Today I would like to tell about a project which does not fit into the current realities, can say it’s ahead of time – DxChain. The analysis will consist of two parts: HODLER’s one, there will be an emphasis on fundamental analysis and FLIPPER’s, where the emphasis is on evaluating the hype level and metrics of the project. Everyone will decide for himself, which part is closer to him, and I’ll start the analysis.
Fundamentally about the project. What? How? and for what? The HODLER’s version.
DxChain (Official site: https://www.dxchain.com/) creates a network for working with a large amount of data, where the speed of information processing is important, and hence the speed of decision-making. The entire solution will work on their own blockchain, which should fully operate by the 4th quarter of 2019 (seen on the Roadmap), which is long enough for those who want to enter this project for a long time.
A distributed computing network designed specifically for the rapid processing of data sets (Big Data) and machine learning – it is a verbatim translation of what is written in the white paper of the DxChain project.
For the coordinated operation of the entire network, DxChain introduces Proof-of-Spacetime, the next customized consensus mechanism, based on Proof-of-Stake. The architecture of the project will use the concept of several circuits. There will be one master chain and two side chains: (1) data/storage side chain – storage; (2) computing side chain.
- Data side chain works by consensus Proof-of-Spacetime and is designed to verify the availability of the requested file from the provider.
- Computation side chain This should be the basis for the big data of the Hadoop platform. Using two mechanisms of consensus (Verification Game & Provable Data Computation), this chain will perform operational management of the network (monitor nodes, distribute tasks, etc.)
- The computation chain will use the data from the data side chain, perform the required calculations, and put the result back. The final result and all rewards for network operators will be saved as a separate smart contract already on the master chain.
Masterchain will perform the functions of an arbitrator, combining both side chains and representing the interests of all network members.
There are several use cases for the project, although most of them, in my opinion, a little bit mismatched:
- Manage IoT Devices or Smart City Management. It is not news that more and more new technologies are being introduced in cities to monitor and analyze the current situation. For example, smart traffic lights, adjusting to the current traffic. All data received from such smart sensors will be processed and build working scripts using the DxChain network (theoretically, of course).
- Artificial intelligence in healthcare. Using the capabilities of DxChain in the field of machine learning, you can create all sorts of related products that will monitor the performance of a particular patient and on this basis make appointments and build hypotheses for a particular disease.
- Actually, Machine Learning itself. AI-based project creators always face the issue of training their product so that it can really be called AI, and such training requires a huge amount of data input. This, as for me, is the sanest and necessary application of DxChain.
My conclusion, from the position of HODLER
Very beautifully and technically, the work of the future network is painted, however, there are several factors that frighten off buying for long-term:
- Full functionality only by the end of 2019 and then only if everything goes exactly according to plan.
- The application of the project in the real world yet does not look strongly demanded.
- The presence of major competitors. Such as Google, IBM and others, also actively work in the Big Data sector and compete with them – it’s very difficult and expensive.
In general, if we consider it as a long-term, then the best time to buy is after the ICO and closer to the middle of 2019, before the final release of the network, and before that time, I think the project will catch not one price bottom.
My favourite part of the ICO reviews. FLIPPER’s version.
- Ticker: DX
- Platform: Initially, Ethereum (ERC-20) and then token swap to the native blockchain.
- Total Token Supply: 100 000 000 000 DX
- Hard Cap: 21 000 000 USD
- Raised on Private Sale: 17 500 000 USD (only 4 000 000 USD left for crowdsale)
- Price per token: 0.0014 USD
- Tokens For Sale: 22 000 000 000 DX (22% of the total supply)
- Team Tokens: 10 000 000 000 DX (10% of the total supply)
- Price per token on private sale: 0.0009 USD
- Token Lock & Vesting Schedule: Private sale participants will receive their tokens during 1 year according to the following schedule: 25% before listing on the exchange; 25% in 3 months after listing; 25% in 6 months after listing and the last 25% in 12 months after listing.
- Restricted areas: Canada; China; USA; New Zealand and Korea (didn’t clarify which one of them or both)
- Whitelist and KYC: You’re welcome to start your whitelisting and KYC registration. They have deployed a telegram bot to conduct it. Here is my referral link(will receive points to participate in the KYC lottery): https://t.me/DxChainBot?start=0b3r2y-0b3r2y
Resume on metrics:
Metrics are quite adequate, there is no visible distortion in the conditions for funds and average users. A schedule of unlocking tokens is well-written and, according to it, there should not be any special manipulations with the price. A huge token supply from which as much as 40% goes to the formation of a fund of rewards for the nodes and other members of the network. The team took away only 10% of the supply, which is also a good sign.
Investors and Partners
A crazy amount of funds is involved in the project. Among them, you can see such famous names as Signum Capital; KOSMOS; Node Capital; Fenbushi; BlockVC and so on. I was struck by a curious fact: with so many investors, only 17,500,000 USD were raised on the private round. Perhaps just personal allocations were small, or, maybe, the fact that funds are not eager to enter there at once with a bet of several million dollars.
I looked for the pools, but I did not find those who collect on DxChain. Apparently, a tribute to the fashion that says: Pools are strictly forbidden.
Resume on investors and partners
The list of investors will impress even the most serious participant in the market. Recently, in crypto, we may watch the following situation: the steeper and more funds in the project, the higher the probability of large profits. Given the metrics, DxChain should definitely be on fire! However, there is a minus – the lack of serious partners in the field of Big Data and Machine Learning.
- Telegram – 67 576 people (at 24.07). Activity is above average. Many questions regarding the whitelist and scoring system for the subsequent KYC lottery. Admins are very fast (some of the fastest in my memory)
- Twitter – 34 200 subscribers (at 24.07). The number of subscribers is mainly composed of participants in the bounty program DxChain. The account is mainly used for announcements of events and exhibitions involving the project. On content, echoes with the Medium account.
Resume on Social Networks
Community project managers deserve a solid five for their work. Everything is prompt and very, very kind. Crypto influencers were not seen in the explicit shilling of the project, which means that the hype was created by the presence of well-known venture funds and those who believe and support the idea of the DxChain project.
Team & Advisors
The project team consists of 8 people. Main actors:
- Allan Zhang – Co-founder – In the past, the founder of a fairly successful Trustlook company (the US since 2013. 50+ employees), which deals with security developments. There is an application for Android Antivirus Free-Mobile Security, which already has more than 10 million downloads. The clients of the company are Huawei, Oppo, Qualcomm.
- Wei Wang – Co-founder – Is an expert in artificial intelligence and databases. In the past, it also had a direct relationship to Trustlook.
- Leo Wang – Advisor – Is a partner of PreAngel Partners, with an investment portfolio of about $ 100 million. The biggest share of the portfolio is accounted for by Chinese companies and start-ups, mainly from the field of Internet games.
- Fan Zhang – Advisor – Before DxChain, he managed to participate in such projects as IOTEX and Boosto. In the past, he was managing partner at Sequoia Capital China and director of DFJ ePlanet Ventures. Included in the rating of Forbes as one of the leading venture capitalists in the world.
Resume on Team & Advisors
In the team, there are no obvious stars or vice versa. They look very good, although none of the team was seen in other block projects. However, both Co-founders have a joint and successful experience with security systems and databases. The project’s advisors are at the TOP level, though, as for me, the 4 advisors are not the limit for such a global product that DxChain wants to build.
Project DxChain looks confident and I have no doubt that there will be profits. This, of course, is not QuarkChain with their X22 in 2 days, but X4 – X6, I think, it will work out. The project, from my point of view – only for the flip. The strategy for longevity can be found in the derivation on the staggered part of the analysis. Many well-known funds give confidence in the project and in profit. There will be a KYC lottery, so the level of the hype should still grow, closer to the lottery.
Final score: 4 out of 5 (High interest). Due to the fact that there are issues with use cases and expediency of use, as well as a long way to the final release (right up to Q4 2019)