NetCents ICO [Review]
Bitcoin is the darling of the cryptocurrency world. In terms of USD value it comprises over 54% of the cryptocurrency market, and remains the leader in terms of token price, transaction volume, and market cap.
Bitcoin’s track record speaks for itself. It’s moved over $50 billion in transactions since inception (blockchain.info), completely disrupted the graphics card industry, and has proven beyond doubt that cryptocurrency is a viable technology. It’s not without shortcomings, though. The underlying algorithms are not particularly robust or energy-efficient, and the payment processing throughput is too low to support using Bitcoin as a day-to-day transactional currency.
Not to mention, there’s no underlying store of value. The value of Bitcoin on any given day is based purely on the laws of supply and demand, making the value very susceptible to current affairs, investor speculation, and outright market manipulation. Conversely, NetCents is backed by a reserve treasury account. Not only this, but it is operated under a structured coin release, which prevents price speculation in the way we see with a majority of other coins.
Crucially, Bitcoin hasn’t quite panned out the way early adopters hoped it would. The initial incentive structure (issuing coins through mining) and uncontrolled exchange has resulted in massive centralization of mining activities, and the resulting fiat wealth.
There’s a clear gap here. The blockchain itself is a proven technology, but the applications don’t yet meet the needs of real-world businesses and customers. Bitcoin can’t scale beyond 300k transactions/day, transactions could take hours to settle, and the immense volatility of the coin itself makes it a risky proposition for business.
These are the problems NetCents is setting out to solve, with the introduction of the NetCents Ecosystem. Based on MultiChain, the NetCents Coin is the best of both worlds – all the upside of cryptocurrency, with the security and reliability of best-practice financial regulation.
What is the NetCents Coin?
Like other cryptocurrencies, the NetCents Coin is a virtual token, issued and transacted via distributed ledger, processed and verified by multiple nodes in a decentralized network. The coin can be traded for fiat currency on authorized exchanges, or used to pay for goods and services at supporting merchants. Unlike other cryptocurrencies though, NetCents aims to bring security, predictability and trust to the cryptocurrency space. There are several factors involved in achieving that – which brings us to the NetCents Ecosystem.
The NetCents Coin Organization (NCCF)
Underpinning the NetCents Ecosystem is the NCCF – an independent, non-profit organization responsible for the governance and issue of the NetCents Coin, managing the Treasury Reserve Account, and evolving the technology stack to the benefit of all stakeholders.
This Reserve Account ensures that the value of the NetCents Coin can be maintained, even through the volatile market fluctuations that cryptocurrencies are known for. It ultimately makes the NetCents Coin a feasible store of value. The NetCents Coin itself will be structured slightly differently to current-day cryptocurrencies. The blockchain algorithm incorporates counterfeit-prevention and fraud-detection algorithms, and will only permit authorized nodes to transact on the network.
This allows the NCCF to vet and authorize exchanges that adhere to strict KYC (Know Your Customer) and AML (Anti-Money Laundering) policies. The NCCF represents the best of both worlds – the speed, security and scalability of cryptocurrency, with best-practice financial regulations and a sensible plan for long-term sustainability.
The NetCents Exchange
An independently-run exchange that will be the first to support the trading of the NetCents Coin. All newly-issued coins will be sold on this exchange, with all proceeds going to the Treasury Reserve Account managed by the NCCF.
This exchange will eventually be opened globally, and the initial releases will be in Canada and Europe.
NetCents Technology Inc
The NCCF maintains the NetCents Coin, and the NC Exchange enables trading and investment. NetCents Technology is the final piece of the puzzle: A payment processor that supports both cryptocurrency and traditional currencies.
NC Technology offers an e-wallet, a currency exchange facility, payment transfers, and a merchant gateway with a universal plug-and-play API. Taken together, the NetCents Ecosystem is a viable solution to the challenges posed by Bitcoin’s shortcomings, and stands a good chance of enabling real business use-cases around the world.
The NetCents ICO
Or, to be clear, the lack of one. The NetCents technology stack already exists, and doesn’t need a round of fundraising to realize any value. Instead, NetCents will simply introduce the currency on a proprietary exchange, following a predetermined release schedule.
The initial release will be for 5 million coins, at a value of $1.00 per coin. As the value of the coin appreciates, more coins will be issued, continuing until an equilibrium is reached.