EdenChain (EDN) is the new Ethereum Rival in Asia.

Introduction

Short after Bitcoin crypto currency was launched it became evident that it had a number of critical restrictions one of them being script language embedded into the protocol was mostly tailored to crypto currencies. Pretty much every time there was a business need to add another type of token, changes to Bitcoin protocol were required meaning a huge effort had to be applied to update the hard coded rules, pre-defined settings, etc.

As a response to Bitcoin restrictions Ethereum framework was introduced and indeed it addressed some (but not all) of the restrictions. Specifically, the Ethereum script language was unrestricted and allowed any types of smart contracts to be written and unlimited number of token types were supported. There were some advances in other parts of the protocol, e.g. Ethereum features more advanced approach on proof of stake/proof of work mechanisms, and still there are at least two more critical challenges that have to be addressed: security and performance.

EdenChain is basically and endeavor to address both and to a certain extent it is the next evolution step after Ethereum. If the truth be told EdenChain is using many Ethereum elements (e.g. the script language, virtual machine, etc), but it is different in many ways. From security standpoint unlike Ethereum EdenChain is so called “permissioned blockchain”. This means there is a pre-qualification process before someone could send transactions to EdenChain and after approval it is possible to revoke permission. The obvious benefit is transparency (i.e. it is literally impossible to hack anything or intrude as everything is logged and every step has a name tag and a timestamp) and the drawback is that someone will have to administer/manage who is allowed to be on EdenChain, i.e. there might be some opportunities for censorship/sanctions although they explicitly promised in the whitepaper not do so.

Performance-wise EdenChain uses other than Bitcoin method to agree on the “winner” in block generation (proof of work/proof of stake mechanism), i.e. in EdenChain after the leader is selected there’s no need to solve the energy consuming so-called hash puzzle. Instead EdenChain uses another algorithm to select the winning node. Another significant performance improvement is having a load balancer and transactions are processed in bundles/batches in accordance with their type. There are more technology differences and probably the key takeaway is that EdenChain is a standalone platform (like Ethereum), it is based on some Ethereum principles, and introduces some elements of centralization via security plus some performance improvements.

Value proposition and target audience

Market wise they are targeting the economics tokenization saying that the platform shall support issuance of new tokens and sub-tokens to represent all classes of real assets (both tangible and not). The way they envision this in the road map is that they run platform ICO in Q2 2018 and then launch ICO issuance service in 2019.

EdenChain platform target audience is very much similar to Ethereum one and among other include but isn’t limited too businesses that are looking to issue own coins that represent assets that they sell/generate/produce/create, qualified investors (like hedge funds, brokers or banks) who might be interested in crypto derivatives issuing.

Revenue is supposed to be generated by: transactions processing fees and charges from companies planning to run an ICO on EdenChain (on boarding fees).

Technology

The product is a software platform that will be hosted in Amazon cloud (planned migration Q1 2019) and it’s secure part will be build on Intel SGX enclave. There will be a number of interfaces/connectors built to other applications for integration purposes (e.g. crypto currency exchanges). Since it is a server-side platform it will not be available in AppStore or Google Market directly while client applications interacting with the platform will be available. EdenChain smart contracts are similar to Ethereum one as they use the same syntax, EDN is ERC20 token.

Financials

Pre-ICO: 1M of EDN tokens were distributed as per-ICO bounty, no private sale, whitelisting started on the 1st of April (on hold), 2018, crowdsale is expected to start in May 2018

Main ICO facts:

• ICO status – in progress, round a is open, the ICO comprises of the 3 stages: round a (bonus 20%, institutional and strategic, over $100k) and b (bonus 15%, strategic and active community contributors) followed by the crowdsale (no bonus, was open to whitelisted members and is now suspended due to high volume of applications, dates of re-opening is TBD if any).
• Token price – 6 cents
• Bonus – 15%-20% depending on the client type
• Barriers for investors – US, China and Iraq citizens are restricted to invest in EdenCoin as per the announcement at their website, whitelist is on-hold due to delayed KYC/AML compliance after first 5000 applications.
• ERC20 token (public Ethereum blockchain)

Tokens distribution

EdenChain plans to issue token supply of 1 Bn EDN split as follows: 40% token sale ($24М), 15% strategic partners, 12% accelerator program, 10% foundation, 18% team and advisors, 5% bounty and marketing.

Investor summary

Comparing EdenChain to competition (Ethereum, Stellar, ICON) it looks quite solid with significant evolution potential due to innovative approach in addressing bottlenecks of the decentralized networks.

As for advisors the list contains a dozen of names with predominantly Korean and Asian industry experience. It is a little bit sad that Changki Park is no longer on the list although his name is famous outside of Korea for building one of the most successful investment company in Asia.

Back in February EdenChain CEO James Ahn gave an interview on Korea government and crypto currency. The interview and the scale of challenge he is planning to address (many industry verticals, Internet of Things, etc) might lead to an assumption that the project is somehow backed by the Korean government which seems to be a good sign as it should ease the first steps with the on-boarding of select government corporations.

EdenChain is incorporated in BVI – an investor friendly jurisdiction. The core team and HQ are based of Seoul. South Korean platform for many Asian economies (excl. China) like Malaysia or Philippines could become a nice opportunity to tokenize their economies and see if this works out plus if they market it properly some European companies can join as well.

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Authored by: Will.Smith (@iwgeiw)

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