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Multiversum Rating Review

Stable

Investment Rating

Expiry date : Expired 08 Sep 2018

Rating

We have rated the Multiversum project as "Stable”.

Multiversum is a Blockchain 4.0 project. This blockchain generation terminology is far from being universally accepted, but is often used for marketing purposes. In a nutshell, the Multiversum project is a universal blockchain that can be used to facilitate transactions. Its features and characteristics will, it is claimed, put it far ahead of current solutions and will enable it to compete with various top blockchain platforms.

The team are planning to implement a range of innovations to ensure high network capacity and performance. The solution will employ a new consensus algorithm (Proof of Integrity) along with Crypto Relational DB, parallel computing and blockchain rollback.

At the moment the team are offering a testnet mobile app, which can be essentially considered as an MVP. Nevertheless, the project is still at an early development stage.  

One of the project’s shortcomings is its documentation. It is not very high in quality, given how complex and ambitious the project is. There are many aspects, especially technical, that have not been described in much detail; this makes it difficult to properly assess the project. Plus, the information provided on the site and in the white paper is inconsistent. At the moment, different sources provide different information on team members and advisors.

The main project risks are associated with how ambitious the project is. When a project claims its solution is “revolutionary”, it not only garners attention but also means higher quality requirements.  Development of advanced technologies is an important objective for fintech startups. However, it is also important to pay attention to market behavior and dynamics, otherwise the 4.0 or even 5.0 blockchains (these will enter the picture sooner or later) risk being unrealized and remaining simply ambitious projects.

Multiversum and other similar projects are associated with high competitive risks. Such fundamental projects do not have a specific niche, unlike many utility tokens. As such, any protocol that has been adopted by the community as a “standard” can close the doors for competitors. We hope that the project founders are aware of all the relevant risks.

Nevertheless, the project could be potentially adopted by various business and industries. Many of the proposed services might become popular and sought-after. For example, the rollback issue is critical for blockchain, thus if it is implemented to a high standard, the Multiversum solution could really improve current blockchain technology.

General Information about the Project and ICO

Multiversum is a 4th generation blockchain; Ethereum and similar blockchains are classified as 2nd generation and DAG/IoT solutions are the 3rd. The platform under development could become the most efficient blockchain so far, especially for business.  However, this would clearly only be possible assuming there are no problems at the development and launch stages. For now, even blockchain 3.0 has not been fully integrated into the market, making an analysis of the next generation even more difficult.

 

The team states the project will boast many innovations; the finished solution’s features and characteristics are supposed to be groundbreaking. They include transaction speed, network backup and the blockchain’s multidimensional structure. Basically, Multiversum will unite complex blockchain data organization (transaction chains) and a unique Proof of Integrity concept instead of the traditional Proof of Work or Proof of Stake protocols. The PoI concept means that a node will not have to perform complex computations or have weight in the network to confirm a transaction; instead it will only need to verify a transaction code.

In general, the project claims plenty of advantages and promising technologies; however, the documentation mentions none of the possible difficulties or shortcomings. In our opinion, such an approach could seem biased, especially taking into account the fact that some of these technologies have not been described in detail sufficient to fully assess possible adoption limitations and challenges.

The legal entity (Multiversum Crypto Systems LLC) is registered in the Republic of Belarus. The team states that this unusual jurisdiction has been chosen due to its friendliness and openness to blockchain technologies and fintech startups. This friendly environment enabled the project to join a High Tech Park, a tax-free zone.

For now, the current state of project development is not clear. The team have launched a testnet app that enables executing transactions, essentially an MVP. However, it has not been specified to what extent this app reflects the final ecosystem’s functionality and structure.

ICO

Start date: 1 May 2018

End date: 10 Jun 2018

Hard cap: $35,000,000

Soft Cap: $5,000,000

Price: 1 USD = 1 eMTV

 

Token: eMTV, ERC-20

Accepted currencies: ETH

Total token emission: 141,000,000 eMTV

76% - Contributors

15% - Team

6% - Collaborators

3% - Advisors and bounty

Tokens to be sold: 64,860,000 eMTV

Funds distribution:

  • Unsold tokens will not be burned; rather, they will be rolled into the airdrop pool and distributed to token sale contributors who have kept their tokens over a period of 18 months. Airdrop will occur once a week and will start 2 weeks after the end of the token sale event.

  • 1% of funds raised will be donated to charitable organizations.

  • The team’s and founders’ tokens will be locked for 12 months. No other restrictions are envisaged.

Description of the Project Services

Multiversum’s founders describe their project as the new generation of blockchain. As such, a description of the project’s services is essentially a description of blockchain and its development solutions.

The White Paper pays specific attention to the ecosystem’s advantages in terms of the innovative solutions employed. It is worth having a look at some of these, as they unroll Multiversum’s technical concept, which makes it an ingenious platform:

  • Crypto Relational DB with self-validating Complex Data Structures. This solution is intended for the creation and processing of complex data structures, which would be problematic with a simple direct chain. The data recorded on the blockchain will be that of users, wallets, wallet states, and transactions, which will reciprocally verify themselves.

  • Parallel Work. If the network experiences an overload, the transaction chain can be split into two parallel chains and vice versa. This mechanism enables regulation of the network load and optimizing node performance. Apart from that, due to the fact that each node will contain a part of the chain (essentially, all nodes will have the same source) the network will be able to withstand even a partial network cluster crash. As a result, this blockchain will have the following advantages:  horizontal scalability, increased security, high availability, system resilience, absence of a single point of failure and self-disaster recovery.

  • Microservice structure. The Multiversum platform is being developed on the basis of  Microservices and Serverless models.

  • Rollback. The Multiversum network will enable a rollback of undesired transactions or recovery of their status without affecting the chain’s credibility. Virtually, this means that this blockchain will be able to do something that was impossible before, i.e. allow for harmless transaction control.

  • Proof of Integrity. This innovative protocol will be used in the Multiversum network for transaction and node verification. Unlike the PoW, PoS and Dpos concepts, PoI will require lower node capacity and prevent waste of computing capacity. In a nutshell, this set of algorithms will verify the cryptographic validity of a compiled node and enable uniformity of response from the majority of nodes.

Similar to traditional blockchains, the Multiversum network will employ nodes; however, its node network will feature some differences. As such, the network will use node clusters that are able to self-elect their members to specific roles, such as client nodes, coordination nodes, messaging nodes, work nodes, persistence nodes and backup nodes. These roles are assigned depending on computation capacity, memory capacity, reciprocal Latency, chain data completeness, machine reliability and any doubts on proof of integrity.

In the event of a crash of one or more nodes, the cluster will be able to autonomously redistribute tasks and reassign roles. As a result, clusters are responsible for partial centralization on the platform, however existing blockchains envisage a natural process of cluster formation in the form of mining pools.

The Multiversum blockchain will support improved smart contracts. The team state they will be using a third-party open-source solution, as they don’t want to waste time on reinventing the wheel. As smart contracts enhance the network’s functionality, the field of distributed network application will also be extending.

In addition to a distributed network, the team are also developing a wallet that will encompass some unusual features. The team are intending to implement freezable wallets after they have studied the feasibility of this. These wallets will be frozen in the event of undesired or suspicious transactions. There is no information on this solution; for now, only a general interaction pattern is available.

The team are also planning to integrate biometric data as a source of cryptographic keys, including fingerprints, retina scans and graphometric signatures. This solution seems questionable; decentralized networks are all about anonymity and accessibility, and biometric data could leave users without these advantages. At the same time, this verification solution is difficult to implement. Even world leaders in the biometric data industry cannot provide 100% efficient software. There are also some hardware issues; not all devices have cameras, sensors, etc.

The Multiversum blockchain will enable large-scale integration with external platforms. First and foremost, an ERC23 interface (compatible with ERC20) will be introduced. The documentation also states that this solution will be compatible with other blockchains and coins. This will enable users to switch from one network to another and employ cross-chain solutions. The system envisages notary services as an external confirmation method (assessment).

According to the documentation, implementation of the proposed architecture will ensure the following Multiversum performance parameters:

  • transfer between wallets will take 0.2 seconds, including all security procedures.

  • up to 64,000 TPS with a 64-core server. Unlimited scalability with 64+ core technologies.

  • anti-majority-hijack security system on the transaction.

  • increased security for wallets, ensured by biometric inputs.

  • low fees (no concrete figures are provided).

The list of advantages looks impressive. However, for now they are just promises, common in early development stages. The Multiversum team cite these and other advantages in the documentation they provide for investors. There are some objective strengths, such as transaction speed, scalability potential and security, and also some questionable statements.

For example, one stated advantage is extremely unusual. The team states that Multiversum is an eco-friendly project. The logic behind this idea is that PoW uses tremendous amounts of power and resources. Higher efficiency will implicitly lower the computational capacity required and therefore the use of natural resources. Despite being logical in theory, this also sounds like a marketing ploy, which is strange for such a serious project as Multiversum.

It is worth mentioning that many ecosystem parameters and features are described in such terms as “to be studied or assessed”. This means that these are potential or possible solutions, which creates the impression that the team don’t have a clear vision of the final product. We hope that this is not the case, and that the documentation becomes more comprehensive after each revision.

Market Analysis

The Multiversum project is described as a 4th generation blockchain, i.e. this solution is supposed to offer something absolutely new, something that was not available with previous generations. Prior to describing the project’s main advantages, it is worth having a look at blockchain history.

The Bitcoin network came into existence in 2009; this is now known as blockchain 1.0. The distributed ledger offered a new principle for transaction recording, which enabled long-awaited decentralization.

Despite its popularity, Bitcoin is not efficient when it comes to its main purpose of transaction execution. The main reasons are low speed, high fees and a limited amount of data stored. The scalability issue can be resolved, but changes are introduced at a very slow pace. Mining and PoW have recently become targets of harsh criticism for their use of significant resources without any visible outcomes.

The second generation of blockchain networks stems from Ethereum. The concept of smart contracts and its implementation enabled blockchain to become more community-focused, useful and more popular with the general public. This generation has its own problems connected with both smart contracts and the Ethereum network’s limitations; however, Ethereum’s contribution to the promotion and popularization of blockchain can hardly be overestimated.

Many developers sought to resolve the issues peculiar to previous generations via blockchain 3.0 projects. They were mainly focused on the scalability problem, cross-chain transactions, higher capacity and new consensus mechanisms. Among the most notable solutions are EOS, NEO, IOTA, COSMOS, and Cardano.

EOS deserves specific attention as it propagates the blockchain idea and propels the network by offering a new structural unit, i.e. applications. The EOS project offers the framework’s users software for application development. There are many issues with this solution, but it is expected to resolve problems present in previous blockchains and enable millions of transactions to be executed per minute. The EOS project ran one of the biggest ICOs in 2017 and it is now about to finish its lengthy crowdsale.

Just as with everything connected with blockchain, the technology itself is rapidly developing. 4th generation projects are breathing down their predecessors’ necks. It is worth mentioning that “the 4th generation” is a multifaceted concept, and the industry has still not formulated clear parameters to distinguish them. At the moment, Seele is the most popular 4th generation project.

Apart from the previous generations’ legacy, the Seele project employs a neural consensus algorithm, a heterogeneous forest network and a set of advanced protocols for various interfaces. All of these solutions are designed to increase the capacity, scalability and security of the network. They are of paramount importance for blockchain, but whether they are as revolutionary as the marketing campaign states is a different issue.

Returning to the Multiversum project, it does in fact propose some innovative blockchain solutions.  Apart from increased capacity, scalability, etc., the product envisages a transaction rollback feature. Some might think that this is a step backwards for decentralized networks, but this is not so. “Right to be forgotten”  is put into practice in some situations and, under certain conditions may cause many problems for blockchain.

In the last version of the White Paper, the founders compare Multiversum with other popular decentralized protocols and with Visa. You can of course study this section yourself, but here we would like to highlight that Multiversum has outdone its competitors in all regards.

Despite skeptical attitudes towards “revolutionary breakthroughs”, the Multiversum network could be adopted by various businesses. Right now, blockchain needs to be adapted to business requirements. Many projects are still unable to focus on the social and economic needs of businesses. The Multiversum project, however, has some potential in this regard.

Since the platform is universal, it wouldn’t be helpful to assess its market potential. It could be very high; however, the competitive environment will almost certainly not permit the platform to gain a significant share. Now, it is almost impossible to develop a truly unique service or monopolize an industry, as the crucial factors will be time, product quality and marketing. We trust that the Multiversum team is aware of the current environment and circumstances.

In any case, we cannot talk about blockchain development without a more general context. Right now the groundwork is being laid for the next technological leap that will lead us to Industry 4.0. An industry where IoT, big data, AI, blockchain and other cutting-edge technologies will give rise to a synergistic effect. It might as well be the fourth industrial revolution. The picture below illustrates the industrial revolutions.

 

Team

The  Multiversum project is run by its 5 founders and 9 team members. The founders have extensive experience in the technological market segment. They have worked together for Oracle, IBM, Ericsson, and Nokia. Apparently, the founders don’t have much experience in blockchain development; anyway, we couldn’t find any confirming information for such experience.

Founders

 

Andrea Taini, Ceo & Founder

With over two decades designing, developing, and deploying software solutions across Europe for industry giants like Oracle, Micros, Ericsson and IBM, Andrea brings a wealth of experience and in-depth technical know-how to the development of blockchain’s revolution: Multiversum. Multiversum is the cumulation of Andrea’s vision for addressing the scalability and storage problems stunting the growth of the fourth industrial revolution that blockchain has birthed.

More detail: LinkedIn

 

Michele Roscelli, Co-founder

Michele works as Solution Engineer for a leading Analytics and Performance Management software company, and has more than 11 years of experience in IT development. Michele is extremely passionate about technological innovation, and also serves as Multiversum Integration and Infrastructures manager.

More detail: LinkedIn

 

Matteo Monti, Co-founder/Marketing Director and Investment strategist

Matteo Monti is a marketing maverick, specialized in Social Marketing and Social Marketing Strategy. He is also a CAD/CAM Systems Designer with over a decade in the industry, and a seasoned Forex trader.

More detail: LinkedIn

 

Matteo Peterlini, Co-founder/Art Director

Matteo Peterlini is a Berlin-based Art Director, whose two decades worth of creativity in the industry has seen him work with numerous prestigious clients including Mart Museum of Modern and Contemporary Art, Trento and Rovereto, the University of Trento, Grazia Neri Agency, Nokia and Giuseppe Verdi National Museum, Ferrari, and The Great World Amusement Center in Shanghai.

More detail: LinkedIn

 

Montanaro Manuel, Co-founder and Investment Strategist

Ethereum crowd-funder CEO & Co-founder of Cryptomoney.cloud, Montanaro is one of the leading cryptocurrency investment strategists with a remarkably diversified, high-performing portfolio.

More detail: LinkedIn

The Multiversum team has all the specialists necessary to launch the project’s services. They include developers, technical specialists and marketing experts. There are no well-known names from the blockchain industry, but this should not affect the product’s quality.

It is worth noting that the last version of the WP mentions fewer team members than the site. Such inconsistency raises some questions and doesn’t help the project’s image.

The site also mentions 6 advisors, whereas there are none in the last WP version. Here we will use the WP’s information.

Team

Mirco Caeran LinkedIn

Legal Counselor

Simone Costa LinkedIn

Business and Technology Consulting

Simone Trifiletti LinkedIn

Strategist, Cryptocurrency & Token Sale Expert

Alessio di Mario LinkedIn

Social Media Manager

Tamás Györfi LinkedIn

Developer

Etienne Tomaselli LinkedIn

Front-end and mobile developer

Ivan Zaccaron LinkedIn

Frontend Developer & Infrastructure

Lorenzo Dino Stefano Giacomini LinkedIn

Marketing & Communications

Christian Viola LinkedIn

Digital marketing & Web Analytics Manager

Project Tokens

The   eMTV token is an Erc20 token issued on the basis of an Ethereum smart contract, which is pretty standard for any ICO. The token is a purely utility token. The documentation states that users will be able to employ the utility token within the Multiversum blockchain via the exchange of Erc20 coins (eMTV) for intra-platform coins (MTV). This exchange is voluntary and will complement other exchange options available in the Multiversum wallet.

MTV’s utility functions will enable using it as  Multiversum’s internal cryptocurrency. The tokens will also be used to ensure the node’s network functioning, reward cryptocurrency holders and stimulate participants.  Participants need MTV to become Masternodes (they facilitate the POI mechanism and other network support functions). Participants should have 15,000 MTV in their accounts that cannot be exchanged or given away. At the same time, MTV tokens will be used for fees within the POI mechanism. The fee will vary depending on the complexity of the blockchain record.

As a result, intrinsic value of the eMTV token (subsequently the MTV token) will be based on the network size and popularity of the blockchain. At the same time, the platform’s scalability impact could prove to be more efficient and affect the token value more than, say, with Ethereum. This might happen because some participants are motivated to buy and hold tokens, i.e. the number of circulating tokens decreases, which in turn will affect the token price.

Token Price Factor Analysis

To understand the factors that will affect eMTV’s price, we need to analyze existing blockchains and 3rd generation projects. The price of such projects’ currencies depend on the blockchain’s popularity – both fundamental value and hype. At the same time, the most capitalized currencies usually have stable and fundamental demand, as they have the lowest volatility and the highest liquidity.

There are plenty of decentralized business solutions and cryptocurrencies in the market. Plus, there is a pool of innovative projects. However, no one has been able to deprive BTC of its competitive edge since Ethereum. In this regard, revolutionary ideas should not be treated as something that will always result in popularity and large market shares. Even really promising solutions risk remaining unknown without proper marketing conditions. For this reason, we think that Multiversum’s potential market is not the easiest for expansion.

The project is clearly at an early stage of development. This becomes obvious as the documentation often provides purely theoretical substantiations for some solutions and sometimes claims their feasibility without any further elaboration. We think the WP is demonstrative in this regard. Taking into account that Multiversum proposes plenty of innovations and an essentially different blockchain structure and process flow, the product description does not seem sufficient even considering its early development stage. Questions from the community also support this; for example, many of them are concerned with the PoI consensus mechanism, as it is a completely new solution and there are no other such decentralized networks in the market.

At the same time, we appreciate the team’s effort regarding the documentation. As the ICO progresses, the team are improving and revising the documentation, they are clarifying their approach and providing more details. The project’s quality becomes visibly higher as the platform is being further developed and the crowdsale moves forward. However the eMTV token currently remains a token of a global and ambitious project in its early stages.

The problems mentioned above give rise to another issue, i.e. the project economy and strategic plan do not provide any figures. For now, it is difficult to say how the project is going to develop, what pricing policy will be adopted or how fees or other payments are going to be allocated. The documentation does not provide any information even on commission calculation principles. However, this is only logical, taking into account that there is still no description of the final ecosystem.

As for the roadmap, which could provide some information on the development framework, it states that the release is scheduled for Q1 of 2019. This is quite soon and if the team manage to implement the proposed architecture on time, this will positively affect the MTV token.

Investment Risk Analysis

The Multiversum project is at an early development stage; this becomes clear from the documentation’s quality, which still has some issues and lacunae. It is most likely that the project has been recently revised. There is no other explanation for the fact the WP and the site have different team descriptions.

The project’s risks are mainly associated with the large number of services envisaged. Such an ambitious project and its blockchain 4.0 status imply some pressure,  requiring a sufficient amount of effort from the team. The project is under the spotlight, and the community will treat any negative news with great suspicion.

The competitive risks are also substantial.  Such fundamental projects do not have a specific niche, unlike many utility tokens. Any such protocol adopted by the community as a standard could close the doors for its competitors.



 

The information contained in the document is for informational purposes only. ICORating received monetary compensation from the entity rated in this report for completing the ratings report. However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published.

The views expressed in this document are solely those of the ICORating Team, based on data obtained from open access and information that developers provided to the team through Skype, email or other means of communication.

Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.