Newton Protocol

The competition on the infrastructure blockchain project is growing fast. A lot of projects is trying to solve issues of transaction speed and transaction costs, to let blockchain technology become mainstream. The current low capacity of the main blockchain protocols and cryptocurrencies (Bitcoin, Ethereum), nearly 10-30 transactions per second (TPS), does not match with the world's commerce needs at all. In contrast, Visa claims to have 56,000 TPS on its network, while Alipay has achieved 200,000 peaks TPS in November 2017. The scalability problem of the current blockchain-based systems poses significant limits for their extensive applications. Especially Chinese startups and corporations are very active on this market. In order to solve scalability problem without compromising its security and decentralisation, several projects have already launched the alternative protocols that aim to significantly increase the throughput of the blockchain protocols. For instance, EOS launched its infrastructure for dApps, which Test Network can sustain over 10,000 TPS. EOS raised $197M during its ICO in June 2017 and now is the one of the largest cryptocurrency in the world by market cap. IOTA is able to process 500-800 TPS, raised $400M and now 11th by market cap in the world of cryptocurrencies. Newton Protocol promises to show 200k TPS, however, it will happen only in 2019. Moreover, it looks relatively week. Other projects has more deep expertise in blockchain, some of them is about to release their mainnet. In such market conditions, Newton is not the candidate to become new BTC or ETH. Nowadays, competition in this sphere of blockchain is fierce. Only 5-star projects could grab substantial market share. Moreover, classical blockchains could create new versions with substantially higher TPS (Sharding, Plasma, State Channels, Lightning Network), as a result, the unique value of Newton Protocol would be even smaller.

Newton Project does not develop huge stack of new technology. In fact, it wants to combine existing technologies in original manner to create new products and value. Founders promises wide range of functions: creating and managing DID (Decentralized ID), managing of all transactions, digital asset management (incl. NEW, BTC, ETH, etc.), cross-border transactions and micro-payments, multi login in Dapp, it’s management and permission control.\nProject would implement following technology. NewChain will have a main chain and sub-chains structure. NewVM is compatible with the Webassembly standard, supporting various general programming languages such as C/C++, Java, Python, TypeScript, and more. The system provides built-in smart contract templates for the hyper exchange protocol. NewChain uses Ring-LWE anti-quantum encryption algorithm to ensure maximum security of all assets within the Newton ecosphere. NewNET consists of a large number of nodes that run on an open network providing reliable storage services and supporting a full SQL database and various general programming languages. By using radiometric dating, PCA, machine vision, and deep learning technology Newton can quickly extract multiple characteristics of a certain material asset, including; weight, volume, size, shape and other features. NewAI (Distributed Artificial Intelligence) promotes the development of AI from three aspects; data, algorithm model, and execution engine. By using these three aspects the Newton NewAI closely connects the data suppliers, algorithm model developers and operating system providers together.\nAll-in-all, project do not have clear focus. It is unlikely, that all of described functions would be alive.

The brief explanation of Newton model is simple: infrastructure for protocol-based economy. The project helps users secure and control their personal data through cryptography, and let them manage their personal credit. Users share the profit produced by their data in a pre-agreed manner. Personal credit can be automatically created in a free and open manner without authoritative intermediaries. It creates more effective incentive mechanism. Replacing traditional business intermediaries by technology protocols will reduce the transactional cost and reward each who contributed in the transaction; such as service providers, consumers and other participants connected by the value-based Internet.\nIn fact, there are no difference in model between Newton Protocol and many other existing blockchain projects.

No token metrics or other financial parameters has been announced. Newton Project does not have strong team, the idea is not unique, the competition on the market is fierce. As a result, such project could not attract more than $5 mln, even on ICO market. However, it has already been announced, that 13 angel investors have taken part in this project. Even if they invest only $50k, it is $650k. As a result, it is small probability, that the project would have small hard cap. All this angel investors is not the top-tier funds or experts in blockchain. It is usual entrepreneurs or top managers of Chinese companies. As a result, the finance side of the project looks not good enough.

Newton Protocol does not have clear description of the team, however, it has a lot of information about advisors and angel investors. However, the founders team is the most important in any project. Founder and CEO of Newton Protocol – Xu Jizhe – also was a co-founder of Elastos. He was a founder of Zeuux, which is a community for free software usage. Cofounder of Newton - Li Shubin, was a founder and CEO of OKbuy, online retailer. Joint Chief Architect – Xia Wu – does not have an experience in blockchain, he was also a co-founder of Zeuux. Meng Guang –Joint Chief Architect – also do not have experience in blockchain. He was database administrator in Aspire Information Technologies (Beijing) Ltd and system architector in SINA Corporation.\nAs a result, Newton Project has medium team with no deep expertise in blockchain, but with the substantial entrepreneurs experience.