17 Feb Is CPChain ($CPC) the killer tech the IoT industry has been waiting for?
Cyber Physical Chain, $CPC is a Chinese blockchain company focused on revolutionizing the internet of things (IoT).
This sounds familiar. In fact, there are a number of projects aiming for the same market segment, a couple of those out of China as well. Before diving into what CPChain is all about, let’s quickly put all the competitors on the table.
These competitors are targeting different sectors with different solutions to the same problem: “How do we best track physical assets in the digital space using blockchain technology?”
Current IoT players:
- IOTA (MIOTA): Focused on becoming the backbone technology for the internet of things and machine economy. Their roadmap also targets p2p micro-transactions.
- Key Features: Scalability, Security, Lightweight, Economical (no fees).
- Waltonchain (WTC): Targeting manufacturing and logistics using RFID technology with the blockchain to target multiple areas: Production, Warehousing, Logistics, Stores.
- Key Features: Authentication of asset ownership, Product & Material Traceability, Streamlining existing supply chain ERP’s (Enterprise Resource Planning softwares) into one channel, Solving security issues tied to using RFID tech.
- VeChain (VEN): A product ID management solution targeting both B2B and B2C. Manufacturers give products unique/encrypted ID’s on the blockchain which can be used in consumer apps and business supply chains to prevent counterfeiting and enable the tracking of inventory.
- Key Features: Trust-Free, Transparency, High-speed value transfers, Unique Digital ID’s that can used with RFID tags, NFC chips, or QR codes
- IoT Chain (ITC): Often referred to as the “IOTA of China”, ITC is also focused on connecting the broader internet of things and machine economy.
- Key Features: Assymmetric encryption, Scalability & Lightweight (uses DAG technology, similar to IOTA), Integrated plug-and-play solution for mainstream tech (possible advantage over IOTA).
- Internet Node Token (INT): Also referred to as a possible “IOTA of China”, INT is focused on the internet of things and machine economy as well. The use cases cited in INT’s white paper are focused on vehicles and infrastructure.
- Key Features: Reduced development complexity, Scalable and ready for the IoT future, Consensus algorithm guarantees legal trustworthiness, Specific market focus & partnerships
As you can see there are some serious players establishing themselves in the IoT space and it’s easy to see why. The size of the prize for the internet of things is quite large, and expected to grow exponentially from here.
What is CPChain?
CPChain, short for Cyber Physical Chain ($CPC) aims to revolutionize the internet of things (IoT) ecosystem in China and abroad. Described as “The killer tech that the IoT industry has been waiting for,” CPChain uses blockchain to improve the usefulness of IoT networks.
How does CPChain work?
CP-Chain uses blockchain as a backbone for IoT. Blockchain is used to speed up, scale, improve security, and reduce transaction costs for the IoT industry.
“CPChain is a new distributed infrastructure for next generation IoT. CPChain intends to build a fundamental data platform for IoT system in combination with distributed storage, encryption computation and blockchain technologies, providing the whole process solution from data acquisition, storage, sharing to application.”
Today, the CPChain digital token (CPC) is priced at around $0.23 USD per token, which is about a 50% discount from the ~$0.36 it was trading at the first couple days on exchanges after the ICO.
Sorry to those who purchased post-ICO on etherdelta and got rekd. It happens to the best of us…
Potential price drivers: what’s next on CPChain’s Roadmap
The beta chain for CPChain is expected to go live in Q3 2018. A sample app is planned for summer of 2019. By the beginning of 2020, CPChain plans to have a fully viable and functioning protocol with a number of live commercial partners.
Does CPChain have their own secret sauce?
CPChain’s core feature is to realize the transmission of value across cyber-physical systems. To do that, CPChain is creating a systematic scheme that addresses scalability needs for the IoT industry. CPChain addresses those needs using blockchain technology, with blockchain technology being used to solve problems like data storage and computation protocols.
Since we already have platforms like IOTA that aim to revolutionize the IoT space, what makes CPChain unique?
CPChain’s 3 Key Features:
1) Parallel Distributed Cloud Storage Architecture: CPChain will deploy parallel distributed cloud storage architecture to solve the scalability problem created by large-scale data storing and sharing.
2) A New Hybrid Consensus Protocol: CPChain will implement a new hybrid consensus protocol capable of huge scaling while optimizing computing power.
3) Side-Chain Consensus System: CPChain will implement a side-chain consensus system focused on providing a high level of security while simultaneously allowing real-time, high-volume, concurrent transactions across the CPChain network.
Use Cases for CPChain
- Big Data: CPChain can be used for big data aggregation and artificial intelligence applications. The sharing of data will be rewarded, and user data can be used to enhance business data.
- Personalized Auto Insurance: Existing insurance programs have a very low level of customization. Risky drivers often pay the same rates as experienced, safe drivers. Insurance companies don’t have good ways to measure driver safety. CPChain aims to collect vehicle data through its IoT network, allowing the driver’s driving style to be analyzed by the network.
- Intelligent Transportation and Logistics: CPChain can be used for applications like shared travel, where smart contracts can be used to complete a truncation between the driver and multiple parties. It can also be used for real-time traffic sharing, where IoT devices are used to measure traffic patterns throughout the city.
- Drug Traceability: IoT devices can monitor every stage of a drug’s movement through a supply chain.
Overall, CPChain believes that its “aggressive roadmap” will place it at the forefront of IoT deployment within 3 years.
What Problems Does CPChain Seek to Solve?
- Cost of Device Connectivity: Today’s existing IoT solutions have high costs. Many solutions are built for one single project, and each IT system has its own management tools and databases. This creates high costs and data isolation.
- Privacy Concerns: IoT infrastructure needs privacy from the ground up. IoT devices reveal crucial private details about individuals. CPChain aims to implement private infrastructure from the lower levels.
- Lack of Meaningful Ways to Access Data Value: IoT systems generate large amounts of data at all times. This data has tremendous value – yet we struggle to access this value.
- Problematic Business Model: For many IoT manufacturers, the only “business model” is to sell user data. This infringes on user privacy and rights. It also inhibits the future development of IoT technology.
Who’s Behind CPChain?
CPChain has already partnered with major industry names like QTUM, VeChain, and HPB. The company has also secured investment from Torque Capital Partners.
Some of the key members of the team include Dr. Long Chengnian, PhD (co-founder and principal scientist). Dr. Long is a professor at Shanghai Jiao Tong University. He has over 40 published works and has a deep expertise in security, mobile IoT, MIMO wireless systems, and other technical IoT implementations.
The other CPChain co-founder is Dr. Zhao Bin, PhD, who has 12+ years of research and development experience across IoT, including 4 years of experience in the IoT department at Alcatel Lucent.
The team has relevant work experience, specifically the co-founders Dr. Long Chengnian and Dr. Zhao Bin. They’re well connected in the cryptocurrency space, securing investments/partnerships from Metaverse, HPB, QTUM and VeChain. Although the product has not been launched yet, the team has already completed most of their R&D and entering the implementation stage with a goal to launch version 1.0 of the platform in October 2018. There are millions of IoT devices and billions of transactions happening per second, if CPChain can act as the middleman to help monetize this data, it’ll be a huge success.
To sum up our positive outlook on CPChain:
- The team has a good idea and extensive IoT experience
- CPChain has strong strategic partnerships (QTUM, HPB, Metaverse, VeChain)
- The whitepaper is thorough and well-written although there is no current prototype for CPChain
- The ICO FOMO hype was strong enough to overwhelm the team
So what do you think? Is CPChain ($CPC) the killer tech the IoT industry has been waiting for? As for us, we believe it’s a good investment in the IoT space.
CPC is currently trading on IDEX and Bibox. This could be a good entry point before listing on major exchanges.
If we end up like the Pink Wojaks out there we will do what we do best; hold on for dear life.