FA Series II – Enigma
For the second installment of our Fundamental Analysis series we have Enigma.
Disclaimer: This article is not financial advice and we at Nix Crypto are not financial advisers. Please do your own research before investing. The information contained here is for entertainment purposes only and represents our personal taken on the mentioned project.
Enigma provides solutions for two of the major issues faced by blockchain platforms today, privacy and scalability. It takes computational operations off the chain and provides what they call secret contracts, private smart-contracts that you allow you to run decentralised applications without disclosing data. On the Enigma platform nodes are rewarded for verifying secret contracts computations but never see the data.
Its token, $ENG is an ERC20 token, which means, built on the top of the Ethereum network but Enigma’s solution is blockchain agnostic.
According to the Enigma’s website the ecosystem powered by the their protocol can be split in three major layers:
1 – Protocol layer – allows for decentralized computation of sensitive data.
2 – Platform layer – used to build platforms such data marketplaces and AI exchanges.
3 – Application layer – where you can build end-user applications that require private computation and secure data.
Enigma claims to solve blockchain’s scalability and privacy issues from the protocol level with a second-layer, off chain network. Something similar to what happens to what the Lightning Network does for Bitcoin but with a different objective.
Enigma has already an application running on their protocol. Catalyst is a platform that allows for data-driven cryptoasset investing and research and already has thousand of users. Recently they have re-branded Catalyst as an independent product from the main Enigma project and you can find more info about it here.
They have 6 use cases listed on their website site in which they claim to be already working on. I will list all six here without giving much details, in case you are interested in knowing more you can find a more complete explanation on here.
1 – Marketplace for personal data
2 – Computations on genomic data
3 – AI on healthcare data
4 – Credit assessment and decentralized lending
5 – Identity
6 – IoT – Internet of things
Some of the listed use cases overlap a bit with each other but they undoubtedly tackle big markets and solve real problems.
The Enigma project raised $45M in their ICO however not without some controversy. Only a few days before the crowd sale they raised their hard-cap from $30M to $45M and in the eyes of many failed to provide a good reason for that. Nonetheless ICO sold out in a few hours and Enigma’s valuation has been increasing steadily since then. At the time of the writing their market cap is $219M and they are a top 100 in terms of market cap.
The founding team is formed mostly by MIT graduates with strong technical background.
A new and solid roadmap for the platform was released late March. The keys takeaways in our opinion are the launch of Enigma’s main net in Q3 2018 and from 2019 onward their plan to start moving to the their own chain.
I’ve been following Enigma since before their ICO, I’ve personally tried out Catalyst and I believe they have a massive potential for a couple of reasons. First they are tackling real problems, the fact the smart-contracts are public will obviously put down companies that require privacy for their data. Scalability doesn’t require any further comment it’s basically the biggest problem faced by blockchain platforms right now. On the top of it you add a team that looks very solid and the fact that they are going after big markets and you very likely have a big contender to be a key player of the blockchain ecosystem.