ICO REVIEW: DEVVIO. 8 MILLION TPS?!

Hi everyone, it’s CryptoGabby from Crypto Round Table.

There’s been a lot of hype recently surrounding Devv as they claim to be able to handle over 8 million transactions per second which is why I have done an analysis of this project.

Please note that this review is based on my own personal opinion and research and I have not been paid in any form. This review is also not to be taken as financial advice and it is recommended you do your own research to factor in your own personal circumstances.

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READ OUR WRITTEN REVIEW HERE:

What is Devv?

  • Devv is creating a high performance Next-Gen Blockchain Protocol that aims to solve the pressing issues facing blockchain as it moves towards mainstream adoption. It’s written on their website that Devv can handle over 8 million transactions per second and is able to achieve this by using a sharding solution. The goal of Devv is to create the first truly scalable blockchain, as it includes a full set of needed capabilities in order to grow with minimal impact to operating costs, such as its sharding approach and its Devvnero implementation for fraud, theft, and loss.
  • The challenges Devv is aiming to solve are governance, scalability, volatility, cost, transaction fees, privacy, immediacy, energy usage, and the persistent problems of fraud, theft, and loss. I will be describing in more detail how Devv aims to solve each of these challenges later in the video.
  • Reading their whitepaper, the Devv Protocol will achieve this by using its own consensus algorithm, known as Proof-of-Validation. This is where validators (which are our consensus providers) create blocks comprised of transactions, and then collectively validate each block by sending validation messages. Validators are permissioned by the INN (which stands for Immediate Node Network maintains identity records of users who want to utilize its extra features and protections), but all operations in the network, as well as the blockchain itself, are fully transparent, providing a trust less (no central authority overseeing transactions) implementation that can be independently verified by anyone.

Current issues and how Devv will solve it: (All of the following information can be found on the whitepaper)

  • Governance: They’ve stipulated that Devv Protocol has a long-term, scalable governance model and that the Devv Blockchain will be positioned to adjust its methodologies as needed to adapt and thrive. However the whitepaper was vague and did not detail exactly what strategy they plan to adopt to achieve this.
  • Scalability: Devv will be using a multi-tier blockchain approach, which implements sharding for scalability. This will allow them to handle a larger number of transactions per second than what credit card networks can manage. At the moment they claim to be able to handle over 8 million transactions per second.
  • Stability: The Devv protocol is designed so that amounts that are transferred into a DAA can be converted through an exchange mechanism into a one-to-one fiat-backed version of cryptocurrency called DevvFiat. The DevvFiat acts as their second coin which is essentially a stable coin. DAA, is an allocation of Devv Cryptocurrency that a user agrees the INN can be assured is available. For every one DevvDollar that is issued by the INN, one US Dollar will be placed into an escrow account controlled by Devvio. This means there will always be exactly as many US Dollars in escrow as there are DevvDollars in existence, so the price of DevvDollars will not be volatile relative to their underlying value.
  • Cost: Devv keeps running costs to a minimal by maintaining only representations of value on the blockchain and leaving any non-essential processing to occur off-chain.
  • Transaction Fees: There are no transaction fees for basic transfers due to their proof of validation approach however minimal transaction fees may be implemented to prevent security attacks. No transaction fees is a concern because of the security risk. They did say that they may implement transaction fees but they haven’t stipulated what dollar threshold or what the fees will be. This is something I want to find out given coins with low transaction fees e.g. Ripple and IOTA already exist.
  • Privacy: Devv is designed so that the INN can implement Private transactions through amounts that a user sends to it, with encrypted off-network instructions on where to send the amount. In this way, the INN can jumble transactions so that a user has true privacy on their account (wallet) and the blockchain’s pseudonymous representations cannot be reverse-engineered, but does so in a way that adheres to KYC and AML regulations. We’re not sure how privacy can be maintained and at the same time be provided when there is a court order. Who has the right to decide and based on what criteria are they allowed to make a transaction known to a 3rd party? Overall they don’t explain how they will provide the privacy aspect of the technology.
  • Immediacy: Devv is designed to implement immediate transactions (verified in less than one second) using an optional mechanism called the Devvnero Allocation Amount (DAA). Because the INN controls transfers of DAA allocations, it can be assured that funds are available, and therefore can validate transactions in less than one second.
  • Energy Usage: As we all know, one of the disadvantages of Bitcoin is the large energy consumption required to validate transactions. Devv uses a consensus mechanism called Proof of-Validation which uses far less energy
  • Issuances: Currently Bitcoin miners with the highest computational power receive a reward when validating a transaction quickest which leads to a more centralised system as someone with more money is able to purchase more mining power and therefore mine quicker. In contrast, new Devv Cryptocurrency issuances will go towards growing the Devv Blockchain and community rather than to anonymous miners.
  • Fraud, Theft & Loss: Devv plans to provide optional Devvnero Wallets that protect against theft and loss. A Devvnero transaction represents a similar concept to escrow. When a transaction is created, funds in escrow so it gives the owner time to detect it before the funds have left escrow. In the event a transaction is created fraudulently, it gives the owner time to contact Devvio who can reverse the transaction.

Token Metrics

  • Devv has a hardcap of $40mill USD which they say they had reduced from $75 million. They have justified their hardcap by stating that they think their technology, team, and potential could make them a top 10 effort in the space. They also feel that with larger amounts they can establish themselves in the fintech space more quickly. We feel this hardcap is quite high given the current bear market.
  • The circulating supply is 35%
  • The Token sale is estimated to be around September/October
  • We have been advised that they are still finalising their token structure and will be moving forward with the seed round shortly

Community

  • Telegram: 2,698 followers (2/8/18)
  • Facebook: 38 followers
  • Twitter: 942 followers
  • Discord: 82 members
  • Mentioned 0/17 bloggers on top7 ICO.
  • The community is quite small at the moment but do keep in mind that this is still the early stages for Devv. Our focus is providing reviews for you early in the ICO stage so it’ll be interesting to see how much they grow closer to the public ICO round.

Team:

According to their linked In, Devvio Inc was founded in May 2018 and is based in Albuquerque, New Mexico, USA. There is currently a team of 10 people with an additional 6–8 developers bring the team total to 16–18 people.

  • The team is lead by Tom Anderson. His profile on the official website and linked in show that he’s an experienced entrepreneur who founded Novint Technologies. He led fundraising of over $34 million, licensed tens of millions of dollars of game development, and took the company public. They were listed on the US stock exchange and sold their patents to Facebook. So Tom sounds pretty legit.
  • The CTO is Bill Anderson has over 17 years of experience in high tech industries. According to his linked in, he has led the development, licensing, acquisitions and integration of over 100 haptic enabled video games and has managed many large teams across multiple technical fields.
  • The director of their blockchain development is Nick Williams who is an expert developer in the fields of cryptology and systems design. He has spent over 10 years managing software development teams for a number of telcos and startups
  • The rest of the teams profiles can be found on their official website
  • Overall the team looks to be quite solid as they all appear to have a strong technical background. Although they do not have any previous blockchain experience it’s likely that they could be outsourcing blockchain development like what a lot of the other projects do.

Advisors:

  • On their official website, they are working with a total of 8 advisors. The ones who stand out are:
  • Token market who provide a fully end-to-end 360 service for token creation, presale and public sale. Token market has previously worked with Civic and Dent.
  • We also have Anish Mohammed who is one of the founding members of UKCDA: the UK Digital Currency Association
  • There’s Anderson Tan who is a serial entrepreneur, angel investor and VC. Some of the 13 unicorns under his belt include SpaceX and Lyft. He also was an advisor for Holochain during their ICO stage
  • For more information on their team of advisers, please visit their official website

Investors:

  • At the moment there are no major VCs that have invested in this project. In an AMA with the CEO on 27/7/18, which was posted on Medium, they have only just started the process of contacting the big crypto VCs. They have admitted that they have been getting dismissed a lot as people think what they are trying to achieve is too good to be true. I’ve included the link to the AMA in the description box below

Questions:

After analysing this project, these were some of the questions I was still left with. I’m going to reach out to the team directly to see if they are able to answer these questions and I’ll look to make a follow up video when I get a response. If you have any questions as well, let me know if the comment box below

  • What are the non- essential processes which will be occurring off chain that will make dev cheaper to run?
  • Devv has said it can validate transactions in less than one second if they use the optional mechanism called the Devvnero Allocation Amount (DAA). What if you don’t use optional mechanism? How long will it take to validate the transaction?
  • Devv has stated that they will use their own consensus called proof- of- validation. How many nodes will it take to validate a transaction?
  • Devv claims that the energy consumed will be a fraction of what is required by Bitcoin mining. What percentage of bitcoin energy consumption is required validate a transaction?
  • With regards to privacy, How do they obfuscate transactions? They say that “The Devv Protocol is also designed so that the INN can implement Private transactions through amounts that a user sends to it” What do they mean by amounts?

Summary:

  • Short term: It seems like this project could do well in the short run as there is a lot of hype amongst the whales
  • Long term: I’m honestly unsure of how well it can do in the long run. It’s extremely ambitious of Devv to try to create a solution to all these issues and it’s success will lie on whether or not they can. It’s difficult at this point in time without their test net and being so early on in the road map to determine if they will be able to deliver on their promise so I remain a little sceptical.

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