Nervos ICO Review And Token Analysis
Nervos ICO Overview
The Nervos ICO is offering a decoupled, decentralized platform to allow multiple paths of scalability, transaction certainty and low latency for blockchains. Nervos is designed to perform as a foundation for all types of decentralized applications (dApp) that will optimize user experience.
Nervos uses the “Common Knowledge Base” (CKB), a simpler state machine, for superior scalability, interoperability and better aligned incentives for all participants on the network.
Nervos ICO Value Proposition
On the Nervos network, CKB and generators form a layered architecture. CKB is the common knowledge layer that provides data storage for decentralized applications. It is the foundation of the Nervos network. Generators form the data generation layer and implement the application logic.
The foundational layer provided by Nervos is completely decoupled from the dApp on which it runs. Five basic components comprise the system
- Cell Types
The architecture of the system provides for the deconstruction and organization of the three components of all dApps- computation, storage and identity. CKB supports general-purpose computation and storage, provides for scalability and is designed to be mobile friendly.
The layered architecture of Nervos separates data and computation, giving each layer more flexibility, scalability and the option to use different consensus methods. On the Nervos network, dApps can choose appropriate generators and consensus mechanisms based on specific needs.
Through this design, Nervos will provide an all-purpose, interoperable solution for data, computation and identity services for any dApp that harnesses the layer.
The creation and storage of states on the CKB incurs a cost. Updating cell data or transferring their ownership also incurs a transaction fee. The creation of states must be validated by full nodes, incurring computational cost. Storage of states needs full nodes to provide storage space on an ongoing basis.
The more cells needed for a dApp, the more cells must be purchased with the equivalent amount of tokens. For the time that space is utilized, the tokens used to purchase the space are locked. When the space is not needed, the tokens are released.
As the ecosystem expands during a period of lockup, the value of the token should appreciate and upon release hold higher value.
As a useful analogy to understand the ecosystem, we can compare the cells to land. If you want to build a shop, you need land. Just as one invests money in land and builds a shop, users purchase cells as a foundation for dApps. If you want to close your shop, you can sell the land at a value that is potentially higher than the initial purchase cost.
Nervos ICO Team
Nervos has yet to unveil the full team behind the project. Two members have announced themselves so far as project leads.
Xie Hanjian (CEO and Chief Architect): Xie Hanjian, or Jan, is a key member of the Ethereum core development team and is part of the Ethereum Research team. Together with Vitalik, he contributes to the development of the next generation of Ethereum’s consensus protocol, Casper. He is the only Chinese member of the Ethereum core development team and has developed blockchain based products in China. He was also a lead developer for China’s first open source crypto exchange Yunbi. Most recently, he founded Cryptape, which builds blockchain products for enterprises.
Lv Guoning (Fundraising, Tech Promotion and PR): Guoning is the core developer of the former Chinese cryptocurrency exchange Yunbi. He worked as core developer at Yunbi along with Jan. He is also the Co-founder and CTO of imToken, the most popular Ethereum wallet in China.
Nervos ICO Strengths and Opportunities
Nervos is a project launched by two of China’s leading developers in the cryptospace. The lead duo have quite a track record with cryptocurrency, contributing to the development of Ethereum in addition to China’s largest wallet and a successful exchange.
Jan and Guoning are also behind Cryptape and have received investment from one of China’s largest banks to build a permissed blockchain version of Nervos. While a permissioned chain does not directly contribute to the value of the permissionless version through token demand, it provides a strong signal validating both the viability and applicability of the product to those considering integration with Nervos.
Prioritizing interoperability is at the center of Nervos’ approach to adoption and scaling the product. Existing systems don’t have to change their programming language, business rules, or engineering best practices to reap the benefits of integrating Nervos.
As a protocol layer, the blockchain agnostic character of Nervos opens up the opportunity for any blockchain in the space to integrate, increasing the reach of the ecosystem and value of the network in return.
Nervos ICO Weaknesses and Threats
The Nervos ICO have made their GitHub publicly available, but there has been little activity on it so far. While the GitHub page is quiet, we must take into account that development on the permissioned enterprise product has already begun and the team behind the project has a well-established track record in the space. Still, the importance of an existing prototype cannot be dismissed by the aforementioned factors.
Community support is essential for the success of any ICO. Support for the Nervos ICO is just starting to gain momentum amongst the cryptocommunity. Yet to date, Nervos has done little in the way of establishing channels on social media. The word is out, but interested investors have nowhere to directly participate in building the community.
It would be prudent for the team to take this deficit into consideration and begin the crucial process of growing a strong and supportive community to back the project.
The Verdict on Nervos ICO
The Nervos ICO provides an infrastructure-based path to scalability for dApps that holds great potential for its decoupled, blockchain-agnostic design. While the project is still in the early stages of product development and community building, the team behind Nervos are seasoned blockchain veterans who have founded and contributed to foundational projects in the space.
We have been in discussions with the Nervos ICO team and our ratings are based on conversations and information that they have asked us to keep confidential. While it may seem premature to rate their ICO this highly, we have been privy to insights that suggest a very strong project, and we will update this review when the Nervos ICO team is ready to share further data.
As a Top 5% rated project, we took a medium position in the Nervos ICO.
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We have rated hundreds of projects to unearth ICOs in which members of our team intend to invest.
We won’t often go into further depth on projects that we don’t consider as candidates for our investments after the initial rating process, which is why you will usually see our stamp on our detailed ICO reviews – they are the best we have found. However, on occasion, we might also rate a well-hyped project that does not meet our personal investing criteria.
The Crypto Briefing Top 5 stamp is awarded to ICO projects that we rate in the top 5% of all projects.
NERVOS ICO REVIEW SCORES
The Nervos ICO is one of those rare projects that is led by blockchain artists – people who have a stellar track record with “crypto creativity”. Their decentralized platform is designed to allow developers to create dApps on a foundational layer, which is completely decoupled from (and interoperable with) the applications. This, they claim, will allow for a highly-scalable solution that optimizes user-experience, developer extensibility, and network participant incentive schemes.
Progress To Date……………………8.9
Community Support & Hype…..4.1
Price & Token Distribution……..7.6
- Founders are serious blockchain veterans
- Excellent concept for addressing dApp scalability
- Institutional support for development of product
- Very little product progress indicators
- No roadmap for building and scaling ecosystem
- Community support still low at this stage
Today’s Date: 4/29/18
Project Name: Nervos
Token Symbol: TBA
White Paper: http://nervos.org/#/pdf/nervos-ckb
Crowdsale Hard Cap: TBA
Total Supply: TBA
Token Distribution: TBA
Price per Token: TBA
Fully-diluted Market Cap (at crowdsale price): TBA
Accepted Payments: TBA
Countries Excluded: TBA
Bonus Structure: TBA
Presale Terms: TBA
Important Dates: TBA
Expected Token Release: TBA
Additional Information: http://nervos.org/
ICO Review Disclaimer
The team at Crypto Briefing analyzes an initial coin offering (ICO) against ten criteria, as shown above. These criteria are not, however, weighted evenly – our proprietary rating system attributes different degrees of importance to each of the criteria, based on our experience of how directly they can lead to the success of the ICO in question, and its investors.
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This category accounts for the leaders, developers, and advisors.
Poor quality, weak, or inexperienced leadership can doom a project from the outset. Advisors who serve only to pad their own resumes and who have ill-defined roles can be concerning. But great leadership, with relevant industry experience and contacts, can make the difference between a successful and profitable ICO, and a flub.
If you don’t have a team willing and able to build the thing, it won’t matter who is at the helm. Good talent is hard to find. Developer profiles should be scrutinized to ensure that they have a proven history of working in a field where they should be able to succeed.
What is the technology behind this ICO, what product are they creating, and is it new, innovative, different – and needed?
The IOTA project is a spectacular example of engineers run amok. The technology described or in use must be maintainable, achievable, and realistic, otherwise the risk of it never coming into existence is incredibly high.
Tokens which have no actual use case are probably the worst off, although speculation can still make them have some form of value.
The best tokens we review are the ones that have a forced use case – you must have this token to play in some game that you will probably desire to play in. The very best utility tokens are the ones which put the token holder in the position of supplying tokens to businesses who would be able to effectively make use of the platforms in question.
There doesn’t have to be a market in order for an ICO to score well in this category – but if it intends to create one, the argument has to be extremely compelling.
If there is an existing market, questions here involve whether it is ripe for disruption, whether the technology enables something better, cheaper, or faster (for example) than existing solutions, and whether the market is historically amenable to new ideas.
Most ideas have several implementations. If there are others in the same field, the analyst needs to ensure that the others don’t have obvious advantages over the company in question.
Moreover, this is the place where the analyst should identify any potential weaknesses in the company’s position moving forward. For instance, a fundamental weakness in the STORJ system is that the token is not required for purchasing storage.
With many ICO ideas, the timing may be too late or too early. It’s important for the analyst to consider how much demand there is for the product in question. While the IPO boom funded a lot of great ideas that eventually did come to fruition, a good analyst would recognize when an idea is too early, too late, or just right.
Progress To Date
Some of the least compelling ICO propositions are those that claim their founders will achieve some far-off goal, sometime in the future, just so long as they have your cash with which to do it.
More interesting (usually) is the ICO that seeks to further some progress along the path to success, and which has a clearly-identified roadmap with achievable and reasonable milestones along the way. Founders who are already partially-invested in their products are generally more invested in their futures.
Community Support & Hype
Having a strong community is one of the fundamental building blocks of any strong blockchain project. It is important that the project demonstrates early on that it is able to generate and build a strong and empowered support base.
The ICO marketplace is becoming more crowded and more competitive. While in the past it was enough to merely announce an offering, today’s successful ICO’s work hard to build awareness and excitement around their offering.
Price & Token Distribution
One of the biggest factors weighing any analysis is price. The lower the price the more there is to gain. But too low of a price may result in an under capitalized project. It is therefore important to evaluate price relative to the individual project, its maturity and the market it is going after.
The total supply of tokens should also be justified by the needs of the project. Issuing a billion tokens for no reason will do nobody any good.
Communication is key. The success of a project is strongly tied to the project leaders’ ability to communicate their goals and achievements.
Things don’t always go as planned but addressing issues and keeping the community and investors in the loop can make or break a project.