ICO Analysis: Omnitude
The e-commerce industry has seen a rapid ascension in the past decade powered by the likes of Amazon and Alibaba. Many traditional brick and mortar stores have been forced to file bankruptcy and adopt the internet way. E-commerce sales were estimated at $1.86 trillion in 2016 and are expected to reach $4.48 trillion by 2021, making it one of the fastest growing industries. The industry, however, is plagued by issues like identity thefts, fake goods (2.5% of goods are fakes), issues with supply chain, lack of coordination among different entities and others.
Omnitude offers multiple solutions to improve the state of e-commerce by providing connectivity between blockchain technologies and the e-commerce platforms. Omnitude will serve as an integration layer between existing systems while enabling rapid deployment of blockchain technology without the need to replace current systems.
Omnitude provides the following solutions for e-commerce industry:
- Fraud prevention: Each user signing up on Omnitude powered e-commerce platforms will get a unique identifier which stores his important data and information on the blockchain. E-commerce platforms do not need to store this vital information on their centralized systems thus removing the threat of hacks and identity thefts.
- Trust issue: Omnitude will enable staged release of payments. As a result, merchants cannot collect the payment upfront without delivering the product. This will bring user trust in smaller platforms as well.
- Supply Chain: Omnitude’s supply chain solution will allow individual items or shipments tagged with identifiers to be tracked as they move along the supply chain. This will create a real-time, auditable, tamper-proof record of a product’s full journey, from ‘first-mile’ to the customer.
- Identity confirmation: Omnitude’s Single Identity will reduce the effort required by merchants to establish customer identity, and provide a simplified, quicker onboarding experience for customers.
- Single Reputation: Similar to Tron’s single reputation for entertainment systems, Omnitude’s unique identifier will serve as a single, tamper-proof reputation score for each entity of the e-commerce ecosystem ( suppliers, users, merchants).
Omnitude will be built on top of Hyperledger. Hyperledger’s multilayer, permission-based architecture is suitable for a platform like Omnitude. Omnitude will also facilitate the creation of multiple decentralized applications related to e-commerce and supply chain on top of its protocols.
Development of Omnitude will be done in two phases; the first phase will focus on providing connectivity among different entities related to e-commerce and supply chain while the second phase will focus on creating apps for multiple use-cases.
Omnitude does not have a tangible product as of now, but a proof of concept ( or an MVP) will be available before the ICO on March 28.
Merchants, customers, and suppliers will require ECOM to participate in the Omnitude ecosystem. ECOM will be used as a method of payment settlements across the platforms. Merchants will make payments in ECOM to other ecosystem participants to use the on-ledger Omnitude solutions like accessing the reputation generated by other platforms, supply chain related data or using merchant-centric applications built on top of Omnitude.
Users can pay the merchants using ECOM, other cryptocurrencies or fiat money.
Omnitude’s website lists nine core team members and eight advisers.
Founder and CEO Chris Painter has served for nine years as Managing Director of Pixel, a web design, and development agency that he was instrumental in scaling. The company primarily focuses on delivering solutions to eCommerce platforms. The other Founder Robert Belgrave has previously created the cloud services company Wirehive. He will serve as an advisor to Omnitude.
Omnitude also faces the same issue that we have seen in several other crypto projects. The team is a collection of consultants who work part-time with Omnitude while working on other projects as well. However, it should be noted that the roadmap states that aggressive hiring will be done once the funds are raised in the ICO.
Blockchain technology has immense potential for e-commerce and the supply chain industry. Multiple parties like the manufacturer, the aggregators, local distributors, warehouse managers, delivery services are involved in a single e-commerce transaction. An underlying blockchain based protocol like Omnitude can bring all these elements together and make the system much more efficient. The services provided by Omnitude will be more useful for smaller e-commerce platforms. These small platforms won’t have to spend resources on maintaining multiple layers of the sensitive user database or worry about its security. Users can also easily trust smaller platforms which are based on Omnitude.
We like Omnitude on the conceptual level but would have preferred an MVP to demonstrate some basic functionality (which hopefully will be available soon). The project also lacks a solid full time committed team and partnerships on technology and business side.
- The e-commerce industry is expected to continue its rapid growth into the next decade as well. Many smaller niche e-commerce platforms are expected to emerge which will serve as the prime audience for Omnitude. +3
- Omnitude scores well on the hype factor as they already have 17,000+ members in the Telegram channel a month before the ICO date. This keen interest in the project can help it achieve its $24 million hard cap easily. +2
- Omnitude is not focused on a single aspect of supply chain and e-commerce but aims to provide a wide spectrum of services in the industry. The protocol will also enable app developers to build decentralized applications for various use cases. +4
- On a conceptual level, Omnitude is placed better than peers like Wabi and Walton due to its focus on adding e-commerce functionality along with blockchain integration with the supply chain. +3
- The project is still at a conceptual level, and an MVP is not yet available. The team has assured that it will be made available before the ICO. -2
- As mentioned earlier, the team seems like a collection of consultants who are working on other projects along with Omnitude. Having a dedicated full-time team is always desirable when developing projects of this scale. Omnitude has not partnered with any e-commerce platform yet. -2
- Larger e-commerce platforms like Amazon will develop their in-house blockchain solutions when the market matures. This leaves Omnitude with only smaller niche players. -1
- Giants like IBM and Accenture are developing supply chain solutions using blockchain. Omnitude faces high competitive risks due to their scale, expertise and reach. -1
We arrive at a score of +6 out of 10 for Omnitude. More clarity will emerge once the MVP is launched. Considering the hype surrounding the project, we expect the hard cap to get breached, and demand will sustain once the tokens are listed, which makes it a good short-term investment. However, as of now we are not sure about the long-term prospects and will get to know better with the MVP and subsequent milestones. If the execution is done properly, Omnitude has excellent long-term potential.
- Token Type: Utility
- Platform: Ethereum
- Symbol: ECOM
- Initial Value: 1 ECOM = $0.46 USD
- Pre-Sale: Sold out
- Public Sale: March 28, 2018
- Public Sale Bonus: No bonus
- Hard Cap: $24 million for 50% supply of the total 100 Million ECOM tokens
- Jurisdictions Barred from Participating: None
- Website: here
- Whitepaper: here
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