Today we’ll be taking a look at the blockchain project CPChain. This is relatively new coin that several of you have recommended a review, and Im so glad you requested it, because having taken a look it over the last couple of day, I think it’s a great project that I am very excited to share with our community. To find out more about CPChain, keep reading!
There is a video link at the bottom for those who prefer an audio version
CPChain stands for “Cyber Physical Chain” and it is an Internet of things (IOT) infrastructure blockchain project.
Let me break this down for you.
The internet of things or (IOT) for short, is electronic devices communicating with other electronic devices, for example, just as you and I would talk to each other, your phone now has the ability to communicate other devices. All smartphones these days have what is called an RFID chip, this is the chip that makes it possible for your phone to act as a credit card payment and do a scan payment, or trace your amazon parcel at any location, any time, all across the world. This communication system between things, is called the internet of things.
Now imagine that each of these colourful circle is an electronic device.
The internet of Things basically provides the technology that makes it possible for each of these devices to communicate with each other, but it doesn’t provide the infrastructure. So its like providing a car that can travel, but not the roads to make the travel quick and easy.
Projects like CPChain then, provide the infrastructure, and CPChain provides first of all the network to send information quickly and easily,
and being a blockchain project, it also provides security through encryption and decentralisation.
Security is actually one of the biggest weaknesses of the IOT, which hinders participation, because without proper security, your personal information could be uploaded to every other device in the network! But now with CPChain the security is covered.
The same security also means they can provide a safe way for information to be stored, not just transmitted, and again, most IOTs at the moment, used centralised cloud storage which is very risky not to mention expensive.
The next feature that CPchain offers as an infrastructure is scalability. Think of this like adding more roads if the roads become busy.
And we will explain a bit later about how they go about in a unique way to provide scalability. And this is very important, because the IOT is basically the new internet with humongous volumes, it is estimated that by 2020, there will 30 billion (not million, but billion) IOT devices in the world.
And finally, as attractive as IOT is, a major drawback it has at the moment is that it is very costly. But CPChain, again as a blockchain project, can offer amongst the cheapest transactions in the world.
So that’s what we mean by infrastructure for IOT.
Now can a non-blockchain project provide the infrastructure too? Yes, it is possible and there are non-blockchain infrastructures already. However, the blockchain solution is much faster, cheaper and secure. So if you were in the IOT business, why wouldn’t you use a blockchain solution.
Currently on the market, there is not 1 but 4 IOT infrastructure projects. The first and most well known is IOTA, the number 10 biggest coin on the market, the next is CPChain which are talking about today, and then there is Internet Node Token (INT) and IOT chain (ITC).
Now as a token on the market, with the exception of IOTA, all the others are less than 6 months old. CPChain is the youngest and only hit the market in early Feb so its less than 2 months old! Even IOTA has only been around for 9 months, so basically its very early days for IOT blockchain infrastructure business and all these projects are considered early movers.
Now people like to compare these 4 to see who is the best. If you google youtube, you would see videos describing INT as the “Chinese IOTA”, but there are also videos describing ITC and CPChain as the “Chinese IOTA” too! So there’s a lot of comparison in this space. The truth is besides IOTA, none of the others, including CPChain actually have enough working product to do a comparison. It’s all speculation, but secondly there is no need to compare because the IOT market is so huge. The IOT market is estimated to be worth 20-30 billion dollars by 2020. In comparison the whole cryptomarket now is only worth 0.28 billion. So you could literally have 1000 such companies, with IOTA’s top ten marketcap and still be doing well. So IOT is bigger than Crypto and all of these 4 projects are likely to take off.
Each of these 4 projects, use a different technology, I want to briefly run through them so you know how CPChain is different from the others, and then we’ll do a deeper dive into CPchain’s actual tech.
IOTA uses a technology called DAG or “directed acyclic graph”, which is decentralised but its not technically a blockchain. It’s a different way of achieving decentralisation. CPC and INT both use blockchain with something called parallel processes. It sounds similar but the details of their architecture and concensus algorithms are different. IOT chain uses a mix of blockchain and DAG. Now once again, its still way too early to say which of these tech is the best, as time goes by each will reveal their strengths and weaknesses and find their own niche market, but once again there is more than enough business to go around. I just wanted you to know how CPChain was different from the rest.
We will now take a look at CPchain’s tech in slightly more detail.
Traditionally in blockchain, every piece of information is processed by thousands of nodes. This means that even if it is a big and complicated transaction, the whole huge transaction has to be processed again and again thousands of times, and this causes the whole blockchain to slow down.
CPChain solves this problem by splitting its architecture into 4 layers.
Think of it this way. Imagine if I have a complicated data like these. I can give each of them a simplified compressed identity like “A” , “B” and “C”
Then in the contract layer. Rather than have to processed all 3 complicated codes/ I can just do “A” + “B” = “C”. So it makes the actual processing much faster and quicker.
Finally the application layer is the interface between the user and the system, like your phone app.
Lastly there is a vertical layer called the control layer which basically acts like a supervisor to check everything is going smoothly.
Besides the processing of information, the storage of information is again decentralised on the blockchain onto thousands of different nodes. Over time, this means the blockchains become big and heavy and withdrawal of information can take a long time. Again CPChain tackles this storage problem in a similar way as above, but this time its called “Parallel distributed architecture”.
So the storage system of CPChain is split into 3 layers.
This dramatically increases processing speed, but also provides a lot of room for future scalability.
The last thing to mention about their tech is their concensus algorithm. Consesus algorithm are how each blockchain project processes the information on the blockchain via the nodes. The most well known concensus algorithms are proof of work (used by Bitcoin) and Proof of stake (which is what NEO uses and what Ethereum is changing to use soon). CPChain uses a hybrid concensus algorithm. It’s a combination of POW for its large scale application as well as Byzantine fault-tolerant algorithms for its reliability and availability. Its applied through a 2-layer concensus.
A simplified explanation of this is rather than all nodes participating in the concensus process, there are 2 rounds and in the first round, only some nodes get elected to go into the second round where they actually do the processing work. The other nodes that weren’t elected then go into another election round for another piece of information needing to be processed.
Now all this tech sounds really good. But CPChain is a very new project. So how far along is CPChain in actually in their tech?
The answer is pretty much done. According to an article a couple of months ago by Torque as to why they chose CPChain to invest in, they said:
“At present, CPChain has successfully completed the research and development of the key technologies of the distributed data storage and computing and the double-layer hybrid consensus protocol of the main chain. The CPChain material and information chain has entered the phase of large-scale project implementation.”
So that’s very encouraging. A lot of times we read the whitepaper to try and figure out if the team can realistically do what they promise and get out a working product. Because if they can’t we are gonna to lose all our investment. But in this case, a working product is pretty much guaranteed, because their tech is already complete, and we are just waiting for implementation. This makes this project, a much safer investment than many other blockchain projects.
Also torque capital partners are a investment group that are very selective in the blockchain projects they choose, their choices carry a lot of weight in lay investors like us, because uptil now, every blockchain project they have chosen to invest in has seen a 5-25x return. So for me its quite reassuring to see CPChain now in their portfolio.
The website only shows the 3 founders of the project, not the whole team. This is a bit of a bummer for me, because I would like to know if their team is big enough for the workload, if the team is balanced etc… unfortunately, the information is not available. Also there are no advisors listed. You guys know me by now, I don’t like projects that have no advisors, because advisors carry a lot of weight, not just in providing wisdom and maturity to the project, but in helping to get market penetration.
The redeeming factor in their team’s resume is that the 3 names are all very impressive.
Dr. Long Chengnian PhD is A professor at Shanghai Jiao Tong University, Dr. Long has over 40 published works and has twice received awards from China’s Ministry of Education. He has a deep expertise in security estimation and control in cyber-physical systems, mobile IoT and MIMO wireless systems and will lead the technical elements of the project.
Dr. Zhao Bin PhD, also a Co-Founder, has more than 12 years research and development experience across IoT,
including 4 years experience in the IoT department at Alcatel Lucent. He has three patents on IoT and thanks to his work with three major Chinese carriers on IoT platforms and his relationships with government and operators he has secured a pilot project with the Shanghai Automotive Industry.
Shi Qingwei is an early participant in the blockchain and also the founder of my favourite blockchain platform HPB and a very experienced man in the field with many contacts.
So a very tech heavy team, no wonder their tech is basically completed. But I still want to know that there are people on their team who can do marketing, international relations etc… So on a whole their team profile is a pass, but we have definitely seen better team profiles on other blockchain websites.
They do have significant partners within the blockchain space, including QTUM, Vechain, HPB and Metaverse, so the first 2 at least are very significant players and they have obviously seen something in CPChain over the rest to choose to partner with them. Particularly VeChain, who is the leading blockchain supply management project in the cryptospace (competing with Waltonchain), they would have to be very particular about which IOT infrastructure project they choose to partner with because it directly affects their core business. So that particular partnership for me, makes me consider that perhaps there is something better about CPChain compared to the rest that I haven’t picked up yet. Don’t get me wrong, the other similar projects also have great partnerships, but Vechain and Waltonchain are the top IOT supplychain projects, so partnering with either of these two is not just credibility, its also big business for the project from the word go.
At first glance it looks like a very long roadmap, completing only in Jan 2020. But on closer look, its not too bad! Their beta is due to be released in June this year and the v1.0 platform is due to be released in Oct this year. So basically, I foresee this project really gaining momentum around these two time frames, esepecially given they already have completed tech and partners in the field waiting to go, and if Im looking to invest, I would prob jump in before these two dates.
When we covered Walton chain, we mentioned that IOT blockchain projects is a very lucrative field. But if that is so, IOT infrastructure blockchain projects are a super lucrative investment. If you think about it, we are talking about the next major internet move, estimated over 30billion IOT devices in less than 2 years, marketcap of 20 Trillion. And the biggest problem is lack of infrastructure, of which only blockchain projects can offer the cheapness and security that no one else can. So we are the only solution to the biggest problem of the next biggest use of the internet. And there are only 4 prominent companies currently doing this and CPChain is one of them. This is a multi-billion dollar projection we are looking at. If the IOT marketcap reaches 20 Trillion as expected and there are still only 4 companies in the space offering this solution, we are looking at what 5 Trillion? That’s crazy Im not even going to think that, that’s just out of this world. Lets consider that maybe, in 2020 if IOT reaches 20Trillion marketcap and CP chain can get just 1% of that. No in fact, lets be even more humble, just 0.1% of the market. Can you believe that? That’s a very humble estimate right. That’s still a whooping 20Billion dollar marketcap. That’s 6-7 times IOTA’s current marketcap which is believable right, in 2 years time its believable that IOTA could rise 6-7times its current value. But that my friend is 1000x CPChain’s current marketcap. WTH. Not 1000%, 100,000% growth and we are being very very conservative.
CPChain entered the market a very bad time. That’s why its so underpriced.
It entered the market in early Feb at $0.30, and its now $0.09. That’s because the market is so bad, and as described many times in our channel, Bitcoin dominance has been going up, meaning people have been moving money out of altcoins into bitcoin. And the altcoins that suffered the most were the small altcoins, because people were still reluctantly holding on to the bigger altcoins who were more established.
CPChain’s market cap currently is $21million. What the heck, new ICOs are coming into the market raising higher hardcaps higher than that. And this is a project, with great use, already has developed tech, multiple major partners in the crypto space, yet sitting at rank 261 on the market with a tiny market cap of $21million. That’s ridiculous pricing in Crypto space. It really is. This project is one of the most undervalued projects I’ve seen in the Crypto space. I think this project is going to see crazy returns in the couple of years, that just my personal opinion, and when it does, we’re talking about buying not lambos but houses.
I gonna end with a couple of news that I’ve read over the last couple of days, that just made me think how poised this project is to take off.
The first is from 2 days ago
And I wont go into great detail but this was essential a new patent awarded to Ford suggests the U.S. automaker is considering the use of blockchain technology to let cars on the road communicate with each other and reduce traffic congestion. But this is a IOT/ blockchain kind of project. Major players in the world are moving into this space and they can invent the transmission method, but they are still going to need an infrastructure behind, and at the moment, there’s only 1 of 4 to choose from.
The second article is from yesterday:
49% of all blockchain patents in 2017 came from China. And despite the seemingly tough laws set out by China against Crypot the past few months, the Chinese Investment Association of China (IAC) launched a blockchain-focused Global Blockchain Investment and Development Center with the aim of spurring additional research and development in the country. The IAC indicated that it "will vigorously promote R&D, application, promotion, investment and innovation of blockchains in China.
Many times in crypto investment we still look for Western names we recognise. We look for partnerships like Amazon or Starbucks or Big W. Big brand names in the western world and we respect these partnershps. And we should. But we also overlook names we don’t recognise include Chinese companies like Peiwo, Tencent etc.. and I’ve seen so many videos of people reviewing crypto projects, where they dish a Chinese blockchain project, because the whitepaper is written in Chinese and it has a poor English translation. But more than half of English blockchain projects, don’t even bother to have a Chinese translation. And if they do, the translation is just as horrible. What I’m trying to say is, if you look at where blockchain projects are taking off, China is a huge player. And if we disregard Chinese projects, we’re going to miss out on a huge part of the market with potentially huge returns. Everyone knows NEO, and everyone likes NEO. I love NEO and NEO is going to be big, but its not just NEO that is going to be big, there’s gonna be a lot of Chinese projects that will be big, and a lot of them are undervalued at the moment, because they are not hyped yet, but actually if you dig deep, they have the technology all set up to be big and CPChain is one of those projects.
Alright guys, I’m gonna stop rambling here. These are my thoughts on CPChain, I am very bullish on this project, but Im not a financial advisor, so always do your own research and make your own decisions.
Thank you so much for joining us today! I hope this post was helpful for you! If you liked this post give us an upvote and follow. To those who have been following us, thank you so much, your kind and encouraging comments have been really encouraging to us. We read all you comments and it really spurs us on! So thank you so much. Have an awesome day and we will catch you guys tomorrow! :D
We are not professionals and this is not financial advice, just us sharing our thoughts with you. Always do your own research and make your own decisions.
