ICO Analysis : BlockCloud

Internet of Things (IoT) is a concept that refers to creating a network between physical devices (not computers or Internet-devices) for achieving maximum efficiency in the collection and exchange of data. IoT is able to change economic and social processes and remove human interaction from the equation. Iot is able to facilitate a person’s life as much as possible. However, there are many problems that make IOT a challenge until its full implementation. In order to solve such challenges,  Blockcloud presents innovative IoT architecture with blockchain.

But IoT has the same problems, in principle, as the other segment of the Internet market:

  • Bad network;
  • Scalability issues;
  • Low level of trust;
  • Low level of user safety;
  • Non-working business model as a whole.

Although developers have created a service-oriented network (SCN) to provide reliable connectivity and global scalability, issues of trust, security, and incentives for users are still a challenge.

Blockcloud wants to combine the benefits of SCN and blockchain to expand the capabilities of IoT. They offer a service architecture for communication that will support mobility and scalability. A new consensus mechanism has also been developed that will provide confidence, security and incentives in a decentralized network. Tariffs for services and the distribution mechanism will provide an honest profit for service providers and network users.

By 2022, it is forecast that 20 billion devices will be connected to the Internet. Therefore, IoT will become an effective platform for accessing services,with which you can work in any field from smart healthcare to added reality devices. Potential use cases for Blockcloud are the following:

  • Autonomous vehicles;
  • Smart healthcare and the wellness industry;
  • “Smart” house (not only the management of “smart” equipment, but ensuring the safety of your home);
  • Edge computing (peripheral computing), which in the near future will replace cloud computing;
  • Sharing economy.

Technology and Product

As already mentioned, the network will combine two effective solutions to complement each other.

It will be a service-oriented network that provides a network stack, where applications directly link service names to addresses.

Thus, SCN provides a transparent sheet for switching interfaces, device mobility and global scalability.

The use of the blockchain will ensure confidence in IoT, as well as a safe and economically stimulating interaction. Blockchain is the first technology that provides everyone with working proof of decentralized trust. A cryptocurrency (native token) will allow participants to use the global market for services and immediately make a profit, which will also stimulate them to provide network services.

It will be ensured by five main aspects:

  • Designing a multi-layer structure where a block is inserted into the SCN. SCN forms the basic physical network, which provides connectivity, mobility and scalability. The blockchain logically works on top of the SCN to ensure decentralized trust, security, equity and economic incentives.
  • Use the service access layer (SAL) to enable the use of service links. The SAL maps service names in packets to network addresses based on the rules in the maintenance table managed by the blockchain.
  • Proof-of-Service (PoS) mechanism. Blockcloud will introduce a service evidence scheme to prove that the service is physically provided on the network, as described.
  • Advanced technology of the directed acyclic graph – CoDAG (compact acyclic directed graph) for an efficient and fast recording of IoT transactions.
  • TCDA is an honest continuous double auction, a mechanism for honest distribution of services.

Since the network is based on architecture, it is important to learn more about their layers:

The transaction layer is the lowest layer, in which a directed acyclic graph (CoDAG) will be applied. It will be most effective for large-scale and dynamic IoT scenarios. Transactions will be confirmed much faster.

Service Chain (service chain) – a layer that will work on the basis of smart contracts and state machine. Nodes “see” the raw transactions, but the processing of Blockcloud operations exists only at this level of service, with the help of “smart contracts”. This is a “service market”.

Routing Layer – Blockcloud separates the query routing task (that is, how to detect the service) from the actual provision of services. This avoids the need to accept a service from the beginning and instead allows several service providers (both commercial and peer-to-peer) to coexist.

The service layer provides the actual services for the network. All services are signed by the key of the corresponding supplier. Outside the transaction, Blockcloud allows you to use any IoT services for various IoT devices. Users do not need to trust the service because they can verify the authenticity of the service using PoS in the management panel.

Thus, Blockcloud solves all the problems outlined above.

Token

The project’s total token supply is 10 billion. The breakdown of the token distribution is below.

The token itself will be ERC20 at first, which will ensure liquidity and easier listing.

The use of funds is broken down as follows: 50% for research and development, 15% for partnerships and the creation of a business alliance, 5% for setting international standards, 5% for research and intellectual property, 15% for marketing and public relations, 5 % for HR and team incentive and 5% for management.

Team

Blockcloud employs a solid team all around. The company’s website contains all the necessary information about the team’s experience and achievements.

Zhongxing Ming – Director

  • Visiting Scholar to Princeton University
  • Ph.D. at Tsinghua University
  • Member of Blockchain Special Committee of China Computer Federation
  • Shenzhen High-level Overseas Expert
  • Co-founder of a Startup with $6.5 Million raised
  • 13 Publications on Top Conferences and Journals

Shu Yan (Shu Yan) – Chairman / Director of SCN Lab

  • Visiting Scholar to Case Western Reserve University
  • Postdoctoral at Hong Kong Polytechnic University
  • Ph.D. at Tsinghua University
  • Member of Blockchain Special Committee of China Computer Federation
  • Shenzhen High-level Overseas Expert
  • Co-founder of a Startup with $6.5 Million raised
  • 10 Publications on Top Conferences and Journals

Dai Pan – Co-founder / COO

  • Master at Peking University
  • Urban Intelligence Expert
  • Shenzhen High-level Overseas Expert
  • Co-founder of a Startup with $6.5 Million raised

Dong Huo – Strategic scientist

  • Ph.D. at University of Tokyo
  • United Nations Development Program (UNDP) Sustainability Goal (SDG) Network Expert
  • PI of a JSPS-NSFC International Coopertaion Project
  • PI of a National Science Foundation of China (NSFC) Project

Qi Li – Expert in network security and cryptography

  • Associate Professor of Computer Science, Tsinghua University
  • Network Security Expert
  • Editor of IEEE/TDSC
  • Over 60 Publications on Top Conferences and Journals

Wei Xiao – Data Scientist

  • Ph.D. at Tsinghua University
  • AI Expert
  • Multiple Major Inventions
  • Author of over 20 Patents

Advisors

The set of relevant advisors is pretty impressive as well both for technical and business implementation.

Fred Baker

  • Internet pioneer and former IETF Chairman (1996-2001).
  • He co-authored or edited around 50 Internet standards, including Open Shortest Path First (OSPF), Routing Information Protocol (RIPv2), Quality of Service (QoS) etc.
  • He served on the Internet Architecture Board from 1996 to 2002.
  • As of 2005 he Co-chaired the IPv6 Operations Working Group in the IETF (until 2013).

Shai Mohaban

Shai is an expert in networking, cloud computing and security, as well as an early practitioner in blockchain. As an early architect and developer of QoS systems in Cisco his team developed network wide policy based management solutions based on RSVP and other technologies. He later was chief architect of VoIP in Juniper. He is a serial entrepreneur; he co-founded and was the CTO in a number of startup companies, three of which got acquired by Cisco, Juniper and ServiceNow (aggregate value of over $200 million). He has been involved in research and development of network protocol stacks since late 1980 and was granted over 20 patents related to his work.

Linghe Kong

Professor of Shanghai Jiao Tong University, postdoctral of Columbia University in New York, Ph.D. in computer engineering, Shanghai Jiao Tong University, in charge of 6 national, provincial and ministerial research projects, honored as Microsoft Fellow, IBM Ph.D. Fellowship Program, Youth Talent Development Program of China Computer Federation and Microsoft Star-Making Program; engaged in research on wireless communications, Internet of Things, big data and mobile computing.

Sheng Zhong

Ph.D. in Computer Science, Yale University, candidate of the first batch of Recruitment Program of Young Overseas High-level Talents, professor of Nanjing University, deputy director of Department of Computer Science and Technology, member of Jiangsu Provincial Committee of the Chinese People’s Political Consultative Conference; winner of National Science Fund for Distinguished Young Scholars; president of Nanjing Branch of IEEE Computer Society, president of Nanjing Branch of ACM; candidate of High-level Innovation and Entrepreneurship Talent Introduction Program of Jiangsu Province; winner of CVIC SE Talent Award; participant of national ” the 12th Five-year Plan” Technological Innovation Achievement Exhibition as a “outstanding talent with prominent contribution” .

Hoan Soo Lee

Economist of Council of Economic Adviser (CEA) during the first term of Obama government; partner of CMB International; co-founder and COO of Give2gether in Boston, Massachusetts, U.S.; consultant of Dorinku in London, U.K.; microcredit consultant of Harvard College Branch in Cambridge, Massachusetts, U.S. Dr. Hoan Soo Lee obtained his master degree and doctor degree at Economy Department of Harvard University and Harvard Business School in 2011 and 2013 respectively, and bachelors with highest honors in applied mathematics and economics at University of California, Berkeley in 2008.

Roger Lim

Experienced angel and blockchain investor. Founding Partner of NEO Global Capital. Advisor for projects like Bluzelle, Qlink, CoinFi, Thekey, Tomocoin, 0Chain, Switcheo, Open Platform, nOS. Successful entrepreneur who founded Webvisions, an asian cloud hosting company

Alex Likhtenstein

Active investor and advisor in the blockchain space. Founded EVR, the world’s first bitcoin bar, prominent investors included Charlie Shrem (Bitinstant, Bitcoin Foundation, Crypto IQ), Erik Voorhes (ShapeShift), & Yifu Guo (Avalon Asic, Kraken). Featured in both live interviews and write ups by practically every major media company from CNN to Fox to the NY Post.

Partners and Investors

The project has a very impressive list of funds which support tit, including Genesis Capital, OK Blockchain Capital, Kucoin, Neo Global Capital, SRC, Node Capital, JRR, BlockVC, GBIC, MW Partners, AlphaCoin, Signum, LinkVC, BKFund, Consensus Capital, Signal Ventures, Kosmos, Byzantine, Brink Asset, S.capital, Youbi Capital, Innoangel Fund, A Xi Ventures, L99, Ten8, etc.

Some traditional venture funds are also investors there like Frontier Ventures, Elysium Venture Capital, Block Rock Capital are also involved.

Verdict

Blockcloud is setting example of what a really good ICO project must look like. The team has strong experience in tech and business, superb academic and tech backgrounds and has already shown that they can grow companies from zero. Together with advisors and partners at their side they have a good chance of succeeding in the long haul. As for the short-term, hype and small valuation after listing shows promise.

Risks

  • Other competitors in the space.  -1
  • Road map is rather slow. We will see full main net in 2 years.  -2
  • No product at this point. -3

Growth Potential

  • The target market is huge and it is growing. +1
  • It has strong support both in its community, partnerships in the real sector as well as a very long list of VCs. +3
  • The provided technical solution is innovative and effective. +1
  • Very powerful, transparent team with many achievements behind them. +3
  • Advisor list is also impressive +1
  • Hard cap is also small – $15 million. +1
  • Total valuation of circulating tokens would be at around $20 million, which can imply a good ROI in the short term. +1
  • Project has huge hype. +1
  • Project has a backing of existing company, which was also a startup for which founders of Blockcloud have attracted $6.5 million several years ago. +1.5

Disposition

The project looks promising both in the short term and long term. The only weak point is absence of MVP and long term road map. 7.5 out of 10.

Investment Details

  • Type: Utility
  • Symbol: Block
  • Platform: Native-protocol
  • Crowdsale: TBA
  • Minimum Investment: TBA
  • Price: 0.01 USD
  • Hard Cap: 15m
  • Payments Accepted: ETH
  • Restrictions Barred from Participating: USA and China

General details :

Website: https://www.block-cloud.io

Technical Whitepaper: https://www.block-cloud.io/blockcloudtechnicalwhitepaper.pdf

Facebook: Blockcloud https://www.facebook.com/Blockcloud-605495993154497

LinkedIn: https://www.linkedin.com/company/blockcloud

Twitter: https://twitter.com/BlockcloudTeam

Medium: https://medium.com/@BlockcloudTeam

Newsletter: https://www.block-cloud.io/token.shtml#subscribe

Telegram:

Official Community-EN: https://t.me/BlockcloudTeam

Official Community-CN中文社区: https://t.me/Blockcloud_CN

Global Roadshow&Meetup: https://t.me/BlockcloudMeetup_Global

Official Announcements: https://t.me/BlockcloudANNC

Featured image courtesy of Shutterstock.

Author:
Vladislav Semjonov has a legal and financial background. He has been involved in crypto space since early 2017 in both ICO advising positions in several ICO consultancy firms, and as an ICO analyst for VC. He began contributing for Hacked.com in April 2017.