The Insolar (XNS) Cryptocurrency Project

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3 years ago

I am not a member of Insolar, and they have not sponsored this post. Always do your own research and do not do this writing as investment advice.

You probably already have an idea of ​​what public and private blockchains are. The story begins with a decentralized open public protocol of Bitcoin. Although other projects are trying to take the concept to the next level (such as Ethereum with smart-contracts), public blockchains are still not fast and flexible.

That is why the idea of ​​private blockchains emerged. They offer more control over network participants and higher transaction throughput. But it was not the public or private blockchain that gained widespread adoption and replaced basic business processes with large enterprises.

This is largely attributed to the problem of blockchain interoperability, disabling different blockchains to communicate with each other. To solve the problem of interoperability hybrid blockchains were born. The idea of ​​hybrid blockchain is to allow private and public chains to communicate under an umbrella protocol. Such is the emergence of the Insolar project. Insolar is a hybrid blockchain platform, whose primary purpose is to empower businesses to use the blockchain and integrate with decentralized service providers.

The Idea

Insolar aims to improve the way business networks operate. They form a layer of protocol (similar to PaaS = platform-as-a-service) for developers to develop and run distributed applications. It aims to minimize the cost of interactions between businesses, reduce the complexity and variability of business relationships, and ensure decentralization in decision-making.

Use cases

The solution offered to businesses to promote their distributed business apps is a cloud platform called Insolar Assured Ledger. In an interview with Medium, Insolar CEO Andrey Zhulin named the industries that will benefit the most from Insolar: supply chain & logistics, energy & utilities, retail & consumer goods, automotive.

What are the benefits of using Insolar?

It's easy to use while running the Go platform with Java coming soon, so developers don't need to learn a new programming language. Insolar can also run existing hardware and is designed to be compatible with other distributed ledger technologies and enterprise legacy systems, including EPRs such as SAP and Oracle.

What’s more, participants can join networks without running a node, so a company can add clients or vendors to its network without requiring them to provide infrastructure.

The platform offers linear scalability, which means that the required resources are directly proportional to the desired network throughput. This way, it can achieve hundreds of thousands of transactions per second left economically economical.

An updated version of the Insolar Economic Paper (June 2019) states that Insolar Coin (XNS) strengthens the network.

XNS serves 3 purposes:

  1. Payments. In this case, the coin is a medium of exchange that is transferred from one party to another. Payment types may include application fees, resource fees, and subsidies.

  2. Staking. XNS staking is used to collateralize an agreement between infrastructure service providers and application service providers. XNS nodes stake to provide network infrastructure services: more expensive and profitable transactions require a larger collateral corresponding to the size of its owner's financial responsibility.

  3. Management. In the future, all network decisions on the Insolar mainnet will be made by the community through a collaborative decision-making process, facilitated by XNS.

Development

Insolar started in 2017 as an Ethereum-based app. It is primarily aimed at D2C (Direct-to-Consumer), primarily to connect commodity manufacturers to consumers without a retail chain. As the project progressed, the team found the Ethereum scalability issue and decided not to close the project but create their own blockchain.

So, in November 2018, the project took a new look at the B2B blockchain (Business-to-Business) and rebranded it to Insolar.

After a successful testnet in 2019 where the platform demonstrated a capable throughput of> 19,500 transactions on a network of 20 nodes, the company launched the first version of its own mainnet on February 3, 2020. updated 1.8 version of MainNet was released in June 2020.

To ensure security, Insolar has undergone security analysis by leading cybersecurity firm Kaspersky Lab, including code analysis, a network, and a web application penetration test.

Also, Insolar is working with Microsoft, Oracle, and a team of national innovation agencies, including the UK Energy Innovation Center, Innosuisse and the German Energy Agency, to strengthen Insolar's position in driving the modern blockchain and using real estate. -world in enterprise firms.

In the Medium Questions section, Insolar's team mentioned that "Insolar works with many businesses, including the Fortune Global 500." The team should begin announcing the full list of companies by Q1 2020. Insolar is listed on Kucoin, BitMax, and HitBTC.

Their Shoot

The largest Insolar communities are on Twitter with 33k followers and a Telegram channel with over 16K members. Like most project engineers based in Russia, Insolar also has a Russian TG channel with 1k members. On Reddit, Insolar has over 5K followers. The official Insolar website traffic (since July, 2020) has 119,760 unique visitors per month, according to Hyperstatcom, getting 405,046 global rankings on Alexa.

In addition to the official website, Insolar uses Medium to post recent updates and project news. On their Medium blog, the team has about 2k followers.

The Team

INS Ecosystem, and now Insolar, was co-founded by Andrey and Dmitry Zhulin (CEO and COO respectively), and Peter Fedchenkov (CRO).

  • Andrey Zhulin is a tech entrepreneur, who worked in venture capital and banking banking at Goldman Sachs before Insolar.

  • Peter Fedchenkov has a background in the Harvard Business School MBA and previously worked for Goldman as a banking analyst.

  • Dmitry Zhulin has served as Vice President for VTB Capital Private Equity and as an Rothschild Associate.

Prior to Insolar, Peter Fedchenkov and Dmitry Zhulin established the Russian grocery delivery service Instamart, which was later purchased by Sberbank and renamed Sbermarket. The investors of the company are leading companies in Russia: Sberbank, Mailru Group, Gazprom Media Partners, and others.

Collaboration

Although the project is in the early stages of development, Insolar is doing everything to ensure that the development is smooth. Prior to the launch of the mainnet, Insolar collaborated with Kaspersky Lab, partnered with Microsoft, Oracle, Innosuisse, the UK Energy Innovation Center, and the German Energy Agency.

Also, Insolar has partnered with Cointelegraph to issue a blockchain decision for the corparative ecosystem.

In April 2020, Insolar announced a sustainable energy partnership with the Toronto Conservation Authority.

Competitors

The main competitors in Insolar are Ethereum and Hyperledger. While other DLT networks focus on the protocol layer, Insolar builds enterprise applications on top of it.

In contrast to Ethereum and Hyperledger, nodes are assigned roles (compute, validate) to Insolar networks, with data stored separately on nodes with storage functions (hot and cold storage) . The nodes of which store can also participate in the agreement.

Additionally, Insolar provides support to modify smart embedded contracts, use low data storage, and be cheaper than other blockchain frameworks.

On the other hand, the Insolar issue is still low adoption compared to Ethereum and Hyperledger, which have a longer track record and expertise.

Tokenomics

Insolar launched their mainnet in February 2020, so there is a token swap of INS tokens (ERC-20) for XNS (Insolar Native Coin). Users can exchange their INS for a native XNS token at a 1:10 ratio. Thus, the public allocation of 50 million INS will be converted to 500 million XNS. This will be 50% of the total XNS supply. The Insolar Coin Swap began on February 3, 2020 and will end on August 3, 2020.

This decision raises many questions:

  1. Why didn't the team choose the 1: 1 tokenomics model?

  2. Will INS coins of early investors be frozen for 3 years?

  3. Why did the team decide to make a larger supply?

  4. Will those who invested in INS in the early stages have worse terms than those with XNS?

Although initially, the team planned to exchange users for their tokens on a 1: 1 basis, they changed the strategy because of the SEC: the amount of tokens should be connected to platform development. This way, as the platform grows, there will be more tokens.

ERC20 INS token holders do not have their tokens frozen but they are sold on Binance, the only XNS native token subject to 3-year lending. Moreover, coins are given for 3 years daily in small portions - so they are hardly called "frozen." The new 50% of tokens will be released within 10 years for staking and node rewards.

Moreover, those who invested in INS in the early stages and converted their INS to XNS, received x10 value. Also, in the coming staking, holders will be able to profit from securing the network.

A 3-year-decision was made due to SEC regulations as a precautionary measure from SEC decisions prohibiting crypto projects.

Earning/Profit

The Insolar Token Sale ended on DECEMBER 25, 2017, where the project grew to $ 13 million, with 60% of all tokens sold. Currently, Insolar’s ​​team is likely to use only ICO funds for project development.


Bottom line:

Insolar is a very ambitious project developing what they call "blockchain 4.0," which claims to address many of the challenges facing other ecosystems. With a fixed supply and wider adoption of the Insolar network, tokens are expected to grow in value as demand increases. Insolar has the potential to transform innovation in the B2B sectors and lead the blockchain race in business with innovative benefits, but it still lacks enterprise adoption and requires additional strategic investment.

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3 years ago

Comments

your article very good bro. this article helpful. best wishes.......

$ 0.00
3 years ago

Wow i love this

$ 0.00
3 years ago

Yea u are right,,,thanks buddy

$ 0.00
3 years ago

I bope its a trustable and nice project...thanks read cash

$ 0.00
3 years ago

good job bro..keep it up

$ 0.00
3 years ago

Very good

$ 0.00
3 years ago

Thanks read cash for giving us some money,,,its a great project

$ 0.00
3 years ago

Security of blockchain transaction is crucial for every project and investment company. I hope this company will increase its targeted customers and gain more profit for its business intentions.

$ 0.00
3 years ago

I hope it will, this will gonna be a good opportunity to many individuals

$ 0.00
3 years ago

It sounds nice when we consider their ideology. However, I think that it is getting harder and harder for a new project to reach at the deserved price levels. Hope good things take place, thanks a lot dear ^^

$ 0.00
3 years ago

I'm also thinking about it and also hoping for that too. You're welcome

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3 years ago