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ICO Analysis: Bloom

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Credit scoring serves an integral function in the lending process. Yet, in 2015, U.S. Congress declared credit scoring to be a monopoly controlled by one organization: FICO. The data analytics company is responsible for scoring more than 90% of top U.S. lenders, leaving some 26 million Americans unable to obtain credit.

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A similar monopoly exists globally. More than one-third (38%) of the world’s population does not have a bank account, and 3 billion people are unable to qualify for a credit card. Although creditors would love to serve this untapped market, traditional credit bureaus cannot score prospective borrowers unless they’ve already taken on debt.

Against this backdrop, Bloom has emerged as a global, decentralized credit protocol that addresses existing limitations in lending by applying blockchain technology to credit scoring and risk assessment.

Bloom is a protocol for assessing credit risk through federated attestation-based identity verification and the creation of a network of peer-to-peer and organizational creditworthiness vouching (“credit staking”). – Bloom Whitepaper (2017).

Through the Bloom protocol, lenders will be able to issue complaint loans on the blockchain at affordable rates. In doing so, the Bloom protocol seeks to address five overlapping issues:

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  1. Cross-border credit scoring: Credit histories in one jurisdiction do not apply to other jurisdictions, forcing borrowers to re-establish their credit score when they relocate.
  2. Backward-looking credit assessment: Borrowers with no credit history are at a significant disadvantage when it comes to obtaining a loan or credit card.
  3. Lenders are limited in terms of global reach: Lenders are usually unable to serve borrowers in underdeveloped markets because they lack identity and scoring information to base their decisions.
  4. Risk of identity theft: When applying for a loan, borrowers must bear all their personal information, giving potential hackers more information to commit fraud.
  5. Lack of competition: The credit scoring industry is heavily concentrated, resulting in an uncompetitive market.

The Bloom protocol is based on three components. Together, the seek to overcome the five challenges posed above.

  1. BloomID: Identity attestation allows borrowers to obtain a global secure identity, making it easier for creditors to assess them.
  2. BloomIQ: A credit registry that tracks current and historical debt obligations tied to a borrower’s BloomID.
  3. Bloom Score: The credit score measuring consumers’ creditworthiness.

While certainly making a strong case for a decentralized credit scoring platform, Bloom doesn’t specifically address how the system will solve the five problems highlighted above. Instead, it seems to show that BloomID, BloomIQ and Bloom Score will address the problems by creating a globally portable credit profile that will: (1) apply across borders; (2) enable a backward-looking credit assessment regardless of jurisdiction; (3) safeguard consumer information through a secure system as well as globally-recognized identity attestation; and (4) create a global market place for creditors to access borrowers who have fallen outside the purview of traditional finance.

Although the author’s conjecture may be sound, the whitepaper does not provide specific details on how this system will work, let alone explain the regulatory challenges standing in the way of this vision. This is discussed in greater detail in the Verdict section.

The company has laid out how this protocol will improve on the current system of credit evaluation:

The Bloom protocol improves the current credit ecosystem by creating a globally portable and inclusive credit profile, reducing the need for traditional banking infrastructure and opaque, proprietary credit scores. This means both traditional fiat lenders and digital asset lenders will be able to also securely serve the 3 billion people who currently cannot obtain a bank account or credit score.

Bloom Token

The Bloom token (BLT) is powered by the Ethereum blockchain, and will serve both as a currency and governance mechanism on the network. In other words, BLT will allow organizations to evaluate user identity and credit worthiness. The companies using the Bloom network will pay for identity verification and risk assessment using BLT.

As such, the BLT token can be used in three ways:

  1. Scoring Proposals: The BLT token essentially serves as the governance mechanism for the network. Through token-based voting, bad actors are held to account.
  2. Security: BLT allows the Bloom network to implement fees for invitations. By imposing small costs on each transactions, attacks are not economically viable.
  3. Payment: The token serves as the primary currency on the Bloom network.

The Team

The Bloom team consists of four core members: Jesse Leimgruber, Ryan Faber, Alain Meier and John Backus. The founding team members have backgrounds in computer science, digital marketing and blockchain. John Backus’ resume strikes our attention given his role as research scientist at the Stanford Bitcoin Group.

In addition to the founding team, Bloom has three advisers on board, including Meg Nakumura, CEO of Shift Payments. Joseph Urgo has also been recruited from District0x, an Ethereum dApp. David Raphael of Infinity Media also brings with him experience in conversion rate optimism. Overall, the brains behind Bloom appear to be well qualified and highly focused.

Verdict

Very few ICOs are as highly regarded as Bloom. This massive undertaking has the potential to become a highly lucrative enterprise. Bloom’s expansion into credit card services is also commendable. To speed up adoption, the company will launch the BloomCard, a blockchain credit card intended to serve as the model for all future credit providers.

On the flip side, significant challenges remain. Unless they are addressed, the company may struggle winning over institutional adoption. Providing a clearer implementation timetable is also needed to win over investors. The author believes that an updated whitepaper is warranted as Bloom moves forward with its raise.

Risks

  • The credit scoring industry is mired in regulations that become even more complex when the moment we cross borders. Bloom has not outlined how it intends to navigate these issues. -3
  • Although the team has outlined a roadmap for implementation, no dates are provided. How fast will they be able to scale? Is the existing team sufficient in reshaping the global credit scoring industry (i.e., overtaking FICO)? -2
  • There’s probably a good reason why many people struggle to get credit. Is Bloom’s business model inherently risky? And will creditors be willing to take a gamble on borrowers with bad or no credit? -2

Growth Potential

  • Bloom is presented with an undeniably lucrative opportunity to link creditors with unbanked populations. More than one-third of the world’s population does not have a bank account and many more do not have access to credit. +4
  • The credit industry has been under the microscope following Equifax’s massive data breach, which exposed the private information of 143 million users. The combination of BloomID and security for invitations makes Bloom a much more secure platform. +4
  • Unlike other ICOs, Bloom’s multi-purpose token adds real value to the business. +2
  • The Bloom platform is likely to benefit from positive publicity tied to its admirable business objective of expanding credit options to all. +2

Disposition

Factoring all the above, we give Bloom a generous score of 5 out of 10. It should be noted that the ICO launch date has yet to be announced, which means our rating may be revised once details of the pre-sale surface.

Bloom is a highly ambitious project that, if realized, will benefit society in many ways. But there are glaring concerns related to regulation, credit risk and implementation that still need to be addressed. Combined, these factors could adversely impact institutional adoption.

The Bloom protocol will be developed in six major phases, culminating in the democratized autonomous credit infrastructure. The pace and timing of that roll out has yet to be determined, a clear sign that Bloom is still in its early concept stage.

Another review of Bloom is likely warranted once the company provides more explanation regarding its technical features, and how it plans to tackle the five problems discussed in its whitepaper.

Investment Details

No ICO pre-sale information has been provided yet. Users are encouraged to follow Bloom’s website or subscribe to their newsletter for the latest information.

Featured image courtesy of Shutterstock

 

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  1. jagrmeister

    October 17, 2017 at 3:26 am

    I work in alternative credit; the issues relating to credit scoring are significant, to be sure. If you look at the peer-to-peer lending space, or alternative lenders, there is use of a range of new technology to address these shortcomings, including addressing the unbanked problem. I am interested in Bloom for these reasons. But from your review, I have no idea what they’re doing uniquely to address these issues; I realize they’re “putting it on the blockchain” but that doesn’t even address the issues identified in the review. You list:

    1. Cross-border credit scoring
    2. Backward-looking credit assessment
    3. Lenders are limited in terms of global reach
    4. Risk of identity theft
    5. Lack of competition

    Interestingly the article starts off talking about the problems of the unbanked but none of these 5 issues have to do with the core problem of today’s credit system that omits them.

    The write-up doesn’t address any of the five areas enumerated, or show why Bloom would solve them. For #1- cross-border credit, this is one of the most problematic issues. The reason cross-border credit isn’t done is because the laws range widely in terms of what data you can collect to construct the score. How does putting the credit score on the blockchain change that? Backward-looking credit assessment? It depends what you mean by this; the scores are meant to be predictive. Which is why recent events matter more; a failure to pay 10 years ago may not show up on your current score. Further, to the degree, you can reassess the core data in a way to be more ‘future-oriented’ it’s unclear what blockchain has to do with it.

    For # 3 “Lenders are limited in terms of global reach”, see my response to #1. There’s a reason they’re limited and it was to do with limitations on collecting and applying data to scoring across borders. Beyond scoring, if lenders want to lend across borders, they then have to worry about differences in law as far as collections. So even if there’s a cross-border score, they may not be able to practically use it.

    #4 really isn’t an issue. Prospective borrowers don’t shy away from loan apps because of concern of identify theft.

    #5- possibly. Transunion, Experian, and Equifax are responsible for collecting their own data regarding the borrower’s history; they simply use FICO to do the mathematical scoring. Whether one needs someone else to do with FICO does already remains to be seen. Again, if one does, it’s unclear why a blockchain solution is needed.

    The way this article reads is “There’s a problem of the unbanked…now here are 5 problems Bloom identified which have little to do with the unbanked….and we have no explanation for what Bloom is actually doing to even address these five issues”

    Hacked has been on a tear in terms of covering a volume of ICOs. But perhaps this is quantity over depth analysis. I don’t want to read an incomplete summary of the whitepaper- in that it contains some of the bullet points, but none of the explanation. If the whitepaper also didn’t have explanation- then the review should point that out. The alternative lending world is full of companies optimistic they could reinvent credit scoring and ended up in ‘no mans land’ and never found a market.

    What I’d have preferred to see is examination of whether Bloom’s proposed solution actually addresses any of its stated objectives; why should we believe they can solve the problems they claim to tackle.

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ICO Analysis: Metronome

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If the ICO market has taught us anything, it’s that startups are utilizing blockchain technology to dream big. Metronome certainly fits the bill of a highly ambitious blockchain project, and one that seeks to transform the current landscape governing cryptocurrency.

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Metronome is looking to become the first platform that enables value transfers across different blockchains. In doing so, it aims to solve many problems currently plaguing the cryptocurrency market, including price volatility, a lack of portability between blockchains and slow transaction speed. Its whitepaper outlines a strategy for building a cryptocurrency around the core principles of self-governance, reliability and portability.

The project’s whitepaper does a good job contextualizing the limitations of existing blockchain technology and how, conceptually, Metronome can fix these issues. However, technical details about how the project will be implemented are lacking. (As an aside, the author felt that a 30-page whitepaper was somewhat light given the scope of what Metronome is trying to accomplish.)

If the ICO market has taught us another thing, it’s that implementation is usually the biggest concern investors have when trying to evaluate a new cryptocurrency.  In this vein, Metronome’s whitepaper reads more like a foray into new product features rather than a roadmap for implementation. A closer look at the content also reveals that Metronome isn’t really building a blockchain, but is looking to launch on Ethereum and eventually Ethereum Classic, Rootstock and Qtum.

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Token

Metronome is launching an Ethereum-compliant token called MTN. The token supply is set at 10 million initially, with 80% distributed via reverse auction. Unlike other coins, there is no fixed or limited supply.

The public ICO launches on Feb. 5 and will be open for one week. MTN’s initial price will be set at 2 ETH, which is equivalent to roughly $2,000 USD at Jan. 17 prices. The price will decrease at a tiny fraction every minute. New tokens will then be issued daily at a rate of around 2,880 MTN, which will continue indefinitely. This distribution model has raised legitimate concerns over token inflation that aren’t really addressed in the whitepaper.

The cryptocurrency will enable quick payments with settlement time ranging from 15 to 30 seconds. Mass pay and subscription features will also be used to drive adoption and utility across the ecosystem.

Team

Metronome is run by BloqLabs, which employs a talented team of blockchain developers, early adopters and venture capitalists. Co-founder Jeff Garzik was an early contributor to Bitcoin Core and champion of the now defunct Segwit2x hard fork project. Peter Vassenes also has a long backstory in the bitcoin market, even though it hasn’t always been positive (he was a key player in CoinLab, which was part of the Mt. Gox fiasco).

The BloqLab team is 15 people deep, including blockchain engineers, data scientists and a chief cryptographer (Vessenes). Six advisers are also listed on the Metronome website, along with a list of partners that includes Jaxx, New Alchemy and Smith + Crown.

Verdict

Metronome has generated a lot of discussion within the blockchain community. Whether you back the project or believe it is biting off more than it can chew, it’s tough to be indifferent. The author is putting his best foot forward in balancing out the pros and cons of the project.

Risks

  • There’s a lot of confusion about MTN’s pricing and inflation models. The project’s reverse auction is designed to limit speculators from hoarding MTN cryptocurrency. The only problem is ICOs typically attract speculators, as well as investors. With continuous inflation daily, it’s hard to evaluate what the token will be worth post-ICO. -3
  • A lack of technical/implementation specifications is cause for concern, especially for those who are on the fence about the project. At the time of writing, the project’s proposed smart contracts have not been published. -2
  • The roadmap doesn’t inspire confidence in how this project will evolve in the future. At the moment, all we know is that the first cross-chain launch on Ethereum Classic will occur sometime in Q1 2018. -2
  • The whitepaper seems to indicate that MTN only applies to blockchains that utilize smart contracts. In this sense, is it truly portable? -2

Growth Potential

  • There’s considerable demand for cross-blockchain solutions, and this will only grow as more cryptocurrencies enter the market. What Metronome is proposing to do can have a profound impact on the market. Since this section is called growth potential, a project deserves points for addressing a real need in the market. +3
  • Metronome is proposing solutions that exceed the existing capabilities of some of the world’s leading cryptocurrencies, including bitcoin, Litecoin, Ethereum and Ripple. For example, bitcoin settlement time is 10 minutes, Litecoin 2.5 minutes and Metronome 15 seconds. The cryptocurrency is entirely self-governed through autonomous contracts. By comparison, Ripple isn’t self-governing at all, whereas changes to Ethereum depend heavily upon a small team. +4
  • Competition for similar blockchain solutions appears limited at the moment. Metronome shares characteristics with Wanchain in that both cryptocurrencies are promoting inter-blockchain communication on top of Ethereum. That being said, Metronome is definitely unique in what it can potentially bring to the table. +2
  • The founders are so confident in the project and its philosophy that they are relinquishing full control of the platform after the token launch. The team will continue to support the project through development. +2.5
  • In terms of domain knowledge and experience, very few teams can compete with Metronome’s pedigree. Although there’s some controversy surrounding the CEO’s involvement with Segwit2x, it’s really not that big of a deal. Segwit2x failed because it ultimately lacked consensus. It certainly won’t be the last hard fork proposal designed to make bitcoin better. +2.5

Disposition

Taking into account the risks and opportunities, we arrive at a score of 5 out of 10 for Metronome. Prospective buyers may want to monitor the project’s technical evolution before putting skin in the game. Metronome offers a unique idea and can be a high-impact project, but still has glaring holes when it comes to implementation. That being said, there may be more to the project than the whitepaper presented. Timelines, technical specifications and clarity around pricing/inflation could easily take the score from a 5 to a 7.

Investment Details

  • Token Type: Utility
  • Platform: Ethereum
  • Symbol: MTN
  • Total Supply: 10 million
  • Available in Crowdsale: 8 million
  • Public Sale: Feb. 5, 2018
  • Payments Accepted: Ethereum

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: Zenome

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Genomics is an interdisciplinary field of science focusing on the structure, function, evolution, mapping, and editing of genomes. A genome is an organism’s complete set of DNA, including all of its genes. In contrast to genetics, which refers to the study of individual genes and their roles in inheritance, genomics aims at the collective characterization and quantification of genes, which direct the production of proteins with the assistance of enzymes and messenger molecules. In turn, proteins make up body structures such as organs and tissues as well as control chemical reactions and carry signals between cells. Genomics also involves the sequencing and analysis of genomes through uses of high throughput DNA sequencing and bioinformatics to assemble and analyze the function and structure of entire genomes. Advances in genomics have triggered a revolution in discovery-based research and systems biology to facilitate understanding of even the most complex biological systems such as the brain.

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The field also includes studies of intragenomic (within the genome) phenomena such as epistasis (effect of one gene on another), pleiotropy (one gene affecting more than one trait), heterosis (hybrid vigour), and other interactions between loci and alleles within the genome. This brief primer on genomics is a good Segway into the Zenome project.

The Zenome Project

We are now able to objectively analyze and observe the behavior of what makes DNA be what it is, exploiting totally new shores on the field, generating an enormous amount of detailed information including patterns and relations between organized molecular systems in an organic entity and biological automation on a whole new level.

According to Nature.com “Two research groups came across the phenomenon independently while studying extracellular vesicles — pieces of cell membranes that pinch off into bubbles and float away from the cells. These vesicles circulate throughout the body, but little is known about their function. The teams, led by neuroscientist Jason Shepherd at the University of Utah in Salt Lake City and cell biologist Vivian Budnik at the University of Massachusetts Medical School in Worcester, looked at mice and flies (Drosophila melanogaster), respectively.”

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Projects like Zenome allow for individual units around the world share their DNA information with a decentralized blockchain based platform, where digital representations of the DNA, under the form of accurate information, are stored, analyzed and exchanged between scientific research foundations, academic labs, hospitals and health technology programs and pharmaceutical research to mention a few.

The Token

ZNA is the native currency of the Zenome Platform, a token based on the Ethereum Network (ERC-20).

The initial pool of tokens released for the presale was 3.2 million ZNA. After the presale reached about 350,000 ZNA, the remaining tokens were burned.

The total number of tokens that will be released at the time of the main token sale is 35 million, of which 25% will be frozen for use as a reward to network participants (for example, for the provision of hard disk space or computing power). Thus, the initial supply was 3.2 million at the moment of the presale. The total supply of the token is 35 million ZNA (including burned tokens), while the max supply will never surpass 35 million tokens. At the same time, the circulating supply will not be more than 75% of the total supply, which is about 26.25 million ZNA.

As for the use of the token, it is a utility token that performs a functional role in the Zenome system, which means it is not just a speculative tool. Inside the Zenome network, a Zenome platform user could use the token to purchase genetic tests and reports, pay for genetic counselors, physicians, and health managers. In fact, you can pay for any service related to your genome, up to and including dating services.

Industrial companies, academia and research sectors will be able to purchase personal genomic data (genetic, medical, behavioral and other) based on real human individuals that are part of the network in exchange for ZNA tokens.  ZNA will be used to build a market for genomic data and any services around it.

Team

The founders of the Zenome Project are Alexey Gorbachev (Research Institute of Physical-Chemical Medicine,  whopreviously worked for Quantum, GenEra and, Institute of Nutrition) and Nikolay Kulemin with a Ph.D. in Bioinformatics from the Moscow Institute of Physics and Technology, department of molecular and biological physics (MIPT). Vladimir Naumov (Genomic Data Scientist) and Sergey Popov (Blockchain Developer) are concluding the core of the Zenome project. The team seems aptly qualified to run a genomics project of this nature.

Verdict

Until recently, the genomics industry was based mostly on speculation, using a substantial amount of animal testing experiments as “information” inputs in order to analyze a biological concept, understand it on a certain degree and determine how it might affect humans. One can readily see how this approach is limiting when it comes to studying human DNA.

Platforms like Zenome can gather “information” regarding the human DNA based on real data collected by physical labs across the globe, which will create certified digital or physical representations of our DNA. We can send this DNA information to the Zenome platform through an application and that would support the fact that this specific information is a catholic example of a specific individual’s DNA.

Zenome aims to provide individuals with the opportunity to control and even monetize their genomic information. One of the project’s core strengths is the promise of establishing equal conditions for drug treatment. It is this interplay that could make Zenome an attractive investment for those willing to learn more about the industry.

Risks

Zenome might sound like a solid project, but if you’re looking at it as an investor and only, you should consider the following facts:

  • The genome market is a brand new field not only when it comes to blockchain but also on a physical scale. There will be a very strict group of organizations that would be keen on purchasing genome databases in the near future. -1
  • A user’s personal genomic information could be exposed to companies that may try to personalize their products based on your data. In other words, there may be significant ethical issues at play in this industry. -3
  • In order to have your genomic data sent to the Zenome platform, you should visit a local lab, authorized by Zenome and experience DNA Sequencing on first hand. This may limit adoption, especially when you compare it to some of the leading DNA ancestral services on the market. (These services send the kit directly to your door and your DNA sample can be sent back via mail.) -2

Growth Opportunity

Zenome plans to hit a market cap of $70bn by the end of 2019, based on their partnerships and analysts. Previous ICO speculations showed us that this number could vary dramatically from the expectations, especially in 2018, where academic, industrial, governmental and banking money are flowing into the blockchain sphere. Below are some of the biggest growth opportunities associated with Zenome:

  • Blockchain was certainly a surprise for all of us and while some are obsessed with the monetary applications and the profitable side, there are literally 4th generation blockchain based projects that are on another level entirely. These projects could unveil the real capabilities of that new technology in almost any possible field we can think of. Zenome appears to be on this level. +3
  • Creating the next generation of drugs that target molecular-level functions is unavoidable. A project like Zenome could help us reach that potential. In other words, the project is well poised to capitalize on partnerships with the pharmaceutical industry, which is highly lucrative. +3
  • Data science technologies in combination with accurate information about human genomics certainly create a whole new concept in the sphere and that is what Zenome is working on. Eventually, health tech will start to integrate  Zenome or similar platforms will have to be established in order to understand better and most important accurately what we are made of, how we can affect our environment and how it affects us. +3
  • The team is led by domain experts in genomics as well as blockchain professionals – a rare combination that could lead to exceptional results. +3

Disposition

The Zenome platform may need some time to create a network of labs, academic partnerships and most important convincing people to do a DNA test is not that simple yet.

We know that we are rolling into an era of machines and humans integrating their intelligence and capabilities into single use cases, but Zenome might sound a little bit “Sci-Fi” for the majority of the people, causing a long curve.

Long-term investors will appreciate its value, realizing the disruption a project like this could bring along when the global health industry realizes the capabilities it offers.

A score of 6 out of 10 is reserved for Zenome, based on present facts.

Investment Details

  • Type: Crowdsale
  • Symbol: ZNA
  • Pre-Sale: Concluded
  • Public Sale: February 1st, 2018
  • Payments Accepted: ETH

Disclaimer: The writer has no position in Zenome at the time of writing.

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: Medicalchain

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Medicalchain is aiming to disrupt data management in the healthcare industry using decentralization and the blockchain technology.

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Despite the world being in the midst of a data revolution, medical data is yet to catch up with other industries. From centralization, to slow speeds and vulnerable networks, healthcare systems have not evolved along with other industries.

Medicalchain is solving four significant issues with the current state of healthcare data storage.

  • Interoperability: Health data contained in legacy systems is fragmented because of varying systems and formats. There is no single version of truth which can be used and accessed by all the stakeholders.
  • Security and Fraud: Sensitive information about patients is stored in centralized legacy servers. WannaCry attack crippled the NHS with an attack on more than 230K computer systems. Medical data is sold on the dark web for almost 10x the price of credit card info.
  • Data storage: Medical data is usually controlled by a single entity which results in high dependency on that system. NHS recently lost the medical records of around 700K patients putting their health at risk.
  • Privacy control: Patients have no control over who uses and accesses their medical information.

Medicalchain’s decentralized platform enables secure, fast and transparent exchange and usage of medical data using the blockchain technology. The platform is built using a dual blockchain structure. The first blockchain controls access to health records and is built using Hyperledger Fabric. The second blockchain is powered by an ERC20 token on Ethereum and underlies all the applications and services for the platform.

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Hyperledger fabric allows access control and multiple layers of permissions which is ideal for the privacy control use case. Only the patients can access their medical data while blockchain makes it immutable to hacks and breaches.

Medicalchain is not just a platform to store and access medical data but provides an infrastructure for digital health application and services to be built on top of the healthcare database. The company is currently developing two applications to work alongside the platform: a doctor-to-patient telemedicine application and a health data marketplace. Going ahead, Medicalchain aims to serve as an ecosystem for decentralized healthcare applications. A closed beta platform will be launched in February of this year.

Token

The ERC20 MedToken will be used to access and pay for applications built on top of the Medicalchain data. When conducting telemedicine consultations (using the Telemedicine application), patients will pay the doctors using MedTokens.

Pharmaceutical organizations will pay the patients in the form of MedTokens if the patients provide them access to his medical history using the marketplace application.
Users will use MedTokens for a variety of other applications and services that will be developed on Medicalchain’s platform.

Team

Co-founder Dr. Abdullah Albeyatti created an application called Discharge Summary in 2016 to generate accurate medical reports on patients, before they are discharged. He created these frameworks to create standardization in medical reports. Discharge Summary is being used in 3 hospitals in the UK. Discharge Summary is a very small component of Medicalchain, and contrary to many claims, it would be inappropriate to suggest that Medicalchain is being tested in 3 hospitals.

The other Co-founder Mo Tayeb is a tech entrepreneur and has previously founded technology, finance, and e-commerce companies.

There are 13 members in the team with extensive experience in healthcare and tech.

Medicalchain has eight advisors which include healthcare professionals and blockchain specialists.

Verdict

Medical error is the third leading cause of death in the United States; add to it the woes faced by NHS in 2017, we can conclude that Medicalchain is working on a real problem which needs immediate solutions. The team looks solid with a mix of both healthcare and technology.
Medicalchain also scores well on the hype factor, with more than 10K members on the Telegram group a couple of weeks before the ICO.
But as with any industry with solid blockchain use case, there are many current and upcoming projects competing with Medicalchain.

Medicalchain vs. competition?
The most well-known project in this space is Patientory. Patientory differs from Medicalchain in 2 major aspects. Patientory is primarily focused in the US, while Medicalchain has global ambitions. After initial testing in the US and the UK, Medicalchain will expand in other geographies in this year itself. Another major differentiator is that Medicalchain follows a bottom-up approach, where they plan to integrate patients and doctors onto the platform and then make the platform functional using the Telemedicine application. Patientory follows a top-down approach and is trying to partner with establishments, hospitals, healthcare organizations. We have a favorable view of the bottom-up approach, as it makes the project less dependent on partnerships and can be readily operational.

Medibloc is another platform operating in the same sector. Medibloc is based on Qtum while Medicalchain’s data layer is based on hyperledger fabric, which we feel is more suitable for this use case. We also think Medicalchain’s team more capable than either of these projects.

Overall Medicalchain is a good project on the conceptual level, but some concerns start to emerge once you think about executing it on scale. We will discuss some of these concerns in the Risks section.

Risks

  • The team will have to interact with multiple entities including the doctors, patients, pharmacies, insurers.
    Bringing all these entities on board and convincing them about the potential benefits won’t be an easy task. -2
  • Interacting with the regulatory authorities of each region will have its own difficulties. Each geography has its specific laws and regulations when it comes to medical data. E.g., in the US, the patients do not necessarily own their medical data, the hospitals and the clinicians have the right over it. The UK has a central healthcare database, but Medicalchain will need to extract data from the UK’s central servers which are based on subpar technology. -3
  • Medicalchain is expected to face significant competition in the future. Tech giants like IBM are actively exploring blockchain solutions for the healthcare industry. IBM recently collaborated with major insurers in India for blockchain solutions. -1

Growth Potential

  • The project fares better regarding the team, roadmap, and vision against the existing competition. Co-founder Dr. Abdullah Albeyatti has been working in this direction since 2016. +5
  • There is a significant growth potential for blockchain solutions in the healthcare industry, especially in the Healthcare data segment. Considering the issues that NHS had to face in the past year, UK seems like ideal geography to begin operations. +4
  • Medicalchain is also creating an application layer to build medical applications. The Telemedicine application and the health data marketplace differentiates it from other similar services and will create a pathway for future healthcare applications to be launched on the platform. +3

Disposition

We arrive at a score of +6 for Medicalchain. The score captures the growth potential of the project but also incorporates some execution level concerns.

Investment Details

  • Token Type: Utility
  • Platform: Ethereum
  • Symbol: MEDTOKEN
  • Pre-sale: Sold out
  • Public sale: 1 February 2018
  • Initial value: 1 MEDTOKEN = 0.25 USD
  • Hard cap: 24,000,000 USD
  • Total Tokens: 500,000,000
  • Available for Token Sale: 35%
  • Website link: http://medicalchain.com/
  • Jurisdictions Barred from Participating: U.S

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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