Cryptocurrency market has witnessed almost an year long bear market, this has led to many investors leaving the space and as a result people are now scared of risking their money on speculative assets especially ICOs. Many quality ICOs are finding it difficult to raise funds and I believe this is the time to be greedy when others are fearful. I am continuously evaluating different ICO projects and looking for opportunities to invest in certain projects which can deliver in the long run. One such project is Aergo, which I believe will do pretty well when the market recovers. Read on my review to find out why I am so bullish on this project even in this bear market.
Quick Facts
Name: Aergo
Ticker: TBA
Token Type: ERC20
Total Supply: 500,000,000
Tokens for Sale: 150,000,000
Hardcap: $30 million
Market cap on fully diluted basis: $100 million
Sale Info: Private sale is already completed, no public sale
What is Aergo?
Aergo aims to develop a 4th generation "enterprise ready" blockchain protocol which will be highly scalable and will allow users to easily design, build and deploy their own blockchain applications. The main focus of the project is to onboard businesses and provide them the capabilities to customize their applications and deploy them on public chain or private chain or a configuration combining both public and private chain architecture. The capabilities of Aergo are not just limited to a standalone protocol, Aergo also provides a feature-rich middleware layer in order to work with legacy enterprise softwares.
Aergo will be utilizing Coinstack, a permissioned blockchain solution developed by Blocko, an established company that has delivered 23 in-production blockchain systems for 20 different companies supporting over 25 million users. Blocko works with a number of established companies including Cisco, Hyundai-Kia Motors, KRX Korea Exchange, IBM, Microsoft Azure, SK Telecom, Lotte Card, Samsung SDS, LG CNS, etc.
Why Aergo?
Many public and private blockchain projects currently operating in the market are not enterprise ready as they are unable to solve basic business needs which acts as prerequisites for blockchain adoption.
Some of the hurdles in terms of enterprise adoption of blockchain technology are mentioned below:
- Lack of Reliability (lack of full control of IT infrastructure which raises operational issues)
- High volatility in transaction fees
- Software development difficulties (lack of Solidity developers)
- Performance issues
- Challenges in integrating blockchain projects with existing IT systems
- Lack of data control, data protection and data encryption
- Scalability issues
- Interoperability constraints
What does Aergo offer?
Aergo offers a feature-rich, open and easy-to-use blockchain platform which leverages the capabilities of both public and private blockchains. The aim of Aergo is to create an ecosystem of dApp developers, curated cloud delivery partners, and enterprise companies. Similar to hybrid cloud model in cloud computing, Aergo intends to facilitate the creation of hybrid blockchain based products and business models which will empower organizations with the ability to tailor their blockchain deployments to their precise needs.
Some of the key features of Aergo includes:
- AergoSQL
Easy coding of smart contracts and introduction of new smart contract engine with SQL language. - Sidechain Technology
Easy creation of sidechains which are independent of transaction fee fluctuations and operate at low cost. - Deterministic DPOS
Enhanced performance and network stability with better service quality.
How will Aergo work?
Aergo will be using and building upon Blocko's existing Coinstack platform, which is an enterprise product and is currently being used by many of Blocko's existing clients. Aergo aims to provide a complete framework for developing, orchestrating and deploying dApps on secure and high-performance cloud architectures.
Aergo will operate as an open source platform in order to support open source developers who wish to use, develop and extend core features and projects within the Aergo technology stack.
The Aergo platform comprises of three main elements:
Aergo Chain
Aergo Chain is a decentralized hybrid public/private blockchain network. It consists of AergoSQL, a smart contract engine that allows for easy creation of advanced smart contracts in order to enable innovative business products and services. Another important feature of Aergo Chain is that unlike other blockchains, forks are a core feature in Aergo which enables version control and customization.
Aergo Hub
Aergo Hub is the public interface of Aergo Chain that will enable developers to build, test, deploy and manage independent blockchains. The dApps are stored within the hub in either of the two repositories:
- Aergo Public Repository: which is shared and open in order for others to leverage and innovate upon.
- Aergo Private Repository: which is a controlled, secure and private infrastructure especially for businesses seeking complete control, application security, high performance and data compliance.
These dApps need to be orchestrated, provisioned, deployed and managed to be used on Aergo Chain. A public orchestration, management and software framework known as Aergo Horde is used to achieve this functionality.
Aergo Marketplace
Aergo marketplace is a one stop shop for software applications and computing resources optimized for Aergo Chain. The marketplace will be accessed through Aergo Hub’s public interface and managed via Aergo Horde.
Token Utility
The Aergo token is the network's native token and will be used as the medium of exchange for various transactions and functions within the Aergo ecosystem. Aergo tokens are intended to be used for:
- Running the smart contract
- Reward for DPOS consensus algorithm
- Payment method for Blocko’s technical support on Coinstack 4.0
- Payment method for Aergo Hub services
- Payment method for services and assets on Aergo Marketplace
- Payment method for the Aergo domain
Token Distribution
A total of 500,000,000 Aergo Tokens will be issued. The allocation of total token supply is listed in the table below:
| Proportion of Tokens for Sale | 30% |
|---|---|
| Reserved by token issuer | 25% |
| Employees of token issuer and affiliates | 5% |
| Advisors and key backers | 10% |
| Aergo community incentives and strategic partners | 30% |
Use of Proceeds
A total of $30 million was raised during the private sale round. The intended use of proceeds is listed in the table below:
| Activity | Allocation |
|---|---|
| R&D | 40% |
| Marketing | 15% |
| Ecosystem incubation | 30% |
| Strategic alliances and business development | 10% |
| Miscellaneous | 5% |
Roadmap
The project is still under development with the mainnet launch scheduled to happen in Q1, 2019. The proposed roadmap and release schedule for the Aergo Chain, Aergo Hub and Aergo Marketplace is depicted in the below diagram.
Team
Aergo Board
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Committee Heads
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Tech Team
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Business Team
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Advisors
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Conclusion
Aergo is a project that has a strong backing from Blocko. I believe Blocko's industry wide connections and expertise will help Aergo's enterprise adoption. Also, given the fact that Blocko will be introducing Aergo to their existing clients as an upgrade to the Coinstack platform will make it easier for Aergo to gain early traction. Aergo also has strong backing from some of the top VCs in the space which includes FBG Capital, GBIC, Lemniscap, Rockaway Blockchain, Dekrypt Capital, and Block Crafters Capital which highlights the strength of the project.
Besides a novel idea and an enterprise focused approach, Aergo has a strong team which is balanced both in terms of technical knowledge and business development. Aergo has a reminiscence to projects like ICON (backed by TheLoop) and Ontology (backed by Onchain) and therefore I believe Aergo can follow their footsteps and can do pretty well in the market.
Overall Ratings: 9/10
For Flipping: Good
For Long Term: Good
Quick Links
Website
Whitepaper
Github
Telegram
Twitter
Medium
Disclaimer: This is not a financial advice. I am giving my personal opinion, do your own research before making any investment decision. Do not invest more than you can afford to lose.
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