Ankr Network ICO Review | Decentralized Cloud Computing & DApp Platform

Name: Ankr Network ICO Review
Item: Ankr Network ICO Review | Decentralized Cloud Computing & DApp Platform
Rating: 6.4
Author: Coindrift Team

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Coindrift Team

June 12, 2018

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6.4 Total Score

Ankr Network ICO Review

Ankr Network is a project based around the concept that the use of resources in Proof of Work (PoW) is inefficient and wasteful. Their proposed solution is to introduce a novel consensus algorithm called Proof of Useful Work (PoUW) that redirects mining resources toward useful computations rather than hashes. Computational work will be provided by enterprises and consumers with a demand for processing power, so PoUW also enables the system to function as a decentralized cloud resource as well as a mechanism for confirming transactions. Ankr Network will make use of a multi-chain architecture with Plasma sidechains to handle smart contracts for specific applications. This is to aid scaling and prevent the main chain becoming overloaded. It also features an Oracle Service to enable data to feed into smart contracts via an API. As such, Ankr Network will also function as a DApp platform and P2P payment system.

Market Size

Team

Token Utility

Product Development

Social Signals

PROS

PoW mining requires a monumental amount of electricity, with the Bitcoin network alone consuming more than 71 TWh, or as much as the entire country of Chile. This is not just unsustainable, but also incredibly wasteful since the computations are not productive. If the team can successfully implement PoUW, it would massively improve resource efficiency through using mining for useful workloads rather than pointless hashing. It could also reduce the need for high-energy consuming cloud servers as Ankr Network will leverage existing hardware of miners.
The token has high utility due to it being used in both the cloud computing marketplace (though it is still unclear how this will function) as well as a method of payment in DApps built on the platform.
Mining projects are often well received by the market due to the fact they offer those with computational resources to profit from the network.
8 notable strategic investors which include Neo Global Capital (NGC), GBIC, KOSMOS, OK Blockchain Capital and others. Research partners also include Blockchain at Berkley, CPC and Dora Hacks, though again there was no information about the partnerships.
Oracle Services are good for encouraging adoption by businesses as they allow easy integration of existing off-chain data into on-chain smart contracts. However, critics argue that they interfere with the deterministic nature of blockchains.
Social signals are quite strong given the infancy of the project, with a 26k+ Telegram channel despite limited marketing.

CONS

No publicly available whitepaper, MVP or prototype, so we have limited resources available to conduct a thorough review at this stage. We will be sure to update once these materials becomes available though. The roadmap is also very bare bones, with no mention of a mainnet launch date.
Use of Intel SGX limits involvement to only those who have the compatible hardware. Although, it is unclear at this stage who will be required to have an SGX enabled chip to participate in the network. Will every node require one? Just the miners? General users?
Relatively young team with limited experience developing blockchain projects. Although, Vitalik launched Ethereum when he was just 19 so it is certainly possible! Many team members also attended reputable universities and were involved with organisations like Blockchain at Berkley, which does install confidence.
Despite the strong Telegram, the social and community aspect needs improving in other areas as we could not find a Twitter or Sub Reddit.
The PoUW is still an early idea and we are unsure of the exact mechanics behind how the system will function. In PoW systems, the block time governs the time taken to complete computations, however in PoUW the block time is unknown because we do not know how long the given computation will take to be completed. Therefore, we do not know when the next block will be. Also, what happens if no one is demanding computations to be completed? Hopefully the whitepaper will answer some of these questions, but the uncertainty does make the project a riskier bet.

User Rating: 3.25 (4 votes)