Burst Project Analysis

About

Intro

In another edition of our project reviews, we decided to have a look at BURST. In this review, we will dig deep into this project and give you all the answers. We took an in-depth look by examining the project, its team, tokenomics, community, and technical analysis, among other metrics.

If you wish to skip to the summary to see the SWOT analysis, matrix score, and rating, click here.

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Overview

BURST was launched in August of 2014, introducing an innovative type of Proof-of-Work called ‘Proof of Capacity’ (PoC). 

Use case

The project aims to present a development platform similar to Ethereum, with an effective alternative to energy-intensive mining practices which utilise CPU, GPU, or ASICs.

Rather than consuming electricity to hash transactions, BURST’s unique ‘Proof’ mechanism mines by dedicating hard drive (HDD) space to BURST (the ‘Proof’ that HDD ‘Capacity’ is available) and then verifying it periodically. This method is far more energy-efficient than other POW schemes, as no energy-intensive calculations must be completed to mine BURST.  

There are a wide range of features available within the BURST ecosystem including Payment Solution, Arbitrary Messaging, Smart Contract, Token Creation, and the ability to Crowdfund via the BURST community.

BURST’s unique PoC mining mechanism provides the foundation for a coin with scalability both in terms of network proliferation (mining) and transaction load. PoC mining also offers green energy efficiency that surpasses other PoW mechanisms. 

In summary, BURST’s unique PoC solution to the problems presented by conventional PoW mechanisms offer a compelling case for the dissemination and implementation of an improved Proof-of-Work, while also providing an open-source and feature-rich blockchain development platform.

Adoption

PoC makes BURST adoption appealing:

  • BURST’s low barrier to entry means that anyone with minimal hardware can begin to verify blocks and mine BURST
  • BURST does not require a significant ‘stake’ to generate staking rewards, meaning the initial investment to validate blocks and create value will be close to zero for most new participants.
  • BURST’s PoC mechanism is inherently safer than most other independent blockchains because it is not as susceptible to a catastrophic 51% attack (wherein a malicious actor can re-write the blockchain by gaining control of a majority share of the network).
  • However, we must note that setting up the PoC mining can be time consuming and technical.

BURST also has many other features in common with other cryptocurrencies that lend themselves to creating a currency with worldwide adoption, such as smart contracts and payment solutions.

At the time of review, there have been over 137,000 Burst wallet downloads, 733 Smart Contracts created, and 408 Assets/Tokens issued.

 

Competition

BURST was the first coin to deploy HDD as a ‘Proof’ mechanism widely. However, other coins utilise HDD mining for varying purposes.  SIA and STORJ both will allow ‘miners’ to offer unused HDD capacity for cloud storage. These projects are in development and not fully deployed. 

  • ETH market capitalisation: $18.7 Billion
  • SIA market capitalisation:  $133 Million
  • BURST market capitalisation:  $11 Million  

BURST was also the first coin to act as a smart contract platform. Smart contracts are a technology seen more commonly in projects with much higher market caps, such as Ethereum, Cardano, and Stellar, however, as we can see from above the market cap of BURST is dwarfed in comparison to its direct competitors. 

Products/Features

BURST’s unique codebase and HDD mining method have placed it at the forefront of blockchain innovation since its inception.

In addition to this flagship feature, the BURST team has both pioneered other now-common features in blockchain (such as smart contracts) and implemented improvements initially designed for other blockchains into its codebase.  

 

Tokenomics

Token info

 

Coin Utility

Currently, Burst is utilised in several ways, including:

  • The creation of smart contracts/assets on its network
  • Using the BURST messaging system
  • Using the crowdfunding platform
  • As a payment solution

Team

Experience

BURST team is composed entirely of volunteers.  There have been a few different organised development teams over the years.  The PoC Consortium (PoCC) took over BURST technical leadership in 2017 and announced the BURST Dymaxion, known as the Linux of blockchain. Under their direction, Burst saw significant improvements from the core wallet, to pool and mining software, and even the POC2 protocol.

In early 2019, the PoCC stepped down and a new group of community members, The Burst Alliance, have committed to performing ongoing Burst development and marketing into the future.

BURST classes itself as a decentralised project/cryptocurrency and has no registered company or foundation listed for the project. 

There are three teams listed on the project website, each with different focus areas. Team members are listed, alongside their social media information, with several team members listing a LinkedIn profile, as well.

Advisors partnerships

BURST doesn’t have any designated advisors or any partnerships.

Development

The development milestones are listed on the project’s roadmap in detail, with short, mid and long term milestones outlined, along with previously completed milestones. As expected for a project launched in 2014, there have been notable developments with many more in the pipeline.

We see it as a positive that the BURST team are compartmentalised, with each team concentrating on its own milestones.

Finances

The team state that the current sources of funding for the project include:

  • Community fundraising/donations
  • Pool fees generated by several mining pools

BURST is not currently making any significant streams of revenue, and there are no current public financial reports for the project.

We recommend all projects provide at least one public financial report every year.

Code

Audit

There has been no external code audit for the Burst project.

CodeBase

As mentioned earlier, BURST was launched in 2014 as a fork of the NXT codebase. It has changed drastically since then and most of the Beta has been rewritten in Kotlin.

Activity

A quick search on CryptoMiso shows there have been 419 commits on the Burst Github in the previous 12 months and 44 contributors listed.

Community

Followers

Analysis of the projects social media channels shows the following community members:

  • Reddit 6700 followers
  • Discord 6242 members
  • Twitter 662 followers
  • Telegram 1645 members
  • Youtube 161 Subscribers

Using the Social Blade analysis tool, we can see the organic following growth on social media since the project launch, with the most users on Discord and Reddit. The team explain that the current Twitter account for the project was created after the current team took over, hence the relatively low follower account.

Engagement

There are several channels for communication, including Telegram and Discord; however, Discord seems to the main channel of communication as it allows for the organisation of numerous channels/rooms.

Regular project updates are provided on Discord, and the server is well organised.

There is a regular activity in the Discord chat, and admin/mods are engaged with any questions from the community, replying promptly.

There are several Twitter accounts for the BURST project, including a development and marketing account. For this review, we have reviewed the marketing account.

According to RivalIQ, the average Twitter engagement total per tweet is 24 per tweet, which is 3.6% of its total 662 follower audience.

At a rate of 24 engagement total per tweet, this is over three times higher than the average engagement rate across all industries [ref]. More impressively, the engagement rate per Tweet is 3.59% or over 74 times more than the average engagement rate.

Governance

Burst is a community-led project; as such, all decisions are discussed and implemented through the community. There is currently no formal governance structure, such as voting on the BURST blockchain.

Website

The website for BURST is relatively easy to navigate and contains detailed information around the project, along with being multiple language options (English and German). We recommend also adding other languages such as Russian or Chinese. The website is secured via HTTPS and is GDPR compliant for European users.

Technical analysis

Chart


Chart Analysis

For chart analysis, we are using CoinTrader and analysing the BURST/USD pair

Price is currently in a consolidation phase after a sustained downtrend over the last 18 months. Burst has bounced off a long term support level at 2c and is presently testing a resistance level around 4-5c.

Areas of interest would include a breakout above 5c on the upside and a breakdown below 2c on the downside.  

Data

Information for BURST is available on all the leading listing sites such as CoinPaprika and several charting sites, allowing for users to get all the information they need about the project. 

BURST is currently listed at seven exchanges including BTDEX, a decentralised exchange built on the BURST network. It is also worth noting that BURST is listed at Bittrex, a fully regulated US-based exchange.

Pairings

BURST currently has the following trading pairs across the various exchanges it is listed:

  • Bittrex (BTC pair)
  • UpBit (BTC pair)
  • EtherBase (BTC, ETH, EBASE, EUR and USD pairs)
  • QBTC (BTC pair)
  • STEX (BTC pair)
  • Livecoin (BTC pair)
  • Btdex (BTC pair)

These include fiat and stablecoin pairings, giving the project a bonus point. We award full marks for this section as BURST is listed on Btdex, a decentralised exchange built on the BURST network.

Liquidity

Liquidity is relatively low, with around 35-40% of the circulating supply available for trading on exchanges; however, the daily trading volume is consistently approximately 0.5% of the total market cap.

Summary

Conclusion

Overall we can identify lots of positive areas for the BURST project, including the features on its platform, the organisation of its team, and also the loyal support of its community. On the other hand, BURST is a project that has had a development advantage over its competitors due to its earlier launch date, yet has struggled to gain adoption of either its platform features or of its coin.

We feel that BURST is a solid project wich could stand to benefit from an increased focus on marketing and efforts to increase adoption. In summary, the Burst project scored 69/100 based on our scoring matrix, and we rate the project at a B+ rating.

ABOUT USE CASE
✅✅
ADOPTION
✅✅
COMPETITION
FEATURES
✅✅✅
ROADMAP
✅✅✅
TEAM PUBLIC
EXPERIENCE
✅✅✅
DEVELOPMENT
✅✅✅
PARTNERSHIPS FINANCES
CODE AUDIT
CODEBASE
✅✅✅
ACTIVITY
✅✅
DOCUMENTATION
✅✅
ENGAGEMENT
✅✅
COMMUNITY COMMUNICATION
✅✅✅
FOLLOWERS
✅✅
GOVERNANCE
ENGAGEMENT
✅✅✅
WEBSITE
✅✅✅
TOKENOMICS DISTRIBUTION
✅✅
EXPLORER
✅✅✅
EMISSIONS
✅✅✅
UTILITY
ENTRY
PRICE EXCHANGES
✅✅✅
LIQUIDITY
PAIRINGS
✅✅✅
DATA
✅✅✅
T.A
✅✅
MISC LEGAL
HYPE
✅✅
WALLET
✅✅✅

 

Breakdown

Disclaimer
  • This review is a community voted review on behalf of the BURST project.
  • This review is intended for educational purposes only and SHOULD NOT be considered by you as financial advice. 
  • Before investing in any project, we recommend you do your research + consult a registered financial advisor.
  • All information listed is accurate at the time of publishing in February 2020.

 

Methodology
  • We use a combined rating score out of 100, covering all the listed metrics for project reviews.
  • Each metric is rated out of 3, including a potential bonus point in every metric. 
  • We also reserve the right to award a bonus point for outstanding achievement for a project.
  • Our rating and grading framework is available here.