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Smart Contract, Infrastructure, Developer Tools

Emotiq

Emotiq is a next-generation blockchain with powerful scalability and privacy with a natural-language approach to smart contracts. Emotiq is built on OmniLedger – a distributed ledger that provides horizontal scalability and VISA® and Mastercard®-level throughput, at thousands of transactions per second. The Emotiq blockchain is designed to be scalable, private, and natural; the first through the OmniLedger horizontal scaling, or sharding; the second with non-interactive zero-knowledge proofs, ensuring transaction privacy; and the third with Ring – Emotiq’s plain English smart contract language, enabling non-programmers to create smart contracts that are easy to think about and understand.

Rating: 3.4

Official contacts
Location: Emotiq, Emotiq AG, Alpenstrasse 15, Zug, 6300 Switzerland
Web-resources:   Whitepaper Website
Social networks:
Product source tracking: https://github.com/emotiq/emotiq
Details Description Risks Full analysis Team

Detailed review

Stage of product development
The product development started around December 2017. The first Blockchain prototype was launched in Q1 2018. The Testnet with Delegated PoS and Prototype applications (Ring VM, Lisp smart contracts, UI console) expected in Q2 2018. Mainnet launch with the native EMTQ Token is expected in Q4 2018.
Roadmap
February, 2018
Private Sale - Blockchain Prototype
May, 2018
Private Sale - Testnet Live, Prototype applications
August, 2018
Private Sale - Testnet improvements, Applications
November, 2018
Mainnet - Native EMTQ token, Further improvements
Token description
ICO date
01.02.2018 - 31.10.2018
Token price
- Seed: Discount N/A (aim to raise $2M)
- Private Sale Round 1: 1 EMTQ = 0.07 USD - 40% Discount (aim to raise $10M overall in 2 private sale rounds)
- Private Sale Round 2: 1 EMTQ = 0.10 USD - 25% Discount (aim to raise $10M overall in 2 private sale rounds)
- Private Sale Round 3: N/A
- Private Sale Round 4: N/A
Platform
Ethereum
Hard cap
60000000
Capitalization of token pool
120000000
Blockchain
Own Blockchain
Token distribution date
N/A
Consensus method
Delegated Proof of Stake
Escrow
N/A
ICO currencies
USD , ETH
Bounty camping
N/A
Markets
N/A
Token functions
EMTQ tokens are used to pay for any resources consumed on the platform (e.g., sending payments, paying for services, or creating child tokens and launching ICOs)
Tokens distribution
Token Sale (51.3%)
Advisors, Key Backers (2.0%)
Team (10.0%)
Reserve (10.0%)
Marketing & Ecosystem (10.0%)
Development (16.7%)
Risks
MARKET

- High competition in the sphere of smart-contracts development tools.

- The most successful ICOs in this field were launched back in 2016 i.e. have early mover advantages.

PRODUCT

- Testnet is not available yet.

- The motivation for the customers to issue tokens on Emotiq platform and not somewhere else is unclear.

- The development of a proprietary programming language - Ring - may not be adopted by communities.

BUSINESS MODEL

- Now there is not enough information available on the business model of the platform.

- Token economics is not given in a detailed manner.

FINANCES

- The unsold tokens will be kept in reserve by Emotiq, to be used for future funding needs.

- Post-ICO valuation will be equal to $120M which seems extremely expensive.

- There is no information on the use of proceeds.

TEAM

- The team members are located in Moscow, Zug, Tucson, Mexico, Los Angeles, and Toronto.

- David McClain does not have any experience except Emotiq mentioned on his Linkedin page.

Full analysis
Market

Because of its immutable ledger and highly secure framework, applications built on blockchain can offer lower operational costs, better data security, and faster transactions in a number of industries, including financial services, retail, and personal identity. However, The technology is inaccessible unless you have full-stack DevOps and cryptography experience. On Ethereum, for example, a developer with expertise in Solidity is required to write a smart contract, and even an exceptionally skilled developer may make fatal security mistakes doing so. 

On top of that, existing blockchains don’t support the volume of transactions needed to run data-rich blockchain apps. That is why the potential of blockchain development solutions is huge.

There are a number of potential competitors to Emotiq that offer blockchain development solutions, including Stratis, Lisk, Ark, BlockApps, Hyperledger, and Esprezzo. Most of these projects gained high ROI since public sale or now have large communities. This may decrease the potential for Emotiq development.

Product

Emotiq builds on top of OmniLedger and features horizontal scalability through sharding. Emotiq also features UTXO, or unspent transaction outputs, and a Proof-of-Stake (PoS) system. Through Ring, the Emotiq smart contract language, the project offers a solution for non-programmers by adding a ‘natural language’ layer to make smart contracts readable and usable by humans. On Emotiq, smart contracts are processed in Ring and compiled to Lisp and then the Ring virtual machine (VM).  While Emotiq has a native token, EMTQ, the platform can also be used to create derivative tokens.  Derivative tokens can be freely exchanged for EMTQ, enabled through Emotiq’s built-in decentralized exchange (DEX). Emotiq also provides the capability to exchange EMTQ with BTC and ETH via cross-chain atomic swaps.

Github activity started around December 2017, when the project was founded. The GitHub activity is quite high and the last commit was made less than a day ago. Testnet is not available yet.

The product development started around December 2017. The first Blockchain prototype was launched in Q1 2018. The Testnet with Delegated PoS and Prototype applications (Ring VM, Lisp smart contracts, UI console) expected in Q2 2018. Mainnet launch with the native EMTQ Token is expected in Q4 2018.

Business model

The platform will charge fees for getting access to its services. However, now there is not enough information available on the business model of the platform.

EMTQ tokens are used to pay for any resources consumed on the platform (e.g., sending payments, paying for services, or creating child tokens and launching ICOs)

Finances

After the launch of the Mainnet (Q4 2018), the temporary ERC20 token will be converted to EMTQ, the native Emotiq token.

The project aims to raise $60M by selling 50% of the tokens. This gives a post-ICO valuation of $120M which seems to us extremely expensive. To compare, Esprezzo aims to raise $22.4M, Lisk has a market cap of ~$900M, Stratis ~$420M. It is worth noticing that the last 3 projects conducted ICOs back in 2016 when the competition in this fields was way smaller.

35% of the tokens will be reserved for the team. Team tokens will be locked up for 18 months. There will be a 12-month lockup for seed contributors. There will be a 6-month lockup for 50% of private sale contributor tokens. All lockup periods will start from the time that the temporary ERC20 token is released.

 

Seed round and Private Sale Round 1 have already been conducted, Private Sale Round 2 is in progress. There will be no public sale. Any tokens unsold after the private sale will be kept in reserve by Emotiq, to be used for future funding needs. 
 

 

Team

Now there are 10 people working in the team, 7 out of 10 have a technical background.

The CEO has previous blockchain experience as CTO at Aeternity and Blockseer. He has a long track record in technology and worked at several large investment banks and technology companies. Joel has long experience working as Erlang and Golang developer.

The VP of Engineering - Vladimir Lebedev - has previously worked as CTO at the Russian subsidiaries of Nokia, Moscow Exchange, Equant, MGTS, Sberbank Digital Ventures, CIO at Veon, COO at Mail.ru group. He also founded Like'n'Pay and Cybertonica.

Other team members also have a long track record in tech.

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