype by subject.
  • Price discovery and supply model might be gamable. After all, the industry in question essentially controls the global container freight rate. One scenario imaginable is in which the various cartels conglomerate, raise rates temporarily, wait for TEU tokens to be distributed and sold, and then go back to normal rates. This means that all speculators would have paid an extreme premium.
    • It’s not hard to imagine once you’ve done a bit of research into how the shipping industry actually works. Everything from unions to greedy governments to pirates can throw rates in disarray.

Growth Potential

  • As is often the case, one of the points from the risk category is also a growth factor – in token valuation only. Lots of factors could push industry participants toward the TEU, including unpredictable factors on the open seas.
  • 300Cubits will have some usable products that come out of their existence, but whether they are what they expect or not remains to be seen. In much the same way that numerous banks wanted “blockchain but not Bitcoin,” industry might be very interested in the ability to accurately predict demand for containers – whether that would be worth paying into the TEU system or not remains to be seen. It should be noted that they currently intend to force all users to interact through their system, but supply and demand rule all.
  • A successful disruption of this industry leads to trillions in revenue over decades. This statement is not meant to be mistaken as one which implies that TEU will successfully disrupt global shipping lanes.

Disposition

TEU passes all the checks for “grandiose vaporware.” Let us have a look at their “steps accomplished so far:”

  • Selected Ethereum network as the Foundation Layer of the solution
  • Completed coding of a set of core smart contracts usingSolidity, including the ITS, ERC20 compliant TEU tokensand various shipping prototype smart contracts, etc.
  • Started to test the smart contracts in atestnet environment and live chain of the Ethereum.
  • Formulated the IT infrastructure, which is called TEU Ecosystem for TEU tokens.
  • Completed concept development of various application modules.

Now, they want to raise a bunch of cash and continue on their roadmap. They give themselves until January to recruit programmers and marketers and then release an early version of the Booking Contract Builder d’application.

Groovy. But not with our money.

We rate TEU 3.0 out of 10 for effort. The best approach for this ICO is to see how the first “ITS” (ICO round) goes and reconsider then. We will re-evaluate after August 30th, when their Initial Token Sale concludes, in preparation for their second sale which begins September 13th.

Investment Details

  • Minimum .1 Ether investment. Don’t be like this guy.
  • TEU token will have 18 decimals.
  • “Allotment of TEU pool of a period is based on the proportion of ETH contributed of a contributor among all ETH contributions of the same period.”
    • Translation: “The amount you will get is not defined at time of transaction.”
  • Be sure to use the official website if you decide to jump on the ITS. https://300cubits.tech/
    • Further, be sure to check out pages 19 and forward in the whitepaper. Read the fine print. These are not regulated securities you are dealing with, so it’s never a good idea to proceed without caution.

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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  1. embersburnbrightly

    August 7, 2017 at 3:41 pm

    As always, your reviews are incredibly detailed and informative. Thank you.

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ICO Analysis: Agate

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Agate is the world’s most comprehensive decentralized blockchain platform for instant payments. It connects physical stores, online merchants, users and developers to the crypto economy.  Imagine PayPal, but with all the neat new bells and whistles that blockchain, smart contracts and machine learning bring to the table, including a fiat backed platform stable coin called iFiat, which helps control volatility risks that usually come with crypto.

Agate plans to launch its Proof of Stake mainnet in Q1 2019.  There will be a heap of different elements to the Agate Ecosystem. Here are the highlights.

  • Token Generator: Allows users to create their own token through a user-friendly platform without having to write any code. Users will brand and market their products and services under Agate’s blockchain. The token generator will be fueled by AGT token, which will remain at the core of the platform.
  • AI Powered MultiCurrency Wallet: Their wallet is in development and can already store 5 cryptocurrencies. It will be fully launched by Q4 2018 at which time users will be able to store 17 different crypto-assets. The wallet will be integrated with an AI engine that uses machine learning software that has the ability to advise users with the best time to convert their crypto into iFiats to realize the highest possible gains.
  • Stable Cryptocurrency: This is a game-changing feature. Separate from AGT token, a stable coin pegged to the dollar, called iFiat, will be used to settle transactions in real-time. Each iFiat unit has a 1:1 ratio with the underlying currency unit, this facilitates a stable payment system ensuring merchants receive the full spendable value for their payments while eliminating volatility risk.
  • Trading Bot: Allows users to load multiple cryptocurrencies into the Agate ecosystem and then set multiple rules for the bot to execute trades when market conditions are met.
  • Merchant Facing Multiple Payment Gateway: Easy to install payment apps/plug-ins and an open source Agate Payment Gateway API will allow merchants and e-Commerce platforms to accept crypto as a mode of payment with no hassles.
  • Decentralized Exchange: Agate’s iFiat ecosystem will include a Decentralized Exchange (DEX) that will allow fast transactions on the network for merchants to convert their crypto into iFiats instantaneously. Further helping eliminate the volatility risk that comes with crypto.
  • Merchant POS Terminal and Merchant App: Enables brick and mortar stores access to Agate’s POS terminal. With the Agate Merchant App, merchants can receive payments in their own iBucket which facilitates easy bank transfers or the money can be loaded into their own cards for instant spending.
  • Crypto Debit Card: Agate Debit card. The goal is to partner with the worlds leading card providers to allow Agate debit to work at “over 30 million stores globally.”
  • White Label Provider: Agate Blockchain will provide the Agate API Suite, a white label solution that allows developers to build their own DApps or DAO on Agate’s strong and reliable network while improving the entire Cryptoeconomy.

Token

AGT token is separate from the above-described iFiat (stable) token.

The whitepaper lists several ways which AGT token will be used, including:

  • All Exchange orders between different currencies will cost 1 AGT token.
  • Any trade bot trades will cost 1 AGT at the point of execution.
  • To load card or request bank transfers, users will have to pay 1% fee in AGT tokens.
  • Agate token generator costs 50 AGT.
  • At some point, they will switch from Ethereum to their own mainnet. When this happens, AGT will become minable thru Proof of Stake, which will cost 50,000 AGT tokens to run a node.
  • AGT will be required to execute smart contracts.

Distribution:

  • 65% Crowdsale
  • 10% Team
  • 5% Advisors/Partners
  • 5% bounty/airdrop/referrals
  • 15% Reserved for the Agate Ecosystem

Allocation:

  • 40% Research and Development
  • 40% Marketing
  • 5% legal and compliance
  • 10% Operation and Admin
  • 5% Unforeseen Events

The team will lock up their tokens for one year. All unsold tokens will be burned.

Team

Based in Sydney, Australia, the site list 16 team members including tthree founders.

  1. Hamed Taghvaei-   A serial founder of tech companies, including Drone Online, Myservo, King ICO and Business and Demand Group PTY LTD.
  2. Hamid Ostad –  Impressive resume. Since 2016, he’s been the Solutions Architect at BPay Group, a successful Australian bill payment company. He has seven years of experience as tech lead at Creative Digital Technology and five years Dev Manager at Gpayments PTY.
  3. Ali Dorri – PhD candidate at UNSW studying blockchain. He seems to be a blockchain tech expert. No work history listed; his description says he’s worked with several successful blockchain projects already.

A few of the team members stand out.

Ehsan Jahandarpour – CMO. An influencer, he was ranked top 20 growth hacker in 2016 Forbes.

Ariya Chittasy – The website says he’s helped produce four startups over the last eight years, and twi of them are successful. Currently at  Engenesis Ventures, where he “is working with visionaries and innovators to create tech-based companies that serve the world ”

Odette Abrenica – UI/UX Designer. She also has the same role at Engenesis.

Jaemie Dela Pena – Product Design Lead for Agate and Engenesis.

Asi Asgher – Project lead, also works at Engenesis.

There are six advisors – they look decent. J Brenton Smith was the VP & GM Asia Pacific & Japan business of Dell Software Group.

Verdict

There’s plenty to love about the project including a few unique, possibly groundbreaking ideas. However, there is also plenty of risk. Debit cards for one. Countless blockchain projects have come out with their ICOs talking about how they will have a debit card which can be spent with different cryptos all around the world, yet all of them have flopped so far.

Risks

  • Their Telegram channel is for announcements only. It’s going to be hard to grow a community around the token if they can’t talk to each other easily. Also seems kind of shady to not allow possible contributors the ability to ask questions in real time. -1
  • The founders of Agate also recently founded an ICO launching business called King ICO. And most of the team is from a company called Engenesis which is a blockchain project incubator. This means there’s a possibility this team is not serious about making Agate, and are more into making millions of dollars doing ICOs. -1
  • Laws/Regulations. It’s going to be really hard to get the proper banking licenses required to fully run the Agate platform world wide. -2

Growth Potential

  • According to the roadmap. Q1 of 2019 is when they will be hoping to get their proper banking licenses. +1
  • The community seems to like this project, although some of the enthusiasm can be chalked up to their bounty/airdrop program. A large majority of ICO review websites give this project a 90+, or A ranking. And the Bitcointalk page is filled with enthusiastic supporters.+2
  • If this succeeds, the sky will be the limit. +1
  • Teams tokens will be locked up for 1 year. +1
  • 50,000 AGT must be staked in the future to run a POS node. +2
  • GitHub is active and there are several beta demos of diff aspects of the platform. +1.5
  • Several backers. +2

Disposition

High risk/ high reward. If they build everything they talk about in the whitepaper, and then get the proper banking licenses, this could moon. +6.5/10

Investment Details

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.1 stars on average, based on 23 rated postsJoshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!




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ICO Analysis: Bgogo

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Bgogo is a crypto asset exchange project with the unique feature of having supernodes that decide on which crypto assets get listed. This is opposed to other exchanges where listing decisions are up to the exchange and not the community.

Supernodes on Bgogo are selected on a quarterly basis based on the top 21 holders of BGG tokens (also subject to vetting by the Bgogo team). During their quarterly tenure, supernodes (after the first group of supernodes) cannot touch their BGG stake.

Supernodes get 1 vote that can be used to list 1 digital asset as well as 20% commission per trade for their listing.

The list of current supernodes is impressive and boasts some big names in the blockchain space, including Pantera Capital, ICODrops, DHVC (Danhua Capital), Arrington XRP Capital, Hashed, Signum Capital, and more.

The project also has $10m in investor funding (Pre-A and A round) from VCs, such as Sky9 Capital, Node Capital, Hike Capital, and Goopal Digital.

Token

The BGG token acts as a proof of stake for the platform (e.g. hold enough and become a supernode), and active traders are rewarded in BGG for their activity.

The total supply of BGG is 10 billion with the following token distribution:

  1. 50% mining rewards
  2. 20% founding team
  3. 20% ecosystem development and operation
  4. 10% first supernodes and strategic investors

Users of Bgogo “mine” Bgogo’s token (BBG) whenever they trade on the exchange. Users get BGG equal to 105% of their cumulative trading fees (in effect, negative trading fees) every 30 minutes as a reward. Bgogo platform fees can be viewed here. Mining rewards may be adjusted as the platform grows but according to the Bgogo whitepaper, a minimum trading fee rebate of 100% will be retained.

Bgogo also performs daily buybacks of BGG. Every 24 hours, 100% of the trading fees (BTC, ETH, and fees for other Bgogo-traded assets) collected by Bgogo is used to repurchase BGG. Repurchased tokens are then burned by sending them to a publicly known burn address.

BGG can also be bought and sold.

The total amount of daily mineable tokens is capped and unlocked at the same rate as ecosystem development and operation tokens. Team tokens are vested over 4 years, with 25% of tokens released at the end of each year.

The 10% of BGG that was sold to initial supernodes as well as strategic investors and partners during the private sale was sold for a total of 15,000 ETH (10,500 ETH for supernodes and 4,500 ETH for strategic investors and partners). The private sale price was 1 ETH = 66,666 BGG, and each supernode was allocated 500 ETH or 33,333,000 BGG.

On the first day of the token’s listing, 50% of private sale tokens are initially unlocked to provide baseline liquidity for BGG. The rest is vested over 5 months in 10% installments. In addition, from the first day of BGG listing, token holdings of all supernodes will be made available on the Bgogo site. In other words, top BGG holders and their positions will be made public and changes in supernode positions can be seen in real-time.

The “public sale” for BGG is actually a genesis mining (beginning of mining, or earning, BGG through trading) event.

The event starts 24 hours prior to the beginning of mining being open to the public. The value of BGG will be pegged to ETH at the same price of the private sale. However, given that “miners” receive 105% trading fee rebates in the form of BGG, “public sale” or genesis mining participants are in effect, getting a 5% bonus on top of the private sale price. In other words, public sale participants are getting BGG cheaper than private sale participants, with NO lockup. Though the catch is that the maximum mining allocation is 10 ETH vs. supernodes who were allocated 500 ETH of BGG each.

To get whitelisted for the BGG genesis mining event, users have to take part in the BGG Proof of Care contest and are placed into tiers based on their performance. For full details, see the BGG Genesis Mining Event page.

Team

CEO Maximilian Wang – Wang is a former Facebook software engineer and founded Facebook’s crypto syndicate. Wang also advised popular blockchain project Quarkchain, which had a successful ICO.

CTO Nicolas Chen – Chen worked at Facebook’s US headquarters and was responsible for maintaining network security for Facebook’s greater than 2 billion users across its Facebook, Whatsapp, and Instagram properties. He also won the ACM International Collegiate Programming Contest (ICPC).

COO Oscar Song – Song has experience working at large exchanges, as he was former operations chief at Huobi, one of the world’s biggest digital asset exchanges.

CSO Ciara Sun – Sun worked at Boston Consulting Group, Deloitte, provided asset and portfolio management for billion scale hedge funds and private equity funds, and won the 2018 Blockchain Consensys without Borders Summit Project.

Other core team members have backgrounds working around the world in locations like Silicon Valley, Hong Kong, and Singapore for renowned companies like Facebook, Microsoft, Alibaba, Twitter, and more.

Verdict

Below is a breakdown of the risks and growth potential of Bgogo.

Risks

  • Private sale vesting could be done over a longer period (-0.5)
  • Public sale (genesis mining) allocations could be bigger (-0.5)

Growth Potential

  • Impressive team (+3)
  • Impressive list of supernodes shows big players’ belief in and support for the project (+2)
  • Lots of hype, e.g. large Telegram (+2)
  • Great idea for traders (+1)

Disposition

Though private sale vesting is over a somewhat short period and public sale allocations pale in comparison to private ones, the team, list of supernodes, hype, and idea make Bgogo an extremely attractive project. Who knows – maybe getting some BGG early could be like getting some Binance tokens (BNB) before Binance took off. Bgogo receives a 7/10.

Investment Details

  • Type: Unspecified – Utility
  • Symbol: BGG
  • Platform: Unspecified
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: 1 ETH = 66,666 BGG (private sale), 1 ETH = 69,999.3 BGG (public sale aka genesis mining event)
  • Hard Cap: 15,000 ETH (~$6.3m)
  • Payments Accepted: Unspecified
  • Restricted from Participating: Unspecified

For More Information

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO Analysis: Solana

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Scalability, scalability, scalability.

Scaling blockchain for the next level of (mass) adoption is the name of the game these days.

Solana is yet another contender to jump into the fray to become the most scalable blockchain and boasts the capability to handle 710,000 transactions per second with normal, off-the-shelf hardware and no features like sharding (a popular scaling proposal which proposes splitting a blockchain into shards or pieces that can process transactions simultaneously instead of having one, overloaded blockchain).

Here’s how.

Proof of History

The staple of Solana that will allow for unparalleled speed is Proof of History. Proof of History timestamps transactions in the blockchain so that nodes can verify the time and order of transactions without witnessing them firsthand.

This has the end result of optimizing Solana’s processes drastically by greatly reducing messaging between nodes and making the processing of transactions separate from consensus.

Here are some other features of Solana:

Sub-Second Confirmations

Older projects like Bitcoin not only have lower transaction rates but also have slow finality or confirmation of transactions as transactions have to be confirmed multiple times before becoming finalized.

Similar to project Perlin, Solana uses the Avalanche consensus protocol, which will allow for transactions to be fully confirmed within seconds, if not less. No more waiting minutes, hours, or days to pay for that coffee using crypto.

Proof of Replication

As of writing, the Bitcoin blockchain is nearly 180 gigabytes. Not everyone has that amount of storage capacity. Solana’s solution for ledger storage is Proof of Replication, which makes it so that not every node has to storage a full copy of the blockchain. Instead, each bit of Solana’s data is replicated to a dedicated storage node.

This means that the network can prove that a node you don’t trust is using its resources to store part of the Solana ledger. The end result is that the network is like a torrent, with no one node holding a full copy of the ledger yet a copy of the ledger is always available.

Broad Smart Contract Language Support

Instead of limiting developers to a single smart contract language, Solana will support any language supported by LLVM, starting with Javascript and Solidity.

Usage by the Next Generation of DApps

Thanks to Solana’s high transaction throughput, Solana could become the platform for the next generation of DApps that process tons of transactions like decentralized exchanges, payment platforms, decentralized cloud storage and web services, decentralized ad exchanges, and prediction markets.

Token

Details on Solana’s token and its token sale are sparse.

For the token itself, since Solana is aiming to be a platform like Ethereum or EOS, it’s assumed that Solana’s token usage will be similar to that of the aforementioned projects.

As for the token sale, interested investors can submit their interest in contributing via Solana’s presale interest form.

Team

CEO Anatoly Yakovenko – Yakovenko created Solana and has deep tech experience, having led operating system development at Qualcomm, compression at Dropbox, and distributed systems at Mesophere. Other achievements include being a core kernel developer for BREW (powered every CDMA flip phone – 100m+ devices), holding 2 patents for high performance operating systems, and leading development that made Protect Tango (VR/AR) possible on Qualcomm phones.

CTO Greg Fitzgerald – Fitzgerald is Solana’s principal architect and also worked at Qualcomm at the Office of the Chief Scientist.

Head of Growth Hsin-Ju Chuang – Chuang leads Solana’s community and growth efforts. Her track record is pretty solid, having been the former Head of Growth at Stellar, a top blockchain project.

Partnerships, Biz Dev Alan Yu – Yu is in charge of Solana’s business relationships and comes from Google, where he spent 10 years in sales and marketing and won various awards for his performance.

Partners

Solana’s partners include the following:

  • globaliD – globaliD is an identity provider, which has venture support from the likes of 500 Startups.
  • Hard Yaka – Hard Yaka is an investment fund with investments in companies like Coinbase, Ripple, Filecoin, ShapeShift, AngelList, twilio and exits from companies like Square (IPO), Twitter (IPO), Authy (twilio acquisition), and more.
  • Helium is the world’s first decentralized, blockchain-powered machine network with investment from the likes of GV (Google Ventures) and Marc Benioff, founder, chairman, and CEO of Salesforce.

Verdict

Below is a breakdown of the risks and growth potential of Solana.

Risks

  • Bold claims re: scalability and throughput. The team has claimed to have achieved hundreds of thousands of transactions per second on their testnet but the testnet isn’t public (-1)
  • Details on token and token sale not released yet (-0.5)

Growth Potential

  • Strong team and partnerships (+3)
  • Github work impressive (+2)
  • Solid hype and social presence (+2)

Disposition

  • Solana is a project with a lot of potential. Though tons of blockchain projects claim that they’re going to fix blockchain’s scalability woes, Solana might just have the actual team and partners to make that vision a reality. For now, we recommend keeping an eye out for further developments.
  • Solana receives a 5.5/10

Investment Details

  • Type: Unspecified – presumably utility
  • Symbol: Unspecified
  • Platform: Unspecified – presumably Native
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: Unspecified
  • Hard Cap: Unspecified
  • Payments Accepted: Unspecified
  • Restricted from Participating: Unspecified

For More Information

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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