nCent is a blockchain protocol that provides recursive incentives. To summarize, the goal of nCent is to build the foundations for activating a community through monetary incentives in order to achieve complex solutions. Individuals among a community receive incentives for contributing to the solution of a problem or for identifying another person who can contribute to the solution.
How advanced is the project?
nCent has released a LitePaper which is a kind of a short non-technical white paper. No details have been presented regarding the development roadmap. However, significant seed investors have been presented.
What are the tokens used for and how can the token value appreciate?
The nCent token is called NCNT and is used as a fungible representation of incentives. Users of nCent will be rewarded for the efforts in NCNT tokens. Market capitalization of nCent will likely increase with the platform usage. Detailed token economics for nCent were not yet published.
Team & Advisors
Kapril K. Jain is the founder of nCent Labs and a previous Stanford Professor in Computational Finance. Additionally he managed several quantitative hedge funds for large banks and corporations. For nCent he will serve as the Lead Developer.
Rajeev Surati is nCent’s backend and core developer. He holds a PhD from MIT and several patents. Before joining nCent he founded several other enterprises.
Michael Barile is responsible for Partnerships & App Development at nCent. He previously worked for Google, Uber and Oliver Wyman and co-founded an Ethereum based virtual game.
Among the advisors and contributors to nCent are several Stanford Professors and venture capital idols such as Naval Ravikant.
nCent is building its own base layer protocol and not building on an existing blockchain such as Ethereum. The consensus mechanism used by nCent is the Federated Byzantine Agreement by way of the Stellar Consensus Protocol (SCP).
The nCent blockchain is designed to support a wide range of use cases for incentive markets. Users are rewarded for spreading the word and sharing information that is contributing to a desired outcome. Potential use cases include entertainment events, loyalty programs and employee referral programs.
Strength and Opportunities
The portfolio of nCent investors is very impressive. Among them are Sequoia, one of the leading Silicon Valley VCs, Naval Ravikant, the founder of AngelList, and the Winklevoss twins.
The nCent team has a strong collective educational and academic background and is well connected with the Silicon Valley innovation hub.
The potential opportunities for applications that can be built on top of the nCent protocol are huge. One of the obvious use cases that is also highlighted by nCent is the recruitment sector.
Further use cases are as broad as search for people, products or items. These are all domains that are currently dominated by the world largest internet conglomerates such as Google, Amazon, Facebook and Microsoft (in the case of Microsoft through LinkedIn in particular) and represent a multi-billion USD market.
Weaknesses and Threats
nCent is claiming that it is outperforming established cryptocurrencies such as Bitcoin and Ethereum in terms of processing speed, scalability, secure scripting and other dimensions. The truth is that while nCent is building its protocol the big established cryptocurrencies are constantly working to improve on these points mentioned and may provide significantly better features in the not so distant future when nCent launches. It is not fair to compare the future state of the nCent protocol with the current state of Bitcoin and Ethereum.
Incentivizing the spreading of commercial information may lead to an even higher amount of spam. Imagine a social network on top of nCent where people are trying to spread the word about a theater that is taking place in a city. Other users may get a lot of these commercial posts in their feed and eventually may decrease their usage of such a social network compared to other social networks like Facebook where such incentives do not exist.
nCent did not yet publish a detailed technical white paper, a development road map and a plan for the token economics of the nCent platform. This provides a significant risk and clarification on these points will be needed in the near future.
A strong team, world leading investors and a great idea with a multi-billion market potential make nCent one of the hottest blockchain projects in 2018. If nCent would not deliver a successful ICO it will be a disappointment, given the current prestige of the project. Long term success of the project will depend on the execution of the development road map and the market adoption that nCent can achieve.
Our Rating: A
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.