The purpose of this article is to review ArcBlock ICO - ABT Token where I try to explain what ArcBlock main idea is, what problem they promise to solve is, in which points ArcBlock have convinced and not convinced me to invest in their ICO. This is my own opinion and by no means considered as investing recommendations. Please do your own research and look for various sources of information.
In 2017, Ethereum (ETH) Blockchain unquestionably revolutionized the crypto world with its protocol featured in Smart Contract and as a result, ETH has been nominated by many as Blockchain 2.0 as a improvement compared to Bitcoin Blockchain 1.0. Since then, many other protocol infrastructure decentralized applications (Dapps) - just to name a few: ESO, NEO, XEM - have been born with its own strengths, particular in solving the current issues that ETH Blockchain facing such as Scalability, Privacy. And then, lately we saw some "new-generation" 3.0 blockchain with sophisticated complex technology: Cardano, AION, Aelf.
And in the coming months, at least 2 more 3.0 blockchain which are Matrixchain and arcblock, as far as I know (If you know more, I love to hear in comment) will enter crypto world.
Competitive Market
When investing in any projects, especially ICO, you should always check the market of the target project to see how competitive of the market is. How many competitors already in the market. For ArcBlock, the market of platform dapps they are entering in is toughest one. And for me, this market also has the biggest potential to grow in the Crypto world. Half of Top 20 (coins/token) on Coinmaketcap are working on this market. That does not mean, if one successes, others will fail. I believe each project, if successful, will have their own branch target market, and will support to the whole ecosystem of platform dapps.
In the protocols blockchain platfrom market so far, each blockchain platform offers developers many features in their ecosystem to build dapps. The infographic above, which belongs to Lamden, compares some features of current platforms. One of the features in this article is transactions per second with regarding the Scalability issue, which means how many transactions per second that the network can handle, EOS has the most capable with 100,000/s. But ArcBlock comes in with the design goal is 100,000 /s which is great plus point of ArcBlock.
What is ArcBlock?
"Born For Blockchain 3.0 - The World's first blockchain ecosystem for building and deploying decentralized applications."
Firstly, before we move into technical details, I want to make it clear that ArcBlock does not aim to build the new Blockchain (As their Reddit founder said). What they are trying to bring in is building a new computing platform that works with the existing blockchain technologies so developers can deploy applications .
What is problem ArcBlock trying to solve?
1. Scalability
As mention above, ArcBlock promises that they can handle 100,000 transaction per second which will be the same amount of the current most capable platform EOS.
If ArcBlock can deliver this promise, the transaction cost will be almost-zero-fee and there is nearly no congestions in network which means instant transfer and receiving.
2. Easy to use
One thing we are undeniably argue is Blockchain Application is not friendly to average users. Users are always required to install "light node" or run blockchain node before using the Apps.
ArcBlock comes in and want to make those Apps become mainstream by eliminating those complex installation. For example, they provide their technology into the web browsers or in the mobile apps, so users can use the Applications directly.
What is main idea of ArcBlock?
One of the major problems right now for developers who want to develop apps on any dapps platforms is that they are unable to combine the advantage features of each blockchain together.
Let say Bob likes to use the Scalibility of EOS Blockchain which is the most capable one of 100k/s and Bob also likes to use feature Automatic Swap which EOS does not have but Lamden. By using ArcBlock, Bob now can takes these both features of EOS and Lamden or any other Blockchains and build those features into his applications. So this is the reason ArcBlock was born.
I have to say this is absolutely amazing idea and ArcBlock will become major player if their team make it come true.
However, again, you need to check the market and ask yourself is this the firs project aiming with this idea? No. Ark is another project providing similar solution which has been in space for a while and received huge supports. I am not saying that ArcBlock cannot do better than Ark because ArcBlock is built later, but just remind you about the outlook of market.
Which criteria convinced me to invest?
- Scalibility - I cannot stress enough how crucial scalibility issue in space. But if ArcBlock can handle 100k/s. That would be their advantage.
- The idea of open chain access protocol that enable application work on different blockchains.
Which criteria not convinced me to invest?
- The Team: I have to say in every project, the team is the most important that you have to look at carefully. At ArcBlock, I checked the LinkedIn of Robert Mao (CEO), Flavien Charlon (Chief Scientist), I was not impressed with their experience in space and crypto currencies. I do not mean they cannot make ABT successful but I am just skeptical, especially when you compare to other teams behind these kind of ambitious project.
- The feasible project:
- I am not convinced because their Gift Hub does not show any code yet. But perhaps as their CEO explained on Reddit because this is common practice in the industry they are moving to.
- They do not show it clearly how can they can allow many blockchains working together on ArcBlock Blockchain. I read the White Paper three times and still could not find the details about this technology, how developers can build apps on different blockchain by using ArcBlock. Or maybe I'am missing something probably. If you understand, please help me clarify it.
In conclusion, should I invest in ArcBlock?
I will but just a fraction of ETH. I like to take the ride with this project and see where it's going because I simply love the idea.So again, this is just mere my opinion. Do your own deep research and do not invest more than you afford to loose.
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Sources:
- Website: https://www.arcblock.io/
- ArcBlock White Paper.