This article details the upcoming Credits blockchain project, compares it to existing projects, and mentions potential challenges the project may face.
Credits is an open and decentralized blockchain platform featuring autonomous smart contracts and its own cryptocurrency. The platform will be capable of performing more than 1 million transactions per second at execution speeds of less than one second, with fees that cost only a fraction of a cent. Credits platform is targeted towards financial institutions and the Internet of Things (IoT). It can be used for financial transactions, loan services, supply chain logistics, and provides a platform for many more creative and imaginative applications. Credits is a registered company in Singapore, and operates in accordance with Singapore’s Ministry of Finance under Singapore law. Credits plans to release the alpha version of their product by the end of January, and begins their ICO on February 1st.
Edit: Credits ICO has recently been delayed until Feb 15 to give partners and community members more time to test their alpha product.
To read more about the alpha version capabilities, look here: https://credits.com/en/Home/New_Ins/2224
Credits is headed by CEO and founder Igor Chugunov. He has over ten years of experience in business, financial technology, banking, and marketing. He started the Credits project with CTO and Co-Founder Evgeniy Butyaev in 2016. Evgeniy Butyaev has over ten years of experience in software development, and has worked with blockchain technology for over three of those years. Their team also features more than thirty experienced engineers, developers, marketers, partnership managers, and support staff. Many of these team members are well-educated and experienced in their respective fields.
I have exchanged messages with the CEO Igor Chugunov, COO David Kolmakhidze, Head of Marketing Lera Myazitova, and Community Bounty Manager Evgeny Romanov. From my communication with their team, I have learned that they are working hard to create a successful project that they care deeply about. Many of the team members are from Russia, Poland, and Europe.
Credits features advisors from the United States and Europe. One advisor, Nitin Gaur, is the director at IBM Blockchain Labs in Austin, Texas. Another advisor is a Senior Consultant at IBM in Business Development and Blockchain technology. This opens speculation that Credits may eventually find a partnership with IBM. We have already seen huge success with projects like Stellar Lumens (XLM) partnering with IBM. Advisors from IBM provide important momentum for an emerging technology like Credits.
Credits’ remaining advisors are mostly European cryptocurrency and blockchain specialists. Overall, Credits advisors have a wealth of knowledge, experience, and connections in education, investment, and technology sectors throughout the U.S. and Europe.
Recently, Russia has announced that it is preparing to pass a bill legalizing cryptocurrency trading. Credits could easily become a popular Russian product. Many of Credits founders and marketers are Russian, and have numerous connections to the Russian financial industry. But it does not stop there. Credits team has marketing managers focusing on Korea, China, and Japan. Credits’ head of strategic partnerships is Dutch, and has years of experience in European financial and blockchain industries. Credits is setting up to have a strong presence all across the world, with a strong advantage in Russia’s emerging cryptocurrency industry.
Credits head of marketing, Lera Myazitova, has said Credits’ marketing strategy will consist of online marketing through banner ads, published articles on targeted crypto sites, youtube bloggers, crypto forums, community chats, and more. She went on to say that offline marketing will include roadshows, conferences, meetups, and more. The Credits team has been scheduled and attended Blockchain and Crypto events in London, Amsterdam, Dubai, Miami, and Los Angeles.
Credits is being targeted towards financial institutions and IoT. The project will focus on creating fast and secure financial and data transfers. These are two industries where blockchain technology will likely hold immense value. As the value of blockchain technology becomes realized and adopted in financial and IoT sectors, the value of Credits will rise, so long as the team can find success in an already highly competitive atmosphere.
Credits will have the capability to allow large financial institutions to engage in transactions at speeds much faster than most other blockchain projects available, with fees comparable or lower than most other projects. Through the use of smart contracts, Credits platform can instantly facilitate and verify the performance of contracts between parties. Credits will also preserve the stability and security of the transactions using a combination of Delegated Proof of Stake and Byzantine Fault Tolerance blockchain consensus. The speed and security of this project is nearly unmatched, and will provide large benefits to financial institutions that adopt this technology. It will help reduce financial costs, while improving security and stability of transactions through the safety of a blockchain that can initiate smart contracts at lightning fast speeds, all while maintaining low fees.
Credits can also be used as a tool to develop and create applications within the Credits platform, similar to Ethereum, NEO, and many other blockchain platforms in the industry. Developers will be able to use the Credits platform for products that improve supply chain logistics, IoT connections and exchanges, and potentially many more possibilities that have yet to be envisioned.
High Speed, Low Cost, High Scaling
As mentioned before, Credits will be capable of more than 1 million transactions per second, capable of speeds at .001 seconds. Transactions will likely cost fractions of a cent. These speeds are made possible by the Credits platform correcting past issues and barriers that are common in older blockchain platforms. Credits will use a new, extended application programming interface (API) that uses a Turing system, which is capable of creating services using cycles, schedules, and unique functions. Credits’ platform will offer smart contract execution speeds vastly faster than most other blockchain platforms.
For context, Bitcoin (currently, without scaling) can do 7 transactions per second with a 10 minute execution speed and fees as high as $10 per transaction. Ethereum can do 300 transactions per second with an execution speed of 30 seconds-5minutes, costing many cents, or even dollars for a transaction. Ripple can scale to over 50,000 transactions per second, with a speed of around 4 seconds, with relatively low fees. Finally, one of Credits’ main technological competitors, EOS, will boast similar capabilities to Credits. EOS will be able to handle millions of transactions per second with low fees and fast transaction time, along with a DPoS consensus. However, EOS has yet to release a working product. Credits is scheduled to release its alpha version of its project by the end of January 2018, before their ICO begins on February 1, 2018.
Network Security – Delegated Proof of Stake (DPoS) + Byzantine Fault Tolerance (BFT)
Bitcoin and Ethereum currently use a Proof of Work (PoW) consensus, though Ethereum’s hardfork Casper will attempt to shift Ether from PoW to PoS. PoW is costly and uses a lot of energy. Many other projects use a more efficient and more secure, Proof of Stake (PoS) consensus. Credits will use a newer consensus called Delegated Proof of Stake (DPoS). DPoS consensus is being implemented by many of the newer, faster, more secure blockchain platforms. Essentially, DPoS provides a greater democratic process for the blockchain network than PoW and PoS. DPoS thus provides for greater decentralization and increased security by reducing the ability to attack the network.
Credits will also implement a Byzantine Fault Tolerance (BFT) system of consensus, alongside its DPoS. Overall, this will even further increase the network trust and reliability. Credits appears to be developing a truly unique network that will provide long-term security and stability.
For more information on how Credits compares to other similar blockchain platforms, see here: https://pbs.twimg.com/media/DSNRrhfXkAEad0J.jpg:large and consult their whitepaper and technical whitepaper (posted at the beginning of the article).
Third Party Audits
Credits has been audited by Entersoft, a prestigious financial technology, application, and IoT security firm. After a thorough evaluation of Credits platform transactions flow, block assignments, and different parameters that are distributed to the ledger, Entersoft concluded that the Credits platform appears secure. Entersoft also provided suggestions for platform scalability and considerations for securing applications to be written on top of the Credits platform.
Overall, this audit looks good for Credits. Now it is up to them to create a working product. We should see the alpha release soon.
Cryptocurrency and Fundraising
Credits Pre-Initial Coin Offering (ICO) fundraiser has already raised $3 million of ETH. Pre-ICO contributors will receive a 30% bonus, as they were willing to contribute at the earliest stages of the project, without assurances of a working code or platform. Credits team is set to raise up to $20 million dollars during their ICO beginning on February 1, 2018, and ending February 28, 2018, or when the hard cap goal is reached.
Credits has obtained an exemption as a securities token in the U.S., so citizens of the U.S. will be able to participate. Citizens of China, Singapore, and most other countries will also be able to participate. I have not seen any restrictions on who may participate in the ICO.
Credits features a limited supply of tokens and will sell up to 1 billion CS tokens. 60% of tokens sold will be sold during the ICO. 40% of unsold tokens will be reserved for operations and marketing (20%), bounty (2%), bug bounty (2%), advisors (1%), and founders (15%). Founder’s tokens will be frozen for one year after the ICO, meaning they cannot simply dump the CS tokens without delivering on their promises. If the project cannot find success, founder’s tokens will be worthless, giving them an incentive to drive the project forward. Unused operations tokens will be frozen and released in January of 2019, and 2020. ETH raised will be locked in Escrow until the Credits team hits certain project goals.
You can trade 1 ETH for 5,000 CS. As Credits has a hard cap of $20 million, there will be an estimated 100 million to 150 million CS sold at ICO, depending on the price of ETH. These tokens will comprise 60% of total CS. The other 40% (estimated 66 million CS – 100 million CS) are reserved as mentioned above. These statistical estimates would put the maximum supply somewhere between 166 million CS to 250 million CS – potentially slightly lower or slightly higher depending on the price of ETH on February 1, 2018. Based on these estimations, every $1 billion dollars of market capitalization that CS achieves will make each CS worth possibly $4-$7 per token. At the current price of ETH, 1 CS is selling for around $0.20. If the Credits team can manage a multi-billion dollar market cap, the value of the CS may increase dramatically in value.
Note: These are simply estimations, and are based only on opinion. None of this constitutes financial or investment advice. The Credits team has stated that they will not estimate CS token prices, and say simply that a successful product will create value for the token.
Credits (CS) is planned to list on exchanges after the end of their ICO in February 2018, or at latest in March 2018.
Credits roadmap is mainly technical, and does not feature a lot about marketing. Credits has shown a dedicated effort into marketing, but these goals are not listed on the roadmap. The team leaders appear highly focused on technological aspects of the project. Credits has an ambitious technological roadmap. The team is looking to release their alpha product before the ICO, which is rare and respectable in the crypto industry. Many crypto teams have no working product during ICO, and take many months or even years to release anything of working value. Credits is looking to have their mainnet released in June 2018. This is an ambitious goal for a new and relatively untested technology.
January 2018: Alpha release
February and March 2018: ICO and listing on exchanges
April 18: Beta release
June 2018: Main product release
One of the main challenges to Credits will be that they lack any sort of first mover advantage. The blockchain and crypto industry already contains numerous projects that have already found incredible success. Many of these platforms feature real working products with many partnerships. Developers are now beginning to build numerous applications on top of many of these blockchain networks, and Credits is still working on the alpha version of their product. Credits is many months, or in some cases, years behind many of the already-established blockchain projects.
The market may not be able to sustain the massive influx of new blockchain projects popping up, and Credits is late compared to many other projects. This may make it difficult for Credits to market its product, which will be vital to the success of Credits, as it is targeted toward financial institutions and IoT. Credits will need strong partnerships and real uses for the platform to retain any sort of value in the long term.
Credits will be relying heavily on its technological advantages compared to other products to pick up market share, which will require a strong showing from both the development team in reaching their technological goals, and the marketing team for conveying the value of the technology to their target industries. There is a lot of pressure coming into this crypto game late, and the Credits team must be clutch performers to achieve success.
Credits is a unique project with many technological superiorities to its competition. It features massive speeds, low costs, and unprecedented levels of scalability and security for a blockchain platform. The Credits team has ambitious goals, which they must achieve to compete in such a fast-moving industry. If Credits can meet their deadlines, provide the technology they promise, and successfully market their product, the Credits team could see a lot of success and potentially become another goliath in the blockchain industry. Any slip ups, and they may fall behind and possibly struggle to recover the momentum necessary to become a big name in the crypto industry. The Credits team has personally impressed me with their ambition, growth, responsiveness to the community, and technology driven focus.
Disclaimer: This article is purely opinion and constitutes no sort of financial advice, investment advice, legal advice, or any other type of advice. I do not guarantee the accuracy of any information provided in this article, and I am not liable for any actions taken, or losses incurred as a result of this article, and the information contained herein.
If you would like notifications on new articles, and to participate in the community, please register to Astral Crypto. Thanks.