Market has almost no growth and strong market leaders.
Product is not ready jet.
Bandwith of most users is restricted by their providers.
The incentive to share data transmission capabilities should be higher than costs for doing that.
NKN intends to revolutionize the entire network technology and business. NKN wants to become the Uber or Airbnb of the trillion-dollar communication service business. It is going to remove a central entity and all unnecessary intermediaries. The telecommunication services market, which includes fixed-network services and mobile services, had a value of around 1.4 trillion U.S. dollars in 2017. The growth rate is almost zero, all major leaders were already determined and the only disruption is possible. The biggest markets for telecom services are the Asia/Pacific region, Europe, and North America. In fact, almost everyone in the world uses the internet. As a result, the potential market for the project is the whole world. The primary market for the project is China. It is almost 1,3 bln interconnected people. A revenue only of China Mobile 107bn USD. As a result, potential market for the project is huge.
Despite the fact, that product is not developed jet it has strong fundamental background. The founders has spent on this topic ages and finally came up to the product. It consists of two main components: implementation of Cellular Automata model and Proof of Relay consensus protocol. Implementing all this technologies and principles allows to build up dynamic, secure, unpredictable, self-evolving P2P network. Key access to tokenize is data transmission capabilities. As a result, potential users have an opportunity to generate revenue by providing free capabilities to the network and benefit from it. NKN product consists from 5 main layers: 1. Application Layer: DApp support 2. Incentive Layer: Transmission capability tokenized 3. Consensus Layer: Introducing a useful proof of work 4. Network Layer: Introduce Cellular Automata rules and dynamic topology 5. Data Layer: Storing data NKN will have a significant impact on DApp; making them much more powerful and truly decentralized. In order to promote the development of these new and improved DApps, NKN will provide a toolkit that shall equip developers with everything that they need to start creating DApps without having to worry about all the technicalities that usually come with developing DApps. This toolkit will allow developers to focus more on the frontend of their apps (UI, user experience etc.) and on implementing newer features that will help them differentiate their product.
One of NKN’s major goals is going to be the creation of an internet that is entirely community driven; participation, network creation, and growth shall all be incentivized (through NKN’s native currency) in order to bring as many people on-board as possible. NKN shall combine the concepts of cellular automata and blockchain technology in order to rework the entire networking infrastructure of the internet, it will introduce a Decentralized Data Transmissions Network (DDTN) that will take the functions of blockchain technology to make network connectivity and data transferring more streamlined and efficient. Being powered by cellular automata will give NKN a huge number of advantages, apart from greater node equality, cellular automata will allow the network to have a dynamic and highly scalable topology that shall be generated from very simple local rules, the generated topologies will be entirely independent of its logical and physical infrastructure. NKN’s Proof of Relay (PoR) is being designed in a manner that will help the network become more efficient and fairer through useful activities such as extended online sessions, providing high speeds with low latency and more. The total quantity of nkn released will be one billion. In the beginning of the system operation, 70% nkn will be generated. The remaining 30% will be generated by transmission network mining after the mainnet is launched, which will take place over a period of 25 years in declining quantities.
Financial model of NKN is closely connected with the model of Filecoin and Ethereum. But instead of tokenising participant storage capabilities or computing power, it will tokenize their data transmission capabilities. The NKN economic model will give miners, developers, and investors the opportunity to generate revenue from NKN. NKN will provide superior connectivity by using Cellular Automata powered dynamic and self-evolutionary network while effectively using Blockchain’s native economic model (Token) to motivate participants to join and expand the network. The cost of NKN is determined by the bid between the client and the miner (similar to Ethereum system fee); therefore, changes in the market price for NKN will not affect the equivalent price of transaction or relay fees. The hard cap of the project is set at 12 050 ETH. It is close to 5-6 mln $. The cup of total number of tokens is nearly 15-17 mln $. Even for current development stage, this valuation seems very attractive for early contributors. In VC projects with such development stage goes through Seed stage and attract 2-3 mln $. However, NKN has unique team, which creates huge additional value exactly for this project. As a result, the attractiveness is still high.
The project has well-balanced and experienced top-tier team. NKN has extremely strong technical team with experience in Nokia, Qualcomm, Oracle, Microsoft and Ericsson. In total, team has more than 20 patents, 10 publications and 3 books. CEO of the project is not only strong business leader, but also brilliant technical specialist. He was Linux Kernel network subsystem code contributor. He studied in Stanford and has an outstanding background in cryptography and more than 10 years of R&D experience. Co-founder Bruce Z. Li is serial entrepreneur at Nokia and Google: founded and led multi-million dollar startup projects in mobile wireless and software; managed large R&D teams across US, EU and China. Few top-tier experts in math are also involved in project. One of them is domain expert with deep understanding and extensive study of Cellular Automata using Ising Model in physics. Moreover, founders was involved in major Chinese blockchain projects – Onchain and NEO. NKN’s CEO is Yanbo Li, Co-Founder of Onchain. He also participated in the development of NEO. Yanbo Li is also an advisor at Thrinity, an off-chain solution for scaling NEO. All-in-all, all 3 projects is connected with each other, making strong blockchain ecosystem in China. As a result, there are no doubts, that project has very strong team, which has all possibilities to overcome all problems and build-up truly market leader.