NuCypher ICO Review
Today, we are going to bring you another ICO Review which has gradually gained a lot of attention in the crypto space. As digital data is growing at rapid pace, security has become an issue. Now, with the emergence of blockchain technology, traditional measures don’t work as effectively. So, by focusing on key management system (KMS), NuCypher enables the sharing of private data and delegating decryption rights through proxy re-encryption, which is really cool. So, let’s move onto our NuCypher ICO Review to see if it really demands your attention!
Token Sale Date: No Update
Hard Cap: No Update
Soft Cap: No Update
Pre Sale: 30% Sold, $4.3Million USD
A decentralized Key management system (KMS), NuCypher KMS offers a privacy layer to the distributed systems and decentralized applications. Through its proxy re-encryption and access control services, NuCypher KMS allows DAPP developers to store, share, manage, and secure their data on the blockchain.
A body armor for data, it further enables a user to delegate the decryption rights which cannot be achieved by the traditional encryption schemes. NuCypher’s native token is used as fees and to incentivize the network participants to operate nodes.
Now, the evaluation time!!!
Technical whitepaper, focus on product development
NuCypher’s team has taken a detailed approach with its whitepaper as it walks you through the background, architecture, and network security. Talking at length about the functionality of the project, it provides a clear insight into its use cases as well which is a nice touch. Having said that, it is heavily riddled with technical details about encryption and miners token distribution which is pretty hard to understand for a layman investor.
The team has already started working on its products like Hadoop and Kafka implementations that you can request for a demo. Recently, the team unveiled its proxy re-encryption scheme Umbral that powers their KNS network.
Though the project has yet to come up with the commencement dates for the ICO, having a proper breakdown of funds is always a good step before moving forward, but there is no information on the segregation of funds.
Nucypher team profile
A team is the main driving factor behind a project’s success as they are the ones that have to execute the idea and then deliver the product. NuCypher has a strength of 8 people as the core member of their team apart from advisors.
MacLane Wilkison – Co-Founder and CEO – A software engineer, MacLane has previously worked at Morgan Stanley as an investment banker regarding M&A and financing services.
Michael Egorov, Ph.D. – Co-Founder and CTO – Michael is a scientist from the Moscow Institute of Physics and Technology with experience in Python programming.
David Nuñez, Ph.D. – Nuñez is the cryptographer of the project who has been in Research Staff in NICS Lab in the area of Security in Cloud Computing.
Having their Linkedin profiles attached, it was easy to get their educational and professional experience while their Twitter accounts gave us an insight into their social activeness. Majority of the team includes engineers but doesn’t mention anything about business development and marketing department.
Partners and Supporters – The project has already acquired a lot of support from the likes of Polychain Capital, Y Combinator, Satoshi Fund, FBG Capital, Semantic Ventures, Compound, Amino Capital, Galaxy and CoinFund among others.
Business model behind NU token
Token Economy: The idea behind Token is to reward them to the network of miners who contributes to providing a scarce resource after they are consumed. Apart from rewarding the NU tokens for contributing work, the owners of the data would also have to pay in NU tokens to get access to re-encryption services.
Purpose of Token: The purpose of the token is to distribute trust in the system. The whitepaper also points out that the token is hard to obtain in order to maintain the decentralization nature of the system as no miner can get close to 50 percent of the trust. Moreover, NU tokens can also be used as a collateral against a miner’s behaviour.
The primary reason for introducing NU tokens is to make the system more secure and ward off any attacks that could result in acquiring the majority of trust. The NU tokens will be used to acquire the services of the project and to reward the miners that provide the re-encryption operations.
Backing technology: Ethereum-backed technology
NuCypher is based on the Ethereum blockchain which is the most popular platform to launch ICOs. Instead of using Ether, the team has decided to go with their own NU tokens which helps in securing their platform from any attacks.
With the focus on engineers in the team, the project’s primary focus is on creating the product before getting on with any other part. As for terms and conditions, there is nothing on this factor, no special mentions or restrictions, though KYC is required.
Crypto sale resiliency
Incorporation of the company is not known as it is nowhere mentioned either in the whitepaper or on the website.
Token Distribution: The ICO has yet to provide any information on the token distribution structure they are going to follow. However, the whitepaper does point out the distribution of token to the miners. A miner is paid in tokens by either the owner or the user of the data.
About 4 advisors have been appointed by the NuCypher ICO including Dave Evans, Professor of computer science in University of Virginia, Giuseppe Ateniese, Stevens Institute of Technology with specialization in proxy re-encryption, John Bantleman with three decades of experience in managing high growth software companies and Tony Bishop who is a VP at Equinix and the former Global Head of Data Centers at Morgan Stanley.
Security: Given the nature of the project, the team surely takes security seriously. Appointing a separate section to network security, the whitepaper explains the solutions to different security threats in terms of pseudo-anonymity of re-encryption keys, split key proxy re-encryption and challenge protocol.
Red Flags: The company doesn’t have a roadmap that makes it hard to understand where exactly the project is at and what to expect from it. The biggest lacking point is no dates whatsoever.
The team is quite regular in posting updates about the project while having its presence on Twitter, Discord, Telegram, Reddit, and mail. With over 5k followers on Twitter and 25k+ members on Telegram, the project has certainly gained the attention of the investors and the community. One can easily reach out to the people integral to the project through various media channels and interact with them.
Having a professional dedicated to community, the team is also putting efforts in spreading the word and knowledge about the idea.
Average Rating: 7.8/10
A note to investors
NuCypher ICO targets a real problem with a solid solution through a proxy re-encryption that allows decentralized key management and cryptographic access control. Though the whitepaper is filled with technical details, the best thing about the project is their dedication and focus on developing the product before making their ICO public. The GitHub of NuCypher is very active and the testnet will be running in a few weeks while the product is expected to be launched soon.
The project does lack in areas of having a business development team and providing information on dates, fund budgeting, token distribution, incorporation among other facets. Having said that, the company has already acquired partners that will be using their product. NuCypher ICO is a project that doesn’t only talk the talk but walk the walk as well!
To rate an ICO, we follow a list of parameters that are basically the KPIs (Key Performance Indicators) of a project viz:
- Whitepaper – Availability of code or prototype, the breakdown of funds, wallet for crowdsale
- Team Profile – Team’s strength and reputation
- Business Model – Problem solved, purpose & utility of the token and the economic model
- Backing Technology – Blockchain infrastructure, clarity of terms & conditions and token software
- Crypto-sale Resilience – Incorporation, token distribution, legal risks and security aspect
- Community Acceptance – Clarity & frequency of communication and social media presence
By asking the right questions, we maintain the integrity and viability of our ICO review while following a rating method that is based on the criticality of a particular factor. For instance, elements like token utility and funds breakdown have been given the highest importance while the team members’ reputation and plan to attract a user base are of medium criticality.
We have a team of robust professionals who rate the ICO projects in completely unbiased manner.
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Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.