ICO Spotlight | Elementh – Next Generation E-commerce Protocol

Elementh is a protocol for the development of decentralized applications (DAPPS) that leverages blockchain technology and uses a built-in turing-complete programming language that allows protocol users to write smart contracts. As such, the Elementh protocol (Elementh) makes it a perfect fit for e-commerce transactions where participants (manufacturers, distributers, service providers, merchants) can manage their business.

Elementh’s main value comes from their solutions to current e-commerce issues:

• Standard nomenclature of goods: Speaking the same language is vital for human interaction as well as e-commerce transactions. One of the key features of Elementh is the availability of a unified nomenclature. To ensure that the merchandise cards are as complete as possible, Elementh will put a higher cost to create new cards, thus reducing the confusing many consumers have with trying to figure out various product variations.

• Supply Chain Tracking: The movement of goods and ownership can be stored on the blockchain. This capability makes counterfeit/pirated goods impossible as the blockchain will record all product history throughout the supply chain.

Elementh’s other value resides in blockchain’s capability to store product and participant information, messaging and search functionality.

Elementh can also support other e-commerce verticals, such as hotels and/or airline services by tracking information and ownership of tickets, coupons, and vouchers.

In sum, Elementh leverages blockchain tech to bind e-commerce participant transactions through smart contracts because blockchain information is safe, unambiguous, and irreversible.

BLOCKCHAIN MANAGEMENT

DPOS

Blocks will be created in a timely manner using a DPOS model. Shareholders will have the option to choose a delegate to unsure the blockchain runs efficiently (this DPOS model works the same way as Steemit where delegates are called witnesses).

Elementh delegates will be rewarded for their work through the issuance of new tokens. Elementh said that inflation can be configured but did not specify what rate they will cap it at (their example said 5%, which is a healthy rate).

ADDITIONAL CAPABILITIES

In addition to the capabilities that I already identified, Elementh will also have the following capabilities on their protocol:

• Search for goods by geolocation. Seller information available in the Elementh blockchain will allow users to find goods/services closest to them.

• Decentralized sending of messages. Messaging might not seem like a vital capability however it is essential that participants have the ability to message each other with questions.

• Store designer. Elementh allows anyone to create individual decentralized showcases for any vendor in the system.

• Fake search. Data on all participants of the chain will allow to track the appearance of counterfeit products at any stage of the transfer of ownership of goods.

• Bank scoring. Access to data on all transactions of any participant of the system will allow instantaneous scoring of the seller, which makes it possible for banking institutions to build credit and overdraft systems.

ICO DISTRIBUTION DETAILS

TOKEN SYMBOL	ELEMENTH (EEE)
TOKEN TYPE	ERC-20
ICO PERIOD	APRIL 1st 2018 – APRIL 30st 2018
TOTAL SUPPLY	303,000,000
TOKEN RATE	1 EEE = 0.0002 ETH
BONUS SCHEME	1st Day – 30%/2nd Day 15%

ROADMAP

DATE	MILESTONE
JUN 2018	Alpha-version of Elementh blockchain
SEP 2018	Elementh blockchain TestNet
DEC 2018	Elementh blockchain Launch!
MAR 2019	Launch of first DAPP

FINAL THOUGHTS

The e-commerce industry is still a high-growth industry. As cryptocurrency gains mainstream acceptance, blockchain for e-commerce will naturally grow along with it. Adopting a complete blockchain solution for e-commerce is the future. Just accepting cryptocurrency as payment is not the same. Eventually, all e-commerce participants will see the value of picking a ready-to-use platform and that makes Elementh attractive.
However, picking to be in a high-growth industry (actually 2: e-commerce & blockchain) makes it attractive to other businesses. The blockchain/e-commerce market is becoming a highly competitive area. Elementh identified competitors in their whitepaper, but I think by the time they get off the ground they will find other competitors with similar models (CyberMiles and Omnitude). The e-commerce can probably support multiple protocols/platforms but I have no idea where the saturation threshold will be. There are also big companies (i.e. IBM, Accenture) that are developing niche solutions within the same industry. Will big e-commerce players plug and play, build their own, or choose a ready-to-use protocol like Elementh? I don’t think anyone knows with a high level of confidence right now, given where the cryptocurrency market is at right now.

I feel that a lot of the ICOs that I review are dependent upon attracting participants. In other words, if no one is aware of their existence, then it doesn’t matter how good their solution is. Elementh will have the same challenge that has nothing to do with how good their protocol is. They will need a balance of manufacturers, merchants, suppliers, and customers as well. Yet, Elementh hasn’t mentioned anything about a marketing plan. To be fair, they have a strong partnership a strong Russian business called Miiix. Miiix is in production and has over 200 online stores and marketplaces that is working with Elementh. Perhaps, Elementh will address additional marketing after their launch and focus on development right now.

Even with the above challenges, I think Elementh is a great idea and has the potential to be the global e-commerce protocol/platform of choice for e-commerce participants the future.

I really like that their example in their whitepaper of how easy it will be for someone to search for suppliers, pick products to sell, and easily be up and running within an hour. Luxury goods always battle counterfeit goods, with blockchain, all that disappears under a protocol that tracks the life-cycle of a product from start to finish. Anyone using Elementh will be able to safely procure luxury goods and consumers will trust they are authentic. It sounds simple because it is. As I said, this is the future of e-commerce.

I plan to watch Elementh and the blockchain e-commerce space very closely and I bet they will have a nice slice of the global e-commerce market in the future.

Lastly, I encourage readers to read Elementh's whitepaper as it has additional information and goes into more detail than what I was able to provide.

ICO REVIEW SCORES

FoxICO – 8.5/10
WiserICO – 4.9/5
FoundICO – 8.4/10
IcoMarks – 8.4/10
TrackICO – 5/5

ELEMENTH REFERENCE LINKS

Website
Whitepaper
FAQ
Telegram
Twitter

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Traversing the Cryptosphere,
Kryptonaut (GeneralCryptoZod on Telegram)
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