Credits ICO Review – CS Investment Analysis

https://credits.com/en/

ICO Details

Symbol – CS

WhitepaperLink

When – Ongoing presale

Soft Cap – 1.5 Million USD

Hard Cap – 20 Million USD

Total Max Market Cap At ICO – 33 Million USD

Exchange Rate: 1 ETH = 5000 CS during Crowdsale

Total Tokens in Circulation At ICO – 1 Billion


Overview

Credits is an infrastructure platform aimed at decentralizing the current financial system. The problem that Credits tries to solve is the current lack of a base banking structure of sorts within the crypto space, and they seek to remedy this with their platform. Credits will create a portal on their site where their services will be available for use, where third parties can easily log on to the site and offer up their own financial services (as an example, loaning money) to other interested third parties.

Credits also goes a step further and adds microtransaction services to the list of possible applications of their platform. With microtransactions being a very desired, but ultimately hard to accomplish system, it is a blessing to be able to find one. Solutions such as Raiblocks and IOTA micropayment chains do exist, however they are outside of the scope of offering a trustless financial platform. Moreover, a project such as IOTA has an extremely high market cap already, which means that Credits as a competitor (even if only limited to financial markets) will have plenty of room for potential.

 

CREDITS platform is a decentralized financial system for the direct interaction between participants on peer-to-peer (P2P) principles. The platform expands the potential of using financial services on the basis of a distributed ledger, self-executing smart contracts, and CREDITS cryptocurrency.

The system is aimed to unite all participants on one site, providing them with a
platform for creating and using financial services; where everyone can both offer a service and use it.

Thanks to a well-defined and balanced technological system, the CREDITS platform offers a new technical solution and a new conceptual model of networking participants’ interaction for the development of modern decentralized financial services.

 


Team

Игорь2

Igor Chugunov

12 years in business, including IT fintech projects, bank and credit e-services, affiliate marketing company for banks and PDL companies. Two years experience with blockchain business. Working with CREDITS platform since 2016.

 

Женя2

Evgeniy Butyaev

Engineer (software development). More than 10 ten years software development experience, more than 3 three years experience with blockchain technologies, including SRI Infotech (Poland); solutions engineer based on blockchain technology in Russia. Working on the CREDITS platform since 2016.

 

valya

Valentin Antonov

Education: Programmer. Experience: more than 10 years as a programmer and architect building complex and high-loaded systems for the financial and banking sectors. In the blockchain industry for about 2 years.


Positives

Credits looks to be quite the solid project, with their project being a solution to a problem that is easy to understand. We have yet to see a cryptoasset or currency that has been able to tackle many of the legacy banking system’s advantages, and Credits looks to be doing just that. Their low costs are likely something that will be advantageous in the future, as not many chains can offer quick speeds while simultaneously keeping transaction fees low. They even state they’re looking to implement microtransactions into this system, which foreshadows unit subdivision of their coins and an overall more robust system.

A second positive is the terms of their ICO – it’s got a 20 million dollar hard cap on the crowdsale, which makes this on the lower end of projects that are looking for funding. This means that as the tokens release on the network, it should be much easier to find increasing prices and vertical movement of value while retaining a healthy amount of distribution. As this project is relatively under the radar, it’s also possible they don’t hit their total hard cap, making this project an even more lucrative investment (as an example, Powerledger and the upcoming Dragonchain).

Another positive of Credits is the focus of the team on throughput and scalability – this has been one of the biggest problems we’ve faced in cryptocurrency, and jokes are often made about a 100 billion dollar currenccy (Bitcoin) that lacks the transaction speed of even a mid sized supermarket. Credits looks to change that with their system, by changing some technical specifications in relation to common currencies, thereby increasing throughput and getting faster TX times. Credits will not be using Merkle trees for data validation but a new form of validation called the transaction ledger:

We offer to abandon Merkle trees and use the transaction ledger in the CREDITS system; with each entry consisting of a hash code of the transaction block to add to the list of candidates in addition to the ledger. Also, the entry has the node identifier and the timestamp when it was generated.

The ledger entry contains the transaction direction, its initial and final accounts, the type of write-off, the number of write-off units, the type of depositing, and the number of depositing units.

This principle increases the speed of transaction processing, increases the complexity of illegitimate ledger change and
excludes possible changes in the ledger entry with hindsight.


Negatives

While on a technical level, I’m no blockchain expert, it does appear to me that chains that are Smart Contract enabled are generally some of the more bloaty ones (Ethereum, NEO) due to the amount of data they need to collect. Credits also looks to require a full download of their transaction ledger, and while this may not necessarily be for VM use (to enable Smart Contracts), it does mean that anyone who will be looking to be a node validator/operator on their system will have to contend with a large initial download of the chain. SPV clients and light-nodes are something I would be interested in seeing as part of the Credits offering (and they do mention things such as mobile wallets), as these apps would make on ramping much easier for new users.

Secondly, Credits seems to have a rather lofty goal – they are looking to emulate many of the legacy banking features while also having plenty of new blockchain related improvements. These include the aforementioned Smart Contracts as well as the use of third party information gatherers, or Oracles. While normally this would be more of a benefit than a drawback, it does mean the project will be much more difficult in general to tackle and execute correctly. As an example, ARK has just about every feature of all other blockchains combined as part of their offering, but development will take a long time due to this, with only a few apps being fully finished. I can imagine Credits having some initial lofty goals and ultimately falling short of some of them.


Conclusion

Credits is a unique approach to financial services on the blockchain, and it excites me to see whether they can achieve their goals – they have a clear advantage over most other chains due to the fact that their market cap will be so low. This won’t be a hundred million dollar project out of the gate, like many other infrastructure/platform based ICO’s. This means that appreciation of price should be quick and easy for ICO investors. While the team itself isn’t an all-star lineup, a look at their MVP may allay investor concerns. Keep your eyes on this project.

Investment Grade: 75%

One thought on “Credits ICO Review – CS Investment Analysis

  1. I’m in and think it’s a great project.. Not without risks as any Ico but would like to hear some opinions of other people here…

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s