ICO Analysis: QuarkChain

QuarkChain, a decentralized and highly scalable blockchain solution, is aiming to become a high-capacity peer-to-peer transactional system that can achieve millions of transactions per second (TPS), thus solving the scalability problems of current main blockchains. QuarkChain will utilize sharding to provide a high-capacity peer-to-peer transactional system. It will consist of a sharding layer, which allows for high throughput by effectively distributing data, and a root layer, which serves to confirm the blocks of the first. Using this model, QuarkChain is seeking to successfully balance the three pillars of a blockchain – security, decentralization, and scalability.

The key features of of QuarkChain include:

  1. Reshardable two-layered blockchain.
  2. Guaranteed security by market-driven collaborative mining.
  3. Anti-centralized horizontal scalability.
  4. Efficient cross-shard transactions.
  5. Simple account management with a smart wallet.

Important innovations of QuarkChain include:

  1. The first blockchain technology supporting state sharding.
  2. The first blockchain sharding technology supporting turing-complete smart contracts.
  3. The first blockchain network supporting clustering as peers

QuarkChain is ahead of schedule with their testnet up and running with 2,000 TPS was observed during a recent audit. Achieving 10,000 TPS is the next milestone on their roadmap. QuarkChain has made their Github publicly available. Resumes are being accepted at [email protected] for 100 volunteers to help test the latest testnet. The mainnet is scheduled for release Q4 2018.

By integrating the Ethereum Virtual Machine for smart contracts, QuarkChain allows dApps built on the EVM the ability to be directly deployed on the QuarkChain Platform. QuarkChain will be attractive to DApps that require scalability, such as CryptoKitties, as well as those that demand high transaction rates: advertisement, IOT, AI and big data, among others. DApps will be able to shift over to QuarkChain if Ethereum is unable to solve their scalability issues in the near future.

Token

QuarkChain tokens (QKC) are ERC-20 tokens that will be used for conducting transactions on the platform. The ERC-20 tokens will be converted to QuarkChain’s mainnet token after the mainnet is launched. Future QKCs will then be produced by miners. $20 million USD is the hard cap with $16 million sold during their private sale, leaving $4 million USD available for their public sale scheduled for the end of May or beginning of June. A total of 2 billion QKC are available for purchase during the tokens sale with a total supply of 10 billion QKC. The public sale price will see 31,533 QKC valued at 1 ETH. Private sale tokens have a lockup period and public sale tokens have no lockup.

The token distribution is as follows:

  • 20% Token Sale (Private Sale Lockup, Public Sale No Lockup)
  • 45% Mining, Community, and Marketing
  • 15% Foundation – Lockup to 2 Years
  • 15% Team – Lockup to 2 Years
  • 5%  Advisers – Lockup to 2 Years

Team

The team and advisers appear solid and capable with members coming from companies such as Google, Facebook and Instagram. They also bring experience in software engineering, blockchain development, cyber security, leadership and finance. A few team members are:

  • Qi Zhou, Founder: Expert in high-performance systems. Received a Ph.D. and M.S. from Georgia Institute of Technology. Previously worked with Facebook, Dell and Google.
  • Zhaoguang Wang, Core Engineer: Expert in large scale distributed systems. Master in Computer Science from University of Michigan. Previously worked with Instagram, Facebook and Google.
  • Xiaoli Ma, Research Scientist: Expert in signal processing for wireless systems, an IoT and big data professor, as well as IEEE fellow at Georgia Institute of Technology. He is a  Co-Founder, CTO of Ratrix Technologies, LLC.

QuarkChain currently lists six distinguished advisers on their website, including Bill Moore, who served as chief engineer for storage at Sun Microsystems and is former president of DSSD.  Mike Miller is also a project adviser. He has a PhD physicist with 100+ publications and Founder of Cloudant, which was acquired by IBM Cloud Data Services. He is also an Affiliate Professor at the University of Washington).

For the complete list of team members and advisers, visit the official website.

Verdict

This highly anticipated ICO will definitely be followed closely by many, as QuarkChain seeks to compete with the likes of Ethereum. If dApps are quick to jump onboard, QuarkChain could quickly find itself right up there among other major blockchains. Potential investors should keep a keen eye on this project.

Risks

  • Competition should be fierce with other projects undoubtedly coming along and attempting to compete in this market. Current projects, such as Zilliqa, will be competing directly with QuarkChain. Also, Ethereum is working to solve their scaling problems in the near future. -1.5
  • Although it doesn’t appear to have dampened the enthusiasm of potential investors, only 20% of tokens are available for purchase during the token sale, which is quite low compared to other ICOs. The 35%-65% range is preferable. -0.5

Growth Potential

  • QuarkChain has demonstrating 2,000 TPS on their closed testnet while using only a few AWS nodes, putting it ahead of most blockchain 3.0 projects with higher valuations. As more and more nodes are used in the testnet, higher scalability should be achieved. In comparison, the Ethereum blockchain is currently supporting around 15 TPS. +4
  • With high profile YouTubers promoting QuarkChain, multiple ICO investment spreadsheets ranking QuarkChain at the top, and a massive Telegram membership of 80,000 and growing, the hype surrounding the QuarkChain ICO has been tremendous causing extremely high interest from investors. The private sale sold out quickly with many potential investors unable to participate. With only $4 million USD available for purchase during the public sale, the demand is currently greater than the supply. The hype factor cannot be ignored in the current ICO climate. +3
  • QuarkChain has integrated the Ethereum Virtual Machine (EVM) for smart contracts, which allows dApps built on the EVM the ability to be directly deployed on the QuarkChain Platform. This is a huge advantage for dApps looking to migrate easily to a platform that accepts ERC20 compatible apps as well as delivers speed well beyond what Ethereum can. +3

Disposition

If QuarkChain stays on course with its roadmap, they are extremely likely to become a major player in the blockchain industry. With their highly respectable team, an MVP (testnet), major hype, and investors chomping at the bit, QuarkChain receives a rating of 8.0 out of 10.

Investment Details

  • Symbol: QKC
  • Platform: Ethereum
  • Price: 1 ETH = 31,533 QKC
  • Hard Cap: $20 million USD ($16M Private Sale, $4M Public Sale)
  • Public Sale: End of May/Beginning of June
  • Total Supply: 10 billion QKC (20% available during token sale)
  • Payments Accepted: ETH

For more information regarding QuarkChain:

Website: quarkchain.io
Telegram: t.me/quarkchain (79,000+)
Twitter: twitter.com/Quark_Chain
Facebook: facebook.com/quarkchain.quark.5
Medium: medium.com/@quark_30920
GitHub: github.com/QuarkChain