Omnitude ICO Analysis: A comprehensive review and analysis of Omnitude ICO, which is set to revolutionize the eCommerce industry
Omnitude is a stand-alone blockchain solution that integrates blockchain technologies with existing eCommerce platforms, enterprise systems and supply chains.
The Omnitude platform acts as a middle-layer software that allows interoperability between current software systems and blockchain functionalities, allowing businesses to adopt blockchain technologies and its benefits (e.g. immutability and transparency) without changing replacing or disrupting existing structures. Additionally, Omnitude is an open-sourced project that allows developers to conceive and deploy solutions on its ecosystem.
Omnitude is designed to remove the current obstacles within the eCommerce industry, that includes:
- eCommerce Fraud
- Supply Chain Inefficiencies
- Identity Confirmation (Customer Onboarding)
Omnitude is a permissioned network that will be built on Hyperledger. Nodes will be managed by parties that have been whitelisted by the Omnitude Foundation, where the level of access is contingent on the role of the participants.
Hyperledger is an open-sourced, permissioned blockchain protocol that enables business-to-consumer and business-to-business transactions
Here is the overview of Omnitude’s ecosystem:
Omnitude allows developers to create data flows and integrations via APIs, therefore facilitating the creation of various applications and interactions within the ecosystem between various eCommerce parties that include:
- Omnitude Specialist
There are 2 main differentiators of the Omnitude platform:
Integration of an Identity & Supply Chain Solution for eCommerce Industry
Omnitude’s proposed solution consists of 2 core components that when integrated together, represents a unique value proposition specifically for eCommerce:
- Single Identify & Proof of Interaction (POI) Solution
Customers will each possess an Omnitude Identity (OID), reducing the effort required by merchants to establish customer identity exponentially and streamlining the customer onboarding experience. Customer preference and purchase history will automatically be recorded into their OID. Merchants will also possess their own OIDs, allowing customers to write reviews.
- Supply Chain Solution
Items will be tracked throughout the supply chain through unforgeable cryptographic identifiers, where all data will be recorded on Omnitude’s blockchain. Both customers and retailers can track the items since the start through a front-end application, while merchants could make staggered payments according to their progress in the supply chain to reduce counterparty risks.
Delegated Practical Byzantine Fault Tolerance (DPBFT) Consensus Algorithm
Omnitude uses a unique consensus mechanism called the DBPFT (Delegated Practical Byzantine Fault Tolerance) consensus algorithm which is rarely used by other projects. The main advantages of using DBPFT is that it offers immediate transaction finality, a high transaction rate, and high scalability
Omnitude’s native token – called ECOM – is a utility token that is required to access the Omnitude ecosystem. ECOM tokens will serve the following purposes:
- Economic Incentive to Secure Ecosystem Infrastructure: Participating nodes will receive a share of the block rewards for the role of validating transactions
- Settlement Method for Participants: ECOM will be the native currency for participants to utilize Omnitude’s range of solutions and functionalities
Given that ECOMis a utility token, its value will increase proportionally to its usage and demand. The network effect emanating from eCommerce industry as a whole is a staggering proposition, given the ubiquity of online shopping. The sheer numbers of online transactions – even if Omnitude were to take a small portion of the current pie – would necessitate network usage and would increase the price of ECOM. (See also: Coins, Tokens & Altcoins: What’s the Difference?)
Omnitude looks to have a diverse mix of individuals specializing on the business end and also the tech side.
Chris Painter (Founder/CEO) has extensive experience in the Commerce sector while Robert Belgrave (Founder) has technical expertise on the technological side. Ben Bennet (Founder) complements the founding list with his credible sales background.
The advisor list seems strong, with experienced Blockchain developers that include Simon Cocking and Benjamin Van Every, while James Worthington consults on the Hyperledger side of things. However, a point of contention is that there seems to be one active blockchain developers while the 3 mentioned above are more on the advisory/consultancy roles.
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As of this writing, Omnitude has amassed a sizeable following of over 18,000 followers in its Telegram group and 12,200 followers for Twitter. Although the number of Reddit followers is much lower at over 250 followers, its Reddit channel has a relatively good amount of activity as compared to other ICOs at the pre-ICO stage. This suggests a good focus on product development as Reddit represents a critical platform that allows constructive discourse between the community and the project. Followers can easily be bought from Twitter or Telegram (it’s non-prevalent in Reddit) and followers are often more interested in short-term prospects rather than the tech itself in Twitter/Telegram channels.
Overall, Omnitude seems to have a great presence on the social media front, which is of great importance to reach a wide audience base and generate good hype. (Read more: Guide to Valuing Cryptocurrency: How to Value a Cryptocurrency)
Omnitude has raised its target of USD $4 million in their presale that started on January 30, an achievement in itself given the horrid market conditions at the start of the year. Given its relatively low hardcap, it does look like it could be over in a relatively short time.
- Wide Application Base: Although Omnitude is focusing solely on the eCommerce ecosystem, its use cases can be extrapolated towards Enterprise Resource Planning (ERP) systems. This opens up the door to a wider variety of businesses that can utilize Omnitude’s infrastructure, not just limited to eCommerce. This versatility could further strengthen Omnitude’s position in the long-term
- Use of DBPFT Consensus Mechanism: Omnitude is one of the rare few projects that use DFBT, which offers immediate transaction finality, a high transaction rate, and high scalability. This is vital in solving the scalability issues that Blockchain technology faces and are a vital facet of the eCommerce industry where huge volumes of transactions will take place
- Multi-Currency Acceptance: Transactions on the Omnitude ecosystem can be paid using ECOM, cryptocurrencies or fiat. This diversity of currencies is a great move of reducing the barriers of participation. Additionally, since the success of Omnitude is contingent on network effects, a greater participant base equates to higher levels of transactions and adoption
- Detailed White Paper: Omnitude has a conceptual white paper and a technical one that is both detailed and concise, which is a great way to appeal to different segments of interested parties.
- Good Social Media Following: Omnitude has a great number of followers in their Telegram and Twitter, while their Reddit is active with constructive communication between followers and the team
- Permissioned Code Base: Omnitude is a permissioned middleware layer, requiring nodes to be whitelisted and approved by Omnitude foundation. This is counter to cryptocurrencies’ decentralized nature of removing any form of “selective control” by any entity
- Absence of Code Base: Omnitude has yet to release their codebase in their repository. This makes it hard to evaluate their technical functionalities and capabilities. Sources reveal that the codebase will be ready nearer to the dateline
The technology fit of Blockchain applications towards the eCommerce ecosystem seems to be natural, and Omnitude looks to be able to address the various obstacles of the current eCommerce industry. The technical implementation looks bold and concise, and if realized, could be a game-changer in the space.
Verdict: Good Long-Term Hold
This represents the writer’s personal opinions and does not – in any way- constitute a recommendation of an investment or financial advice. Please assume caution when investing in cryptocurrencies and do so at your own risk, as it is extremely volatile and you can lose your money.
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