Aergo: Korean public network connecting existing private blockchains

Detailed review on the project

Introduction

AERGO is an open platform that allows businesses to build innovative applications and services by sharing data on a trustless and distributed IT ecosystem.

With the ability to deploy on either public or private blockchain networks, AERGO gives businesses the flexibility in developing and deploying blockchain applications with unparalleled speed, scalability and performance.

AERGO is designed as a flexible, plugin-based smart contract infrastructure. Client-actors can execute smart contracts written for the Ethereum Virtual Machine or AergoSQL.

The AERGO network will be backboned by github-like public and permissioned repositories of Distributed Directories (DD). Implementing Smart Oracles, AERGO will also allow smart contracts to consume data with external services or internal databases and trigger events.

Technology

CORE ARCHITECTURE

AERGO is designed to be a holistic, multi-purpose platform, that bridges the gap between public blockchains and private blockchains. In order to be effective under both environments, AERGO is intended to be compact, yet flexible in design.

In order to service multi-tenant workloads with potentially millions of concurrent users accessing the same set of nodes, AERGO intends to borrow many concepts from both traditional database designs and distributed computing.

DISTRIBUTED DIRECTORY
Distributed Directory (DD) is a core functionality that is intended to be used as a building block for the whole AERGO implementation.

Each DD in a repository is proposed to manage an independent, isolated namespace. Each namespace contains information about different branches and tags residing in the repository, as well as the validity of various identifiers on the blockchain.

Each DD is intended to be a blockchain on its own, with its own genesis block and the best block. Unlike conventional blocks, DD blocks are limited in size with a relatively long creation interval between them; since DDs are used for managing metadata, they need to be compact.

DD is comparable to data dictionaries in databases, zookeeper for Hadoop, or etcd for CoreOS in its role and functionality.

Tree of Life (ToL)
The ToL namespace of a DD is proposed to contain information about all the branches in the repository, as well as their genesis blocks or root blocks. The information about tags are managed inside the ToL namespace as well. As a result, the ToL namespace contains information about the best block of each branch as well; since the HEAD tag continuously keeps track of the best block of each branch.

Distributed Directory Service (DDS)
The DDS namespace is proposed to contain entries for different entities on blockchain; their public keys and validity, as well as associated roles and permissions. The DDS namespace is intended to serve as the basis for access control for AERGO repositories.

Each entity can represent either a client-actor or a server certificate. For entities with server certificates, DDS can serve as both Certificate Revocation List and a DNS with routing information.

AERGOFS, the proposed distributed file system component of AERGO, is intended to be dependent on DDS, since DDS keeps track of data volumes consisting each AERGOFS instance. In turn, AERGOFS can be used for storing blocks and indexes for different branches in the repository.

The DDS namespace forms the basis of identity for nodes to participate in the core consensus process as well.

CONSENSUS ALGORITHM
Core Consensus

The core consensus algorithm is intended to be used for building the DDS. The core consensus algorithm and the DDS are mutually dependent, since the core consensus algorithm needs to access the DDS within the DD to enable mining new blocks.

The proposed core consensus algorithm of AERGO is Delegated Proof of Stake (DPOS). DPOS is the preferred consensus model because, in summary:
• They believe it provides the scalability and the simplicity of operation required by a core consensus; and
• DPOS operates under the assumption that block reorganizations can happen, which means it is an optimal algorithm for powering the underlying infrastructure of AERGO.

User-Defined Consensus
By default, each repository uses the core consensus. Since AERGO intends to provide a pluggable architecture for consensus algorithm as well, different consensus algorithm modules can be used in place of the core consensus. Notably, RAFT (for development) and PBFT (for strict-ordering) are useful for developing and running different services.

Using the same toolchain for building smart contracts, a user-defined consensus algorithm can be used for each repository as well. The user-defined logic can govern how following events are occurred and managed in the blockchain.
• Block creation and its permission
• Block transmission and priorities

Since block branching and merging can be perceived as block reorganization events as well, the same policy for block reorganization is used for distributed version control as well. From version control perspective, the block reorganization policy is called “Consistent Merging.”

SMART CONTRACTS
AERGO supports a multi-paradigm, plugin-based smart contract infrastructure. Each contract can be executed or queried by a client-actor or another smart contract instance. Since AERGO provides a permissive interface with maximum interoperability between smart contract implementations, contracts written for Ethereum Virtual Machine, Fabric Chaincode, orAERGOSQL can be used with each other.

AERGOSQL
The canonical way to write a smart contract for AERGO is provided by AERGOSQL. AERGOSQL provides a relational data model for storing and accessing data and SQL-like scripting language for writing smart contracts.

Using AERGOSQL, smart contracts can be written using the familiar SQL syntax.

Figure 2. AERGOSQL Coding model extract

For maximum performance, AERGOSQL leverages technologies such as LLVM to utilize JIT compilation and high-performance b-tree implementations such as WiredTiger for data storage.

Interoperability
With its pluggable architecture, AERGO is designed to support different smart contract implementations. AERGO inherits the Ethereum Virtual Machine compatibility from Blocko Coinstack out of box. Fabric Chaincode is supported through lightweight virtualization such as Docker.

The initial release of AERGO is dependent on go-Ethereum’s EVM implementation. The use of evmjit for higher performance is planned in the future.

SMART ORACLES
AERGO supports integrating smart contracts inside the walled garden of blockchain, as well as smart contracts that have regard to external events and factors through implementing smart oracles. Smart oracles seek to provide following functionalities:
• Allow smart contracts to consume data from legacy systems such as Active Directory
• Allow smart contracts to trigger events in external services such as e-mail or SMS

From the perspective of a smart contract, smart oracles are external factors that are coupled to a specific smart contract; smart oracles react to changes to the coupled smart contract and inject data as a response. In some cases, smart oracles can trigger smart contracts autonomously.

From the perspective of a dApp, smart oracles implement micro-services that expose external functionalities required by the dApp. Since smart oracles and dApps can communicate off-chain, the micro-services provided by smart oracles can be used to implement an out-of-band communication required by the smart contract; a common use-case includes exchanging an authentication token between a smart oracle and dApp.

Isomorphic Contracts
AERGO development toolkit intends to support the isomorphic execution of a smart contract through automatic code generation. The isomorphic code generated from a smart contract can be accessed by both dApp and smart oracles, enabling a transparent access to the smart contract and the underlying data structure. The isomorphic execution of a smart contract is critical to the productivity of developing a smart contract and applications or services based on it.

Not all smart contract languages support isomorphic contracts; the support for isomorphic contracts is limited to contracts written for AERGOSQL.

DISTRIBUTED FILE SYSTEM
AERGOFS is a core component of the AERGO platform, providing distributed file system functionalities. AERGOFS is dependent on the DD for managing metadata related to files; metadata about each file including physical location, hash value, and various statistics is stored within the DD.

While smart contracts provide structured data storage with data schema and indexes for faster query, AERGOFS intends to provide the unstructured data storage capability of AERGO. AERGOFS provides a simple HTTP interface, enabling access from both smart oracles running on server environment and dApps running on web browsers.

DISTRIBUTED VERSION CONTROL
Unlike traditional blockchain systems, AERGO views chain forks and block reorganizations as core features of blockchain, rather than annoying side effects. By adopting git-like data models and command structure, AERGO seeks to enable collaborating on data as easy as it is to collaborate on source code.

REPOSITORIES

AERGO supports the creation of public and private repositories. Each repository can be either named or unnamed. A named repository has an associated public entity on AERGO Public Network’s Distributed Directory. An unnamed repository has no such association.

Much like a public Git repository, a public AERGO repository is intended to be transparent to read and write, or selectively allow different permissions to anonymous users. A common configuration is to create a public AERGO repository with read-only anonymous access.

A private repository is intended to be an AERGO repository with full access control enabled, both for reading and writing the repository. A public or private repository is effectively a private blockchain in a sense that it operates independently from AERGO Public Network. As a result, AERGO Token does not have any utility within public or private repositories.

BRANCHES

Within each repository, different branches pointing to a different snapshot in the blockchain status can be created. In fact, the concept of “best chain” in AERGO is analogous to the master branch.

SYNTAX AND SEMANTICS
AERGO seeks to provide friendly syntax and semantics for users accustomed to version control systems such as Git. Such functionalities can be accessed through AERGO CLI client, as well as RPC APIs.

Branching and Merging
One of the most complicated concepts in distributed version control systems is the process of merging branches. For blockchains with real-time data, merging is even more difficult to achieve. Due to its non-destructive process, branching is a simple and straightforward process.

However, merging requires two different approaches.

Automatic Merging
By default, Automatic Merging is the expected process for merging two branches. Automatic Merging is similar to the block-reorganization process in blockchains. In this case, the merging source’s blocks are dissolved into transactions and absorbed in the merging target’s mergingpool. Ultimately, the merging pool results in a new block attached to the merging target’s best block. In the process, transactions inconsistent to the merging target branch are automatically excluded from the new block.

Consistent Merging
Consistent Merging happens only when a branch is created with a specified consistent merging logic. Consistent merging is similar to the merge functionality provided by version control systems like Git. Unlike Automatic Merging which discards inconsistent transactions by default, Consistent Merging relies on the predefined conflict resolution logic to manage inconsistent transactions. The conflict resolution logic is implemented as a system-level smart contract.

SCALABILITY
AERGO employs three different approaches for achieving scalability.
• Domain partitioning
• Scale up
• Scale out

DOMAIN-BASED PARTITIONING
Domain-based partitioning is the most basic scalability strategy used by AERGO. Domainbased partitioning is achieved through the distributed version control (DVC) functionality of AERGO.

Unlike conventional blockchain implementations, AERGO is able to fork and merge its data through branches freely. As a result, the distributed ledger can be partitioned both logically and physically through different repositories.

Such approach is already used successfully by distributed version controls such as Git and Mercurial. For instance, a gigantic service like GitHub is able to host tens of millions of repositories.

However, the effectiveness of domain-based partitioning is dependent on the structure and usage of data. When a single repository needs to handle unbounded expansion of data, partitioning data through branching is very difficult. As a result, two additional scalability approaches are provided by AERGO for handling huge amount of data for a single repository.

SCALE OUT
AERGO’s scale out strategy depends on the functionality provided by AERGOFS. AERGOFS fulfils two roles for achieving scalability:

(1) AERGOFS can serve as a storage layer for each node’s blocks and indices. The manner AERGO nodes utilize AERGOFS is very similar to how HDFS is used by HBase. With AERGOFS, each node is able to store unlimited number of blocks and indices and function as a gigantic uber-node.
(2) AERGOFS is able to function as an object storage similar to S3 as well. In this configuration, AERGOFS provides immutable and durable access to binary data. In this case, AERGO’s smart contracts need to store locators to access files stored on AERGOFS.

SCALE UP
The most direct and simple approach that AERGOFS seeks to utilize for scalability is through optimizing a single node.

While horizontally scaling out works well for large amount of data, it fails to meet realistic benchmarks. With the advent of cheap memory, fast storage such as SSD, and limited network throughput, optimizing a single node is very effective for everyday systems. Blocko learned this lesson dearly while providing a real life blockchain implementations in the enterprise world, and AERGO, with Blocko’s assistance, seeks to borrow many ideas and techniques from Blocko’s Coinstack in this regard.

In order to make each node as efficient as possible, AERGO nodes are intended to be equipped with an efficient networking stack and an optimized storage engine for enhanced I/O.
• AERGO networking stack provides an out of order, highly parallel networking fabric that is able to serve a high number of nodes with complex topology on both bare metal environment and cloud environment.
• AERGOSQL forms the basis of the high-performance storage engine required by AERGO.
• AERGO nodes use multi-thread architecture to take advantage of a multi-core environment.

CONCURRENCY CONTROL
AERGO seeks to provide two mechanisms for transaction serialization.

BLOCK LEVEL SERIALIZATION
Since each branch of blockchain consists of a series of blocks, the transactions can be serialized through stacking after one another.

AERGO aims to provide Multi Version Concurrency Control (MVCC) based on block heights. As a result, with a branch and block height specified, it is possible to provide [consistent reads] across different nodes in the repository.

AERGO’s MVCC functionality aims to provide both a snapshot isolation for consistent reads and a form of optimistic locking through row or document versioning. However, MVCC works only for block-level serialization.

POOL LEVEL SERIALIZATION
Clients accessing AERGO nodes can take advantage of the deterministic, scheduled creation of blocks by delegates, a characteristic provided by DPOS and core consensus, to execute transactions synchronously, with a strong guarantee on transaction finality.

Since each delegated node can apply a uniform serialization ordering to process new transactions into the memory pool and to create new blocks, clients do not have to wait for the block interval to retrieve the result of transactions. As a result, the latency of executing a transaction decreases from seconds to milliseconds.

However, with block reorganizations and chain partitioning in play, as well as the presence of illintentioned clients, pool level serialization provides only a probabilistic level of consistency. On the other hand, with optimistic workloads, pool level serialization works well for solving real life problems.

PRIVACY
DATA ISOLATION

AERGO intends only to allow users with adequate permission to access ledger data by providing git-like private repositories.

By creating a new branch from a remote parent branch, users are able to keep newly created blocks in a private branch, such that they are isolated from the public. Only with those permission to the specific repository housing the branch are able to access the blocks.

DATA SHARING
A specific branch can be synced with remote repositories to exchange data. In this case, the private branches of the repository can either cherry-pick relevant commits from the public repository or merge the whole change set automatically.

PARALLELISM
The performance of a specific blockchain depends on the efficiency of creating and sharing new blocks, and the time it takes for each node to validate the new blocks.

The block creation process involves a consideration of the whole distributed consensus protocol of blockchain. It is submitted that the block validation process used as part various distributed consensus protocols is sometimes poorly designed and implemented.

While underperforming nodes are acceptable for consumer-grade blockchain implementations such as bitcoin or Ethereum, enterprise-grade blockchains like AERGO require much robust performance on a near real-time basis. As a result, each node needs to be implemented with as much efficiency as the consensus protocol itself.

AERGO intends to introduce the concept of parallelism to various stages of processing blocks to maximize the performance.

The parallelism involves the careful analysis of dependencies between transactions included in each block and an efficient architecture inspired by SEDA8.

DEPENDENCY ANALYSIS
In order to guarantee consistency between nodes, blockchain implementations usually employ the policy of serializing the execution of all the transactions and the blocks available. As a result, the rate of blocks a blockchain node can process depends on the time it takes to process each transaction, regardless of the number of processing units or memory available.

In order to enable the parallel validation of transactions and blocks, AERGO intends to perform a dependency analysis between transactions and blocks and create a data structure known as Deterministic Transaction Tree.

Deterministic Transaction Tree
A Deterministic Transaction Tree (DTT) can be viewed as a formal representation of the execution order of transactions to result in deterministic results to the state machines affected by the transactions.

As a result, for a set of transactions, there can be more than one viable and correct DTT.

Each branch of a DTT can be processed and applied to the underlying state machines related to the transactions in parallel with deterministic resulting states. A typical DTT will have a number of branches with varying lengths.

Depending on the size of blocks, each DTT can have branches from with couple of transactions in length to thousands of transactions in length. Similarly, a DTT can have varying number of branches as well.

The validity of a DTT can be only verified by actually executing a DTT against a set of state machines. A version of DTT can be optimized into another version by transforming the tree as well.

In order to create a DTT for a set of transactions in a realistic time frame, AERGO employs a rule-based approach to analyze the transactions. More sophisticated approaches including machine learning are planned to be tested in the future releases of AERGO.

Source.

Team

The Aergo team derives from parent company Blocko. There are currently core engineers on the tech end and team members working on business development and marketing efforts. Parent company Blocko has about 50 employees. The list of the team and advisors can be found here.

Aergo Board

Source: Aergo.io.

Phil Zamani — Chairman & CEO Aergo Foundation. Co-CEO Blocko.

• Global VP Sales & Biz Dev. Internet Embedded Linux Appliances for Redhat Inc.
• Global Head of Big Data & Cloud Biz Models at Santander
• Senior VP of Cloud Biz Unit at Deutsche Telekom
• 20 years of open source and cloud business experience

Hun Young Park — CTO at Blocko and Board Member at Aergo.

• Expertise in large scale and high performance software design
• 12 years of experience in Relational DBMS and distributed solutions
• Researched and developed various data platform areas and AI
• KAIST, Computer Science. AI Lab, MS

Roderik van der Graaf — Board Member at Aergo. Managing Partner at Lemniscap.
• Founder of Lemniscap, an investment and advisory firm in the blockchain space
• 7 years of private equity/venture capital at Caldera Pacific and KCP Capital
• 13 years of equity derivatives trading at Deutsche Bank, HSBC, Rabobank, Bear Stearns, LIM Advisors and All Options
• B.Eng. Aerospace Engineering (University of Hertfordshire) and MSc. in Information Technology (Queen Mary and Westfield College, University of London)

Won Kim — Founder and CEO of Blocko and Founder of Aergo.

• 9 years of experience in Relational DBMS
• 6 years of research & development of distributed systems
• Boston Univ. Computer Science

Alison Shim — Board Member at Aergo. 
• 5 years of experience in Strategy Consulting at Accenture
• Expertise in go-to-market, and business development
• New York Univ. Economics and Communication studies

Tech team

Source: Aergo.io.

Kyung Tae Lee — Senior Software Developer at Blocko and Aergo.

• 12 years of experience in Relational DBMS and Query engine development
• Expertise in Graph database
• Kangwon Univ. Computer and Communication Engineering

Sung Jae Woo — Developer at Aergo and Blocko.
• 9 years of experience in Relational DBMS buffer cache and IO subsystem development
• Expertise in Computational Physics
• Korea Univ. Physics. PhD

Bernardino Ramos — Developer at Aergo.
• 19 years of experience on software development
• Expertise on SQLite database replication
• Creator of Binn, LiteReplica and LiteSync

People from GitHub:

Taeik Lim (acktsap) Repositories — 13. Stars — 38.

Hunyoung Park (ashen1dev) Repositories — 4. Stars — 7.

asteroid (asteroidable) Repositories — 4. Stars — 1.

bonyong lee (bylee) Repositories — 20. Stars — 29.

Geunhae Lee (chris2nd) Repositories — 0. Stars — 2.

DayoungKim Repositories — 8. Stars — 1.

eve2adam Repositories — 0. Stars — 0.

jaeseok.an (everjs78) Repositories — 1. Stars — 1.

Paul Grau (graup) Repositories — 53. Stars — 96.

Yun Park (YP) (hanlsin) Repositories — 15. Stars — 20.

Hannah Shin (hannah-shin) Repositories — 0. Stars — 0.

Hayarobi Park (hayarobi) Repositories — 6. Stars — 2.

junu (kjunu) Repositories — 6. Stars — 15.

Bernardo Ramos (kroggen) Repositories — 19. Stars — 38.

Kyungsub Lee (kslee8282) Repositories — 0. Stars — 0.

mlogue76 Repositories — 11. Stars — 1.

noonandr Repositories — 13. Stars — 10.

Pierre-Alain (paouvrard) Repositories — 2. Stars — 5.

Sung-Jae Woo (qcollapse) Repositories — 0. Stars — 1.

bjjeon (sunpuyo) Repositories — 1. Stars — 5.

tillfranke Repositories — 4. Stars — 0.

wrpark79 Repositories — 0. Stars — 0.

Business Team

Source: Aergo.io.

Mason Park — CMO at Blocko and Member of the Aergo Foundation.
• 7 years of experience in Advertising and Marketing
• Innovator and expertise in branding, marketing strategy & execution
• Univ. of Wisconsin-Madison, Biochemistry

Han Kim — PR Manager at Blocko and Member of the Aergo Foundation.

• 5 years of experience in Public Relations
• Excellence in cryptocurrency dynamics and ecosystem
• HUFS, Social Science

Camron Miraftab — Business Development Director at Blocko and Member of the Aergo Foundation.
• 4 years of experience in innovation strategy and venture capital
• 3 years of experience in blockchain research and blockchain start-up due diligence
• MSc International Economics and Finance and BSc. (Hons) Biomedical Science at Newcastle University

Seona Kim — Business Development Manager at Blocko.
• 3 years of experience in IT Consulting & Cloud management service
• Strategy project manager and researcher for blockchain market
• HUFS, English-Korea Interpretation & Translation

Advisors

Among the advisors of AERGO are Eddie Alleyn, Vincent Zhou, Djamel Souici, Julian Lenz, Joon-Hong Jake Kim, Sinhae Lee, Pierre F. Suhrcke and Riad Hartani. The advisors are mostly entrepreneurs or are working for venture capital companies.

Source: Aergo.io.

Eddie Alleyn
Eddie Alleyn is a technology entrepreneur and expert in security and secure communications. He spent thirty five years leading special projects for the UK Government, in the Ministry of Defence and the Foreign and Commonwealth Office. From 2011–2016 he was Chair and CEO of HMGCC, an agency of the FCO, involved in the design, manufacture and integration of secure communications and cyber systems for the UK Government. He is now an Exec and Non-Executive Director to innovative tech start-ups in the security and cyber security fields, and an Adviser to SANS Institute. Eddie knows how to get the best out of innovative technology and engineering teams to deliver ground-breaking security solutions.

Riad Hartani
Riad is a seasoned technology specialist and strategist with over 20 years contributing to the development of Internet, Mobile and AI technologies. He co-founded and led multiple high-tech startups (Caspian, Anagran, Wichorus and more) with some seeing very successful exits. He has advised over 10 leading technology corporations, numerous private equity houses and several governments and regulators. He also co-founded Xona Partners, a boutique technology and investment advisory firm and ivalley.co, a Fintech co-creation studio. Riad holds a Ph.D in in Artificial Intelligence. He is frequently invited as a lecturer, speaker and panelist at leading industry fora and academic institutions.

Joon-Hong Jake Kim
Joon-Hong Jake Kim is Skytale Capital Managing Director, Co-founder. With deep understanding of capital market and hands-on experience back-end computing, Jake Kim manages seoul based cryptocurrency funds. He is an startup investor and entrepreneur with 20 years of combined experiences in capital market, consultancy and large-scale back-end and middleware systems development. Jake currently manages Innobase, a corporate venture capital of Kolon group.

Djamel Souici 
Djamel Souici is a legal expert on open source technology, Licensing and business models. He is also a leading advisor and practitioner in Data Privacy and Regulation (such as GDPR). Djamel, a member of the German Legal Barr Association, has spent the past 19 years as General and Legal Counsel for a number of innovative software firms, leading their representations in respect of open source, data privacy and compliance. He has also developed a number of strategic partnerships with many Fortune 100 firms in diverse sectors such as Telecoms, Financial Services, Government, Automotive, Manufacturing, Petrochemicals, Logistics, Retail and Healthcare. Djamel is also a renowned negotiator and expert in international mergers and acquisitions.

Pierre F. Suhrcke
Pierre Suhrcke is a leading Fintech expert and investor in Europe, having been active in this sector since 1999. Pierre spent more than 17 years in various senior executive management positions in Investment Banking at Deutsche Bank in London and Frankfurt (Equities, Risk Management and Head of Capital Venture Partners). Pierre is currently a Venture Partner at Tempocap, a European technology investment firm, and a board member of Acorus Capital, a Hong Kong based Private Equity firm. He is an angel investor, mentor and advisor to companies — having worked with and sat on the board of — over 20 successful private companies (US & Europe). He is frequently invited as an expert fintech panel member at leading conferences.

Vincent Zhou

Vincent is founding partner of FBG Capital, with extensive experience in digital assets trading and investment. Vincent is also an early investor of a broad spectrum of blockchain companies and projects. He is considered as one of the most well-connected and visionary crypto hedge fund managers in Asia.

Sinhae Lee
Sinhae Lee is a Partner at GBIC, leading blockchain investments and accelerating robust projects. Prior to joining GBIC, she has been deeply involved in the FinTech/blockchain industry in Silicon Valley. She led business development and operations at a payment start-up, Coin, which was acquired by FitBit in 2016 and later worked at NerdWallet, a FinTech start-up in San Francisco. She started her career as a management consultant at McKinsey & Company. She brings her Silicon Valley and consulting experience to the blockchain/crypto industry. Sinhae holds an MBA from Stanford University and a B.A. in Business from Korea University.

Julian Lenz
Julian Lenz is an experienced investor and advisor to a selective number of blockchain projects. As a serial entrepreneur (and early stage investor in the crypto market over the past five years) he has relationships and with advanced teams that are creating innovative solutions on. Julian has previously been an advisor and mentor to many startups involved with cryptography and enterprise-IT (as part of his Techstars work). He has an extensive crypto network — cultivated links to developers, partners, incubation labs and other research groups — that are exploring ways to solve real-life business problems using blockchain technology. Julian is a trusted advisor to many projects, crypto-funds and influencers that develop or work with bleeding edge protocols and dAPP’s.

Partnerships

Blocko is AERGO Organization’s strategic technology partner.

Blocko is a commercial blockchain infrastructure provider recognized as South Korea’s number one commercial private blockchain systems developer, deployer, and integrator. It has an impressive list of clients. Blocko has worked with and helped to deploy large-scale blockchain systems for companies such as Hyundai, Lotte Card, Samsung, Cisco, LG, Kia Motors, and several notable Korean banks, telecommunications providers, government agencies, and even the Korea National Stock Exchange (KRX).

These companies have not merely tested out Blocko’s blockchain technology; they have already implemented it and are currently utilizing it throughout their business operations. This success instilled extreme confidence in AERGO as it showed the potential of Blocko’s technology. For example, an over-the-counter blockchain-based trade settlement solution, built by Blocko for KRX, produced a cost saving of US$78 million in a single year (2017) according to an external study by Soonchunhyang University.

AERGO and Blocko agreed to a profound strategic technology partnership in early 2018. As part of this arrangement, both parties would extract significant value out of multi-year cooperation. The potential long-term benefits to each firm from a deep partnership would include the following:

Benefits for AERGO:
1. Engage with a partner that has proven expertise, technology, and IT integration know-how.
2. Kick-start the AERGO blockchain genesis with proven technology in use by many clients.
3. Gain access to invaluable existing enterprise and blockchain savvy clients.
4. Gain access to experienced IT system integrator partners.
5. Leverage Blocko’s relationship with the Korean Government body investigating blockchain.
6. Acquire another contributor with sector know-how.
7. Strategically leverage Blocko’s resources (esp. experienced engineering team) to build AERGO.

Benefits for Blocko:
1. Directly contribute to a potentially promising and lucrative blockchain startup building a solution for a large market opportunity.
2. Bring to the global market many years of experience through an entirely new public network of scalable blockchains (that leverage the best of distributed ledger technology techniques).
3. Become one of the first block producers for AERGO.
4. Help establish AERGO as a global platform, driving more business to Blocko.
Source.

Source.

AERGO are partnering with NEO Global Capital — one of the largest institutional owners of cryptocurrency with over $400,000,000 in total assets who has also been a key backer to over forty blockchain projects — on the early stages of their global ecosystem expansion plan. More information can be found here.

Use case

AERGO Marketplace proposes to be a one stop shop for software applications, computing resources and other services optimized for AERGO Chain. The AERGO Marketplace software, computing and other services are intended to be compatible and run on or work with AERGO Chain. It is proposed the AERGO Marketplace will be accessed via the AERGO Hub public interface and managed via AERGO Horde.

They propose to enable third parties, such as service providers, independent software vendors and cloud infrastructure vendors, so that they can make their products and services available to users of AERGO.

The end-users of AERGO will be software developers, and all types and size of businesses wishing to build, manage and run a blockchain project.

Whilst similar in nature to traditional cloud marketplaces, it is their aim to ensure AERGO Marketplace significantly lowers the barriers to entry for its users. This includes individual software developers, IT contractors and companies (from small SMBs to large multinational
enterprise firms).

They also plan to provide support for national and regional government agencies, who may wish to use AERGO to solve specific problems. An example of this is to provide a secure and anonymous citizen voting system based on blockchain (just as has already been implemented by Blocko with COINSTACK for a regional local government province in South Korea).

AERGO Marketplace will operate as a business and partner ecosystem. They plan to provide a wide range of digital capabilities that can be used to develop and deploy innovative blockchain solutions.

The Platform intends to support public, secure private and hybrid blockchain deployment models.

Examples of the digital capabilities that, over time, will be made available in the AERGO Marketplace include, may include:
● Computing Power (CPU)
● Storage (scalable — ultra fast), Solid-State Memory
● Content Delivery Network (CDN)
● Machine Learning Algorithms
● Digital Content (new algorithms and new software microservices)
● Specialised databases
● Smart Contract and Smart Oracle (templates)
● Blockchain IT integration blueprints
● Digital Identity blueprints
● Document Time Stamping (DTS blueprints)
● AERGO blockchain Training

The AERGO Platform will plan to consider including other modules and welcome new ideas from parties interested in engaging and cooperating with the AERGO ecosystem.

In summary, the team aims to make the AERGO Marketplace a vibrant, open and sustainable ecosystem. A marketplace full of new technologies and innovations; whether these are provided from single developers or large software vendors.

These services will be promoted and hopefully employed to power the next generation of business running on a secure blockchain. The underlying IT architecture will also be based on a low cost distributed utility computing deployment model.
Source.

Social metrics

Github metrics
Developer activity (from Coinlib.io)
Social media activity

There are also Official Aergo Kakako talk, Wechat, and Weibo.

Markets and volume

Circulating supply will increase ~5 times in 2019 so market cap will grow appropriately.

Information from Coinmarketcap.com
Information from Coinlib.io

TA

No sufficient history for TA.

Competitors

AWS Lambda, Google Cloud Functions, Microsoft Azure Functions, IBM/Apache’s OpenWhisk (open source), Oracle Cloud Fn (open source).

Other platforms for consumer Dapps: ETH, EOS, Cardano, Quantum, Lisk, RChain, GXChain, Nuls, Orbs, OST, ICON, Ontology.

Main competitor is ICON, since both companies target South Korea, have both public and private network features and they plan to work with corporate sector.

Roadmap

Token Mechanics

AERGO Token ​(“AERGO Token”​ ) is the proposed utility token to operate on the AERGO platform. It aims to serve a multitude of different functions. The AERGO Token is broadly speaking intended to be the medium of exchange within the AERGO ecosystem.

These tokens aim to grant the holder the right to certain services available within the AERGO ecosystem.
More specifically, it is intended that the tokens are used for:
● running the smart contract (AERGOSQL);
● DPOS consensus algorithm
● payment method for Blocko’s technical support on Coinstack 4.0;
● payment method for AERGO Hub services;
● payment method for services and assets on AERGO Marketplace; and
● payment method for the AERGO domain

USE OF PROCEEDS
The proceeds from the tokens for sale are intended to be used to develop and advance the technology programs and partner ecosystem development aspects of AERGO.

A breakdown of the proposed proceeds is depicted in the following table, but is subject to change.

Source.

Token Metrics

A total of 500,000,000 AERGO Tokens will be issued.

They sold 30% of the total AERGO token supply to private purchasers early this year. These purchasers entered into specific commercial agreements that are (and remain) in many parts confidential. With this in mind, they would like to disclose their token metrics today and provide as much clarity as is possible to their community and stakeholders.

Following the private sale (to qualified purchasers), they allocated all remaining tokens into three broad categories:

  1. 15% for the people, advisors and key technical resources needed to build, test, deploy and operate AERGO
  2. 31% for an ecosystem fund to enable and support the ecosystem necessary for developers and businesses to take full advantage of AERGO
  3. 21% as a foundation reserve for future dApp, partners, customer, international business development, and marketing/PR.

Token metrics and associated vesting schedules*

  • Total number of tokens: 500,000,000
  • Total number of tokens either sold or pre-allocated to all stakeholder groups over the next five years: 275,000,000 (55 % of total supply)
  • Private sale: 30% — Vesting Period: by end of 2019 (with the vast majority of tokens locked until the end of 2019)
  • Private Sale Price (August 2018): USD 0.20 (maximum discount 20%)
  • Total Tokens Sold Privately (including discounts): 161,877,924
  • Private Sale Conducted in Ether: 1 AERGO token = 0.0004277 Ether/0.00003060 Bitcoin/0.20 USD
  • Total Ecosystem Reserve (dApp incubation and partner enablement programs): 31% — vesting period five years (final details to be decided**)
  • Total Foundation Reserve (Marketing, PR, Business Development): 21% — vesting period five years (final details to be decided**)
  • Community rewards token price (December 2018): USD 0.28

A more detailed breakdown of the tokens in the Ecosystem Fund and Foundation Reserve follows:

  • Advisors (existing and future): 6.6% — Vesting schedule is as follows: 10% at TGE, 40% end 1Q2019, 25% end 2Q 2019, 25% end of 2019
  • Blocko R&D team: 5% — Vesting schedule is as follows: 20% on 1Q 2019, 20% on 2Q 2019, 20% on 3Q 2019, 20% on 4Q 2019, 20% on 1Q 2020
  • Blocko business development team: 4% — Vests at the end of 2019
  • Foundation team: 2.5% — Vesting schedule is as follows: 40% on TGE, 30% February 2019, 30% May 2019
  • Foundation future Hires & long-term token incentives: 5% — Vesting over three years as follows: 20% in year 1, 30% in year 2, 50% in year 3
  • Block & hosting partner rewards: 20% — Vesting period group-1: 5 years/vesting period group-2: 10 years (final details to be decided*)
  • Key backers: 1.6% — Vesting over 15 months (20% 1Q2019/20% 2Q2019/20% 3Q2019/20% 4Q2019/20% 1Q2020)
  • Community: 1.8% — Vesting Period (RewarDrop) 50% ten days after TGE, 50% 30 days after TGE (new programs with accelerated vesting were available).

*AERGO reserves the right to modify the Token Metrics in line with its evolving project needs / key changes will be shared publicly.

**AERGO is considering moving the vast majority of its foundation reserve into an independent, trusted and audited 3rd party escrow service to ensure these tokens are only released on a smaller scale and gradual basis over the next five (5) years.

They have since released a total of 34,798,968 AERGO ERC20 tokens to date (6.25% of the total supply).

They plan to have no more than a maximum of 47,504,606 (i.e., 9.5% of the 500 million total) AERGO ERC20 tokens in circulation until the end of 1Q2019.

The circulating supply after that will be by the above schedules. It is expected that around 145,000,000 AERGO tokens will be in circulation by the end of 2019 (i.e., 29% of the 500 million total) and they estimate between 350,000,000–400,000,000 (i.e. 70–80% of the 500 million total) AERGO tokens will be in circulation by the end of 2021 (three years from first listing).

Source.

Summary

Team: Good team, top advisors 
Idea: unoriginal, but execution is interesting, AERGO will be forcefully adopted via Blocko
Development stage: Testnet

Whitepaper: Technical paper was good, Whitepaper was pretty much copy-paste of technical one, but with more water
Roadmap: Outlines major milestones but lacks details

AERGO is a project that is different from the most crypto projects that I have seen. Not only they have a real use case, which could affect global adoption of blockchain tech, they also have potential user base offered by their strategic partner. Blocko is quite well known project in Korea and they offer services to big companies, they stated that they will migrate their services to AERGO.

Assuming the fact that migration from Coinstack to AERGO will go smoothly it is safe to say that this project will be a long running one. The team is good, and well balanced, have experienced people in both tech and finance. They also have support from Blocko which is reassuring, since their tech team is very experienced in blockchain.

The only thing that is hard to understand is the relationship between AERGO and Blocko. Tech team working on AERGO is from Blocko, business team is from there as well, technology is based on Blocko’s product Coinstack. Aergo is presenting Blocko as strategic partner, Blocko says that they build and support AERGO. Why make it so complicated? Why don’t they simply publicly acknowledge they parent-child company relationship?


This is not financial advice.

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