NKN Project Analysis

About

Overview

NKN (New Kind of Network) launched in January 2018 and is looking to build a peer-to-peer network connectivity protocol, improving upon the inefficiencies of the current client-server model. It raised funding via an ICO in April 2018. The ICO sold out in minutes and raised over $12mn. 

NKN operates using a Proof-of-Relay consensus mechanism; the first of its kind. Proof-of-Relay rewards data transmission power and network connectivity.

The token itself migrated to the Ethereum ecosystem in a token swap. 

More significantly, its Mainnet was recently released in June 2019, with the development of the protocol assisted by Whitfield Diffie and Stephen Wolfram.

Use case

The primary use-case for NKN comes from the peer-to-peer network connectivity protocol being developed to tackle the current problems of peer-to-peer networks.

Current Problems
  1. Traditional networks are static in their topology and thus vulnerable to malicious attacks.
  2. Traditional networks do not have in-built mechanisms to incentivise network connectivity and data transmission.
  3. Traditional networks sacrifice scalability for controllability.
  4. Traditional networks are centralised for efficiency.
Peer-to-Peer Network Connectivity Protocol

As stated in the NKN whitepaper:

“We use economic incentives to motivate Internet users to share network connection and utilize unused bandwidth. NKN’s open, efficient and robust networking infrastructure enables application developers to build the decentralized Internet so everyone can enjoy secure, low-cost and universally accessible connectivity.”

Given the above aims, NKN views itself as the third pillar of blockchain technology, where Ethereum is decentralised computing; Filecoin is decentralised storage; NKN is decentralised networking.

The peer-to-peer network connectivity protocol will be built using a Decentralised Data Transmission Network (DDTN) that combines the data transmission and network connectivity capabilities of blockchain technology with Cellular Automata to ensure decentralisation of the network itself. The network’s connectivity will be incentivised by tokenisation, with a novel Proof-of-Relay consensus mechanism (described as “a mechanism that encourages participants to contribute to blockchain network by sharing their connectivity and bandwidth to get rewards, enhancing network connectivity and data transmission capacity.”) By doing this, wasted resources are eliminated, termed “useful Proof-of-Work”.

Adoption

The scope for adoption of NKN is potentially a huge market with a real-world use case outside of the cryptocurrency sector. Its main net launched July 1st, 2019, with over 20,000 consensus nodes live on the network; more than Bitcoin and Ethereum. This gives an insight into its potential user base gaining traction amongst other established blockchains in the industry.

Further, as stated here, NKN is currently testing commercial traffic with tier-1 enterprise customers.

Competition

There are no current direct competitors to NKN. Further, NKN has a first-mover advantage with the recent release of its main net. As such we are not able to compare NKN to any direct competitors in the space.

However, Substratum and Ocean Protocol do operate within the decentralised web domain sector but utilise different methods in delivering their product.

Products/Features

NKN currently has one flagship product live, which is its Decentralised Pub/Subsystem. 

Pub/Sub is short for Publish/Subscribe and is a key component to modern applications, with subscribers decoupled from publishers in a connected messaging system. As described here:

“Most centralized applications are not open-source, and protocol is often bound with the application only. Decentralized applications, on the other hand, are most likely open-sourced, and protocol is decoupled from the implementation to allow cross implementation communication. This greatly reduces the friction to design and implement cross application protocols. If multiple applications want to share the same information flow, a decentralized, application neutral and language-neutral pub/sub platform would be essential.”

In short, the Decentralised Pub/Sub powered by NKN will facilitate the detachment of the three application layers from one another: the application itself, the protocol and the data being transmitted.

NKN is currently also developing a New Kind of CDN

Further to this, several dApps have been developed, including SpaceCats (a 3D game), NKN Chat, Smart Home IoT and D-Chat.

About Summary
✅ POSITIVE ⛔ WEAKNESS 📝 IMPROVEMENT
Real-world use case and global market The adoption may take time Increase adoption
No current competitor
Main net live

Tokenomics

Token info
SYMBOL NKN
DECIMALS 18
BLOCK EXPLORER ETHERSCAN
CONSENSUS ERC-20
CIRCULATING SUPPLY 700,000,000 NKN
MAX TOKEN SUPPLY 1,000,000,000 NKN
% MAX SUPPLY MINTED 70%

 

Financials
MARKET CAP $11,896,133 USD
VOLUME (24HR) $6,178,206 USD
PRICE $0.034
VOL TO NETWORK 51%
AVG PRICE 30 DAY $0.03 USD
TRADING PAIRS BTC, USDT, ETH
Token distribution
Circulating supply
Token utility

NKN is rewarded to users of the network as an incentive for data transmission and sharing connectivity.

Token Summary
✅ POSITIVE ⛔ WEAKNESS 📝 IMPROVEMENT
Token Utility within the NKN ecosystem Over one third of NKN supply is distributed to team and foundation Raise more awareness of token utility

Team

Experience

NKN was founded in January 2018 by a team with prior experience in companies such as Google, Nokia and Baidu. They have offices in Silicon Valley and Beijing.

Yanbo Li, Zheng Li and Yilun Zhang co-founded NKN, bringing Allen Dixon on board for business development.

Advisors partnerships

Primary advisors are Whitfield Diffie and Stephen Wolfram.

Whitfield Diffie is considered the father of cryptography, having discovered the concept of public-key cryptography.

Stephen Wolfram is the CEO of Wolfram Research, creator of the Wolfram Language and Mathematica and author of A New Kind of Science.

NKN has active partnerships with Cryptic Labs, Telecom Infra Project, ONF, Datapace, Google Cloud, Digital Ocean, Amazon Web Services, Portal Network, 03 Labs, Web3infra Alliance, IoTex, U Network, Bluzelle, 0xChain, NOIA and Nokia.

Team Summary
✅ POSITIVE ⛔ WEAKNESS 📝 IMPROVEMENT
Company registration and structure Team information listed on the website limited to core team members Increase transparency around team
Wide range of skills and team members
Wide range of partnerships
Milestones for development are being met

Code

Audit

There are several indepedent code reviews for NKN such as here

 

Code Summary
✅ POSITIVE ⛔ WEAKNESS 📝 IMPROVEMENT
Unique codebase None identified Regular independent code audits
No identified security issues

Community

Followers

There is a impressive 20k followers in the Telegram channel and over 10k Twitter followers

Engagement

The majority of the NKN community discussion occurs within its Telegram group.

There are admins and moderators active across all messaging-based platforms answering support queries and other questions.

The average Twitter engagement is 37.3 per tweet, which is 0.36% of its total 10.4k follower audience. At a rate of 37.3 engagement per tweet, this is 4.8 times higher than the average engagement rate across all industries [ref].

The Youtube channel has 14,251 views in total and has the monthly AMA videos with the NKN team posted on the channel.

Governance

NKN uses a New Kind of Proposal (NKP) to allow for the community to influence the development of the project, with proposals put forward in the NKN forum here.

Community Summary
✅ POSITIVE ⛔ WEAKNESS 📝 IMPROVEMENT
High level of users and engagement None identified None identified
Monthly AMA
Governance model
Multilingual website

Technical analysis

Chart


Chart Analysis

Price has recently broken out of an accumulation zone from 200-300 satoshis, alongside a breakout in volume.

This is likely due to the Binance listing, giving the project new liquidity.

The next areas of interest would be a breakout above 900-1000 satoshis or a breakdown back to the previous accumulation zone

Price Summary
✅ POSITIVE ⛔ WEAKNESS 📝 IMPROVEMENT
Listed on major exchanges None identified None identified
Low risk of delisting
High liquidity

Summary

Conclusion

In summary the NKN project scored 75/100 based on our scoring matrix and we rate the project at A-

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

 

Breakdown

Disclaimer
  • This is a community review on behalf of the NKN project.
  • This review is intended for educational purposes only and SHOULD NOT be considered as financial advice.
  • Before investing in any project we recommend you do your own research + consult a registered financial adviser.
  • All information listed is accurate at the time of publishing in October 2019.

 

Methodology
  • We use a combined rating score out of 100, covering all the listed metrics for project reviews.
  • Each metric is rated out of 2 including a potential bonus point in every metric.
  • We also reserve the right to award a bonus point for outstanding achievement for a project