By By the end of this year, a new ICO (Initial Coin Offering) will be launched on the bitcoin platform. Wait, what?
That’s right investors, you read correctly – on bitcoin.
As we know, ETH or Ethereum, which of course is the second largest blockchain by market cap, has been the go-to choice for most of the entrepreneurs out there who have created new crypto tokens, it seems that a new sidechain created by RGK will enable bitcoin to have the ability to host the new fundraising mechanism.
As we know, it the original concept of ICO’s was, in fact, started in 2013 on the bitcoin blockchain. This ICO however, had quite the limited infrastructure compared to that of ETH today. This invention was coined by inventor – J.R Willett who went on to raise half a million dollars for the token Mastercoin which was later renamed to Omni.
As soon as next month, in November a South-Korean based blockchain startup by the name of Temco will take advantage of both the original seminal idea coupled with technology courtesy of RGK and launch a new public token with the ambitious goal of raising $19 billion.
RSK has been at work on their Turing-complete smart contract sidechain for bitcoin since first quarter 2016. These smart contracts were written using the same ETH dominant language – Solidity. The network itself is also powered by bitcoin-pegged crypto known as “Smart Bitcoin” or SBTC.
Despite being only in its beta phase, a handful of crypto projects are already deploying smart contracts on the RSK sidechain.
Scott Yoon (CEO) & Joey Cho (Business Development) of Temco, believe that given time, bitcoin will entice a larger number of blockchain projects and ultimately have “the same function like Ethereum.”
Yoon lives by the idea that bitcoin possesses the untapped potential to become much more than “just payment cryptocurrency”, with the impending launch of their ICO as evidence of this, Yoon had this to say about the project:
“RSK … will be dominating [the smart contract] ecosystem and [for] bitcoin that will open another era of bitcoin, like Ethereum.”
The Temco Token In A Nutshell:
Yoon’s token will be implemented a variety of different ways.
Temco’s primary focus will be enabling small to medium enterprises (SME’s) with the ability to track products throughout supply chains from source to final consumption, which as we’ve recently reported on (Walmart) is fast becoming a hot trend in the use of this nascent technology.
According to many, blockchain technology will provide businesses in many sectors with a cost-effective & unchangeable method of storing supply chain data.
With Temco, this token will be utilised by vendors & consumers alike for payments, data storage and subscriptions to business intelligence tools.
In addition to this innovative functionality, consumers will also be awarded points which can be later converted into tokens, for general participation which includes tracking their purchases from blockchain-stored data as well as reviewing their purchases in an effort to ensure product quality, in the ecosystem.
Cho explained that this new blockchain architecture is an important tool for SME’s as it has the ability to offer “better insights, a better operating system as well better planning” with minimal overheads to vendors who don’t have a pre-established infrastructure in place for monitoring their product movements.
Cho expects at least 40% of the funds raised in order to build this infrastructure to come from the sales of the ICO’s public sale. The rest of the funds needed will be raised by means of private investment deals, for example, the recently announced deal with Korea Investment Partners, who are South Korea’s largest venture capital firm, who have invested an undisclosed amount into Temco.
Temco’s public sale will be open to investors around the world and will accept both BTC and ETH, but the sale will not be open to investors in China or the USA.
Yoon explained that this move to restrict sales to the USA & China is a safety move as both nations pose potential regulation “legal risks” with China potentially meeting this with hostility and the USA still being in the process of fleshing out their own regulations.
A Gamechanger Brought To Us by Temco?
You’re reading this and probably thinking that Temco’s offering is no different from that of ICO sales that could be found on Ethereum.
Temco’s public token sale and ones found on ETH both function in the same manner, with the same goals in mind of raising initial funds from the public through a fast-moving & mostly unregulated fundraising vessel.
The difference here, according to both Cho & Yoon, is that other blockchains such as ETH are unable to sustain to this creation of “real products” for widespread adoption in the way that the bitcoin platform is able to.
Cho went on to explain: “We believe RSK is one of the best blockchain technology because … if we create our supply chain on top of let’s say ethereum … number one the gas fee is amazingly expensive…which is not ideal for the Temco supply chain since we use lots of smart contract transactions.”
Cho went on to add to this by highlighting that the TPS (transactions per second) speed of the RGK sidechain would be similar or in better words on par with that of payment gateways such as PayPal.
Yoon also added:
“Bitcoin network is really ideal because scalability is number one and you don’t have to worry about hacking. So when smart contract tool is brought to the bitcoin network … everybody’s going to want to come to bitcoin.”
Yoon & Cho both believe, based on the info above, that in days to come, token offerings will opt to launch on bitcoin from the start, with even ETH token issuers migrating over to the bitcoin platform to benefit from RSK’s features.
RSK Is Not Quite There Yet:
Sadly, the RSK sidechain is still very much in development.
The beta was only launched in January, with the platform being only accessible to a handful of select developers, business partners & miners. It’s also currently being run by a collective group of blockchain companies, aptly dubbed as the “federation” who are in charge of overseeing the value on & off-chain.
There are, however, plans to open the sidechain to anyone and everyone as well as to decentralize the above-mentioned “federation”.
With a reported 80% of BTC miner support being secured, RSK also reported back in May that they were in the process of implementing significant upgrades which could very well address the many issues of scalability presently found within many of the world’s largest blockchains.
Yoon, for one, is extremely confident and optimistic that this promise of the union of smart contracts & blockchains, most notably BTC could potentially become so much more than what it is being used for presently.
He concluded by speaking to this statement by saying:
“The reason why we started Temco was we want to see a real blockchain technology actually implementing in the real world and change the society for the better.”
This obviously has us and many others excited, but how soon could this happen? And when it does how fast will it impact upon the real world use? Let us know your thoughts.
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