ICO Analysis: Enecuum

Most blockchains face problems in one or more of the following areas: scalability, security, and privacy. Many in the community think that it is not possible to enhance scalability without sacrificing decentralization, yet a new challenger, Enecuum is willing to change this view thanks to a high number of technical features such as HyperDAG and a mining algorithm called Trinity. The team’s claim that the test-net already has reached a speed of 9,000 transactions per second also sounds quite promising. It should be noted also that the main-net which is planned to be released in 2019 is expected to scale up to one million transactions per second.

Trinity is a mining algorithm which combines Proof of Work, Proof of Activity and Proof of Stake with the result of a higher speed, scalability, decentralization, and security. Three different mining algorithms are used, thus the name Trinity. Mining is conducted in three different stages. In the first stage, PoW mining opens a macroblock, consisting of blocks with a size between 4 KB and 4 MB. In the second stage, PoA mining creates microblocks and publishes them into macroblocks. In the third stage, PoS mining rechecks the state of accounts related to these transactions.

Moreover, this second stage of PoA mining can be conducted by mobile phones. As generally a quite low percentage of mobile devices’ data processing capabilities is utilized, the rest can be used to publish microblocks in return for token rewards. Any mobile device with minimum requirements of 1 GB RAM, 1 GHz CPU and Android 5.0 can run the Enecuum miner with a drain rate of 5% for 30 minutes. These miners get 70% of the mining reward, showing that the Enecuum team puts the highest emphasis on phone mining compared to others.

HyperDAG is one of the most promising technical features which Enecuum displays. The reader might be already familiar with DAG (Directed Acyclic Graph) as a technology used by several cryptocurrencies such as Nano and IOTA. HyperDAG is introduced as a more advanced form of DAG with the major difference of new transactions’ having a whole group of previously added transactions as an edge instead of merely just one.

SHARNELL (Shared Noncommutative Exponential Liner Logic) Smart Contracts is another invention from the Enecuum team. Exclusively consisting of math formulas and business-oriented linear logic, these “light” smart contracts are more secure as their introduction makes reliable automatic testing of smart contracts possible, easier to create thanks to the use of a popular programming language and more suitable for common operations and transactions. The second kind of smart contracts, “heavy” smart contracts are advised to be used for more complex operations. All smart contracts in Enecuum are written in JavaScript and executed on Google’s V8 Engine.

Token

ENQ is the native token of the Enecuum network. It is used as payments for publishing smart contracts, performing complex mathematical computations, creating custom macroblocks as well as new tokens, and participation in PoS mining. Miners will be paid in ENQ in return of their efforts as well. The team claims also that ENQ tokens can be received and sent with no fees.

Token metrics seems favorable for the ICO investor as no bonuses are offered to early stage contributors. The token sale is conducted in three stages. As only early and strategic partners and funds were allowed to participate in Stages 1 and 2, community participants should look for Stage 3, which will start on Oct 31st. As the KYC window ends on October 15th, any person considering participating in the sale should hurry to submit his or her interest.

The initial total supply of ENQ is 1,297,296,000 tokens with the following token distribution:

  1. 46% token sale
  2. 15% Enecuum team
  3. 32% reserve fund
  4. 5% advisors
  5. 2% airdrop

Team tokens are locked until November 15, 2019, and unsold tokens will be allocated to the reserve fund where they will be locked for one year or longer.

The number of ENQ tokens which will exist ever is 4,324,320,000. 30% of these tokens, 1,297,296,000 ENQ, will be pre-mined to create an initial distribution pool. Another 30% is estimated to be mined during the project’s first five years and the rest 40% is to be mined during subsequent years.

The team is planning to use the reserve fund as follows.

  1. 30% education programs
  2. 20% promotion
  3. 50% infrastructure projects

Team

CTO Anton Nikonorov: Nikonorov has worked at Sberbank-Technology, a subsidiary of Sberbank founded to maintain the bank’s IT system, for almost three years.

Jevgenijs Vainshetins: Before joining Canonical Ltd., a software development company based in London, as a director, Vainshetins was an employee at Huawei Technologies, Cogent Communications, Mobotix AG and Verint.

Maxin Motin: Motin has worked as the head of business communication at MegaFon, a Russian telecommunication service provider, and as the vice president of business development at Football Club Moscow.

Jason Yee: Yee was a regional manager at National Australia Bank and the head of finance at BNP Paribas Wealth Management Hong Kong.

Adrian Guye: Guye has worked as a director at UBS, a financial services company located in Zurich, as a consultant at Société Générale and Barclays Investment Bank and as a senior associate lawyer at Gide Loyrette Nouel.

Aleksandra Afanasyeva: Afanasyeva is an associate professor of the department of mathematics and IT at the Saint Petersburg Academic University.

Sergey Bezzateev: Bezzateev is the head of the department of IT Security at the Saint Petersburg State University of Aerospace Instrumentation.

Alexander Granin: Granin has worked as a research developer at Kaspersky Lab.

Advisors

Jorge Sebastio: Prior to joining Huawei Technologies UAE as the CTO for partner eco-system data center solutions, Sebastio was the head of global services solutions at International Turnkey Systems Saudi Arabia, the assistant GM, VP & technical SE at Computer Associates and a project leader at Canada Post Corporation.

Stan Prihodko: Prihodko is the head of crypto asset management at GEM Capital, a fund with over $400 million in assets.

Shelly Hod Moyal: Before co-founding iAngels, an angel investment firm, Moyal worked at companies such as Goldman Sachs, Avenue Capital Group and UBS.

Verdict

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

Risks

  • Independent code reviewers think the code in their GitHub does not reflect most of the claims made in the whitepaper so far. (-2.5)
  • Although the team is highly experienced in software development, the absence of actual blockchain development is a worry. (-1.5)
  • Although the team claims that they have already reached a speed of 9,000 transactions per second, there are not much to back it as the test-net has not been made public yet. (-2)

Growth Potential

  • Great team and advisors experienced in software development, management, and (+3.5)
  • SHARNELL Smart Contracts provides higher security as they make automatic reliable testing possible and this can attract interest from projects aiming to launch ICOs. (+2)
  • PoA mining will be conducted by smartphones and 70% of mining rewards will be allocated to their owners. A more democratic mining with ASIC resistance should have the interest of the mining community eventually. (+1.5)
  • HyperDAG is a more advanced form of DAG which is used in Nano and Iota. (+2.5)

Disposition

Enecuum is a blockchain project with superior technical features. SHARNELL Smart Contracts, invented by the Enecuum team, enables automatic reliable testing and ensures higher security. Mining is conducted in three different stages, thanks to an algorithm called Trinity which is a combination of proof of work, proof of activity and proof of stake. As by default, 70% of mining rewards are allocated for PoA miners, or people using their smartphones for mining, a fair mining environment has already been established. A more advanced form of DAG, HyperDAG is used to obtain a higher transaction speed. Although the team claims that they have already reached 9,000 TPS on the test-net, it is better to be wary for now since it is not possible to verify this publicly. Although many team members are highly experienced in software development, management, and finance, the absence of blockchain development for such an ambitious project is a worry. Enecuum receives a 4.5/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: ENQ
  • Platform: Ethereum
  • Crowdsale: October 31st
  • Minimum Investment: No
  • Price: $0.04
  • Hard Cap: $23,870,246
  • Payments Accepted: ETH
  • Restricted from Participating: China, North Korea, United States

For More Information

Featured image courtesy of Shutterstock. 

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