VideoCoin

Video Infrastructure for the Blockchain-Enabled Internet

About VideoCoin

VideoCoin (https://videocoin.io/) is developing a decentralised video encoding, storage, and content distribution network (CDN), run and powered by their own blockchain. VideoCoin is a decentralized network that provides cloud video infrastructure like video encoding, and content distribution in the form of a peer-to-peer market. VideoCoin’s native blockchain is very similar to that of Bitcoin’s but differs mainly in block sizes and miner rewards. Miners earn VideoCoins by providing video infrastructure services and clients, or users, spend VideoCoins to rent these services. By splitting a video encoding task into several sub tasks and processing them in parallel, VideoCoins Distributed Video Processing platform can produce much higher frame rates on nonspecialised hardware .VideoCoins Distributed Video Storage and Content Distribution Network work in unison, enabling large video files to be stored throughout a distributed network supported by miners and accessed efficiently through different algorithms. VideoCoin, according to the team, is aimed to be the ‘AirBNB of video’ in that sense.

Token Sale Use of Blockchain

Product

3.4
Product
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

4.0
N/A
4 - Captivating.
Target User Base

Is it mass market or niche?

4.0
N/A
4 - Large audience / wide market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

4.0
N/A
4 - Original, specialized.

Product

Distributed Video Encoding
VideoCoin seeks to implement decentralized versions of core video infrastructure components and to create a new class of video miners who compete with other miners to earn rewards by providing CPU and/or GPU cycles for video encoding, disk space for video storage and internet bandwidth for CDN services. These video miners can run on data center servers, household desktop computers or even mobile phones, creating a powerful network of computers which would otherwise go unused. VideoCoin are trying combat the distributed video encoding issues that are present today which include matching different devices, resolutions, codecs and more. Quoting from the VideoCoin whitepaper and their research, “even high end cloud CPU instances performed poorly, at 1-2 FPS for transcoding a 4kx4k video VR video. VideoCoin needs at least 30 FPS of processing power to deliver real-time streaming of videos and the most scalable and cost effective way of achieving this is by using a distributed encoder.” VideoCoin addresses this problem by implementing a Distributed Video Processing platform, which splits a video encoding task into several sub tasks and processes them in parallel, thus effectively producing much higher frame rates on commodity hardware. Encoders are run on the open source media framework, ffmpeg, inside a secure container, so rogue applications cannot, in theory, damage the host computer/device.

The example process goes as follows:

1. Source video is input to the VideoCoin Client Software, along with encoder
configuration parameters, like resolution, bitrate, and codec.
2. Client software splits input video into segments
3. Client polls available compute miners to accept current transcoding job
4. Compute miners accept the job and client issues transactions
5. Miners finish the job, provide proof of work
6. Client makes payments to miners

Distributed Video Storage Network

VideoCoin also wished to implement a distributed file system, called Sonata, on top of the commodity hardware provided by storage miners. Sonata is said to be a scalable, fault-tolerant, distributed storage system that will work closely with a wide variety of concurrent data access applications. Videos are traditionally stored as large monolithic files making them susceptible to failure and hard to transport. To combat this, Sonata will split videos into playable segments and will distribute them across the storage network created on top of disk space provided by storage miners. Sonata is inspired by modern advancements in distributed storage including the highly scalable HDFS.

Content Distribution Network

A CDN is a geographically distributed network of proxy servers and their data centers. In VideoCoin, distribution miners will act as paid proxy servers for storage miners who store data. Decentralized networks by nature are geographically distributed as miners across the globe participate in the network. However, not all miners have access to the same internet bandwidth and connection which is essential for good quality video streaming. VideoCoin aims to build an algorithmic market for clients to negotiate contracts directly with distribution miners and storage miners to deliver high quality video to the end-user via a proxy server that is in close geographical proximity.

VideoCoin’s focus on video will help differentiate them from similar competitors focused on the space like Storj and Filecoin.
One key issues that can be raised against the P2P nature of the system, is that there tends to be less regulation in P2P platforms, and there is a risk of illegal content being distributed within the network, which can cause a lot of problems to VideoCoin.

Product Whitepaper

Use of Blockchain

4.0
Use of Blockchain
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

4.0
N/A
4 - Innovative use of blockchain technology.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

4.0
N/A
4 - Generally disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

4.0
N/A
4 - Token is essential to platform.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

4.0
N/A
4 - Mostly decentralized.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

4.0
N/A
4 - Captivating.

Use of Blockchain

The VideoCoin blockchain is similar to Bitcoin and Ethereum blockchains and differ mainly in the way block rewards and fees are assigned. Without delving too much into formulas and equations, A block reward is always assigned to the alpha(?) node in the verifier pool that created the new block. Block rewards and ? (A unit of resources on the VideoCoin Network. Weighted average of CPU time, GPU time, storage and internet bandwidth are always a fraction of the mining costs, so the highest incentive on the network is, theoretically, for miners to rent out storage, computing power and bandwidth. In order to enter a verifier pool, any node in the VideoCoin network can stake tokens into an unspendable balance on the account called the stake balance. Transactions to increase or decrease stake balance can happen only when the sender sends tokens to itself and setting transaction type to increase the account’s stake. In order to protect the network from rogue nodes that just transfer balance into a stake account to win block reward and immediately move the balance to another spendable account, the network does performs a complex task we will not elaborate upon here. For further information regarding this subject, please examine the whitepaper.

Miners earn VideoCoins by renting out storage, computing power and bandwidth available on their systems. Each mining operation is supported by a corresponding proof.
Videos on the VideoCoin network are stored as fault tolerant, playable chunks. Videos stored in standard container formats, which include audio are first split into video segments based on file size by the user redundancy factor. The main difference between splitting a binary file at arbitrary intervals and chunking a video file, is that in case of video segmenting, each segment is by itself fully playable. This is a key characteristic of the storage network which is used by distribution miners to provide a playable video even in case parts of the video are missing. The user then generates a set of random challenge salts, S, where S depends on amount of time the video has to be stored as well as video size. The user encoder then chunks videos into playable segments and constructs a Merkle Tree for every segment in the video. These hash digests are requested for proof of storage.

Storage miners provide proof of retrievability to prove that they are holding a video segment. Proof of retrievability is performed in the following steps:

1. Split an input video file into segments V = {v0, v1,…, vn}
2. Create an array S of challenge sequences S = {s0,s1,…,sn}
3. Extract S Group Of Pictures (GOP) sequences from the video
4. Append challenge sequences to S GOP chunks
5. Calculate the Merkle Tree for each of the challenge sequences

The client then stores the challenge sequences, Merkle Root and depth for each challenge sequence and periodically issues a message to the miner. The miner then computes the Merkle Proof for the challenge sequence in the message and submits proof to the network. Upon receipt of successful proof, the client makes a payment to the miner.

Modern cloud storage products provide highly reliable, but centralized storage. Relay mining allows miners to transparently outsource storage to a third party cloud storage. This provides an arbitrage opportunity for miners who have access to surplus cloud storage.

The whitepaper also touches the subjects of compute mining, distribution mining, scalability issues, smart contracts and more.

Use of Blockchain Roadmap

Whitepaper

3.4
Whitepaper
Comprehensiveness

Does it cover the full scope of the problem and solution?

4.0
N/A
4 - Satisfactory coverage, well written.
Readability

Is it easy enough to understand?

3.0
N/A
3 - Readable, takes some time.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

1.0
N/A
1 - Severely lacking.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

5.0
N/A
5 - Thorough, viable, convincing, promising.

Whitepaper

At 21 pages long, VideoCoin’s whitepaper, is very plain and methodical. Presented and read more like a scientific article than a salespitch, the whitepaper covers pretty much everything, with a few key components missing – mainly information regarding the token sale itself and its importance. It is verly analytical, and delves into the technical part of things – the network consensus algorithm, the blockchain infrastructure, mining process and rewards and more, delving deeper and deeper into the technical side of things. Different attack vectors are discussed, as well as future applications, smart contracts and scalability. In terms of a business plan presentation, there is none. The whitepaper seems scientific also because most if not all of it is tech-based. We would have liked to see some business plan references, even broadly.

Whitepaper Compliance

Roadmap

2.6
Roadmap
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

3.0
N/A
3 - An overall plan, major milestones stated.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

4.0
N/A
4 - Realistic.
Vision

Is there a larger, long-term vision?

2.0
N/A
2 - Riding the current wave.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

3.0
N/A
3 - Imperfect but available, or using substitutes.
Current Position

Where is the project now, relative to its vision and plans?

1.0
N/A
1 - Nowhere yet.

Roadmap

VideoCoin has recently published their roadmap. The VideoCoin tokens will be distributed 6 weeks after the end of pre-sale is announced, which is to be announced roughly around April-May of 2018. Afterwards, around June-July of 2018, the pre-sale tokens will be distributed. The team is aiming for the alpha release of the VideoCoin Network around January 2019, and for the beta release around July 2019. The minimalistic roadmap can be found here.

Roadmap Company and Team

Compliance

2.4
Compliance
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

5.0
N/A
5 - Foundational or varied use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

1.0
N/A
1 - Solely; a passive investment vehicle.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

2.0
N/A
2 - Minimal, superficial or hackneyed.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

2.0
N/A
2 - Insufficient or unprofessional.

Compliance

Users spend VideoCoins to rent video infrastructure services, such as distribution, computing power, bandwith and more. Consumers can pay content creators with VideoCoin as well, via subscriptions. Miners earn VideoCoins by storing videos, by delivering videos to users, by providing CPU time (for transcoding for instance) and by relating storage on third part servers.

The VID tokens are essential to the platform and have key intrinsic value through usage, as explained throughout this review. In terms of regarding the VID tokens are a security, that is unclear yet. In general, not a lot of information regarding the token itself and its sale has been released as of now.

The whitepaper does not address any compliance or legal issues to the best of our knowledge. There is also very minimal validation as to how ready is the platform/infrastructure.

Compliance Token Sale

Company and Team

3.6
Company and Team
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

4.0
N/A
4 - Established with some fundraising history.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

5.0
N/A
5 - Accomplished, recognized.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

3.0
N/A
3 - Mostly assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

2.0
N/A
2 - Somewhat skewed.

Company and Team

The team and advisory board behind VideoCoin is quite solid. CEO, Halsey Minor has founded multiple successful companies that have garnered over $100 billion (Yes, with a b) in cumulative value. Some of them are: CNET, Salesforce, Live Planet, Google Voice, Vignette and more. Devadutta Ghat, the CTO, was the founder & chief architect of the Intel Video Transcode Service, the basis for Facebook’s video platform. Ghat was also the builder of complex cloud video systems at Intel, Cloudera, and Live Planet. Head of strategy, Seth Shapiro, is a two-time Emmy Award winner, a leading advisor in business innovation, media and cryptocurrency, as well as a professor at the University of Southern California. Shapiro has launched over 25 services, including NFL Sunday Ticket Interactive and TiVo, the world’s first major DVR platform. Along these highly credentialled personnel, one can also find: Hanno Basse (Former Chief Technology Officer at 20th Century Fox Film Corp), Ted Schilowitz (20th Century Fox, RED Digital Cinema, Paramount Pictures, G-Tech), Michael Terpin (BitAngels, CoinAgenda, Bitcoin Syndicate, Transform Group, Marketwired), John Ward (A twelve-time Emmy Award winner and Senior Vice President of Content Operations for DIRECTV/AT&T Entertainment Group), Lauren Selig (an American film producer, entrepreneur, writer and philanthropist, co-founder of Shake and Bake Productions, V.A.L.I.S. Virtual Reality and Tangled Little Dragon and serves as managing director of the IMAX VR fund) and more, mostly in the advisory board.

Both the team and the advisory team is packed and filled with relevant, experienced and strong figures in the industry, which is a great sign of a thought out plan.
The team information can be found in the relevant documents and in VideoCoin’s website, as well as supplementary online searches to provide more information, as all the personnel are renowned world wide in their respective role in the industry. What is missing, however, are blockchain experts. The lack of blockchain experts stands in high contrast with the very technical approach of the whitepaper.

Company and Team Product

Token Sale

3.8
Token Sale
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

4.0
N/A
4 - Well suited to needs and plans.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

4.0
N/A
4 - Reasonable, sensible.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

2.0
N/A
2 - Use of funds only loosely defined.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

5.0
N/A
5 - Majority of tokens sold, strict vesting periods, milestone dependent release.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

4.0
N/A
4 - Solid exposure and interest, good impression.

Token Sale

Token Sale Minimum – $10,000,000 (USD)
Token Sale Soft Cap – $15,000,000 (USD)
Token Sale Hard Cap – $50,000,000 (USD)

The total lifetime token supply stands around 881.94 million tokens called VID tokens, out of which around 105.83 million (~12%) were sold in the presale. The rest of the token allocation goes as follows:

70% Miners – 617M tokens
12% Presale – 106M tokens
9.8% Company – 86M tokens
3% Advisors – 26M tokens
2.2% Marketing – 20M tokens
1.5% Acquisitions – 13M tokens
1.5% Foundation – 13M tokens

According to VideoCoin, the supply is controlled by an asymptotic function that halves block rewards every 4 years (or thereabout) and 93% of all mineable tokens will be distributed by the tenth year. By nature of the control function, which can be found under (https://videocoin.io/economy/), VideoCoins do not reach the lifetime supply of 881.94 million tokens for several decades. With time, block rewards will become scarce and will only affect the Verifier Pool. Miners will not be impacted as payment to miners through microtransactions is independent of block rewards in the VideoCoin Network. The Verifier Pool will remain incentivized through wattage and transaction fees.

Product

Distributed Video Encoding
VideoCoin seeks to implement decentralized versions of core video infrastructure components and to create a new class of video miners who compete with other miners to earn rewards by providing CPU and/or GPU cycles for video encoding, disk space for video storage and internet bandwidth for CDN services. These video miners can run on data center servers, household desktop computers or even mobile phones, creating a powerful network of computers which would otherwise go unused. VideoCoin are trying combat the distributed video encoding issues that are present today which include matching different devices, resolutions, codecs and more. Quoting from the VideoCoin whitepaper and their research, “even high end cloud CPU instances performed poorly, at 1-2 FPS for transcoding a 4kx4k video VR video. VideoCoin needs at least 30 FPS of processing power to deliver real-time streaming of videos and the most scalable and cost effective way of achieving this is by using a distributed encoder.” VideoCoin addresses this problem by implementing a Distributed Video Processing platform, which splits a video encoding task into several sub tasks and processes them in parallel, thus effectively producing much higher frame rates on commodity hardware. Encoders are run on the open source media framework, ffmpeg, inside a secure container, so rogue applications cannot, in theory, damage the host computer/device.

The example process goes as follows:

1. Source video is input to the VideoCoin Client Software, along with encoder
configuration parameters, like resolution, bitrate, and codec.
2. Client software splits input video into segments
3. Client polls available compute miners to accept current transcoding job
4. Compute miners accept the job and client issues transactions
5. Miners finish the job, provide proof of work
6. Client makes payments to miners

Distributed Video Storage Network

VideoCoin also wished to implement a distributed file system, called Sonata, on top of the commodity hardware provided by storage miners. Sonata is said to be a scalable, fault-tolerant, distributed storage system that will work closely with a wide variety of concurrent data access applications. Videos are traditionally stored as large monolithic files making them susceptible to failure and hard to transport. To combat this, Sonata will split videos into playable segments and will distribute them across the storage network created on top of disk space provided by storage miners. Sonata is inspired by modern advancements in distributed storage including the highly scalable HDFS.

Content Distribution Network

A CDN is a geographically distributed network of proxy servers and their data centers. In VideoCoin, distribution miners will act as paid proxy servers for storage miners who store data. Decentralized networks by nature are geographically distributed as miners across the globe participate in the network. However, not all miners have access to the same internet bandwidth and connection which is essential for good quality video streaming. VideoCoin aims to build an algorithmic market for clients to negotiate contracts directly with distribution miners and storage miners to deliver high quality video to the end-user via a proxy server that is in close geographical proximity.

VideoCoin’s focus on video will help differentiate them from similar competitors focused on the space like Storj and Filecoin.
One key issues that can be raised against the P2P nature of the system, is that there tends to be less regulation in P2P platforms, and there is a risk of illegal content being distributed within the network, which can cause a lot of problems to VideoCoin.

Category Breakdown
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

4.0
N/A
4 - Captivating.
Target User Base

Is it mass market or niche?

4.0
N/A
4 - Large audience / wide market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

4.0
N/A
4 - Original, specialized.
Product Score:
3.4

Use of Blockchain

The VideoCoin blockchain is similar to Bitcoin and Ethereum blockchains and differ mainly in the way block rewards and fees are assigned. Without delving too much into formulas and equations, A block reward is always assigned to the alpha(?) node in the verifier pool that created the new block. Block rewards and ? (A unit of resources on the VideoCoin Network. Weighted average of CPU time, GPU time, storage and internet bandwidth are always a fraction of the mining costs, so the highest incentive on the network is, theoretically, for miners to rent out storage, computing power and bandwidth. In order to enter a verifier pool, any node in the VideoCoin network can stake tokens into an unspendable balance on the account called the stake balance. Transactions to increase or decrease stake balance can happen only when the sender sends tokens to itself and setting transaction type to increase the account’s stake. In order to protect the network from rogue nodes that just transfer balance into a stake account to win block reward and immediately move the balance to another spendable account, the network does performs a complex task we will not elaborate upon here. For further information regarding this subject, please examine the whitepaper.

Miners earn VideoCoins by renting out storage, computing power and bandwidth available on their systems. Each mining operation is supported by a corresponding proof.
Videos on the VideoCoin network are stored as fault tolerant, playable chunks. Videos stored in standard container formats, which include audio are first split into video segments based on file size by the user redundancy factor. The main difference between splitting a binary file at arbitrary intervals and chunking a video file, is that in case of video segmenting, each segment is by itself fully playable. This is a key characteristic of the storage network which is used by distribution miners to provide a playable video even in case parts of the video are missing. The user then generates a set of random challenge salts, S, where S depends on amount of time the video has to be stored as well as video size. The user encoder then chunks videos into playable segments and constructs a Merkle Tree for every segment in the video. These hash digests are requested for proof of storage.

Storage miners provide proof of retrievability to prove that they are holding a video segment. Proof of retrievability is performed in the following steps:

1. Split an input video file into segments V = {v0, v1,…, vn}
2. Create an array S of challenge sequences S = {s0,s1,…,sn}
3. Extract S Group Of Pictures (GOP) sequences from the video
4. Append challenge sequences to S GOP chunks
5. Calculate the Merkle Tree for each of the challenge sequences

The client then stores the challenge sequences, Merkle Root and depth for each challenge sequence and periodically issues a message to the miner. The miner then computes the Merkle Proof for the challenge sequence in the message and submits proof to the network. Upon receipt of successful proof, the client makes a payment to the miner.

Modern cloud storage products provide highly reliable, but centralized storage. Relay mining allows miners to transparently outsource storage to a third party cloud storage. This provides an arbitrage opportunity for miners who have access to surplus cloud storage.

The whitepaper also touches the subjects of compute mining, distribution mining, scalability issues, smart contracts and more.

Category Breakdown
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

4.0
N/A
4 - Innovative use of blockchain technology.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

4.0
N/A
4 - Generally disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

4.0
N/A
4 - Token is essential to platform.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

4.0
N/A
4 - Mostly decentralized.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

4.0
N/A
4 - Captivating.
Use of Blockchain Score:
4.0

Whitepaper

At 21 pages long, VideoCoin’s whitepaper, is very plain and methodical. Presented and read more like a scientific article than a salespitch, the whitepaper covers pretty much everything, with a few key components missing – mainly information regarding the token sale itself and its importance. It is verly analytical, and delves into the technical part of things – the network consensus algorithm, the blockchain infrastructure, mining process and rewards and more, delving deeper and deeper into the technical side of things. Different attack vectors are discussed, as well as future applications, smart contracts and scalability. In terms of a business plan presentation, there is none. The whitepaper seems scientific also because most if not all of it is tech-based. We would have liked to see some business plan references, even broadly.

Category Breakdown
Comprehensiveness

Does it cover the full scope of the problem and solution?

4.0
N/A
4 - Satisfactory coverage, well written.
Readability

Is it easy enough to understand?

3.0
N/A
3 - Readable, takes some time.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

1.0
N/A
1 - Severely lacking.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

5.0
N/A
5 - Thorough, viable, convincing, promising.
Whitepaper Score:
3.4

Roadmap

VideoCoin has recently published their roadmap. The VideoCoin tokens will be distributed 6 weeks after the end of pre-sale is announced, which is to be announced roughly around April-May of 2018. Afterwards, around June-July of 2018, the pre-sale tokens will be distributed. The team is aiming for the alpha release of the VideoCoin Network around January 2019, and for the beta release around July 2019. The minimalistic roadmap can be found here.

Category Breakdown
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

3.0
N/A
3 - An overall plan, major milestones stated.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

4.0
N/A
4 - Realistic.
Vision

Is there a larger, long-term vision?

2.0
N/A
2 - Riding the current wave.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

3.0
N/A
3 - Imperfect but available, or using substitutes.
Current Position

Where is the project now, relative to its vision and plans?

1.0
N/A
1 - Nowhere yet.
Roadmap Score:
2.6

Compliance

Users spend VideoCoins to rent video infrastructure services, such as distribution, computing power, bandwith and more. Consumers can pay content creators with VideoCoin as well, via subscriptions. Miners earn VideoCoins by storing videos, by delivering videos to users, by providing CPU time (for transcoding for instance) and by relating storage on third part servers.

The VID tokens are essential to the platform and have key intrinsic value through usage, as explained throughout this review. In terms of regarding the VID tokens are a security, that is unclear yet. In general, not a lot of information regarding the token itself and its sale has been released as of now.

The whitepaper does not address any compliance or legal issues to the best of our knowledge. There is also very minimal validation as to how ready is the platform/infrastructure.

Category Breakdown
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

5.0
N/A
5 - Foundational or varied use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

1.0
N/A
1 - Solely; a passive investment vehicle.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

2.0
N/A
2 - Minimal, superficial or hackneyed.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

2.0
N/A
2 - Insufficient or unprofessional.
Compliance Score:
2.4

Company and Team

The team and advisory board behind VideoCoin is quite solid. CEO, Halsey Minor has founded multiple successful companies that have garnered over $100 billion (Yes, with a b) in cumulative value. Some of them are: CNET, Salesforce, Live Planet, Google Voice, Vignette and more. Devadutta Ghat, the CTO, was the founder & chief architect of the Intel Video Transcode Service, the basis for Facebook’s video platform. Ghat was also the builder of complex cloud video systems at Intel, Cloudera, and Live Planet. Head of strategy, Seth Shapiro, is a two-time Emmy Award winner, a leading advisor in business innovation, media and cryptocurrency, as well as a professor at the University of Southern California. Shapiro has launched over 25 services, including NFL Sunday Ticket Interactive and TiVo, the world’s first major DVR platform. Along these highly credentialled personnel, one can also find: Hanno Basse (Former Chief Technology Officer at 20th Century Fox Film Corp), Ted Schilowitz (20th Century Fox, RED Digital Cinema, Paramount Pictures, G-Tech), Michael Terpin (BitAngels, CoinAgenda, Bitcoin Syndicate, Transform Group, Marketwired), John Ward (A twelve-time Emmy Award winner and Senior Vice President of Content Operations for DIRECTV/AT&T Entertainment Group), Lauren Selig (an American film producer, entrepreneur, writer and philanthropist, co-founder of Shake and Bake Productions, V.A.L.I.S. Virtual Reality and Tangled Little Dragon and serves as managing director of the IMAX VR fund) and more, mostly in the advisory board.

Both the team and the advisory team is packed and filled with relevant, experienced and strong figures in the industry, which is a great sign of a thought out plan.
The team information can be found in the relevant documents and in VideoCoin’s website, as well as supplementary online searches to provide more information, as all the personnel are renowned world wide in their respective role in the industry. What is missing, however, are blockchain experts. The lack of blockchain experts stands in high contrast with the very technical approach of the whitepaper.

Category Breakdown
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

4.0
N/A
4 - Established with some fundraising history.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

5.0
N/A
5 - Accomplished, recognized.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

3.0
N/A
3 - Mostly assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

2.0
N/A
2 - Somewhat skewed.
Company and Team Score:
3.6

Token Sale

Token Sale Minimum – $10,000,000 (USD)
Token Sale Soft Cap – $15,000,000 (USD)
Token Sale Hard Cap – $50,000,000 (USD)

The total lifetime token supply stands around 881.94 million tokens called VID tokens, out of which around 105.83 million (~12%) were sold in the presale. The rest of the token allocation goes as follows:

70% Miners – 617M tokens
12% Presale – 106M tokens
9.8% Company – 86M tokens
3% Advisors – 26M tokens
2.2% Marketing – 20M tokens
1.5% Acquisitions – 13M tokens
1.5% Foundation – 13M tokens

According to VideoCoin, the supply is controlled by an asymptotic function that halves block rewards every 4 years (or thereabout) and 93% of all mineable tokens will be distributed by the tenth year. By nature of the control function, which can be found under (https://videocoin.io/economy/), VideoCoins do not reach the lifetime supply of 881.94 million tokens for several decades. With time, block rewards will become scarce and will only affect the Verifier Pool. Miners will not be impacted as payment to miners through microtransactions is independent of block rewards in the VideoCoin Network. The Verifier Pool will remain incentivized through wattage and transaction fees.

Category Breakdown
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

4.0
N/A
4 - Well suited to needs and plans.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

4.0
N/A
4 - Reasonable, sensible.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

2.0
N/A
2 - Use of funds only loosely defined.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

5.0
N/A
5 - Majority of tokens sold, strict vesting periods, milestone dependent release.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

4.0
N/A
4 - Solid exposure and interest, good impression.
Token Sale Score:
3.8

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