Blockcloud is a blockchain-based innovative TCP/IP that provides constant connectivity for dynamic networks. It aims to marry the advantages of blockchain and next-generation Internet technology to develop a protocol-level system in the form of “building blocks”. The project seeks to provide better mobility, credibility, incentive, security, fairness, and scalability for the upper-layer applications.
Table of contents:
Intro and Overview
The Blockcloud ICO and BLOC Token offer a solution to the problems of scalability and trust impending the growth of the IoT sector. In a traditional IoT network, most platforms provide a centralized server to aggregate all connected devices, data, and services. Such structuring ultimately creates barriers to scaling through high-bandwidth consumption and a centralized point of failure. As a solution to these problems, Blockcloud suggests an incentive-driven protocol for IoT services, architected for scalability and security, that will form the foundation of a viable ecosystem of interconnected smart devices.
|Type of token||utility|
|Hard cap||$15 million|
|Total Cap Size||10,000,000,000 BLOC|
|Team||12 core members/ 27 advisers|
|Public Sale Date||TBD, KYC is closed|
|Total Token Offered||500,000,000 on public sale, 1,500,000,000 on private sale|
|Private sale Date||Closed|
Blockcloud promises decentralized trust, security, fairness and economic incentive, which is highly promising in terms of the Internet of vehicles, smart healthcare, smart home, edge computing and sharing economy. The protocol applies Service-Centric Networking (SCN) that allows applications to communicate using service names instead of addresses, thus increasing scalability and stable connectivity.
The BLOC token is the network’s native token and is used to enable an incentive-driven marketplace for IoT services. There will be four main groups of participants in the network:
- Service providers publish and provide services. They are rewarded with BLOC tokens based on their level of contribution.
- Service users subscribe to services and pay BLOC tokens to enjoy IoT services.
- Service miners maintain the ledger and protect the network from attacks by utilizing a Compacted Directed Acyclic Graph (CoDAG) ledger framework to achieve consensus. A miner that generates a stable block is rewarded with BLOC tokens. Mining rewards will be released at an annual rate of 5% over 6 years.
- Verifiers verify the services and help the system decide whether to reward or penalize a service provider. Verifiers are rewarded with BLOC tokens for verifying services.
Market and competitors
The IoT market is growing rapidly: it is expected to expand from $ 157 bln in 2016 to $ 457 bln by 2020, attaining a Compound Annual Growth Rate (CAGR) of 28.5%.
There are several Blockchain projects in IoT:
- IOTA. The first open-source distributed ledger that is designed to power the future of IoT with feeless microtransactions and data integrity for machines. Market cap is $ 1.3 bln, ROI since the first day on the exchange is more than 2,000x.
- IoTeX. This project is tackling the problems of morden IoT such as: low scalability, high operating cost, privacy concerns and lack of functional values. They start mainnet in October 2018, beta being in the field since October. The token sale ended in February 2017 at $ 0.007, now it costs $ 0.009.
- IoT Chain. A lite operating system using the blockchain concept and implementing PBFT, DAG, SPV and CPS technology, allowing data to be layered and stored in a decentralised manner and providing protection with the combined strength of the millions of IoT nodes within the network.
- Ambrosus. A universally verifiable, community-driven ecosystem to assure the quality, safety and origins of food and medicine products.
- Waltonchain. An ecosystem that combines blockchain and RFID technologies to significantly streamline the management of supply chains.
- OriginTrail. Another protocol for supply chains based on blockchain.
- Nano. A low-latency payment platform that requires minimal resources. Not long ago Nano has started to work in IoT field, launching a prototype for a charger that is activated by Nano coin.
Roadmap and Whitepaper
The roadmap in the whitepaper shows that the project team has completed the infrastructure design, the proofs of POS mechanism, CoDAG algorithm, and online double auction algorithm. Further plans include global roadshow and meetup, and establishment of a developers community.
The launch of a testnet is scheduled for Q2 2019, and the mainnet is tentatively planned for release by Q2 2020.
Team and advisory board
Blockcloud team is highly experienced in the application of technical knowledge to business use case scenarios. There are 12 members, who have published in total more than 50 papers in top academic journals cited over 300 times worldwide. They also have applied for more than 80 patents. Another asset is that the developer team have previously worked with Chinese tech giants such as Huawei, Baidu, Alibaba, and Tencent.
The core team currently consists of 12 people from the parent company Oudman, and everyone has a link to LinkedIn profile on the site. Everyone in the team graduated from the world’s best tech and finance universities, and they also have a strong track record in IoT and Blockchain.
- Zhongxing Ming, CEO – Visiting Scholar at Princeton University, Ph.D at Tsinghua University, member of Blockchain Special Committee of China Computer Federation, Shenzhen High-Level overseas expert, 40 million accumulative project financing, 13 publications on top conferences and journals
- Shu Yang, Chairman – Visiting Scholar at Case Western University, Ph.D at Tsinghua University, currently CEO at Shenzhen Oudmon Technology
- Dai Pan, COO – Master’s Degree from Peking University. Also works at Shenzhen Oudmon Technology
- Dong Huo, Strategic Scientist – Ph.D at the University of Tokyo, United Nations Development Program (UNDP) Sustainability Goal (SDG) network expert
- Qi Li, Network Security, Cryptography – Associate Professor of Computer Science, Tsinghua University, network Security expert, editor of IEEE/TDSC, over 60 publications on top conferences and journals
- Zhengzhou Wu, Cloud Platform Director – proficient in Lisp, works at Shenzhen Oudmon Technology
Only six advisors have profiles on LinkedIn, and only one of them is the blockchain specialist, others represent different investment funds.
- Roger Lim – Founding Partner of NEO Global Capital. Advisor for projects like Bluzelle, Qlink, CoinFi, Thekey, Tomocoin, 0Chain, Switcheo, Open Platform, nOS. Successful entrepreneur who founded Webvisions, an asian cloud hosting company. LinkedIn profile
- Alex Likhtenstein – Founder of EVR. Featured in both live interviews and write ups by practically every major media company from CNN to Fox to the NY Post. LinkedIn profile
- Hoan Soo Lee – Economist of Council of Economic Adviser (CEA) during the first term of Obama government; partner of CMB International; co-founder and COO of Give2gether in Boston, Massachusetts, U.S.; consultant of Dorinku in London, U.K.; microcredit consultant of Harvard College Branch in Cambridge, Massachusetts, U.S. Dr. Hoan Soo Lee obtained his master degree and doctor degree at Economy Department of Harvard University and Harvard Business School in 2011 and 2013 respectively, and bachelors with highest honors in applied mathematics and economics at University of California, Berkeley in 2008. LinkedIn profile
Thanks to connections in the IoT sector previously established by parent company Oudmon, Blockcloud has already signed 30 partnership agreements with various players, and plans to expand these arrangements. Many of these partners will serve both as service providers and users on the Blockcloud marketplace. Project investors include over 28 companies, including Genesis Capital, OK Blockchain Capital, Kucoin, Neo Global Capital, JRR, BlockVC, GBIC.
Token distribution and token sale details
|Total Token Offered||2 bln of 10 bln|
|Private sale Date||Closed|
|Public Tokensale Date||TBA|
Distribution of tokens: Private Sale: 15% (1.5 billion BLOC), Other Sale: 5% (500 million BLOC), Early Contributors: 10% (1.0 billion BLOC), Team: 10% (1.0 billion BLOC), Mining Award: 30% (released evenly over 6 years) (3.0 billion BLOC), Foundation: 30% (3.0 billion BLOC)
A lock-up period attributes to the tokens released during the private sale. 20% of the tokens will be released before exchange listing, and afterwards (two months after listing) 10% of the tokens will be released per month.
Blockcloud web site https://www.block-cloud.io/ has very strong visits figures, with increased activity in June. Most traffic comes from Russia and China and it’s usually direct traffic source.
Media and community
The project shows a very strong community even without Airdrop: Telegram (46,350), Twitter (8,765), Facebook (474). Facebook is the less active resource, as activity goes in Telegram group chat mostly.
As for media activity there are lots of detailed reviews from industry analysts on Medium and other blogs, and almost no articles in big industry media (only a press-release on Business Wire).
Conclusions and editorial opinion
Risks and Potential
- SCN makes blockchain more user-friendly and in general has good prospects.
- The team has strong technical and business development background. Their experience of running an IoT device company implies that they deeply understand pros and cons of improving device connectivity.
- The parent company Shenzhen Oudmon Technology is a smart home/smart wear company that serves millions of users in China and has over 100 partners, including Ping An Group, China Mobile and Tsinghua University. Oudman has been in the IoT business for the past six years. It has submitted applications for over 80 patents and connected about 8 million devices.
- Cooperation with various universities and CERNET could result in fast adoption and good traction of the ecosystem.
- IoT is a rapidly growing industry. The number of IoT devices will increase almost four times by 2020.
- If every household or enterprise installs IoT devices and shares the data to Blockcloud enabled services, the network would bring overpowering value to trusted resource and network providers.
- So far it is a sole solution to connect devices at Cloud, Fog and Edge levels.
- No MVP yet and actual testnet will not be launched until Q2 2019. Mainnet will not be launched until Q2 2020.
- There are several ICOs this year that are creating similar IoT platforms, they also use SCN+Blockchain combination, however they have already launched their testnet, and are launching mainnet in Q4 2018.
- Unknown terms of private sale, particularly around early lock-ups. Projects without significant lock-ups (with larger bonuses) of early investors are likely to dump.
- Blockcloud TPS needs to be battle tested and proved. IoT devices send heavy levels of data traffic.
Blockcloud idea is ambitious, reasonable challenging and achievable with due technical grounds, which are clearly at place with a solid developer team.
The project has a low hard cap and high market awareness (80% of tokens were sold during presale). A long lock-up period scheduled for pre-sale participants will thin the initial circulating supply.
The tokens should not have trouble listing on major exchanges, as many of them invested in the project.
With the strong team and advisory board, the project has a good chance of succeeding.
However the mainnet is scheduled to launch only by Q2 2020, which is far away, and there are at least two projects with the same goals and similar technologies releasing their mainnet in Q4 2018. Summing it up, the project should be considered by a long-term investors and has a medium risk level.
- Site: 75 (no link to advisors and investors)
- Team: 85
- Project idea and whitepaper: 90
- Technology: 90
- Media: 65