Wolf Crypto ICO Review: Chromapolis (by ChromaWay)
Database-centric decentralized application orientated platform with a different approach to token economy.
*NOTE: the project is still in stealth mode. An updated website dedicated to Chromapolis will soon be live.
Rethinking the Blockchain
ChromaWay, the parent company of the platform Chromapolis, aims to create a platform allowing decentralized applications with scaling and ease of development in mind. The role of Chromaway blockchain when developing dApps is to store data and ensure all updates and modifications can be monitored. The system is tamper proof, cannot be shut down and services can be monetized without sacrificing the privacy of users.
Main features of the Chromapolis platform are:
- Uses a relational model so that the data can easily accessed by an application programming interface (API) and indexed and queried without performance degradation (using Rell, a query language similar to SQL).
- Scaling is solved horizontally so that each dApp gets its own blockchain, run by its own nodes. Expected transaction time of >500 TPS per sidechain.
- Uses the PBFT consensus algorithm (hardened by anchoring), a relaxed version of BFT that can handle more fault tolerance and allows transactions to be confirmed in seconds. When the number of blockchain’s validator nodes is 3f+1, a block must receive 2f+1 “votes” to be confirmed.
- As dApps are not built as smart contracts, Chromapolis does not charge transactions fees, but instead “collects fees from a dApp as a whole”.
Chromapolis boasts reduced fees compared to Ethereum, faster confirmation times, easier app development and more practical (and cheaper) data access. Implementing a relational model allows use of SQL database management systems, something ChromaWay considers to be one of the main advantages of their platform.
Another advantage is, compared to Ethereum where everything lives in smart contracts and every interaction costs money, Chromapolis allows dApps to have their own side-chain and fees, used to pay nodes, and instead of being collected from transaction fees, the fees instead can be collected from dApp profits (think freemium business model). This solves scaling, but also rethinks governance and token economics.
To reduce programming errors and control resources use, a new language called Rell will be used for dApp programming. Rell is claimed to be 7x more compact than SQL and allows meta-programming from templates and handles overflow errors. Unlike Ethereum, the built-in governance mechanism allows to fix dApp errors on the fly, be this for better or worse.
Regarding governance, Chromapolis uses something called social consensus. dApp sidechains are run by separate nodes which are owned by providers. ChromaWay has 2 criterias for provider selection: Firstly, it needs to know which nodes each provider controls and make sure that providers are actually distinct. ChromaWay aims to select initial providers, and then allows the system to vote additional providers. Providers will be compensated by running nodes offered on the Chromapolis marketplace, and the anticipated cost of running the nodes will approach the cost of commercial cloud computing.
This sounds similar to the EOS governance and DPOS, and we all know how that is going… ChromaWay claims it can avoid these pitfalls by rejecting coin voting and by manually selecting initial providers based on their knowledge of blockchain and the IT industry.
To summarize, Chromapolis wants to be a database for all decentralized applications built on it and offers a simpler way to create and use the blockchain to develop dApps. Platform providers will run nodes and get rewards not from transactions but instead from dApp profits. Chromapolis is database-centric and suited for applications which deal with complex data schemes, require operating on large amounts of data, and demand fast queries and fast confirmations. The downside to this is that that a limited number of providers will have the ability to collude and create cartels in spite of ChromaWay’s promise that “this time is different”.
ChromaWay does not believe a collusion among providers is likely cause of potential loos of profits. We disagree. DPOS and DPOS like governance seems to be a synonym for bribes, cartels and centralization.
However, different tools are needed for different purposes — and Chromapolis has plenty of use cases where it will excel. Think freemium model apps, apps that rely on membership fees, pre-funded sponsorships or in-app purchases and games fully hosted on the blockchain (<100,000 cell updates per second in MVP release),… Similar to EOS, hosting can be provided by AWS EC2, Google Cloud Computer Engine and similar services. ChromaWay does not claim that Chromapolis will be decentralized from start, but that the platform will first be in the hands of a special entity…the largest holder of CHROMA tokens and thus be motivated to increase adoption and user base growth of the platform before unleashing it to the wild. ChromaWay does not believe this is an impediment to decentralization. We are not here to judge, but instead to think of cute catchphrases — “EOS of Sweden”?
As described previously, Chromapolis CHROMA tokens are used by dApps to pay hosting fees and to peg dApp tokens. Additionally, nodes running the Chromapolis system (a mega dApp in a sense) are also rewarded by part of the dApp hosting fees.
As a simple example for the token economy, if a user wants to buy app tokens, an algorithm creates them while locking the CHROMA tokens and adjusting the price (think Bancor). A fee can be taken for this conversion. This also creates an incentive for users to buy tokens of new undiscovered apps/games that can grow in popularity.
Chromapolis hardcap is $15M for 15% of tokens sold to partners. There will most likely be no crowdsale.
65% of tokens will be owned by ChromaWay, 3% will be put into a automatic conversion contract on Ethereum blockchain to enable Chroma<->ETH conversion, 2% will go into a system node compensation pool, 30% is allocated for promotional use: to be given to users to try applications hosted on Chromapolis.
From the ChromaWay allocation 15% of all tokens will be sold to partners. The rest of the ChromaWay tokens, up to 22%, will be unlocked during the first year after launch, then up to 12% per year.
The use of the 30% promotional tokens is to onboard new users and create a community of dApp users. 1% per month will be the maximum distribution rate.
Product Status & Roadmap
ChromeWay claims that preliminary tests of the framework demonstrate that it’s possible to meet and exceed Chromapolis requirements. They have already developed Postchain, which combines SQL database systems with a secure distributed ledger. This technology is currently being used by the Swedish and Indian government for land registry certificates.
However, the Chromapolis testnet is not yet running and is planned for September, just before their TGE and the MVP release. This will immediately be followed by a release of the developer tools, with the full platform release in Q1 of 2019. Note that ChromeWay defines MVP as the mainnet, while the Chromapolis v1.0 adds the decentralized governance.
Chromapolis is being developed by ChromaWay, a technology company operating since 2014 in Sweden, working on blockchain platform with public and private sector actors and focused on real estate and finance.
Alex Mizrahi created the original colored coins project in 2012. He was joined by Or Perelman and Henrik Hjelte, together founding ChromaWay to develop colored coins and explore its commercial potential.
Besides having an experienced and proven team, Chromaway advisers/investors include Charlie Lee (Litecoin), Vinny Lingham (Civic), Correy Voo (ex CTO at UBS, president and chairman at the Open Data Center Alliance, and global head of applied business and strategy at Bank of America) and Yiseul Cho (Venture partner FBG and co-founder of Hashed).
Chromapolis is a blockchain platform that wants to put relational databases on blockchain. Unlike competitors, they do not use key value store but store the data in the store procedure of the database. This allows very fast querying and makes it easy to use and adopt because of similarity to SQL. It also allows building dApps entirely on the blockchain, even if they require operating on large amounts of data. dApps are built on sidechains (>500 TPS) and the transactions are made free. Node rewards come from dApp profits whatever they may be (in app purchases, ads, memberships,…).
Chromapolis is not entirely decentralized as the service providers are initially selected by an entity created by ChromaWay (the company behind he platform) who is also the biggest initial token holder. Decentralized governance is aimed to begin after a period focused on adoption and community growth. However, even then, the additional providers will be selected by the community…who are selected by ChromaWay and not necessarily related to amount of tokens held. Having said that, Chromapolis does not fashion itself as an “Ethereum killer” in any way and is instead focused on its strengths, business orientated dApps that need to use lot of data and do not want to charge every transaction.
The hardcap is only $15M, but the percentage of tokens sold is also only 15%, making the total valuation much larger. However, the closest competitor to ChromaWay is EOS at $8B. Additionally, 30% of all tokens will be distributed for promotional uses (at a rate of no more than 1% per month) and new user onboarding. These are not metrics that would make most investors happy, but its important to consider the context of what ChromaWay is offering and aims to do with its platform.
The ChromaWay Team is experienced, and has been building blockchain systems for years. Most importantly, their products have real world adoption - which is crucial for how Chromapolis is built. Token value is entirely derived from the value and profit of the dApps being built on it.
We believe Chromapolis is one of the most interesting projects we have encountered, and give it a rating of 89.7% — top rating in our blockchain project review sheet.
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