Yggdrash ICO Review – Trust-based Multi-dimensional Blockchains - Crush Crypto

Yggdrash ICO Review – Trust-based Multi-dimensional Blockchains

Summary

  • Project name: Yggdrash
  • Token symbol: YEED
  • Website: https://yggdrash.io/
  • White paper: http://cdn.yggdrash.io/docs/Yggdrash_WhitePaper_En.pdf
  • Hard cap: $40 million (ICO Participants receive 50% of total token supply)
  • Conversion rate: 1 YEED = $0.008
  • Maximum market cap at ICO on a fully diluted basis: $80 million
  • Bonus structure: Private sale price - 1 YEED = $0.0068
  • Presale or white list: White list registration opens soon
  • ERC20 token: Yes (initially, will move to its own blockchain after main net is released)
  • Countries excluded: USA, Singapore, China
  • Timeline: Pre-ICO runs March 12 – 16, 2018, Main Sale runs March 19 – 23, 2018 (please refer to Yggdrash’s website for the most up-to-date information)
  • Token distribution date: May 2018
Video summary (video is 7:04 long):

Project Overview

What does the company/project do?

Yggdrash is a new blockchain that aims to improve upon today’s blockchains with improved data capacity, speed and expandability and a reputation scoring system.

They plan to downsize the amount of data running a full node of their blockchain consumes, such that a user could download one in under an hour.

Their method of achieving this is through their Block Reassembling Algorithm, which consists of the Akashic Record, Block Boxes, and Original Blocks.

The Akashic Record stores the results of all transactions from a Genesis block to a block at a specific checkout point (e.g. 100,000 blocks), Block Boxes contain a set number of blocks per box (e.g. 10,000 blocks), and Original Blocks are standalone blocks that have not been allocated to a Block Box.

A user seeking to run a full node would be able to download the blockchain at a much faster speed than other blockchains, as they would be able to download the current Akashic Record and a small number of Block Boxes and Original Blocks, rather than having to wait for each block to sync.

The reputation scoring system is based on resources spent on the Yggdrash ecosystem and allows very reputable users to transact using their blockchain with little to no transaction fee.

On top of this, they are building a Delegated Proof of Authority (DPOA) algorithm to reward users with high reputation over proof of work or proof of stake as well as implementing sharding to increase transaction speed.

Yggdrash’s key differentiators as a standalone blockchain are how they are conceptualizing branch chains along with their original or “stem” chain.

Yggdrash’s branch chains function as both a dApp and an independent blockchain. These branch chains can select their own algorithm and establish their own governance. They eventually can become decentralized autonomous organizations (DAO).

The types of Branch Chains are:

  • Immunity Branch Chain: Yggdrash-created/used chain, will not consume YEED
  • Mutable Branch Chain: User-created chain, consumes YEED at regular intervals
  • Instant Branch Chain: User-created chain, does not consume YEED but only exists for a certain amount of time and can only be created by high reputation or “trusted” individuals
  • Test/Private Branch Chain: Branch chain not connected to Yggdrash, only used for testing or private purposes.
How advanced is the project?

Yggdrash has only posted proof of concept code on their GitHub and will not be releasing their mainnet until next year. Overall, development and conceptualization of Yggdrash only started late last year.

Here is their roadmap:

Q1 2018 – Start AML/KYC

Q2 2018 – End AML/KYC, token distribution

Q3 2018 – Release TestNet

Q2 2019 – Release MainNet

What are the tokens used for and how can token value appreciate?

YEED is primarily used to reward miners on Yggdrash. Miners can choose to either mine reputable branch chains, or the network as a whole.

YEED is also used in order to connect branch chains to the main stem chain on Yggdrash, so as more dApps are built using Yggdrash, more YEED will be consumed in order to maintain them.

YEED can appreciate if Yggdrash manages to secure a large amount of users, miners, as well as dApps on their platform. More users leads to more transactions, which leads to more blocks being created and needed to be mined. More dApps leads to more branch chains, which offer more utility and value to users and potentially better mining choices.

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Team

The core Yggdrash team consists of 12 members. The bios of key team members are listed below:

David Seo, CEO and Co-Founder – previously COO of Coinone, previously Project Manager at Meritz Securities.

Peter Ryu, CTO and Co-Founder – 8+ years of programming experience, previously a developer of ICON who worked on the ERC20 smart contract during the token sale, and Blocchain Architecture at theloop.

Joonhyuk Seo, CFO – 5+ years at a Big 4 CPA Firm, MBA Candidate at UC Berkeley’s Haas School of Business (actually not enrolled yet, class of 2020 expected).

Ayden Kim, Blockchain Analyst – Former Team Leader at BTC Korea (Bithumb).

Yggdrash’s advisors include: Nakhoon Choi, CSO at Balaan, Yeon Jin Chu, CEO at Lately Korea, Woon-geun Kwon, CTO at Coinrail, as well as many others.


Yggdrash versus ICON

There are a lot of similarities between Yggdrash and ICON – both are backed by a Korean team, and the core team members (CEO and CTO) of Yggdrash have worked at Coinone and ICON previously (ICON is backed by the company that owns Coinone).

Many people have asked about the comparison between the two projects and therefore we have included this section.

  • Idea: Yggdrash focuses on scalability while ICON focuses more on connecting different components in everyday life. Both projects promise a high transaction throughout and interoperability between different blockchain. Draw.
  • Team: Both are solid. Team members at Yggdrash are mainly from other blockchain company/projects. ICON’s are mainly from other reputable Korean tech companies. Draw.
  • Advisors: ICON has heavyweights in the industry such as Don Tapscott, Jason Best, Jehan Chu, and more. Yggdrash’s advisors are mainly business executives in Korea. ICON wins.
  • Partnerships/business traction: We can’t find any partnerships or go to market strategy for Yggdrash. According to an admin on Telegram, Yggdrash is aiming to go global but their entire team is Korean – even advisors. Their experience is solely in the Korean market. We believe the strategy of first getting traction in the area that you are familiar with is a better strategy. We believe Yggdrash should focus on Korea first but ICON has a very clear first mover advantage in Korea. ICON wins.
  • ICON has a long list of partnerships secured – universities, hospitals, and financial institutions in Korea, Kyber Network, Cyberdigm, and Raonsecure. It also has a number of dApps building on the ICON platform: Stove (Smilegate), BlueWhale, TINK, Silkroad, UPPSALA (Sentinel Protocol), and AD4th.
  • Development Roadmap: ICON’s mainnet is released, and main net coin is scheduled to be issued in March 2018. Yggdrash’s mainnet is scheduled to be released in Q2 2019 – over a year after ICON. One year is eternity in crypto. ICON wins.
  • Conclusion: We believe ICON is a much better project than Yggdrash. Yggdrash is not going to beat ICON so the question is whether they can coexist.

Opportunities

  • The project has solid team members who are experienced in the blockchain space, some of whom have previously worked in reputable project/companies such as Bithumb and ICON.
  • Yggdrash tries to address the scalability issues around blockchain. This is one of the biggest problem for the long-term growth of the blockchain space and the potential is substantial if they can scale and attract adoption.

Concerns

  • The GitHub history is very young. Real development did not happen until February 2018. This makes it difficult to see whether the team can build out the idea that they have proposed in the whitepaper.
  • The roadmap is vague – the only milestones after token distribution are “Release Test net” and “Release Main net”. This makes it difficult to analyze the level of planning that the team has.
  • Yggdrash is in direct competition with ICON and as stated in the “Yggdrash versus ICON” section above, we believe ICON is a superior platform. The other thing that Yggdrash can do is to focus outside Korea but we believe it would be difficult as the entire team’s experience is in Korea.

Conclusion

Overall, we are neutral about the short-term potential of this ICO and are negative about its long-term potential. Our thoughts of the tokens for short term and long term are as follows:

For ​short-term holding

Neutral. Yggdrash should have no problem reaching the hard cap given the market awareness. However, YEED tokens will be distributed in May, which is a longer time period than the average ICO project.

Note: KYC/AML happens AFTER crowdsale and those who failed KYC will receive a refund. The KYC process ends on April 22, 2018 so the refund probably takes place afterwards.

For long-term holding

Negative. While the team is solid, their background is heavily related to Korea so we believe Yggdrash would have a difficult time gaining traction outside Korea. This makes Yggdrash a more regional blockchain similar to NEO, QTUM, and ICON and puts Yggdrash in head-to-head competition with ICON.

As detailed in the “Yggdrash versus ICON” section above, we believe ICON wins out in various categories, most importantly development timeline and partnerships/business traction. By the time Yggdrash main net is released, ICON would probably have over 10 dApps/ICOs running on the platform and its main net would be running for over a year already. Network effect is crucial for blockchain, so we believe it would be very difficult for Yggdrash to compete against ICON.

There are so many next-generation blockchains claiming to be faster and cheaper than the current incumbents. A project needs more than an idea to be worthwhile – especially in this competitive environment.

Some kind of niche is needed, be it development progress (Nano, Zilliqa), business development (ICON), industry (Vechain) or geographic focus (NEO, ICON, QTUM), development team (RChain, EOS, Cardano), or investor backing (aelf, Zilliqa). Yggdrash has none of that.


For more information about the ICO, please visit the following links:

* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.

This article is contributed by Victor Lai with the help of our intern Richard Wang.

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