ICO Analysis: Edenchain
Edenchain purports to be the next generation smart-contract blockchain platform designed for enterprises to implement a ‘programmable economy’. Through Edenchain, users will be able to capitalize tangible/intangible values and trade them safely, quickly, transparently and effectively on the Eden Exchange. EdenChain wants to build a blockchain and platform to support applications across various sectors, including:
Edenchain identified the following trends in the blockchain, and how it will solve problems with existing blockchain platforms:
- There is an ongoing trend in the development of the programmable economy, but the main obstacles that hinder adoption of blockchain platforms are scalability and performance.
- Almost every transaction involving tangible assets is sold and managed by intermediaries, which increases transaction costs.
- There is an absence of platforms that can serve as intermediaries for enterprises and individuals to capitalize on their intangible assets.
- There is a lack of talented developers with blockchain knowledge to help companies adopt blockchain technology, slowing adoption rates.
In view of the trends above, Edenchain’s proposed solutions are:
- To solve scalability by combining namespace technology with Merkle Tree, so that it can isolate transactions by namespace and ensure high-performance and scalability. Edenchain constructed an execution system capable of parallel processing by namespace, which allows ease of scaling. Each namespace can process up to 1,000 transactions per second. To scale, an enterprise can simply increase the number of namespaces.
- To ensure a secure platform, Edenchain offers a high level of security with regards to interoperability by implementing both hardware and software solutions. For hardware, intel SGX enclaves are used to protect against attackers. For software, Elliptical Curve Cryptography and Threshold Cryptography are used.
- To create a market for all tangible and intangible assets, Edenchain allows users to tokenize their assets. Thereafter they can be traded as a cryptocurrency.
- External data are ensured for reliability through the use Median Voter Theorem for continuous variables.
- Energy-efficient consensus algorithm via Proof-of-Elapsed-Time which was developed by Intel, randomly selects a lead node to generate the next block.
- Use of APIs to interact with Edenchain’s blockchain, shortening development time and cost. There is no need for extensive knowledge of building blockchains. Most developers are already comfortable using APIs. This speeds up adoption of Edenchain.
Edenchain is a permissioned blockchain which allows multi-functional usability and strikes a balance to harness the advantages of both public and private blockchains. It is unlikely that enterprises will adopt pure public blockchains because they have sensitive data that cannot be revealed to their competitors. A permissioned blockchain, on the other hand, offers some privacy with some decentralization.
Edenchain says it will offer the following advantages:
- Secure Interoperability: Ensures secure interoperability among on-chain and off-chain services.
- High Performance: Parallel execution; the blockchain’s speed is based on a parallel process of transactions.
- Per Transaction Fee: Affordable and reasonable processing cost for smart contract execution.
Edenchain also operates other products, including n ICO platform called HelloEden. This will be a full-service ICO platform, which provides a tokenization ecosystem, including legal services, KYC, smart contract development and marketing, among other services.
Cleandeal, a B2B open-market platform run by YT Corp. This platform will be launched in Q4 2018.
It also offer sMyCreditChain, which is the Pintech Firm Finger subsidiary that provides financial services P2P. This company uses the Edenchain platform for granting coins and blockchain technology for a rendering of services of P2P. This will be launched in early 2019.
The project roadmap is presented below:
Edenchain has a technical and business roadmap. Let’s start with business one.
Right after the ICO, the team will work on partnerships and the HelloEden ICO platform. In fact, the team has already been working on partnerships with their recently announced MoU signed with Across Asia Alliance (a network of 21 Venture Capital firms with over 780 traditional startups in their portfolio). More partnerships are expected during Q3 and Q4 of 2018, as well as the launch of EdenExchange and the full scale operation of the first ICO on the HelloEden platform.
The technical roadmap complements the business roadmap with key developments, including the release of a prototype in Q2 2018 and a Testnet launch in Q4 of the same year.
Launch and Prototype
The team has announced that two MVPs will be demonstrated prior to token sale. They have also said that these are the only two among many other products to be built on Edenchain. The team has already released the first MVP, E-Explorer, as per their roadmap. This shows that the team is able to deliver on its promises.
Edenchain competes with all other blockchains, but the most important are EOS and ICON.
ICON deploys Loop Fault Tolerance (LFT) Consensus algorithm, which is an optimized form of Byzantine Fault Tolerance solution. LFT allows achieving consensus in two steps against three steps as in BFT.
EOS also uses energy-efficient consensus algorithm called Delegated Proof of Stake (DPoS), although the main issue with that algorithm as per Vitalik Buterin is susceptible to bribery attacks, which can result in centralization.
EdenChain utilizes both a hardware and software solution to arrive at a consensus.
Eden uses Proof of elapsed time (PoET), designed and marketed by Intel. PoET is more efficient than regular POW. The integrity of the selection process is secured by Intel’s Software Guard Extension (SGX). The second consensus protocol uses Median Voter Theorem (MVT) to ensure continuous-type data fed to the nodes by E-oracle servers. Eden also has a unique triple layer architecture — the base layer, the validation layer (virtual machine) and the off-chain communication layer with oracles.
In terms of speed, ICON’s (although not explicitly mentioned) loop blockchain can do 3,000 transactions per second (TPS) per channel/layer with additional layers/channels added later, implying apossible speed of 9,000 TPS or more.
EOS architecture will support millions of TPS.
EdenChain can theoretically handle the limitless amount of TPS as it generates as many namespaces as needed and each transaction in maybe be paralleled. Each namespace runs 1,000 TPS.
The project has following token metrics:
- Token supply: 1.000.000.000 EDN
- Hard cap: 24.000.000 USD
- Price: 0.06 USD
- Pre-sale A – had a bonus of 20%
- Pre-sale B – has a bonus of 10%
A hard cap is reasonably small both from a token metrics perspective and in comparison to similar projects (for example Yggdrash had a hard cap of $40 million USD). The bonus structure is also reasonable.
The token distribution is as follows:
Edenchain allocates 40% of the total token supply for the token sale. It also has implemented reasonable vesting periods and lock-ups in order to avoid risks of token price dump after listing on the exchanges.
Under such vesting period, all sold tokens would be only released in batches of 1/5 (including all bonuses) and the first batch will be released several days before listing which will approximately happen at the end of June/beginning of July.
From a token economics perspective, Edenchain is incredibly attractive because it serves multiple purposes. EDN will be used for transaction fees over the network, exchange fees for trades on EdenExchange, collateral for ICOs listing on Edenchain platform, and to operate master nodes. Developers will need to use the token in order to use the blockchain and operate their service offering on it.
On the supply side of tokens, the team has adopted a hyper-deflationary model, where a portion of EDNs used as transaction fees will be burned, reducing total supply of the tokens.
The confluence of increasing demand with enterprise adoption of Edenchain and decreasing supply suggests an attractive valuation for EDNs in the future.
As with all blockchain platforms, the team is one of the most crucial factors that will make a project successful. Edenchain appears to have a solid mix of talented developers and business leaders to grow the platform and encourage adoption by enterprises.
The four core developers are in their 30s to 40s. This comes as a strength because of their extensive experience in high-end technology. This differs vastly from most other blockchain teams, which are commonly made up of students who have little business experience and had just graduated from university.
James Ahn has over 20 years of experience in IT. He is the Founder and CEO of MHR Inc. (Software development for Machine learning), as well as the Founder and CEO of DeepNumbers Inc. (Financial Machine learning). He is an adviser of the NIA Platform, a technical adviser to the National Computing & Information Service and an adviser to Cloud for the Korean Agency for Technology and Standards.
Jenny Ryoo was was leading scientist in MHR Inc. for 11 years and was also engaged in research for the Korean government.
Hokyun Kim has over 18 years of IT experience who developed SK Telecom’s WAP Mail Gateway technology, which provides standardized APIs on 7 portals, reeling in 200,000 paid subscribers within a month of service launch.
Brian Park’s experience in IT spans over 15 years, including stints at SK telecom and Korean telecom. He developed direct push technology on Windows Mobile and other software.
Overall, the adviser team is a better than average. All advisers are confirmed with many coming from a science background and serving big-name companies.
The company’s partners include Byzantine Partners (a venture capital firm), Across Asia Alliance (a larger network of VCs) and Finger, a specialized fin-tech company.
Edenchain offers a highly ambitious solution and product. It is a Korean blockchain like ICON and the market expects a similar performance from Edenchain. Comparison against EOS has also been made and we might see Edenchain achieve similar results as EOS. It should be noted that Edenchain has successfully delivered their first MVP and highly regarded cryptocurrency influencers such as Ian Balina have shown interest in the platform. The combination of ambitious project scope, excellent team expertise, working MVP and high hype level makes Edenchain definitely a worthwhile investment.
- The project’s main risk in the fact that it is too ambitious. This can make not only lead to a lack of focus, it may instill false expectations in the market. As a result, Edenchain will be scrutinized very closely by its proponents as well as the market more generally. (-2.5)
- It will be a first global project of such scope for many of the personnel on board. (-1)
- A very ambitious project which aims to solve numerous problems (scalability and security) in the blockchain space as well as offering a wide range of services related to tokenization and supporting global blockchain ecosystem and community. (+1)
- The blockchain platform was designed specifically for enterprise users, making it easier and likelier for their adoption. (+1)
- Good team with knowledge and technical expertise to meet their goals. (+1)
- The team has successfully released their MVP as per their promise. (+2)
- Token metrics and token offering structure are reasonable and well-developed. (+1)
- The project has huge hype potential. All opinion leaders put Edenchain in their top 10 ICOs list. Ian Balina has shown interest in this project. (+2.5)
- The technical whitepaper is very detailed and explains the architecture, security, and technology very well. (+1)
- The project has a realistic roadmap, which they have been achieving so far. (+1)
A good combination of product, team and token metrics give Edenchain a favorable score. The team has delivered on its promises so far. The project has a working MVP and high-level hype and support of opinion leaders. Considering that all of Edenchain’s competitors like Wanchain or ICON have a high market capitalization, Edenchain may be considered more attractive with its smaller market cap. At the same time, the market has a similar positive outlook on Edenchain in comparison to its competitors. Factoring all the above, Edenchain receives a score of 7.5 out of 10.
- Type: Utility
- Symbol: EDN
- Platform: Ethereum/Own platform
- Crowdsale: June
- Minimum Investment: TBA
- Price: 1 EDN = $ 0.6
- Hard Cap: $24 million USD
- Payments Accepted: ETH, USD
- Restrictions Barred from Participating: USA, Iraq, and China.
- Website and whitepaper: https://edenchain.io/, WP.
- Telegram: https://t.me/edenchainio
- Medium: https://medium.com/edenchainio
- Facebook: https://facebook.com/edenchainio
- Twitter: https://twitter.com/edenchainio
- Reddit: https://www.reddit.com/r/edenchainio/
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