Edenchain ICO Analysis - Programmable Economy Platform

ICOs from Korea have traditionally done well at the exchange. Just look at the block-buster opening that Icon had on Binance last year, and you’ll know what I’m talking about. From the land of Gangnam Style now comes an ICO which was code-named “Korea” by Balina in his Holy Spreadsheet. I’m talking about Edenchain here, which is trying to be a game-changer in the Programmable Economy sector.

Edenchain ICO - Important Links

Website : https://edenchain.io/

Edenchain Technical paper : Download

What is Programmable Economy?

According to their technical paper, a Programmable Economy is born when the prevailing economic system meets the blockchain. In the Programmable Economic system, it would be possible for us to register all our assets as tokens on the blockchain. This process is called ‘tokenization’. Tokenization would enable us to secure ownership of our own assets, and trade them for assets tokenized by other people. The assets can be tangible, like your 6-month old Ferrari car or the Play Station gathering dust in your attic, or intangible, like credit card points or any intellectual property (IP) that you have created. This entire process is achieved through smart contracts.

Tokenization

In our existing systems, any trade involves the presence of middle men. The middle man offers his service to both the buyer and the seller, and keeps a share of the profit from both. The Programmable Economy system will completely eliminate the middle man, and reduce the operating costs for all parties. It will also make the process much simpler and more secure than it currently is. Instead of the middle men, the nodes which help keep the system active and secure will receive a small transaction fee for every trade that happens on the platform.

Edenchain’s Vision

Edenchain plans to be the global platform for implementing a Programmable Economy system. The team is trying to design a highly secure and high-performance permissioned blockchain, which will find application in a wide range of services and industries. This includes, but is not restricted to, B2B (business-to-business) commerce, P2P (peer-to-peer) finance, and complete ICO launch services. The platform would support Solidity, which is currently the most popular language for writing smart contracts. And all these services will be provided at an extremely nominal network (or transaction) fees.

Problems associated with Programmable Economy

Security

Any Programmable Economy platform is heavily dependent on smart contracts for its proper functioning. These smart contracts should be able to interact with data from the external world outside the blockchain, so that various types of services can be provided. For example, an automated cab-fare payment system would need to know how much distance the cab has travelled, and would require data from a GPS device. These are known as non-deterministic smart contracts. Since these smart contracts require data from an external source for their execution, they are more susceptible to security hacks compared to the normal deterministic smart contracts.

Scalability

Scalability is the other major roadblock in the implementation of Programmable Economy systems. As per Edenchain’s technical paper, Facebook can handle about 160,000 requests per second, while Ethereum can handle less than 20 TPS (transactions per second) and only about 10 in case of a smart contract. Since a smart contract requires more lines of code to be executed than a simple blockchain transaction, the processing of these smart contracts can heavily clog the network. The problem of scalability can only become worse as more people begin to use the platform.

TPS comparison

Edenchain Blockchain Architecture

The Edenchain blockchain is a permissioned blockchain. In a permission-less blockchain like Bitcoin and Ethereum, anyone can join the network. In case of a permissioned blockchain, however, anyone who wishes to join the network has to be authorized by a network administrator first. The consensus algorithm used here is called PoET (Proof of Elapsed Time), which selects a leader node randomly. This is an energy-efficient consensus algorithm, which helps in keeping the processing costs low.

The Edenchain blockchain consists of 3 layers – a Distributed Ledger Layer, a Validation Layer and a Bridge Layer.

Edenchain Blockchain layers

The Distributed Ledger Layer stores all data that is generated by the Edenchain platform. It is based on the Linux Foundation’s open source project, Hyperledger. Once added, this data cannot be modified.

The Validation Layer processes and verifies transactions. This layer contains a scheduler which determines the sequence of transactions to be executed. It also includes an EVM (Ethereum Virtual Machine) on which smart contracts can be executed.

The Bridge Layer is what distinguishes Edenchain from other blockchains. It contains on-chain and off-chain nodes, for interacting with smart contracts on the blockchain and external data sources respectively. A technology called E-Bridge is used to ensure that data between the on-chain and off-chain modules is exchanged securely.

Security

The E-Bridge is the core technology of the Bridge Layer that connects it with external systems. The on-chain components of the E-Bridge include the Executor, which executes smart contracts, and an E-Oracle, a software module that allows smart contracts to access external data. The E-Oracle contains the E-Oracle Client and the E-Oracle server. The smart contracts request external data through the E-Oracle Client, and the E-Oracle Server collects the data and sends it back.

In order to enhance the network security, the E-Oracle Server executes the code required to access external data in a separate trusted environment. This space is provided by Intel’s Software Guard Extension (SGX) Enclave. The SGX Enclave encrypts data and puts it out of reach of potential software and hardware threats. Moreover, the E-Oracle servers communicate using a protocol called the E-Protocol. This E-Protocol uses an encryption technique called ECC-TC (Elliptic Curve Cryptography – Threshold Cryptography) to encrypt network data and protect it from attacks by hackers.

Finally, to ensure data integrity, the data imported by the E-Oracle Server is verified by a Consensus algorithm. This data can be either discrete type data or continuous type data. For discrete data, a simple Majority Voting algorithm is used. For continuous type data, Median Voter Theorem (MVT) is used.

E-Bridge Architecture

Scalability

Edenchain uses Namespace in conjunction with Merkle tree to improve the scalability of the network.

Namespace

A namespace can be considered to be a symbol which is used to identify a transaction in the Edenchain ecosystem. Validator nodes (that validate the data in the blocks) use namespace information to group related transactions together, under the same Namespace. Transactions belonging to different Namespaces are executed in parallel, with each Namespace running 1000 TPS. Theoretically, there is no limit to the number of Namespaces that can be added, and the network capacity can be scaled linearly as more computing resources get added.

Merkle Tree

A Merkle tree is a data structure that greatly simplifies the authentication procedures. In a Merkle tree, every leaf node (or terminal node) contains the hash of a data block, while every root node (or non-leaf node) contains the hashes of the blocks of all its children nodes. Every time a root node with a new data block is added, the contents of all the root nodes have to be recursively modified. This property of a Merkle tree helps in verifying data integrity easily, which again improves the processing speed.

Edenchain’s Team

The founder and CEO of Edenchain, James Ahn, has 20 years of experience in IT and has worked as the CTO of CyberRennasance Inc. He has cross-domain knowledge in the fields of machine learning and finance, a quality which is rare to come by. Jenny Ryoo, co-founder and blockchain developer, brings with her 10 years of experience in IT. She has been involved in research on smart grid technology, and has worked on big data processing systems.

The other blockchain developers in their team are Hokyun Kim and Brian Park. Hokyun Kim was apparently the first person in the world to develop “Saw and Pick and Place” - a fully automated system that performed sawing, cleaning and sorting. Brian Park, on the other hand, has worked in the telecom industry, and participated in the development of software-based power saving technology.

Team Edenchain

It’s strange that the Edenchain website speaks nothing about the blockchain expertise of their blockchain developers. Their LinkedIn profiles don’t shed too much light on their achievements either. It seems that LinkedIn isn’t quite big in Korea, and they might be given the benefit of doubt for not keeping their LinkedIn profiles up-to-date. But Edenchain should really look at including more relevant work experience in the profile descriptions of their team members.

Edenchain Token Metrics

Edenchain tokens (EDN) would be used as the means of payment for services on their blockchain platform. The people who are willing to run masternodes would also require to hold a minimum amount of EDN tokens (which has not been decided yet). The Edenchain website also mentions that they would provide hardware based Secure Wallets, and consumers would have to pay a certain fee in EDN tokens to be able to sue these wallets.

The total supply of EDN tokens is 1 billion. They are offering 40% of all tokens in their token sale, which is scheduled to be held sometime in May, 18. The price of each token has been set to $0.06 for the token sale, which fixes the hardcap at $24m. Tokens would be distributed over 5 months – 20% each month. 15% of the tokens have been reserved for strategic partners, 10% for the foundation, and 18% for the Edenchain team. The website also mentions that starting from 2020, tokens would be burned annually. The decrease in supply would make the tokens more valuable.

Edenchain Token Sale details

Edenchain's Roadmap

The alpha version of Edenchain is scheduled to be launched in Q2, 2018, alongwith their ICO platform, HelloEden. The beta version would be launched in Q3, 2018, while the testnet is supposed to follow in Q4, 2018. Finally, the mainnet is supposed to be launched in Q1, 2019.  As for their wallets, the web wallet would be launched in Q2, 2018, and the mobile wallet in Q3, 2018. The tokens offered now are ERC20 tokens, which would be swapped with the actual platform tokens once the mainnet is launched.

Edenchain's Roadmap

Should you invest in Edenchain ICO?

Edenchain is an extremely ambitious project from the ICO power-house of South Korea. It is trying to implement a completely new economic model, bereft of middlemen. ICO pools have literally been falling all over themselves to get a piece of the Edenchain pie. And the good folks at Edenchain have been actively weeding out any ICO pool that catches their eye. Edenchain shows all signs of being one of the winners of 2018.

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