By the end of the year, a first coin offer, or ICO, on bitcoins will be launched.
You heard well – on bitcoin.
While ethereum, the second blockchain by market capitalization and other intelligent contract protocols, was the choice for most entrepreneurs interested in creating new cryptographic tokens, with a sidechain created by RSK, bitcoins will now have the ability to host the new fund-raising mechanism as well.
In fact, the original concept of an ICO was started for the first time on the bitcoin blockchain in 2013 – although with a blockchain infrastructure relatively limited to that of ethereum today – by the self-proclaimed inventor of the & # 39; JR Willett's idea that raised a total of half a million dollars for the "Mastercoin" token later renamed Omni.
At some time towards the end of November, Temco, a blockchain startup based in South Korea that deals with supply chain management, will benefit both from the seminal idea and from RSK technology, launching a sale of public tokens with The goal is to raise 19 million dollars.
Taking a step back, RSK worked on its complete smart contract sidechain for the bitcoin from Turing from the beginning of 2016. The smart contracts are written in the same dominant language of ethereum – that of Solidity. And the network is powered by a bitcoin-pegged cryptocurrency called "smart bitcoin" or SBTC.
Still in beta, only a handful of cryptography projects are currently implementing smart contracts on the RSK sidechain.
However, given the time, Temco CEO Scott Yoon and business development chief Joey Cho said they believe that bitcoins will soon attract more blockchain projects and one day will have "the same function as ethereum".
Yoon is firmly convinced that bitcoin has the potential to become much more than just "cryptocurrency payment", as the imminent launch of Ico di Temco is indicative of this.
Speaking with CoinDesk, Yoon said:
"RSK … will dominate [the smart contract] ecosystem e [for] bitcoin that will open another era of bitcoin, like ethereum. "
The Temco cryptographic token will be used for a variety of different purposes.
The main interest of the startup is to give small and medium-sized enterprises (SMEs) the ability to track products along the entire supply chain, from its origin to its final consumption – a hot use case for nascent technology today.
According to many enthusiasts, a blockchain will offer companies an efficient and unchangeable way to store data in the supply chain.
In the case of Temco, the token will be used by sellers and consumers for operations such as the payment of products, the storage of data and the registration of business intelligence tools.
In addition, consumers will receive points – subsequently converted into these tokens – for general participation, such as keeping track of their purchases from the data stored on the blockchain and reviewing these purchases to ensure product quality in the ecosystem.
This blockchain architecture, as explained by Cho, is an important tool for SMEs able to offer "a better vision, a better operating system [and] better planning "at minimal costs for suppliers without a pre-established infrastructure to monitor product movements.
As such, Cho expects about 40 percent of the money to build the infrastructure that comes from selling public tokens. The rest of the money needed will be raised in private investment operations – one of which was recently announced: South Korea's largest venture capital company, Korea Investment Partners has invested an undisclosed amount in the company.
The public sale, which will accept both bitcoin and ether, will be available to investors all over the world, with the exception of people in China and the United States.
Indicating the "legal risk", Yoon explained that the regulation on sales of tokens in these two countries is either met with hostility (like China) or is nearing completion (like the United States).
A change of game?
All these details about the imminent ICO of Temco are not any different than if the sale was conducted on ethereum.
They work in exactly the same way, with the same purpose of raising initial funds from the public through a very fast and largely unregulated fundraising vehicle.
The difference, in the eyes of Yoon and Cho, is that other blockchains, including ethereum, can not support the creation of "real products" for mass adoption like the bitcoin can.
Cho explains: "We believe that RSK is one of the best blockchain technologies because … if we create our supply chain at the top we say ethereum … number one, the gas tax is incredibly expensive … which is not Ideal for Temco supply chain as we use many intelligent contractual transactions. "
In addition to this, Cho also pointed out that the transaction speed per second (TPS) of the RSK sidechain was equal to that of the online payment giant, such as PayPal.
Reiterating these feelings, Yoon added:
"The Bitcoin network is really ideal because scalability is the number one and you do not have to worry about hacking, so when the smart contract tool is taken to the bitcoin network … everyone wants to come in bitcoin."
For these reasons, Yoon and Cho foresee that one day the token projects will choose to run on bitcoins from the beginning and even the ethereum-based token broadcasters will migrate to bitcoins for the functionality of RSK.
There is not yet
However, at present, the RSK sidechain is still under development.
Having launched the beta version in January, the platform is currently only accessible to a select group of developers, business partners and bitcoin miners. And it is currently managed by a collective group of blockchain companies, dubbed the "federation", which oversees the value transferred outside and outside the chain.
But there are plans not only to open the sidechain to anyone and everyone, but also to decentralize the federation in some way.
After securing 80% of all bitcoin support, RSK announced in May that it was looking to implement significant updates that address the same scalability issues faced today by many of the world's biggest blockchains.
And Yoon, for example, is optimistic about the promise of smart contracts and blockchains, especially bitcoins to become much more than what is used today.
Speaking of this, he concluded:
"The reason we started Temco was that we wanted to see a real blockchain technology that actually implemented in the real world and change society for the better."
Digital image of the chain through Shutterstock