By Nanjiang He ONETOP Rating April 29, 2018
Statement: the content of this assessment is for reference only. It claims no responsibility for any investment behavior made according to the contents of this assessment. The project is risky and the investment must be prudent.
Introduction
At present, investment in the blockchain market continues to heat up, with many startup teams joining in one after another, and many traditional companies package themselves and crowd into the ranks. In this situation, investors of all stripes also are rolling up their sleeves for the battle of entering the market. However, as a new thing, blockchain projects at home and abroad are uneven with good and bad mixing together, and there is even a lack of relevant information to identify and judge projects in China, which is confusing and difficult for the investors to get started. Integrated professional mathematical model and economic model, ONETOP rating team, developed version 1.0 of the Market rating model for the blockchain project, as a reference to help investors analyze blockchain projects comprehensively, systematically and objectively, make better investment decisions, and also introduce overseas high-quality projects into China.
I. Project Overview
Aeternity, known as a new generation blockchain network, was launched in 2016 by Yanislav Malahov, a German computer scientist and the "godfather" of Ethereum, Zack Hess, former core developer of Augur and Jack Pettersson, former core developer of Synereo. Aeternity gathers together many disruptive innovations to restore the underlying protocols of today's smart contracts. Aeternity's technical highlights are Turing Complete State Channels and Oracles.
II. Project Evaluation
1
Market analysis
Weight: 30%, Total score: 3 points, Score: 2.35 points
01
Market space
Digital currency's total market cap is 2174.781 billion yuan until April 19, 2018, of which ETH's tradable market cap is 330.4 billion yuan.
The virtual currency has built a vast ecosystem under the ETH-based smart contracts, but ETH is not flawless since the problems such as high transaction cost and slow transaction speed have not been solved. Aiming at this market, many public blockchain projects emerged at the right time, of which AE, as the most competitive public blockchain project in Europe with a current market cap of 2.7 billion yuan, stand a great chance to replace the status of Ethernet, and the market space is judged to be at level of 100 billion.
According to the model algorithm: The market is tiny: 0 - 2 points, The market is small: 3 - 4 points, The market is medium: 5 - 6 points, The market is big: 7 - 8 points, The market is enormous: 9 - 10 points, AE gets a score of 7 points for this item.
02
02 Market Pain Points
ETH, today’s most mainstream public blockchain, has plenty of shortcomings. For instance, the Ethernet blockchain is bloated and unstable, as well as high transaction cost with slow transaction speed and many other inadequacies. The seriousness of these problems has been revealed when In 2017 ETH got clogged up by the popular ETH based cat game CryptoKitties.
Many public blockchain projects were generated from the market pain point mentioned above, among which EOS, NEO, BTM, and a few others have made improvements in different aspects, but most of them are slow in progress and have some defects in the technical team and the basic structure, which is also a big pain point.
According to the model algorithm: the pain point is tiny: 0 - 2 points, the pain point is small: 3 - 4 points, the Pain point is moderate: 5 - 6 points, the pain point is big: 7 - 8 points, the pain point is enormous: 9 - 10 points. AE gets a score of 8 points on this item.
03
Application Scenario
Scenario 1: Information Market
Recently, we have seen many developers pushing for a decentralized prediction market, which combines what academics call feasibility theories to match the decision-making with the direction of the market.
In the field of small payments, Aeternity puts forward the prediction market to a new level.
Aeternity's technology combines prediction markets with smart contracts, such as weather forecast betting contracts and event betting contracts in the field of gambling.
Scenario 2: Crowdfounding Projects
It’s a new attempt to raise a crowdfunding project based on an absolutely secure smart contract. These specific smart contracts can be used to finance many projects, while meanwhile protecting investors' funds from risks, because if a project fails in the end, then investors' money can be returned.
Through Oracles, Aeternity can also realize such a function: only after the project has completed the delivery of the products or services can it receive the reward.
Scenario 3: Competitive Game Bonus
The game industry is a massive market with rapid development in the blockchain ecosystem given its specificity. Because there are no middlemen, users can fully control the transactions inside the game, and the consideration of the transactions are the lowest price. This is an anti-fraud network. The irreversible trading features brought by blockchain technology deliver a trusted and safe user interaction experience to the game industry.
From simple games to high-end electronic games, users can rely on Aeternity to achieve swift transactions and enjoy the game in a happy and relaxed mood.
Scenario 4: Trustfree Exchange
Aeternity supports cross-chain, trustfree atomic level interchange, such as exchange AE token with Bitcoin or other digital currencies.
Aeternity supports cross-chain, trustfree atomic level interchange, such as exchange AE token with Bitcoin or other digital currencies.
Scenario 5: Micro-payment and Ultramicro-payment
Aeternity's unique processing mode, able to process payments offchain through state channels, has brought the transaction mode up to a new level. The transaction can be confirmed immediately, and privacy can be protected.
According to the model algorithm: The reasonable level of the application scenario is tiny: 0 - 2 points, the reasonable level of the application scenario is small: 3 - 4 points, the reasonable level of the application scenario is moderate: 5 - 6 points, the reasonable level of the application scenario is big: 7 - 8 points, The reasonable level of the application scenario is enormous: 9 - 10 points. The score AE gets on this item is 9 points.
04
Token Mechanisms
Total supply of tokens: 273,685,830 pieces
Token name: AE
Token distribution: 82% for sale, 17% for foundation and founding team, 1% for the bounty program.
Tradable token : 233,020,472 pieces
Tradable market cap: RMB 2,739,350,453
According to the model algorithm: the reasonable level of the token mechanism is tiny: 0 - 2 points, the reasonable degree of the token mechanism is small: 3 - 4 points, the reasonable degree of the token mechanism is moderate: 5 - 6 points, the reasonable degree of the token mechanism is big: 7 - 8 points, the reasonable degree of the token mechanism is enormous: 9 - 10 points. The score AE gets on this item is 8 points.
Overall score of this dimension: 7 * 10 % 8 * 10 % 9 * 5 % 8 * 5 % = 2.35 points.
2
Activity Level
Weights: 10 % Total Score: 1 Point, Score: 0.6 Point
The way we judge activity is mainly from the social channels of the project, such as the number of users and the activity level of Telegraph, Twitter and Facebook and so forth, which are the main social media of Aeternity.
01
390 followers on Twitter and only one tweet. So we can tell it have no activity level at all.
02
Youtube
2421 Followers on Facebook, 2027 liked.
03
Telegram
In the Telegram, 8,600 people in the official group, and 500 of average daily conversations.
Among all the various communities, Aeternity has a relatively high number of fans and activity level in the group of the telegraph, but gets low attention on Twitter and Facebook.
According to the model algorithm: Activity level is tiny: 0 - 2 points, Activity level is low: 3 - 4 points, Activity level is moderate: 5 - 6 points, Activity level is high: 7 - 8 points, Activity level is enormous: 9 - 10 points. The score AE gets on this item is 6 points.
Overall score of this dimension: 6 * 10 % = 0.6point
3
Risk Assessment
Weights: 10 %, Total Score: 1 Point, Score: 0.62 Point
01
Project Development Difficulty
AE has four points of innovations, and we will talk about them one by one:
1. State Channels
The smart contracts of Aeternity is an unmixed function option only existing in the state channel. Like a digital court with self-determination ability, this particular method can effectively reduce the congestion level of the parent blockchain and enhance the transaction efficiency.
2. Decentralized Oracles
The so-called " oracle" means that everyone can set up a valuation adjustment mechanism ( VAM ) on AE and decide the success or failure of it in the future, thus implementing the market forecast. There will be a great chance to apply this technology in ICO and gambling.
- Consensus
" Aeternity Blockchain" achieves consensus creatively through a dual algorithm that combining proof of work (PoW) with proof of stake (PoS) method." ”
Aeternity blockchain achieves consensus through a highly innovative dual algorithm, combing PoW and PoS. Based on this algorithm, even smartphones can dig up new coins, which would be the extreme of decentralization. PoS will be applied in scenarios such as predicting the market on the blockchain.
4. Unparalleled Technology Management
On the blockchain of Aeternity, the data information needed to predict market type projects will be straightforward to obtain. These predicted markets will be represented by any number from 0 to 1, which means to miners that which version of blockchain needs to be mined. Such a technical management mechanism is also applicable to the error correction of oracles. This mechanism can also be used to set some variables of the blockchain ( such as to calculate reward, block size, etc. ).
This set of technology is very innovative, but it also greatly increases the difficulty of development.
According to the model algorithm: the development is extremely difficult: 0 - 2 points, the development is difficult: 3 - 4 points, medium development difficulty: 5 - 6 points, the development difficulty is small: 7 - 8 points, the development difficulty is tiny: 9 - 10 points. The score AE gets on this item is 7 points.
02
Competition
At present, the industry competitors are EOS, ETH, XAS, ETP, ADA, QTUM, NEO and so on.
From the data on Feixiaohao.com (a website specialized in big data analysis of digital currency quotation), the total amount of currencies in the smart contracts module has reached 25, and the competition is fierce.
According to the model algorithm: competition is extremely high: 0 - 2 points, competition is high: 3 - 4 points, moderate level of competition: 5 - 6 points, low level of competition: 7 - 8 points, a minimal level of competition: 9 - 10 points. The score AE get on this item is 5 points.
03
Other Risks
Two CTO of early days in the project team have resigned, and there were rumors of dissension in the team, which makes people to worry about the team's stability.
According to the model algorithm: very high risk: 0 - 2 points, higher risk: 3 - 4 points, medium risk: 5 - 6 points, less risk: 7 - 8 points, minimal risk: 9 - 10 points. The score AE gets on this item is 7 points.
Overall score of this dimension: 7 * 4 % 5 * 4 % 7 * 2 % = 0.62 point
4
Key technology
Weights 15 %, Total Score: 1.5 points, Score: 1.35 points
01
Technological Innovation
- State Channels
The smart contracts of Aeternity is an unmixed function option only existing in the state channel. The user only interacts on the sidechain. Only when there is disagreement, code and smart contracts will involve blockchain. The whole model is like a digital court with self-determination ability.
2. Deconcentrated Oracle Mechanism
Oracles can provide public data that cannot be tampered with and can execute contracts according to the setting of the oracles. The core content of these mass commercial application such as election results, asset prices, or weather conditions, will apply to Aeternity's oracles.
3. Consensus
Aeternity blockchain achieves consensus through a highly innovative dual algorithm which combines PoW with PoS. The “cuckoo bird” proof method, which promoted the development of random access memory (DRAM), is more efficient with its effect appearing indirectly. Based on this algorithm, even smartphones can dig up new coins, which will be the extreme of decentralization. PoS will be applied in scenarios such as predicting the market on the blockchain.
4. Unparalleled Technology Management
Aeternity brings about a future society in which miners will vote, and value holders will make decisions together.
On the blockchain of Aeternity, the data information needed to predict market type projects will be straightforward to obtain. These predicted markets will be represented by any number from 0 to 1, which means to miners that which version of blockchain needs to be mined.
According to the model algorithm: the degree of technological innovation is extremely low: 0 - 2 points, the degree of Technological innovation is lower: 3 - 4 points, the degree of technological innovation is medium: 5 - 6 points, the degree of technological innovation is higher 7 - 8 points, The degree of technological innovation is higher 9 - 10 points. The score AE gets on this item is 9 points.
02
Code Status
According to information on r/https://github.com/aeternity, Aeternity has submitted 1601 pieces of codes so far, which ranks 33rd in the number of updates. Compared with other projects horizontally, the efficiency of AE’s update is relatively higher.
According to the model algorithm: the code has not published: 0 - 4 points, Code status medium: 5 - 6 points, the code is in good condition: 7 - 8 points, the code is in excellent condition: 9 - 10 points. The score AE gets on this item is 9 points.
Overall score of this dimension: 9 * 10 %+9 * 5 % = 1.35 points
5
Execution status
Weights 15 %, Total Score: 1.5 Points, Score: 1.2 Points
According to the officially released route map:
· 2017 Q1-Q3-Starting Period
· 2017 Q1-Testing and Launching
· 2017 Q1-Q2-Complete and have some backing campaign
· 2017 Q3-Building essential Apps
· 2018 Q1-Security Audit
· 2018 Q2 - Mainnet launch
The project is currently in 2018 / Q1 with a high degree of performance.
According to the model algorithm: extremely low degree of implementation: 0 - 2 points, lesser degree of implementation: 3 - 4 points, medium degree of Implementation: 5 - 6 points, A higher degree of implementation: 7 - 8 points, extremely high degree of implementation: 9 - 10 points. The score AE gets on this item is 8 points.
Overall score of this dimension: 8 * 15 % = 1.2 points.
6
Team evaluation
Weights 20 % Total Score: 2 points, Score: 2 points
01
Team member
- Team CEO
Yanislav, a person of authority in the field of blockchain, has participated in the development of blockchain technology in the early days, and have exchanged technology and ideas with many “old gods” in the field.
In 2013, Yanis Lav envisioned to establish smart contracts on the blockchain, which predates the emergence of ETH, so Yanislav is called " Godfather of Ethereum." Now, as he grows older, a new version of his vision becomes a reality again.
- Directors
Since the beginning of 2014, Marion has been particularly interested in integrating technology into the community due to the influence of blockchain technology. She mostly specializes in studying the social-economic impact, disseminating information and taking care of the efficiency of Aeternity’s operation. Before that, she worked in Silicon Valley in the field of marketing and business development.
- Team COO
As the founder of a publishing media company ( Proud ), a restaurant ( Beuster ) and two technology start-up companies ( Dropspot and Abend ( 30 employees )), Emin has been an active entrepreneur since 2008. He is a C-level IT product and engineering manager. In the field of blockchain, he was an early adopter, a former Bitcoin miner, and an Ethereum investor. Emin is the CPO and Operations Manager of Aeternity blockchain.
- Team Consultant
John specializes in board games, artificial intelligence, algorithmic information theory, distributed computing, and computational biology, etc. Recently, he has been designing a new workflow verification system called "Cuckoo Cycle," which will apply blockchain technology. John is providing advice on the integration of the "Cuckoo Cycle" mining algorithm.
02
Other members
According to the information obtained from its official website, the team has a large group of members including many developers, technicians, and marketing staffs. We do not introduce all of them here due to limited space.
According to the model algorithm: team strength is extremely weak: 0 - 2 points, team strength is weak: 3 - 4 points, team strength is medium: 5 - 6 points, team strength is high: 7 - 8 points, Team strength is extremely high: 9 - 10 points. The score AE gets on this item is 10 points.
Overall score of this dimension: 10 * 20 % = 2 points
Evaluation
To sum up, M dimension 2.35 points, A dimension 0.6 points, R dimension 0.62 points, K dimension 1.35 points, E dimension 1.2 points, T dimension 2 points. The total score is 8.12.
The total score 8.12 points, investment grade A, the project has a strong comprehensive ability.
Attached: score rating scale
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