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Diary of a made man

MetaHash Project Review | Ian Balina

by Ian Balina

A month ago



A unique feature of #MetaHash is that it combines all three primary factors of a successful blockchain: high speed, decentralization, and security.
MetaHash Project Review

September 11th, 2018

Table of Contents

Project Overview

Executive Summary

Idea – (3 points out of 3)

Vitalik’s Trilemma

Type of Project – (2 points out of 2)

Good Technology – (6 points out of 6)

Technological Advantages

Technological Disadvantages

Technological Progress

Team – (4 points out of 4)

Advisors – (2 points out of 2)

Token Information

Interesting Data Points

Token Utility

Comparable Projects

Areas of Concerns

Conclusions

Works Cited

Disclaimer

Project Overview

Executive Summary

This project scored 86.39% for its token metrics. Therefore, it is being considered an all-star ICO. In the middle of May, the TestNet got released. On June 29th, 2018 they released the MainNet. The team has three all-stars on it. There are two all-star advisors. #MetaHash is its own blockchain platform. A unique feature of #MetaHash is that it combines all three primary factors of a successful blockchain: high speed, decentralization, and security. This makes it a strong competitor against EOS, Ethereum, and Bitcoin. Thanks to the cutting edge #TraceChain protocol technology which allows processing huge amounts of data with unprecedented speed, #MetaHash network is capable of achieving more than 50,000 TX/s with less than three seconds validation time. Another feature of #MetaHash is it can support dApps written in any programming language. We believe it has the potential to be the ICON of Russia.

For all of these reasons we have decided to invest in #MetaHash, this is not financial advice please do your own research and consult a financial advisor.

Idea – (3 points out of 3)

The idea of the project is to create a blockchain with faster approval times, more transactions per second and high decentralization to compete against EOS, Ethereum, and Bitcoin.

Blockchain

Transaction approval time

Transactions per second (TX/s)

The level of decentralization

Bitcoin

10 minutes

up to 12

high

Ethereum

15 seconds

up to 30

high

EOS

5 seconds

from 1,000 to millions

minimal

#MetaHash

up to 3 seconds

from 50,000 to millions

high


https://MetaHash.org/

The way that the project is attempting to achieve this is by implementing the next level of Blockchain.

  • Blockchain 1.0 Bitcoin Proof of Work
  • Blockchain 2.0 Ethereum Smart Contracts
  • Blockchain 3.0 EOS PoS (Proof of Stake) vs. Proof of Work
  • Blockchain 4.0 #MetaHash, Multi-PoS attempts to speed up network synchronization, DAGs (Direct Acyclic Graph), sharding, and multiple-chains.

Blockchain 4.0 attempts to overcome the 10,000 transactions per second mark, and lower the transaction confirmation to 2-10 seconds in different chains. Most of the 4.0 chains are focusing on chain design: DAG, multiple-chains, and sharding. #MetaHash uses standard cryptography and concentrates its efforts on building the fastest synchronization and network load optimization, utilizing common hardware and standard 100 MBPS channels.

Unlike classic blockchain, a block is created by many machines simultaneously. The raw transactions get pushed to all the nodes as fast as possible, and multiple nodes vote for the block at the same time. Then it is confirmed by the entire network instead of different machines one after another. You do not have to wait for six or more rounds for final approval like in outdated networks.

#MetaHash supports smart contracts as well as dApps written in any programming language.  Let’s take a look at the following example: if a developer builds a shop to sell educational videos, when the app receives a payment, access to the video gets granted. Then the developer snaps an image of the server, uploads it to #MetaHash and says that he/she wants to pay five #MHC a day to host it. Many nodes start to host it and split five #MHC between them. Making this shop a decentralized app, working in real-time by itself. Thus #MetaHash provides an ability for developers and hardware providers to generate revenues at the same time.

Vitalik’s Trilemma

Vitalik Buterin has been known to say that the main problem with blockchain is the "scalability trilemma." Nobody has figured out how to make a blockchain decentralized without sacrificing scalability and security. #MetaHash seems to be the first blockchain to solve the "scalability trilemma."

#MetaHash can achieve decentralization, security, and scalability by dividing the roles of the nodes into different groups and assigning them automatically. Most blockchains' nodes usually perform the same function, whereas #MetaHash introduced a concept where different nodes perform different work. With this concept, it is extremely hard to gain control over enough nodes to centralize the network.

The bottleneck of all blockchains is data synchronization. The most efficient way to speed up synchronization is to limit the block producers to a number of nodes. This makes the system too centralized. In #MetaHash core nodes (block producers) are responsible for data synchronization. Core nodes are chosen automatically from the list of all available nodes by checking their internet speed results, latency, performance, and trust level. The best nodes become the block producers. Even if somebody manages to gain control over 67% of block producers, it won't be a problem for the network as block producers are not the final validators. After the block is born, it is served to end-users through a set of verification and torrent nodes while block validation is done. So if a set of corrupt block producers appear, verification and torrent nodes will decline it and vote the corrupt core nodes out.

To make a fraudulent action, there must be over 67% of corrupt nodes in each of the layers. That forces the attacker to increase the total amount of corrupt nodes to over 90% to make a successful attack, improving the network's resilience to 51% attacks. To manipulate consensus, you need to have over 67% in each layer. If you have less in any layer, the attack fails. If an attacker has 67% combined but has 90% in one layer and 60% in another the attack fails and the corrupt nodes are filtered out. Having enough stakes is not enough to perform a successful attack. The nodes on which the coins get staked need to gain trust which takes about six months.  

All of the above makes it extremely expensive to perform a network attack. Moreover, #MetaGates receive 10% of forging commissions and are planned to store and perform fragmentary checks on old blocks so in case the successful attack does happen the #MetaGates would not trust the corrupted network and would switch to a true fork. This makes a possible attack useless.

#MetaHash has kept the classical blockchain structure, but redesigned data synchronization and block validation. This makes it possible for #MetaHash to become fast, decentralized and secure at the same time.

Type of Project – (2 points out of 2)

  • #MetaHash is a blockchain protocol capable of network effects.
  • #MetaHash features a new blockchain protocol that is called #TraceChain. With #TraceChain you can trace all the transactions without downloading the full blockchain. Multiple cores vote for a block, and it has multiple layers of observers that approve the block during the network synchronization process. The first approval is final, and there is no need to wait for X next blocks for an irreversible transaction to appear.

Good Technology – (6 points out of 6)

#MetaHash passed our technology review. We were excited by the high TX/s that it was able to achieve. We performed some coin transfers tests on the #MetaHash wallet, and it works fast.

Technological Advantages

  • PBFT (Practical Byzantine Fault Tolerance) like core consensus combined with stake requirement for core sortition candidates ensures protection from most commonly known double spending and Sybil attacks.
  • The small number of MasterCore nodes with high bandwidth requirement allows #MetaHash to achieve thousands of TX/s.
  • #MetaHash allows a lot of coding languages for #MetaApps, and it is very flexible. This gives it a competitive advantage over other blockchains.
  • Their wallet is a lightweight wallet, once you install it, it already works.
  • This is a non-permissioned blockchain.

Technological Disadvantages

  • The concept that you can use any programming code for smart contracts is tough to implement in a high performance and secure manner.
  • The overall architecture of the project is very complicated because the various roles of each node change from time to time. It will require very high qualifications and code quality from the developers.
  • Sybil attack is possible in the early stage of the project in the case of poor diversification of the initial coin distribution.

Technological Progress

  • The Beta Version of the #TraceChain protocol came out in Q3 2017.
  • In the middle of May 2018, they released their TestNet.
  • On June 29th, 2018, they released the MainNet, the day of the start of the token sale. https://metagate.MetaHash.org/

Team – (4 points out of 4)

The team has three all-stars on it. Anton Agranovsky, the founder, had a successful exit out of his start-up gaming company Destiny. He is under an NDA regarding the purchase amount of his company, therefore he does not meet our criteria to be considered an all-star. Zhibo Fan is working for the International Business Development team and previously worked for Razer Inc. (global gaming hardware manufacturing company). Vitaly Golban also International Business Development, previously worked for Mail.Ru Group (Russian internet giant).

  • Zhibo Fan https://www.linkedin.com/in/fanzhibo/
    • Role – International Business Development
    • Prior Company – Razer Inc. (https://en.wikipedia.org/wiki/Razer_Inc.)
      • Market-cap – $18.42B
      • Employees – 10,000+
      • Role – Programmer / Project Manager (Russia)
        • Expertise – Competitive Analysis, Contract Negotiation, Strategic Partnerships, Publishing, Licensing, Start-ups, Interpreter, International Relations and International Economic Cooperation.
      • Years – 3
  • Vitaly Golban https://www.linkedin.com/in/vitalygolban/
    • Role – International Business Development
    • Prior Company – Mail.Ru Group (https://en.wikipedia.org/wiki/Mail.Ru)
      • Market-cap – $5.7B
      • Employees – 3,000
      • Role – Head of Global Publishing Team
        • Successfully launched projects worldwide, overseeing publishing partners in the U.S., Europe, China, Korea, Japan, The Middle East North Africa, Taiwan, The Philippines, and Brazil. His creative approach to problem solving and commitment to strategic growth facilitated My.com’s successful launch in a crowded marketplace.
      • Years – 2
  • Andrey Akimov https://www.linkedin.com/in/andrey-akimov-500b5317/
    • Role – Chief Communications Officer
    • Prior Company – My.com (a subsidiary of Mail.Ru Group)
      • Market-cap – Mail.Ru Group – $5.7B
      • Employees – 3,000
      • Role – Head of Marketing and PR Director
        • Headed the PR for My.com Games worldwide.
      • Years – 3 years 11 months

    Advisors – (2 points out of 2)

    There are two all-star advisors Brock Pierce and Seth Weiner. Brock is highly involved in the cryptocurrency space and a very influential advisor. Seth worked for Morgan Stanley for 11 years, first as a Fixed Income Securities Trader then as Vice President Rule 144 Specialist, making him an all-star.

    • Brock Pierce https://www.linkedin.com/in/brockpierce/
      • Role – Advisor
      • Prior work experience – Co-founder of EOS and Tether. Chairman of the board for the Bitcoin Foundation. Cryptocurrency evangelist.
    • Seth Weiner https://www.linkedin.com/in/sethwiener/
      • Role – Advisor
      • Prior work experience – Morgan Stanley
        • Role – Vice President Rule 144 Specialist 9 years. Fixed Income Trader 2 years
          • Part of a Private Wealth team based out of SF. Played a crucial role in managing all fixed income elements for portfolio clients consisting of tech startups and a few high net worth Private Clients with portfolios valued at no less than $20,000,000.

    Token Information

    ICO Round A hard cap is $36,000,000. Round A is the single public sale.

    Round A:

    • 10% of the total emission
    • Start of forging
    • Fewer coins forging – more rewards, lower coin price
    • After Round A (finished)
      • There will be a 5% ETH/BTC fork locked up for one year
      • To get a share of the fork, a user must buy at least one #MHC
      • 1/3rd of the fork goes automatically to buyers of Round A
        • Round A is 10% + 1.7% from the fork
        • The last 3.3% is also reserved for ICO participants
      • It can be delegated to take part in forging but can't be transferred anywhere for one year

    50% of the coins from the total emission will get generated through forging in the coming ten years.

    The sale has to be this way:

    • to avoid 67% attack
    • to stimulate forging for ten years until commissions pick up
    • to get the dApps onboard

    The rest of the coins are distributed through forging:

    • 10% goes to active wallets with 100 #MHC
    • 50% goes to coin owners that delegate their coins to nodes
    • 40% goes to node owners

    You buy the first coins, then obtain the rest as a reward for forging, making the coin always liquid as coins earn you more coins. It's like Bitcoin, but instead of ASICs, the coins themselves get used. Coin owners get the rewards from forging pool and transaction commissions. That makes the coin more valuable in the long run because the transaction fees go to coin holders.

    The money in Bitcoin goes to ASICs producers. The money in #MetaHash goes to coin owners.

    Interesting Data Points

    Token Utility

    #MetaHashCoins (#MHC) are used to interact on the platform and have several use cases.

    • Transactions – Instant and reliable transactions of assets at a fixed price.
    • Data storage – For applications that need to store data, but lack the speed and volume of data in conventional blockchain systems.
    • Operation of application – Decentralized applications or smart contracts require resources for deployment, including the #MetaHash network itself.
    • Other services – Payment for public addresses listed in #MetaApps, in #MetaGate, and other sources.
    • Voting – For software updates and development plans.

    Comparable Projects

    All the projects mentioned below create public blockchains where the value lies in the protocol layer, not the application layer. The rise in the price of ETH happened because it was the best place to deploy dApps and ICO's. The fall in the price of ETH can be attributed to these other projects that provide new solutions with better or similar utility. The projects are all aiming to create blockchains that are the perfect combination of usable, safe, cheap, and fast.

    https://hackernoon.com/fat-protocols-vs-dapps-creating-long-term-value-on-the-public-blockchain-565637747557

    #MetaHash

    • 50,000+ TX/s (on load tests 500 billion TX/s were done and they averaged 60,000-80,000 TX/s).
    • 240 delegates (block producers/validators), selected automatically from a pool of all nodes.
      • $20,000 at stake, no delegate pre-approval.
    • TX confirmation time under 3 seconds (full network sync and the first round of voting).
    • Irreversible confirmation under 10 seconds (full round of voting including slower nodes).
    • Any program written in any language can become a dApp.

    ICO market-cap – $36,000,000

    EOS

    • 1,000-2,500 TX/s, they are focused on multi-language smart-contracts and dApps based on the chain.
    • 20 selected delegates + 1 random. EOS requires 20 Gb/s to be a delegate.
      • Millions of dollars at stake.
    • EOS combines the high throughput of Graphene and BitShares with the smart contract usability of Ethereum.

    Current market-cap – $4,939,596,969

    ICO market-cap – $197,000,000

    https://icostats.com/roi-since-ico

    https://coinmarketcap.com/currencies/eos/

    https://medium.com/@eosforumorg/eos-will-launch-in-a-few-months-heres-what-we-know-b816bd350546

    https://blockchainhub.net/blog/blog/introduction-to-eos-blockchain/

    https://medium.com/eosio/eosio-1-0-release-ca67ad3aa78f

    Tron

    • TX/s (we'll see soon) focused on dApps for BitTorrent which they recently purchased.
    • 60 delegates.
      • You need millions at stake.
    • Tron is building a decentralized smart contract platform with high throughput, and reliability. Developers will be able to build dApps on the platform.

    Current market cap – $1,314,645,388

    ICO market-cap – $70,000,000

    https://medium.com/tron-foundation/mainnet-launch-livestream-5-31-recap-7e0a8ab15509

    http://www.crossroadstoday.com/story/37893330/tron-will-be-a-serious-challenge-for-ethereum

    Hashgraph

    • Closed information closed code.
    • 20 selected delegates.
    • Private information closed code.

    https://www.hederahashgraph.com/

    Ethereum

    • 15 TX/s but they have an update coming soon.
    • Delegates – 4 huge pools.
      • You need millions at stake.
    • Many dApps and smart contracts have been built on the Ethereum platform. There are only a few languages you can use to write smart contracts; Solidity is the best.

    Current market cap – $22,580,120,326

    ICO market-cap – $18,000,000

    https://www.coindesk.com/information/will-ethereum-scale/

    NEO

    • 1,000 TX/s, but it is centralized.
    • Delegates – centralized.
    • Almost any programming language can use the NEO smart contract. The first supported languages are C#, VB.Net, F#, Java, and Kotlin. NEO provides compilers and plug-ins for these languages, which are used to compile high-level languages supported by NEO virtual machines. The first compiler will be for MSIL so theoretically any .Net language will be supported.

    Current market cap – $1,167,468,986

    ICO market-cap – $5,500,000

    https://www.linkedin.com/pulse/have-you-heard-neo-chinese-ethereum-well-its-up-13000-mullin/

    http://docs.neo.org/en-us/sc/introduction.html

    ICON

    • 9,000 TX/s – theoretically.
    • Delegates – not enough information.
    • ICON's smart contract platform has excellent flexibility and uses for developers. It supports Score (ICON developer tool), EVM (Ethereum Virtual Machine), JVM (Java Virtual Machine) and others.

    Current market cap – $246,556,899

    ICO market-cap – $42,750,000

    https://oracletimes.com/icon-icx-the-blockchain-of-all-blockchains/

    https://medium.com/@blockhack/icon-dapps-presentation-by-deblock-part-1-icon-features-roadmap-score-21759c4daaf8

    Areas of Concerns

    • Overall development concept is much more complicated than the other commonly known blockchains. That fact imposes a higher responsibility on the #MetaHash development team.
    • The smart contracts have not passed security tests yet. The exact dates of release get announced after they pass security tests.
    • From time to time, the blockchain changes the role of each node. If your server is running a verification node, it is possible that at any time it can turn to a torrent node. To implement this design correctly requires some very highly skilled professionals.

    Conclusions

    We believe #MetaHash can perform well short-term and long-term. The project scores perfectly in almost all of the data points we use and gets a final score of 86.39%. They already released the MainNet. It is its own blockchain platform with hopes to compete with some of the top coins on CoinMarketCap. The all-star team and advisors have the experience to give us and other investors confidence in #MetaHash.  #MetaApps platform and forging are starting in Q4 which will increase the demand for the coins. The unique and innovative structure that this project is attempting is fascinating, and we are very excited to see how it works.

    Short-Term – #MetaHash has almost 60,000 people in its Telegram group. There are some big-name advisors. It is a blockchain capable of network effects. It has a faster transaction time and more transactions per second than its competitors while maintaining high decentralization.

    Long-Term – This idea is an excellent one. If #MetaHash follows through it would be a very usable blockchain with considerable room for growth.

    For more on MetaHash, watch our interview with MetaHash's Chief Research Office, Gleb Nitikin below.

    Works Cited

    1. https://MetaHash.org/
    2. https://static.MetaHash.org/docs/MetaHash_WhitePaper_EN.pdf
    3. https://www.youtube.com/watch?time_continue=1&v=PJ0gZchXAOk
    4. https://MetaHash.org/
    5. https://metagate.MetaHash.org/
    6. https://LinkedIn.com
    7. https://finance.yahoo.com/news/MetaHash-unveils-lightning-fast-protocol-110000575.html?guccounter=1
    8. https://icostats.com/roi-since-ico
    9. https://coinmarketcap.com/currencies/eos/
    10. https://medium.com/@eosforumorg/eos-will-launch-in-a-few-months-heres-what-we-know-b816bd350546
    11. https://blockchainhub.net/blog/blog/introduction-to-eos-blockchain/
    12. https://medium.com/eosio/eosio-1-0-release-ca67ad3aa78f
    13. https://medium.com/tron-foundation/mainnet-launch-livestream-5-31-recap-7e0a8ab15509
    14. https://www.hederahashgraph.com/
    15. https://www.coindesk.com/information/will-ethereum-scale/
    16. https://www.linkedin.com/pulse/have-you-heard-neo-chinese-ethereum-well-its-up-13000-mullin/
    17. https://oracletimes.com/icon-icx-the-blockchain-of-all-blockchains/
    18. https://hackernoon.com/fat-protocols-vs-dapps-creating-long-term-value-on-the-public-blockchain-565637747557
    19. https://medium.com/@blockhack/icon-dapps-presentation-by-deblock-part-1-icon-features-roadmap-score-21759c4daaf8

    Disclaimer

    DIARY OF A MADE MAN LLC IS NOT PROVIDING INDIVIDUALLY TAILORED INVESTMENT ADVICE AND IS NOT TAKING SUBSCRIBERS PERSONAL CIRCUMSTANCES INTO CONSIDERATION WHEN DISCUSSING INVESTMENTS IN ICOS.

    DIARY OF A MADE MAN LLC IS NOT REGISTERED TO PROVIDE INVESTMENT ADVICE AND ARE SIMPLY PROVIDING AN OPINION, GIVING THEIR PARTICULAR EXPERIENCE, WHEN DISCUSSING ICOS.

    INFORMATION CONTAINED HEREIN IS NOT AN OFFER OR SOLICITATION TO BUY, HOLD, OR SELL ANY SECURITY. DIARY OF A MADE MAN LLC IS NOT A BROKER-DEALER OR FINANCIAL ADVISER AND IS NOT AFFILIATED WITH AN INVESTMENT ADVISORY FIRM. DIARY OF A MADE MAN LLC DOES NOT ENGAGE IN ACTIVITIES THAT WOULD REQUIRE SUCH REGISTRATION.

    DIARY OF A MADE MAN LLC AND/OR ANY COMPANIES AFFILIATED WITH DIARY OF A MADE MAN LLC, ARE NOT RESPONSIBLE FOR ANY GAINS OR LOSSES THAT RESULT FROM THE OPINIONS EXPRESSED HEREIN. DIARY OF A MADE MAN LLC MAKES NO REPRESENTATION AS TO THE COMPLETENESS, ACCURACY, OR TIMELINESS OF THE MATERIAL PROVIDED AND ALL MATERIALS ARE SUBJECT TO CHANGE WITHOUT NOTICE. FOR THE FULL DISCLAIMER, DISCLOSURE, PRIVACY POLICY, AND TERMS OF SERVICE FOR USE OF THE SERVICES, PLEASE VISIT THE WEBSITE.

    THE ICOS DISCUSSED HEREIN HAVE NOT BEEN REVIEWED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES REGULATORY AUTHORITY.
    FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THE ICO OFFERING DOCUMENTS.
    ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

    THE ICOS IDENTIFIED HEREIN MAY CONSTITUTE SECURITIES PURSUANT TO FEDERAL AND STATE SECURITIES LAWS AND MAY NOT BE APPROPRIATE FOR, OR OFFERED TO, INVESTORS RESIDING IN THE UNITED STATES. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY ISSUING THE ICO AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.

    INVESTMENT IN ICOS INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD TO SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS IN ICOS SHOULD CONSULT THEIR FINANCIAL ADVISER BEFORE INVESTING IN ICOS. THE SECURITIES AND EXCHANGE COMMISSION HAS WARNED INVESTORS RESIDING IN THE UNITED STATES THAT ICOS MAY CONSTITUTE SECURITIES, AND BY INVESTING IN ICOS, INVESTORS MAY BE PURCHASING UNREGISTERED SECURITIES OFFERINGS. US INVESTORS WHO INVEST IN MAY BE UNABLE TO RECOVER ANY LOSSES SUSTAINED IN THE EVENT OF FRAUD OR THEFT.

    6 comments


    • Top Notch approach Guys, Very professional. thank you for the info, your time and efforts

      Gerald Cross

    • Well written comprehensive report. Thank you!!

      Darce

    • Excellent format of analysing ICOs, makes for a good read and easy research. Glad I could get into this. keep up the good work.

      VanderKum Eugene

    • Looks impressive, not just about making funds but as ideology.

      Andrew

    • Nice work. Keep it up

      Charles Saiki

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