ICO Analysis: Precium

Although blockchain technology is poised to revolutionize many industries, in the presence of certain problems such as low transaction output and costly transactions, we hardly can say that it has met expectations so far. This phenomenon is usually attributed to the tradeoff between decentralization, security, and scalability. The speculative trading of crypto-assets creates another problem, namely price volatility and all these combined make it hard for any business to adopt the technology.

Unsurprisingly, businesses are much more interested in private blockchains which can yield higher scalability and transaction outputs. Also, since the service provider has more control over the whole network, some members can be excluded from the service or be given a more restricted access. Unless an account is accessed by malicious actors, private blockchains are much more secure than public blockchains which can be attacked via several methods, such as 51% attacks and spam attacks.

The introduction of smart contracts to crypto-assets was a groundbreaking change for the whole crypto-verse. While in traditional contracts middlemen are required to establish whether a contract’s terms and conditions are fulfilled, today’s smart contracts make the previous necessity of a middleman obsolete, providing the same service more productively for lower costs. Still, in the absence of rigid standards, it might be wiser not to resign complete trust to smart contracts as the use of erroneous smart contracts can turn out to be highly expensive as exemplified by the infamous DAO hack of 2016.

To solve these problems that blockchains face, the Precium team proposes a hybrid blockchain, combining the best of public and private blockchains, for P2P smart contracts. Firstly contract conditions and templates are created by Contract Creators. As they can be tested on the Onyx Chain to be validated, much safer smart contracts are laid as a foundation. Then these are used to build new Smart Contracts by Contract Users. Both actors are rewarded by tokens per contract use.

The Precium platform has a three-layered architecture. In the most fundamental layer, the Onyx Core Layer, these smart contracts are created and stored. The intermediate layer, the Precium Platform Layer, consists of several features including Oracle APIs which are used to convey information to the chain from external sources in order to check if the contract terms and conditions are fulfilled. The Application Layer includes applications available to use by platform users.

The consensus on the Onyx Chain is established by a modified version of the Raft protocol which normally uses Byzantine Fault Tolerance. The improved protocol of the Practical Byzantine Fault Tolerance allows the platform to reach the consensus on asynchronous versions as well. In the blockchain, private blocks are attached to public blocks and only the relevant node has view permission. Smart contracts’ basic information is stored in these public blocks, while their detailed information in private blocks. Thanks to its hybrid nature of public and private blockchains, the Onyx Chain is transparent, has high transaction speeds and scalability.

Token

In the Precium platform, a monetary system with two cryptocurrencies is used. An ERC-20 token, PCM will be used to gain access to platform services. ONX is the key cryptocurrency of the platform which will be used to pay for smart contracts. Contract Creators and Oracle API providers will be rewarded by ONX as well which is designed to be a stable coin pegged to 1$. The platform will allow users to exchange PCM tokens with ONX tokens with its internal exchange rate.

In the upcoming public pre-sale phase, PCM tokens will be sold for $0.035 with a bonus of 15% over the ICO price of $0.04. As 15% bonus is quite standard for ICOs, the ICO investor shouldn’t worry too much about it.

The total supply of PCM is 1,500,000,000 tokens with the following token distribution:

  1. 40% token sale
  2. 5% advisors and contributors
  3. 15% market development
  4. 15% foundation
  5. 25% strategic and reserves

Tokens allocated for the foundation are locked up for one year. Advisor and contributor tokens are locked up for six months and will be released over one year.

The team is planning to use the token sale proceeds as follows.

  1. 30% reserve
  2. 30% platform development
  3. 17% marketing
  4. 13% operations
  5. 10% strategic partner

Team

Han Kim: Kim has worked as a full-stack developer at LG CNS.

Woongrae Son: Son is a business analyst at McKinsey & Company Seoul.

Advisors

Joseph Jang: Jang is the COO at Fantom, a DAG-based based smart contracts platform.

Jonathan Lee: Lee was the business development director at WPP Korea, a marketing and advertisement company.

Daniel Doohyun Han: Han was a member of KPMG Korea’s strategic consulting team.

Verdict

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

Risks

  • No minimum viable product (MVP). (-1.5)
  • The road-map for 2019 is not detailed, making it hard to estimate any return on investment. (-1.5)

Growth Potential

  • Coding failures and security vulnerabilities are crucial problems for smart contracts. As the infamous DAO hack in 2016 has proved, even very minuscule coding failures can cause costly security vulnerabilities for projects. The Precium platform aims to solve these issues by implementing a more rigid structure and a validation mechanism for smart contracts. (+3)
  • Businesses, both small and large, have shown far more interest in private blockchains than in public blockchains. If the Precium team can form partnerships with big corporations and gain some adoption, the project might yield great returns on investment. (+2)
  • As both Contract Creators and Contract Users are rewarded with tokens, a plentitude of smart contracts suitable for different use cases can be expected. (+2)

Disposition

Among the cryptocurrency community, it is established that it is not possible for public blockchains to increase security, scalability, or decentralization without sacrificing one of the others. On the other hand, thanks to their more centralized nature, private blockchains are able to provide higher transaction output, scalability, and control over the whole system. Precium is a hybrid blockchain combining the best of two worlds, suitable for businesses of all scales. By providing a home for peer-to-peer smart contracts which will be stored in the chain and bringing higher standards and a validation mechanism to eliminate any human-error on smart contracts even before they are presented to the use of interested parties, Precium provides a much safer environment for smart contract providers and users. Contract Creators and Contract Users, two main actors in the chain, are responsible for setting initial parameters, terms and conditions, and the creation of smart contracts. As they will be rewarded with tokens for each contract use, the better a smart contract is, the more tokens its Creators or Users will be rewarded with, which should incentivize these actors to provide higher quality smart contracts. If the team is able to form partnerships with big corporations, the project might yield great returns on investment. Still, as there seems to be no MVP, and the road-map for 2019 is not very detailed, short-term returns are questionable given the abundance of similar infrastructure projects in the space, some of which are more advanced in their development. Precium receives a 4/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: PCM
  • Platform: Ethereum
  • Crowdsale: Unspecified
  • Minimum Investment: Unspecified
  • Price: $0.04
  • Hard Cap: $19,200,000
  • Payments Accepted: ETH
  • Restricted from Participating: Unspecified

For More Information

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