ICO of the Day – Yggdrash
After looking through 24 token announcements, we’re picking Yggdrash as our ICO of the Day for its innovative approach to blockchain scalability and consensus using a “multi-dimensional” blockchain.
Blockchains today face a number of issues. Transaction scalability, fees, and governance. Both Bitcoin and Ethereum have faced network congestion as their blockchains have gotten more popular. Fees in turn, have risen exponentially. Finally, the centralization of mining power and thus governing power in the hands of a few large players has threatened the decentralized governance of Bitcoin.
Yggdrash aims to solve these issues through a tree-like “multi-dimensional” blockchain. In the Yggdrash model, each Dapp, such as Cryptokitties, would have its own blockchain and consensus system, and each of these branch chains would be connected to a main stem chain. Since each Dapp has its own independent blockchain, traffic would be segregated to the Dapp, and would not affect other Dapps. Thus Cryptokitties on Yggdrash would not affect any other Dapps in the ecosystem.
To handle consensus, Yggdrash uses a kind of Proof of reputation system they call DPOA(Distributed Proof of Authority). In this consensus system, good actors with good reputation pay low or zero fees, while those with bad reputations pay more.
The team behind Yggdrash is quite strong, with former employees of Coinone, ICON, and Bithumb. Advisors include many industry leaders across various markets, from finance to e-commerce to food delivery.
By having not just a strong development and technical team, but also a strong advisor network, Yggdrash has strong potential for industry partnerships during and after launch.
The YEED token is used on the Yggdrash network to incentivize the DPOA consensus mechanism.
50% of the tokens are being sold, with a hardcap of $40 million USD.
Yggdrash’s faces execution risk and adoption risk. In terms of execution, the ideas behind Yggdrash seem sound, but there is little code written and tested at the moment so its hard to say how well DPOA and Yggdrash’s tree-like architecture actually works in practice.
Like any blockchain, Yggdrash’s success also depends on adoption. While Yggdrash has strong industry partners, it will also have to gain the support of the mainstream crypto development community to win the ecosystem over.
Yggdrash takes an interesting scalable apporach to the current challenges of existing blockchains. By using a tree-like architecture, it aims to solve blockchain scalability. With its reputation based consensus, it aims to reduce fees and also improve governance.
While the ideas are beautiful, time will tell whether they really work in practice, however with its strong team, and list of advisors hailing from industry, we are more than happy to pick them as ICO of the day.
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