What is SophiaTX?

SophiaTX is the ‘blockchain for business’. SophiaTX is a project led by Equidato Technologies AG. SophiaTX is aiming to expand the possibilities of enterprise applications with the trust and security that comes with blockchain technology. SophiaTX has been formed by by veterans of “best-in-class” SAP integration experience. Equidato Technologies AG is an existing company focused on the integration of blockchain with enterprise applications, such as SAP, IoT sensors, smart printing, and other advanced technologies forming the ‘industries of the future’ eco-system.

Technicals

Market Cap (25–02): $89 Million

Price: $0.46

All-time High price: $1.58

Circulating Supply: 202.5 Million

Total Supply: 500 Million

Type of token: ERC-20 (for now)

Idea

Businesses face challenges in trust in exchange with third parties. Trust is of high importance when exchanging information. Establishing trust in a third party requires time, and delays business processes. The blockchain provides full transparency which creates trust.

Most ERP vendors end up using private or consortium blockchains. This is not efficient, because not the whole value chain can participate in a private blockchain.

SophiaTX aims to build a platform with an open blockchain which will allow integration of all ERPs and enterprise applications with the SophiaTX blockchain. SAP is the leading enterprise resource planning and business applications. The goal of SophiaTX is to integrate with SAP. SAP SE is a company that makes enterprise software to manage business operations. SAP serves more than 365,000 companies in 190 countries. 98% of the 100 most valued brands and 87% of the Forbes Global 2000 companies use SAP software. This is a huge target market, and can be very disruptive if it succeeds.

SAP SE is a company that makes enterprise software to manage business operations. SAP serves more than 365,000 companies in 190 countries. 98% of the 100 most valued brands and 87% of the Forbes Global 2000 companies use SAP software. This is a huge target market, and can be very disruptive if it succeeds. The SophiaTX platform will consist of a marketplace. The Marketplace is a web based solution and entry point for customers and solution developers and contains two primary areas: App Store and Dev Store. Customers will be able to view and purchase applications developed for SophiaTX Blockchain, while developers are given the option to download the API and submit their own applications for testing prior to the release in the App Store.

The App Store, embedded in the marketplace, is going to provide a catalogue of applications which have been developed and certified by the various solution integrators and developers. Customers can download and install an application into their ERP System which will synchronise with the SophiaTX Blockchain and utilise the blockchain functionality.

The development store, another integral part of the marketplace, integrates the testing environment and allows developers to test their application within a private testchain. All applications will undergo rigorous testing before being placed in the App Store. The license key is only provided to the developer once the testing for certification has successfully been completed. The Dev Store provides developers with the tools necessary to integrate with the SophiaTX Blockchain. SophiaTX Blockchain will provide a Java and net based interface for development integration

The SophiaTX Architecture

The Blockchain will use delegated Proof-of-Stake (dPos) as a method of consensus. Other platforms such as Lisk use this method of consensus as well. dPos is known to be the fastest and most efficient way to achieve consensus in a decentralized network, and consists of a voting system.

Use Cases

The team highlights three use cases in their whitepaper, while stating there are many more.

One-to-One document exchange: SophiaTX Blockchain will provide a solution for customers to send key information regarding a sales invoice via the blockchain to end customers. The solution will allow the end customer to purchase an invoice directly from the sales information sent. Multi-Party information exchange: Imagine a project where multiple vendors are working together. The blockchain is used to synchronize work schedules and share rewards for outcome. The blockchain is the true enabler for full working collaboration, providing complete transparency. Blockchain and its peer to peer technology provides the evidence that tasks were agreed upon in case of dispute between parties. Multi-Party collaboration Across Value Chain — Track and Trace: Inspection of processes and assets from beginning to end create full transparency.

Example: Challenges in Supply-Chain for Pharmaceutical businesses. The process from obtaining raw materials up to the final sale is a very complex process. This involves many different parties. The market for pharmaceuticals is a very profitable and competitive markets. Because of these factors, a lot of counterfeit products exist. These products can be made easily, and especially in developing countries there is a lack of information about these products which could cause harm. Another challenge for the supply chain is the transport of medicines, as they require certain temperatures to be functional.

Solution: Integrating blockchain and SAP will allow pharmaceutical companies to write their products into blockchain directly from their SAP systems and prove their authenticity.

Token Usage ($SPHTX)

Currently SPHTX tokens are ERC-20 based, which means they are on the Ethereum blockchain. When the main net is launched, it will have its own token: SPHTX. The token will have usage within the marketplace and in many decentralized applications. There is a variety of usage for the token, some of which are listed below:

Transaction fee and miner rewards

Subscription access rights to the SophiaTX Blockchain → intended for businesses

Reward allocation for buying and selling on the SophiaTX marketplace.

Reward for the developers when one of their applications is installed by an end customer.

Transaction and data storage fee for document file server

Licensing for private blockchains which can be created on the SophiaTX platform.

Competitors

How is SophiaTX different from competitors? Why don’t business use already existing platforms such as Ethereum? Why not use the existing SAP’s Blockchain-as-a-Service?

As SophiaTX states in their whitepaper: ‘’Ethereum for integration with business applications has its limitations.’’

According to the team, a high performing blockchain will not function on a Proof-of-Work based blockchain. Also, a blockchain for business must have a certain level of privacy which Ethereum does not have.

SAP’s Blockchain as a Service will according to the SophiaTX come short of being truly inclusive of all participants across value chains, does not provide sufficient transparency, and has a tendency to be relatively more expensive.

Another competitor is Hyperledger, which is supported by over 180 businesses. SophiaTX differs from Hyperledger, because SophiaTX takes the end product straight to the market.

Team

SophiaTX has a core team which consists of 10 members. The team consist of SAP integration experts and experts in other enterprise applications. The CEO Jaroslav Kacina has 22 years of experience in Enterprise Resource Planning. The team is well balanced, and in addition there are 12 well-respected advisors in the SophiaTX project. A very strong team is leading this project.

Roadmap

The current SophiaTX roadmap looks like this. As published on their website, the team is two months ahead of schedule of this roadmap. This is very impressive, and is not seen often in the cryptocurrency space. In Q1 2018, SophiaTX opened the pre-registration for their early adopters program. An impressive number of 3000 people registered for this, and the early adopters program is expected to launch any day. The date of release of the marketplace is moved forward to May 2018, and the main net is expected to be launched in July. When the main net launches, the ERC20 tokens will be replaced by final proprietary SPHTX tokens, and the ERC-20 tokens will be burned.

Communication and Community

The team of SophiaTX is very professional, and very transparent in their communication. They are active in communication through their website, LinkedIn, Reddit, Telegram, and Twitter. The CEO has been in several AMA’s on YouTube, which shows transparency of the project. The SophiaTX reddit (SophiaTXproject) has 1256 readers, which is not very high. Their telegram group currently has 4619 readers. Overall, the communication is very well, however the community size is relatively small compared to other projects.

Partnership with GE

SophiaTX has a partnership with General Electric. General Electric is a multi billion Dollar company, and this is good news for SophiaTX. SophiaTX will be designing and developing a blockchain solution for GE’s financial efficiency and operations. This adds a lot of value to the project.

Where to buy?

SophiaTX is currently listed on IDEX, Qryptos,Bit-Z, Cobinhood,Coinfalcon, YoBit and Etherdelta. These are low-volume exchanges compared to Binance, Bittrex, etc. The team is actively working on listings on bigger exchanges. The 24-hour volume (25–02) of ~$75,000 is extremely low. SophiaTX definitely needs a bigger exchange in order to explode. This means there is much room for growth, as newly listed coins on big exchanges usually experience a big pump.

Cons

SophiaTX is active in a very competitive market. Large businesses have enough capital to create their own blockchain solutions, and this could lead SophiaTX to be unnecessary. Their main net is expected to be launched in July, there could be B2B blockchains which are ahead of them. Their community is also relatively small, and needs more attention in order to grow to a larger scale.

Overall Review

SophiaTX is a great project targeting a massive market. IF this project succeeds, it could lead to major disruption in enterprice applications. The team is great, and they are two months ahead of schedule. They have many use-cases which is essential for a blockchain project. A large partnership with GE is established, which proves legitimacy for the project. The team takes the low-hype approach, but gets work done. The market cap is incredibly low at <$100 Million for a project of this scale. The competitive market however, is a concern.

Overall rating: 4/5

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