ICO Analysis: MetaHash

Blockchain is at a crossroads:

On the one hand, high transaction throughput can be achieved with centralized methods.

On the other, decentralized methods are decentralized but can only handle so many transactions before transaction speeds decrease and transaction fees increase.

MetaHash is yet another ICO that is trying to tackle the challenge of creating a blockchain that’s ready for mainstream usage.

According to the project’s one pager, the MetaHash network is capable of processing more than 5 billion transactions a day (vs. current limitations of 2 million a day) with only 3 seconds (or less) between transactions.

Not only is MetaHash fast, it also is decentralized (anyone can add a node to the network) and secure (protected by 5 different consensus algorithms).

MetaHash consists of 4 components:

  1. #TraceChain – TraceChain is the aforementioned fast and secure blockchain that can handle 5 billion transactions a day (50,000+ transactions per second) with no more than 3 seconds between transactions.
  2. #MetaApps – real-time decentralized applications (DApps) that look and work like regular web services and can be built using any programming language, such as C++, Php, and Solidity.
  3. #MetaGate – a directory for MetaApps with a multi-asset wallet (BTC, ETH, #MetaHashCoin, etc.) that isn’t resource-intensive and can be run on all computers.
  4. #MetaHashCoin (MHC) – MHC is the MetaHash network’s exchange asset and ensures the reliability of the network, facilitates exchange of services, and regulates MetaHash’s development and self-financing.

Token

MHC is used for payment:

  • Transactions – transactions are settled using MHC, which allows instant and reliable transactions of assets at reasonable fixed prices
  • Data storage – DApps use MHC to store data
  • DApp operation – In order to deploy DApps or smart contracts, developers need MHC
  • Other services – MHC is also used to buy public addresses, listing DApps in #MetaApps, advertising in #MetaGate, and more.

MHC received by the network from sale of services are used for training developers who build on MetaHash, improving the project’s quality, promoting MetaHash, paying owners of MHC for supporting consensus security through the hybrid Proof of Work/Proof of Stake voting model, and paying owners of computers and servers on the network.

MHC is emitted over time using a “multi-Proof-of-Stake” model that MetaHash calls forging. Instead of one node that stakes MHC being selected to verify a transaction (Proof of Stake), forgers on MetaHash validate transactions and create blocks together, with block rewards being divided amongst forgers depending on how many transactions users individually process.

9.2 billion MHC will be created and released into circulation over 10 years.

3% are for founders – founders can’t sell their tokens until January 1, 2020.

2% are held in reserve for things like hiring staff, advisors, and PR.

10% are distributed during ICO Round A (live now).

10% are distributed during ICO Round B (launched after forging starts).

5% are for building Ethereum and Bitcoin forks (MetaHash will leave anchors in these blockchains for added security).

50% of MHC are issued via forging over 10 years (gradual release – 15% in year 1 ending in 5.9% in year 10).

10% are emitted over 10 years (1% per year) as reserve funds used for the project’s development and promotion.

10% are emitted over 10 years (1% per year) to incentivize and pay the team.

ICO proceeds are used as follows.

  • 33% advisors and authors fees
  • 22% reserve
  • 16% advertising
  • 16% development
  • 13% business development

Team

The team behind MetaHash is the same one behind AdSniper, an advertising company that according to MetaHash, built advertising networks capable of receiving and sending more than 100,000 requests per second, among other accomplishments.

However, we weren’t able to independently verify these claims, and information on AdSniper is sparse (though this may be due to the fact that the company is Russian and we don’t have reliable English-based information about the company).

Advisors

MetaHash counts the following individuals amongst its advisors:

Brock Pierce – Pierce is a known name in the blockchain industry as the co-founder of Blockchain Capital (BCC), which is the company behind EOS (marketed via a different entity called Block.one), former Director of the Bitcoin Foundation, and one of the wealthiest individuals in cryptocurrency, with a net worth estimated between $700 million to $1 billion.

Verdict

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

Risks

  • They claim that their mainnet can handle more than 60,000 transactions per second. Though the demo of their product is convincing (contact the team for more details), it remains to be seen whether or not the mainnet can handle real-world usage that high. (-0.5)

Growth Potential

  • MetaGate, the gateway to MetaHash’s blockchain, is live and shows what MetaHash is building (+2)
  • They seem to have a very strong marketing and PR effort, with many users in their Telegram, a decent amount of Twitter followers, a decently long Bitcointalk thread, articles in many cryptocurrency publications, and high ratings from some ICO reviewers (+3)
  • Strong advisory board, including industry veterans like Brock Pierce (+2)

Disposition

MetaHash is yet another team trying to build a highly scalable blockchain. While no blockchain is widely used enough (yet) to demonstrate any real ability to handle large-scale, real-world throughput, MetaHash’s product demonstration is convincing. In addition, their mainnet is up and accessible with MetaGate, and their marketing and advisory board are both strong. As such, interested investors should definitely give the MetaHash project a look.

MetaHash receives a 6.5/10

Investment Details

  • Type: Native – Utility
  • Symbol: MHC
  • Platform: Native
  • Crowdsale: Live
  • Minimum Investment: None
  • Price: 1 MHC = $0.0391 (ICO Round A)
  • Hard Cap: $36 million
  • Payments Accepted: ETH, BTC
  • Restricted from Participating: Every nationality except Singapore, Socialist Republic of Vietnam, People’s Republic of China or residents of a country where American embargoes and sanctions are in force, namely Iran, North Korea, Syria, Sudan or Cuba.

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Featured image courtesy of Shutterstock.

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