WHY SPOTLIGHT CYBERMILES?
CyberMiles showed up on my radar because I follow Cobinhood news. If you are not familiar with Cobinhood, I recommend reading my post where I outlined their model and vision. In sum, Cobinhood will operate a zero-fee exhange and subsidize the exhange costs using their ICO underwriting service revenue. CyberMiles will be the first company that goes through Cobinhood’s ICO underwriting process.
Originally I wasn’t going to write about CyberMiles beause I incorrectly thought it was just another e-commerce company that wanted to adopt blockchain for the sake of it. However, I had a nagging feeling I was missing something. Mainly because Cobinhood stated they will only choose the best ICO projects with the most potential for underwriting. If that were true, then why did they accept CyberMiles? I had to be missing something or Cobinhood relaxed their criteria just to get their underwriting business off the ground. It’s more likely that missed something so I decided to give CyberMiles another look under the hood. I’m lucky I did.
I think the CyberMiles platform has the potential to distrupt the centralized e-commerce sector and reshape our current understanding of how e-commerce platforms should operate.
CyberMiles, in short, will be developed as a market-leading blockchain protocol for commerical and marketplace applications.
WHAT IS CYBERMILES?
Many moons ago I worked for a company called Chelsea Interactive. Chelsea Interactive was owned by Chelsea Properties Group (CPG) which was a company that operated and maintained premium outlet malls throughout the United States (US), Japan, and Mexico. One day someone had a genius idea to leverage all of CPGs brand contacts to offer to host their online presence on their e-commerce platform. At the time, Chelsea Interactive managed top brands under one platform such as Ralph Lauren, Cole Haan, Timberland, Ulta, and Liz Claiborne. A few years later GSI Commerce and Chelsea Interactive merged and later GSI Commerce was bought by eBay for 2.4 billion USD.
CyberMiles wants to do something similar, but with blockchain leverage “smart business contracts." Essientially, CyberMiles wants to create an ecosystem/network of partners (brands/businesses) that will exist on the CyberMiles platform while offerings solutions, and increased efficiency, in business areas such as loans, supply chain, escrow services, and identity management.
To make it happen, CyberMiles will create a “master” utility token to fund and empower new e-commerce applications and projects, similar to how Ethereum (ETH) is used for the current generation of ICOs. I’ll talk more about CyberMiles utility token in the next section.
THE CYBERMILES BLOCKCHAIN PROTOCOL AND MASTER TOKEN
The CyberMiles protocol will be developed with the following attributes:
• A large library of smart business contract offerings
• Secure identity and transaction data management
• Delegated Proof-of-Stake (DPoS) concensus engine to support tens of thousands of transactions per second, hence resolving latency issues in current chains
In order to operate and maintain the integrity of the platform, CyberMiles will initially create an ERC-20 compliant token called CMT that will be implemented on the public Ethereum blockchain and act as the platform’s “fuel.” As such, CMT will provide the following three main purposes:
- To reward and incentivize community members to contribute computering power and maintian the integrity of the network (through DPoS I assume)
- To incentivize community members to provide value-added services, such as peer-to-peer customer support and conflict resolutions.
- To facilitate transactions within the network that will allow for decentralized settlement and could potentially greatly reduce the cost of transactions and friction on the network.
Eventually CyberMiles plans to develop its own open source blockchain and the ERC-20 CMT tokens will be exchanged on a 1:1 basis with the new native CMT issued on the CyberMiles blockchain, with any stored value and rights transferred to the native token.
5MILES
CyberMiles will be intially optimized for e-commerce (other commerical capabilities will be added as other types of partners are added) therefore it’s only natural that they select and integrate 5miles as their first network partner.
5miles is not small. Here are some key 5mile items to consider:
• #10 ranked shopping application in the US according to usage (www.similarweb.com)
• Over 10 million registered US users
• Currently projected to bring in three (3) billion USD in transaction value in 2017
• Raised 62million USD from top-tier investment firms
As their first network partner, CyberMiles plans to use 5miles to showcase its capabilities. In other words, a lot is riding on a successful 5miles integration and transition.
5miles will integrate and offer a variety of useful and valuable capabilities that leverage smart business contract technology. The following are a few areas where this will be developed:
• Community-based conflict resolutions
• User-generated and user-curated groups
• Local promotions and brand ambassadors
• Marketplace “leads” bidding
• Shared advertising resources
• Democratic community management and governance
This isn’t a 5miles review so I don’t want to go into a lot of detail. However, I would be remiss if I didn’t mention 5miles as a key component and a large part of CyberMiles value proposition.
For more detailed information about 5miles click on this link
CYBERMILES ICO DISTRIBUTION DETAILS
Start: November 21, 9:00 A.M. PST (note: involves KYC pre-registration. Plan accordingly)
Token Contribution Price: 1 ETH = 7000 CMT
Initial Token Circulation: 1 billion (70% ICO Distribution/10% CyberMiles Team & Partners/10% 5miles/10% CMT Reserve (for end users))
Total Supply: Up to 10 billion (dependent on network development requirements)
Inflation: 8% for the first ten (10) years. Inflation rate TBD after year 10.
UPCOMING KEY PROJECT MILESTONES
DEC 2017 – CyberMiles Foundation to launch v0.1 of CyberMiles ‘smart contract’ modules
JUN 2018 – 5miles app to begin accepting CMT to facilitate multiple marketplace applications
DEC 2018 – CyberMiles Foundation to launch v1.0 of CyberMiles
MAR 2019 – CyberMiles modules to be available for use on other platforms to facilitate further adoption
FINAL THOUGHTS
LOL. Wasn’t it just yesterday that e-commerce dotcoms were replacing brick and mortar businesses? Heck, Amazon is still considered a (hyper) growth stock (Current P\E: 280 - although one could argue its no longer just an e-commerce business). So I can’t blame you if it’s diffulcult to see online marketplaces going away anytime soon. However, make no mistake, blockchain is a clear and serious long term risk to the current rulers. It’s more of a matter of “when” than “if.” I think the online marketplace space is ripe for disruption using blockchain smart business contracts where peer-to-peer users can engage in trusted trading transactions, according to various business rules, without the need for a cental brokerage entity.
I also want to point out that smart business contracts applications can add value to virtually every commercial need. Therefore the CyberMiles platform could act as an outsourced provider of one or more commercial business areas such as IT, finance, customer service, and community management. In other words, the CyberMiles platform can also be an ala carte menu of options.
While change in the e-commerce sector is probably years away from doing significant damage, change can happen faster than you expect. CyberMiles is getting in at the ground floor and if they cards right, I think they have a good shot at carving out market share in the eventual new blockchain world order.
That being said, there are a ton of things that I like about CyberMiles. In no particular order, the following list summarizes CyberMiles’ overall value proposition:
• CyberMiles is a new generation platform, not just a marketplace
• CyberMiles offers a menu of business service options that can satisfy multiple partner requirements
• Its first network partner, 5miles, is an established and successful business with over 10 million US users.
• CyberMiles management has start-up experience and has shown that they can obtain investment funding
• CyberMiles ICO will be underwritten using Cobinhood’s underwriting services
• CyberMiles has a well thought-out and written technical and project whitepaper
• CMT DPoS 8% reward/inflation rate for the first ten (10) years is generous and sustainable.
CYBERMILES REFERENCE INFO
CyberMiles Website
Technical Whitepaper
Project Whitepaper
ICO Token Distribution Key Details
5miles Website
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Traversing the Cryptosphere,
Kryptonaut