Overview
Taxa Network is a Layer 2 blockchain infrastructure focused on delivering performance, privacy, and usability to existing blockchain solutions. With Taxa high-performance, privacy-preserving, and highly-developable smart contracts should become possible.
Taxa is working on a solution that will allow developers to execute more complex computations on a blockchain, where time is restricted for smart contract execution. Additionally Taxa wants to provide a solution for operating heavy data on the blockchain and for protecting critical data that must not become public.
How advanced is the project?
A first prototype of Taxa Network was developed in Q1 2018. A white paper was planned for the second quarter of 2018, but could not be obtained. The mainnet launch is planned for the second quarter 2019. Taxa Network received a Seed Investment in August 2017. It is expected that Taxa will release more information regarding technical details and token model soon.
What are the tokens used for and how can the token value appreciate?
The token model is one of the weak points of Taxa since it is not entirely clear which function the token will have with regard to the business logic of Taxa. Investors must be cautious and carefully assess any possible token strategy that Taxa will come up with.
Team & Advisors
The Taxa team is based in Silicon Valley and consists of two co-founders.
TF Guo is a co-founder of Taxa Network. He joined the blockchain space in 2014. He counts with knowledge in security architecture and cryptography and worked as a technical advisor of Amino Capital and FBG Capital.
Esther Hu is a co-founder of Taxa Network. She holds a M.Sc. in Statistics and a M.Sc. in Financial Mathematics from Stanford University and previously worked at Thomson Reuters.
Product
Taxa Network uses a practical Byzantine fault tolerance Proof of Stake consensus mechanism. Taxa essentially introduces a layered design that migrates transactions that currently happen on the blockchain to off-chains processes. This difference in design allows Taxa to achieve the features it promises such as performance, privacy and reliability.
Strength and Opportunities
The protocol that Taxa develops is compatible with various blockchain projects and not just Ethereum. Hence the success of Taxa will not depend on the success of a single blockchain platform.
The founders seem to have a good network with the Silicon Valley blockchain industry. This network helped them raise capital early. Among the investors of Taxa Network are FBG Capital, Amino Capital, Free Fund, Bertelsmann Asia Investments, GBIC, Nirvana Capital, LINKV, and L2 Ventures. The list of investors is impressive and is a validation of the approach of Taxa.
Weaknesses and Threats
It may be difficult for Taxa to find a way to monetize their token. It seems as if Taxa has not yet fully disclosed its plans for making money with their protocol. It remains to be seen with which solutions Taxa can come up with. A comprehensive strategy on monetization will be a necessary requirement for the financial success of the protocol.
The communication approach of Taxa seems very minimalistic. It is difficult for investors and community member to study Taxa Network in detail and to make informed decisions about the project execution, the business model and the technical details of the platform. Once an ICO takes place Taxa will need to intensify its communication and resolve all doubts that investors might have in order to make the token sale successful.
Verdict
It is interesting that Taxa is developing a Layer 2 software and not a base layer protocol as most ICO teams do. There is less competition in the field where Taxa is active compared to other ICO projects. However, the team needs to better communicate about the role of Taxa, how Taxa can achieve its objectives, why other platforms should use Taxa instead of developing their own solutions and how Taxa will eventually make money. Taxa is one of the projects to watch closely but at the same time to remain cautious since a lot of details are not yet clear.
? URL: https://taxa.network/
? TG: https://t.me/taxanetwork
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* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.
(3 votes, average: 5.00 out of 5)
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