This article will introduce a new blockchain startup called IAP Network and breakdown the key components of this promising project.
Below I will outline a high-level overview of the most important aspects of this project. For more information and to read for yourself, you can find the general whitepaper and technical whitepaper at iap.network.
Introduction The IAP — or ‘Information Assurance Platform’ — is a blockchain platform built to assist in information assurance, regtech, and cybersecurity. Simply put, it’s a platform solely focused on cybersecurity. The broad goal of the project is to provide a robust solution to information assurance challenges that currently cost companies over $3 trillion per annum.
Blockliance is another name worth noting, as it will be IAP’s initial application — a distributed multi-chain ledger application that will utilize the IAP to solve governance, risk and compliance (GRC) security and business problems.
The IAP is a suite of protocols for incentivised and verifiable management of the assurance of information between parties in a decentralized, flexible, scalable, secure, private, immutable and resource efficient manner.
“The Information Assurance Platform aspires to conquer the issue of trust and assurance, enabling risk free information assurance for devices, individuals, organisations, companies and governments globally.”
Background / Problem The scale and impact of cybercrime and lacklustre cybersecurity inputs to business is simply enormous. Numbers from the Cybersecurity Ventures project that cybersecurity and cybercrime will cost enterprise upward of $6 trillion annually by 2021, and is already at $3 trillion as of 2015.
Aside from malicious crime alone, data leaks and poor security infrastructure expose risks of data theft and privacy breaches. The list of data breaches is long, and includes several high profile cases such as the Equifax breach of 2017, exposing the personal and sensitive information of over 140 million consumers. This breach was notably commented on as “entirely preventable”.
Overall, cybersecurity is a huge item of discussion and on the balance sheet for current century enterprise.
Additionally, the costs and time involved in reaching ongoing regulatory compliance are significant. A multi-billion dollar consulting industry has grown out of this requirement to maintain compliance in relevant jurisdictions for enterprise.
The creation of a decentralized, immutable, trustless, adaptive, upgradeable global computational attestation and verification machine will solve the key pain points of the GRC problem, and do so in a time and resource efficient manner.
The IAP Network is being built to solve these present issues and to save enterprise time and money through their unique platform.
Solution The IAP is a platform solely and entirely focused on cybersecurity. Being both decentralized and available for public and private use, and with community governance, this platform is being built to address challenges in areas that blockchain can drastically improve — information assurance, regulatory technology and cybersecurity.
IAP themselves are building their first application Blockliance, however aside from this the main value proposition of this project is the low-cost, highly efficient standard and toolkit (Toolbelt) the platform will provide for developers wanting to take advantage of and solve difficult cybersecurity and infosec problems.
Blockliance This is the first application being developed on the IAP, by the team. This app is being purpose built to support the multi-billion dollar governance, risk management and compliance (GRC) space.
“Built on the IAP platform, Blockliance is a distributed multi-chain ledger platform that will utilize the IAP to solve the key compliance challenges discussed above. By utilizing the unique ability of blockchain technology to provide trustless verification of claims, Blockliance will be able to provide transparent proof of regulatory, legal and financial compliance claims in an automated way, which is not reliant on manual verifications by trusted specialists and complex processes.”
The value for enterprise, government bodies, auditors, regulators and more, is in the time and cost savings that will be retained in not having to go through arduous manual verification processes, instead relying on the trustless blockchain technology.
In essence and for the sake of simplicity, we can boil down the offering of IAP Network into the following core points:
• The IAP is a decentralized set of tools that developers can use for the creation of cybersecurity applications
• These applications can be built based upon different components of the ‘toolbelt’ that IAP will provide
•These include: CyberTraces (assurance proofs), CyberChains (evidence chains), CyberStates (universal daemons), CyberShields (computational verification), zero knowledge cryptography and more
More detail on these components mentioned can be found in the IAP Network whitepaper, available online at by clicking here.
Case studies / Applications / Use-case examples The team at IAP have actively investigated an extensive yet not limited list of potential use-cases and applications that fall within eight broad categories: cybersecurity, development operations & security, society-charity-humanitarian, identity management & privacy, medical & health, government, and law enforcement. In the interest of keeping this article relatively succinct, I will just detail the main focus of cybersecurity. However, more detail can be found in the whitepaper if you are interested.
Cybersecurity As the core of the project’s creation focuses of cybersecurity and infosec, the list of use-cases in this area are detailed and scope far reaching.
— Supply Chain Security — Internet of Things device monitoring and control — Digital identity, credentials, authentication and signing — Secure code scanning — Vulnerability management — Digital forensic
… and much more
Competitors / Competition Analysis Currently in the blockchain space, there are no existing competitors building a solution like IAP Network. The connections and partners that the team have already acquired further back their competitive position if other entities move into the market. The team have a strong background in cybersecurity and have already reached significant ties with top-tier consulting and advisory firms like BDO.
Partners / Investors Partner highlight — BDO BDO is a multinational accounting and business advisory firm, that has partnered with the team at IAP. One of the co-managing Partners of BDO in Thailand is an advisor to the project.
IAP Network will be working closely with BDO to develop the ‘BDO SmartChain’ which will become a tax and audit platform based on the IAP. Tax and audit is a huge part of the BDO business, so this is a significant collaboration. Moreover if this collaboration proves successful and valuable, then it would be logical to expand to other markets that BDO service, which would be a great opportunity for the IAP.
IAP Token There are many participants in the IAP ecosystem that collectively embody the utility of the IAP token. Network Verifiers receive fees for running nodes, Validators use tokens to receive verification of information assurance attestations from proving entities, Provers use tokens in order to assure validators of their attestations, and IAP token holders alone can hold their tokens to assist in reaching decentralized consensus of the network and accurate verification mechanisms.
IAP token inflation As with any model that incentivizes network security by token issuance, inflation is a key component to consider. Newly created IAP tokens as block rewards will be distributed between validators to compensate them, and also a portion to the IAP Treasury.
IAP Treasury The treasury will be primarily responsible for managing the circulation of IAP tokens.
When a service on the IAP platform is used, the tokens are not released immediately back into circulation but into the treasury.
Logically we then move onto asking what the treasury will do with these tokens…
Treasury tokens can be used for multiple purposes for the health of the network; invested in development, provided as incentive for service maintenance, rewards for development of additional tools in the IAT, used to mitigate on the platform.
According to the whitepaper and token economics model from IAP, such uses are determined by the IAP Open Standard and polycentric governance of the platform.
Par value and volatility concerns The IAP team have considered the sometimes extreme volatility of crypto-markets and the assets that are traded on them. For any project with a focus and concern on enterprise usage and adoption, they know that this uncertainty is not practical for real world business and government utility.
The ‘par value’ mechanism provides a means to guarantee a certain and stable price for users of the system, while simultaneously allowing for the IAP token to fluctuate on the free market.
How does this work? IAP can set a par value for services on the platform, inherently presenting three differing scenarios when it comes to usage of services and cost.
— Scenario 1: token price is less than token generation event (TGE) price
— Scenario 2: token price is more than TGE price but less than par value
— Scenario 3: token price is more than TGE and par value
Scenario 1 This effectively describes a scenario in which demand for the services provided by the IAP is low and or circulation of the token is too high. For users, this means a discount to services on the platform.
Scenario 2 The sweet spot. Both TGE participants and user expectations are met.
Scenario 3 Good for TGE participants, however a hindrance to use for enterprise. This is effectively paying a premium for the service.
In this scenario, the treasury is able to come into play. The treasury in the situation of a Scenario 3 outcome may issue tokens at par value for use of services only.
What this does is allow for users to only ever pay expected or discounted prices for services on the IAP, whilst also not allowing for arbitrage profit to be made from users acquiring par value tokens and selling on the secondary market.
An additional stabilization mechanism is that par value will continuously increase, this inherently provides an incentive to pre-purchase tokens for expected future demand.
More information can be read in the IAP technical overview available online here.
Team Will Vacher [Co-founder & CEO] •Previously Head of Cyber and Information Security at Omise (OmiseGO) • Previous experience in C-level executive roles for multinationals, and companies specializing in network security
Tony Woodhouse [CTO] •Educated in Physics and Mathematics • Previously Development Manager at Omise (overlap with Will) • Past senior web development roles • 20+ years’ experience in leading technology companies
Steve Franks [Founding team member] • Previously CTO of Telenor (Asia), which is one of the world’s largest mobile telecommunications companies based in Norway.
— Paul Ashburn [Advisor] • Co-managing partner of BDO and was previously a partner at KPMG • BDO have agreed to partner with IAP and Blockliance and will both actively collaborate and expand the reach of the project
To collectively highlight other team and advisor experience, members of the IAP team and advisory network have been involved in the following organizations: • US Federal Bureau of Investigation • US Homeland Security • UK National Crime Agency • Thailand Internet Crimes Against Children • Royal Thai Police • Department of Special Investigations
Roadmap 2017 ✓ Primarily research and development
2018 ✓ blockliance.io registered ✓ Whitepaper distributed ✓ Partnered with Kaizen Solutions Group, Movaci Cybersecurity ✓ Seed round
2019 ✓ Token economics and utility model design ✓ Design of on-chain AI systems • Complete MVP for Information Assurance Toolbelt • Complete MVP Blockliance PCI Interface • MVP for Information Assurance Toolbelt • MVP for Blockliance • Start of crowdfunding round
Summary IAP Network is building in the ever important and growing spaces of cybersecurity and compliance. The team has an extensive background in the field of cybersecurity and infosec, with multiple decades of experience. Currently fostered partnerships with top-tier multi-billion dollar professional services and advisory firms are a strong attribute of this project.
Token economics are a pivotal point for cryptocurrency-based projects that endeavor to raise funds from the public, and IAP have clearly thought through their economic model. The interrelated roles of the Treasury and par value components setup the project for success when attracting enterprise and government adoption.
Overall, the project has a strong base, plans to build in a space that has an already established billion dollar market, with an idea to bring a superior offering to market through Blockliance.