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Alza

ALZA is a low latency, low fee, and smart contract compatible public blockchain. It will be based on a self-organised payment field, RaFi and DPOS consensus mechanisms. It is a new generation of blockchains that achieves a balance between critical elements such as scalability, security, and decentralisation.

Rating: 3.6

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/ALZAProject
Details Description Risks Full analysis Team

Detailed review

Stage of product development
The team was formed in January 2018, and the proof of concept was made in March 2018. The testnet launch is expected in October 2018. Mainnet launch is planned for January 2019. According to FAQ section on the company's website, the testnet launch is expected in Q1 2019, the Mainnet Launch - Q2 2019.


Token description
ICO date
TBA
Token price
Private: 1 ALZA = 0.0192 USD (20% Discount, Minimum 300ETH, Maximum 500 ETH per participant)
Public: 1 ALZA = 0.024 USD (No Discount)
Platform
N/A
Hard cap
19000000
Soft cap
5000000
Capitalization of token pool
76000000
Blockchain
Own Blockchain
Token distribution date
N/A
Consensus method
Delegated Proof of Stake
Escrow
N/A
ICO currencies
ETH
Bounty camping
N/A
Markets
N/A
Token functions
The token will be used for paying the transaction fees on the platform. More functions are TBA.
Tokens distribution
Token Sale (25.0%)
Team (10.0%)
Community Reserve (10.0%)
Foundation Reserve (15.0%)
Block Producing Rewards (40.0%)
Risks
MARKET

Competition in the sphere of scalable dApp-protocols is more severe than in others, so it has to be taken into consideration. The existing blockchains, though not as scalable as Alza might become, still have first-mover advantage and might be better-off if they introduce scalability features, such as Lightning network, Sharding, Plasma, State Channels.

PRODUCT

Competition in the sphere of scalable dApp-protocols is more severe than in others, so it has to be taken into consideration. Alza aims to deliver its testnet only by the end of 2018. By this time, the already-existing blockchains may already run its Mainnets and add scalability features, such as Plasma, Sharding, Lightning, etc. The registered entity of Alza is unclear.

BUSINESS MODEL

There is no information on the expected size of the fee

FINANCES

Alza will only sell 25% of the tokens for public. It is unclear how the 40% tokens for "Block producing rewards" will be used.

TEAM

All of the team members are still employed at their permanent workplaces thus have to combine Alza development and permanent employment. There are no blockchain specialists within the core team. Chris Liu ACM/ICPC contest winner - does not mention Alza as a workplace on his LinkedIn page.

Full analysis
Market

The development of the blockchain technology has made great progress in the last few years. However, issues of transaction speed and transaction costs prevent blockchain technology from becoming mainstream. The current low capacity of the main blockchain protocols and cryptocurrencies (Bitcoin, Ethereum), more specifically 10-30 transactions per second (TPS), cannot cover the world's commerce anytime. In contrast, Visa claims to have 56,000 TPS on its network, while Alipay has achieved 200,000 peaks TPS in November 2017. The scalability problem of the current blockchain-based systems poses significant limits for their extensive applications. How to scale up blockchain TPS without compromising its security and decentralisation remains elusive In order to solve this problem, several projects have already launched the alternative protocols that aim to significantly increase the throughput of the blockchain protocols. For instance, EOS launched its infrastructure for dApps, which Test Network can sustain over 10,000 TPS. EOS raised $197M during its ICO in June 2017 and now is the 5th largest cryptocurrency in the world by market cap. IOTA is able to process 500-800 TPS, raised $400M and now 11th by market cap in the world of cryptocurrencies. That is why the potential growth and community attention to Alza might be lower. Overall, the scalable protocols for dApss gain large public attention during token sales and have comparably high ROI's. However, competition in this sphere of blockchain is more severe than in others, so it has to be taken into consideration

Product

ALZA is a public blockchain. It will be based on a self-organised payment field, RaFi and DPOS consensus mechanisms. It is a new generation of blockchains that achieves a balance between critical elements such as scalability, security, and decentralisation. It provides the primary platform for the extensive application of blockchain in the real business world. Alza will use Delegated Proof-of-Stake (DPOS) with 23 supernodes which will issue blocks every 3 seconds and solve the issues of task distribution and operational resources’ inspections. Alza will also introduce off-chain payments; this will allow the transaction procession and the associated data stay in a self-organised payment field. Alza will also implement Redundant Array of Satellite Infrastructure or RaFi. This mechanism proves that decentralisation, high throughput and robustness of the chain can be achieved within one infrastructure. The whitepaper of Alza was published and accredited by the Computer Science section of Cornell University Library on May 25th, 2018. The GitHub was created at the end of 2017. The activity is quite high, and the last commit was made less than two weeks ago. The main contributors are Henry Zhang and ALZA working account. The source code is mainly written in Go. The team was formed in January 2018, and the proof of concept was made in March 2018. The testnet launch is expected in October 2018. Mainnet launch is planned for January 2019. According to FAQ section on the company's website, the testnet launch is expected in Q1 2019, the Mainnet Launch - Q2 2019.

Business model

ALZA will charge transaction fees for each transaction on ALZA, paid in native tokens. The team proposes that the transaction fee will be low(the website claims that the size of the fee will be ~$0). For comparison, the average transaction fee for Bitcoin is ~$25-30, ~$3 for Ethereum, and ~$0.05 for EOS. However, now there is no information on the expected size of the fee. More information on the token economics is TBA. It should be noted that Alza will only sell 25% of the tokens for public. Moreover, it is unclear how the 40% tokens for "Block producing rewards" will be used.

Finances

Alza Soft and Hard cap will be equal to $5M and $19M accordingly. The team aims to allocate 25% of the tokens for sale. This gives company valuation in the range between $20M and $76M. The company valuation looks similar to the competitors. To compare, Quarkchain has a market cap of ~$48M. The private sale round discount will be 20% and will be subject to a 7-month vesting scheme. Alza will issue 4B tokens.

Team

There are 7 people in the Alza team. The core team consists of ex-Google Software Engineers and is located in San Francisco Bay Area. They have previous experience in Data Science, Machine Learning, Computer Vision. However, there are no tech specialists with a background in blockchain within the team. One of the team members - Chris Liu - previously won ACM/ICPC world programming contest several times. However, he does not mention Alza as a workplace on his LinkedIn page. Several team members hold PhD in Computer Science from US Universities (State University of New York at Buffalo, the University of Illinois at Chicago), Apart from Google, the team members previously worked at Microsoft, Foxit Corporation, Yahoo, Intuit, Fujitsu. Overall, the team looks quite strong and experienced.

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