Original article by EVALUAPE

For more reviews and information,please visit https://evaluape.io/share to download EVALUAPE APP.

A. Introduction

AERGO provides a next-generation enterprise-level blockchain protocol and platform, and is supported and developed by Blocko.

B. Industry

For enterprises that want to employ both public and private blockchains, they are plagued by certain obstacles in the application of the existing enterprise-level blockchains. There are primarily four problems. Firstly, the platforms are not stable enough. Therefore, whenever pulic chain technologies are updated, enterprises will need time to adapt to the infrastructure built by new techs. Secondly, operational cost is unpredictable due to the extremely high volatility of the transaction fees of Bitcoin and Ether. Thirdly, while blockchain-related technologies are upgraded at a comparatively high speed, the price to deploy new techs is usually too high for enterprises due to their complex basic IT infrastructures. Lastly, it takes too much time for enterprises’ in-house developers to learn the new programming framework and language to build smart contracts. However, outsourcing the whole business is also risky.

On May 8, Microsoft released its Azure Blockchain Workbench, providing developers with new application tools to use blockchain technologies. In June, SAP unveiled a platform based on cloud computation, providing framework for enterprises and help them develop blockchain applications. IBM also launched its enterprise-level blockchain framework, technology, products and services based on Fabric. It owns over 400 blockchain-related clients globally. Oracle also released its Blockchain-as-a-Service platform in May, providing clients with the opportunity to program and test smart contracts that can check ledgers, as well as join other organizations to make on-chain purchases. Leading companies in the industry have also started their deployments, which makes the competition even more white-hot. (7/10)

C. Mode

AERGO’s basic technology is based on that of CoinStack, both of which provide an enterprise-level blockchain platform framework. The difference is that CoinStack offers customized services for enterprises, and the price is therefore too high for small and medium size companies. For this reason, Blocko developed AERGO on the basis of CoinStack. AERGO uses the cloud architecture to create a system as a bridge between public and private blockchain networks, allowing private data to be kept on the permissioned network and facilitating asset and data exchanges between external subsidiaries and service providers through the public chain. For users of CoinStack, AERGO technologies will be applied automatically after they upgrade the CoinStack products to version 4.0. Enterprises’ proprietary chains will be displayed and assessible on the public network with their permission.

The mainnet of AERGO is expected to be launched in January 2019. In the future, tokens will be used as a medium of exchange for transactions within AERGO’s platform and CoinStack’s platform v4.0, a payment method for accessing the platform’s services and the Gas fee for the DPOS consensus algorithm. A total of 500,000,000 tokens will be issued, with 30% for sale (a total of $30 million fund, with a unit price of $0.2), 30% as incentives for the community, 25% reserved by the community administrators, 10% for partners and the last 5% as incentives for the team. The sum raised through token sales will be used for AERGO’s technology and ecosystem development. (6/10)

D. Technology

AERGO’s technical framework is primarily composed of three elements. AERGO public chain protocol is a public chain protocol that deploys a DPOS algorithm and supports the enterprise-level blockchain network with distributed nodes. AERGO Hub provides a blockchain hosting services that acts as the public interface for building, testing, deploying and managing applications based on AERGO Chain. AERGO Marketplace enables the peer-to-peer sale and purchase of computing assets.

AERGO’s Software Development Kit enables developers to use its underlying techniques more conveniently with guaranteed data security. In addition, with the technical support of Blocko, the sidechain of AERGO can deal with millions of transactions per second. In the future, AERGO can be applied in a variety of fields, such as computation, storage, digital content, machine learning algorithm, blockchain deployment blueprints, professional database, and etc. According to the project’s official roadmap, it finished the development of its SDK and the Beta version of AERGO Chain respectively in the second and third quarter of 2018. The mainnet is expected to be launched in January 2019. Its blockchain-related part is open-sourced on GitHub with a high update frequency. In general, the project shows a sensible progress. (6.5/10)

E. Team

Blocko, the parent company of AERGO, has accumulated certain project-related experience. The team is well organized, with 10 core engineers and 8 seasoned advisors in the industry. Other staffs are mainly professionals in the fields of finance and strategic consulting. (7/10)

F. Ecosystem

Currently, as Blocko has accumulated over 20 premium users, AERGO apparently does not need to worry about its user base.

Twitter: 5,626 followers; Telegram: 32,927 members; YouTube: 3 videos uploaded with 1,479 views. It is one of the Top 5% rated projects on CryptoBriefing. At present, AERGO has received investment from some well-known VC institutions, including FBG Capital, GBIC, Chainfund and etc. It also announced a venture capital investment of $30 million led by Sequoia Capital on November 20, 2018. (7.5/10)

G. Conclusion

Like most of the Korean projects, AERGO is technically backed by its parent company and provides innovative services to solve industrial pain points. The problem is that due to the comparatively low technical threshold, there are quite a lot of alternatives in the industry. Compared with the projects established by other large companies, the advantage of AERGO is that its products do not have a high requirement for the target companies’ technicians. In this way, AERGO can attract some small companies with weaker technical capability. Meanwhile, it is easier for local businesses to accept AERGO as it enjoys certain domestic popularity. The disadvantage is that AERGO compares unfavorably with large companies like IBM, no matter in terms of the size of its platform or its voice in the industry. Besides, AERGO also fails to catch the first-mover advantage. The mainnet of AERGO will not be released before the first quarter of 2019, which is about half a year slower than its peer products developed by more well-known companies. The team has hired many talents in marketing and strategic consulting with certain connections in Korea’s business circles, which can help attract more users to some extent. After releasing its products, AERGO is more likely to win a stable user base, but is not likely to become a phenomenal project. Besides, after the platform is launched, AERGO should avoid a high volatility of the token price as it’s a medium of exchange on it. Otherwise, it may become a big blow to a large number of SME customers operating under the fiat currency standard system. This is also a problem that the project has to take into consideration in the future.

Hype Score: High

Risk Score:Medium High

Expectation:Medium

Total Score: 6.8

All information in this article is provided for reference only and does not constitute investment advice.