SharesChain claims to be the first public blockchain that anchors real assets with a mining mechanism. Find out what that means today in our review.
What Is SharesChain?
SharesChain, found online at SharesChain.net, is a community-owned fundraising platform that.
According to the official website, “acts as a bridge between the real world financial assets (e.g. equity) and the blockchain space.”
The goal is to allow off-blockchain startups or established companies efficiently raise capital at a low cost by tokenizing part or all of their assets using the SharesChain ecosystem.
If successful, SharesChain will create a safe and legal tool that provides benefits to both companies and investors: companies can use SharesChain to access new sources of fundraising and liquidity while investors can use SharesChain to find new investment opportunities.
Overall, SharesChain claims to be the first public blockchain anchoring real assets with a mining mechanism. Let’s take a closer look at how it works.
How Does SharesChain Work?
SharesChain allows companies to create asset-backed tokens – including tokens that represent real shares or ownership of a company.
These tokens are backed by more than an ordinary digital currency. Traditional cryptocurrencies are backed by demand and their underlying technology, while SharesChain would be backed by real assets.
Core features of the platform would include all of the following:
- A Technological and Legal Platform: SharesChain would allow assets of the real-world (like company shares) to be legally represented as tokens.
- Legal Contracts and Smart Contracts: SharesChain would have legal and smart contracts that allow users to comply with KYC, AML, and other protocols in jurisdictions worldwide.
- Open and Decentralized Network: SharesChain’s open network would allow anyone to invest in tokens.
- On-Chain and Off-Chain: Legal and smart contracts would work together to secure collaborators on-chain and off-chain.
The SharesChain technology stack consists of three layers, including:
- Application Layer (Decentralized Apps): Smart contracts, assets register, assets issuer, assets transactions, and assets settlement
- Protocol Layer: KYC, AML, assets certification, information storage, and protocol stacks
- Infrastructure Layer: Consensus algorithm (D2PoS), smart contracts, and dynamic P2P networking
What Problems Does SharesChain Seek to Solve?
Why do we need a platform like SharesChain? Here are some of the crucial problems the platform seeks to solve, according to the whitepaper:
- Startups and high-tech companies struggle to obtain funding and investments
- The mobility of over-the-counter shares is low, and the shares-exit mechanism is problematic
- Individual investors struggle to obtain shares “due to the hurdles and obstacles in obtaining them”
In the crypto industry, there’s a problem where token purchasers cannot be certain that project leaders will fulfill their promises and meet the expectations of purchasers, which makes investors wary about investing in risky crypto projects
SharesChain Features and Benefits
SharesChain will implement all of the following features and benefits:
- A global community that operates in diverse jurisdictional areas
- Assets are represented by tradeable tokens
- A structured and unlimited trading flow path
- A decentralized credit system maintained by communities and enterprises, where transactions are encoded on the blockchain without the need for a centralized authority or bank
- No geographical restrictions for entrepreneurs or businesses
- Community reviews and interactions that allow investors to make informed investment decisions
- Automated execution based on smart blockchain contracts, reducing transaction costs and ongoing management expenses (smart contracts replace the middleman)
How Do SharesChain Tokens Work?
SharesChain will have its own tokens called SharesChain tokens, or SCTK. These tokens will be utility tokens for the SharesChain platform. The tokens will have five core functions:
- Pay platform fees using tokens (small fees are deducted from each successful issuance on the platform)
- Pay commissions using tokens (small fees will be paid by investors)
- Pay transaction fees (transaction fees on secondary markets)
- Burning mechanism (part of SCTK tokens will be burned to reward investors)
- Share proceeds (SCTK holders will be entitled to “share all proceeds of the community”, according to the SharesChain whitepaper
SharesChain tokens will also have a mining mechanism. Investors will get SCTK rewards by staking funds on SharesChain. Higher rewards are offered for early adopters.
All transcation fees charged by the SharesChain network will go to a fee pool, and that pool will be used to help achieve objectives for the company.
The SharesChain Token Sale
There’s a total supply of 20 billion SCTK tokens. Of those tokens, 40% are available during the pre-sale. The remaining tokens are allocated to the mining pool (40%), operations (10%), and team incentives (10%).
- no tokens reserved for any sale beside the pre-sale
- The pre-sale will be the only time when you can buy tokens.
- The pre-sale will have a hard cap of 30,000 ETH
- The pre-sale will have asoft cap of 5,000 ETH.
- the SharesChain pre-sale is taking place from April 29 to May 29, 2018.
Who’s Behind SharesChain?
SharesChain was founded in November 2017, although the team has been building blockchain applications and custom blockchains since 2015.
Key members of the team include co-founders Peter He, Z. Johnson, Kevin Yang, and “Grant”. The team is based in China.
The SharesChain website lists a number of institutional investors that have already invested in the project, including Cretrend Capital, Redmud Green Energy, CPChain, HPB, and Banyan Network.
SharesChain aims to act as a bridge between real world financial assets and the blockchain, allowing off-chain startups and companies to tokenize their shares, then legally offer shares for sale to investors. The goal is to help companies access a new source of fundraising while helping investors access new opportunities.
To learn more about SharesChain and how it works, visit online today at SharesChain.net. The company’s token sale for SCTK tokens is underway until May 29, 2018.