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Auditchain

Auditchain

Active Pools Min cap Bonus Commission Raised Rating Language Access Created
Last ICO deals

Min cap

0.5 ETH

Bonus

55%

Commission

4%

Raised

102 / 104 ETH

Active

09.04.2018

Finished successfully

09.04.2018

funds sent

Min cap

0.1 ETH

Bonus

0%

Commission

2.5%

Raised

500 / 500 ETH

Active

28.03.2018

Finished successfully

31.03.2018

Min cap

0.5 ETH

Bonus

0%

Commission

2.5%

Raised

102 / 102 ETH

Active

01.04.2018

Finished successfully

01.04.2018

Min cap

0.15 ETH

Bonus

66.66%

Commission

2.5%

Raised

91 / 1025 ETH

Active

21.07.2018

Finished successfully

14.10.2018

Min cap

0.15 ETH

Bonus

-

Commission

2%

Raised

84 / 1020 ETH

Active

22.11.2018

Finished successfully

10.12.2018

Min cap

0.25 ETH

Bonus

55%

Commission

4%

Raised

111 / 112 ETH

Active

09.04.2018

Token release date: After TGE, during mainnet launch

Finished successfully

10.04.2018

Min cap

0.15 ETH

Bonus

55%

Commission

4.5%

Raised

109 / 109 ETH

Active

(not set)

Finished successfully

16.04.2018

Min cap

0.1 ETH

Bonus

66.67%

Commission

2%

Raised

26 ETH

Active

01.02.2018

Finished successfully

02.02.2018

Min cap

0.1 ETH

Bonus

-

Commission

3.5%

Raised

No data / 1000 ETH

Active

01.03.2018

private deal

Finished successfully

02.03.2018

116 eth sent

Analytics

Category: Blockchain Service                                                                  Country: Switzerland   Date: October 01, 2018

 

 

CONCEPT

Project concept description

 

Auditchain is the world’s first decentralized continuous audit and reporting protocol ecosystem.

 

Auditchain is seeking to disrupt enterprise assurance and is building an ecosystem that includes a blockchain protocol and an open source library of GAAP and IFRS compliant accounting treatment smart contracts. Auditchain will enable decentralized consensus based continuous audit of financial statements as well as systems and controls in real-time for stakeholders of decentralized as well as traditional enterprises. The DCARPETM Explorer is a block explorer and reporting interface where consumers subscribe to deeper levels of data and AUDT AnalyticsTM. Revenue is shared with auditors as well as enterprises which lowers compliance costs and increases auditor independence.

 

Market problem relevance and methods of its solution by the project

Market problem:

 

The market for assurance services is dominated by the Big Four accounting firms. The current market for accounting and audit infrastructure software is also dominated by large scale enterprise software providers. The majority of solutions are usually cost prohibitive for most small and medium sized enterprises.

 

Currently an audit opinion on fairness of the financial statements, the status of internal controls, as well as auditor service organization control reports are rendered within a considerable time after the financial statement period. In addition, the audit engagement is with a single provider and is paid for by the enterprise. Auditchain proposes to solve major problems of regulatory conflict relating to conditional and subjective disclosure, laborious manual audit and reporting methodology, conflicts associated with a single provider and the reduction of fraud.

 

To simplify, instead of engaging a single auditor to “attest and opine” on the financial condition of an enterprise, Auditchain enables a network of CPAs and Chartered Accountants operating specialized audit nodes to achieve the same level of consensus based assurance as a validated Bitcoin or Ether transaction.

 

Solution by the project:

 

  • Auditchain will offer the real time reporting of financial statements and the status of systems and controls on a real time basis. Rather than providing an audit opinion on historic information, Auditchain will provide audit analytics and “scored” levels of assurance on financial and operating condition as they occur.
  • A network of CPAs and Chartered Accountants will provide consensus-based assurance on the financial and mechanical state of enterprises as opposed a single assurance provider.
  • Auditchain will offer an open source library of GAAP and IFRS compliant smart contracts that will automate and process GAAP and/or IFRS treatment output on transactions which will reduce large amounts of manual processes currently performed through human effort.
  • System and Organization Control (SOC) audits performed will play a much larger role in the audit process making it possible for real-time data mining and standardization across the entire ecosystem which will play a critical role in forecasting oncoming enterprise and systemic risk.
  • Audit evidence is substantially raised at the time of the occurrence of transactions making it possible for the first time in history to enable real time assurance to occur.

 

The individual enterprise user cost to install and use the DCARPE™ Network protocol software may prove be substantially less expensive as the result of the decentralized cooperative cost structure of all services provided by the Auditchain network.

 

 

TOKENOMICS

Project metrics

Sale dates: 16 April, 2018, Current Private Sale (will end when Pre-Sale will start) and TGE in 60 days.

Public Pre-Sale: starts 15 November, 2018

 

The private sale is ongoing. The first sale occurred in april. The total amount of the private sale is 18,750,000 AUDT. As of 27 September 2018, there are 6,000,000 AUDT remaining in the private sale.

 

Symbol: AUDT

Protocol: ERC-20 (with migration to the own blockchain at launch of the DCARPE protocol)

Price: 0.000666667ETH = 1 AUDT

Bonus: up to 30% (there will be 4 additional bonuses on Public Pre-Sale)

Bounty: 5%

Total Sale Supply: 160,000,000 AUDT

Total Supply: 250,000,000 AUDT (excluding block rewards)

Accepting: ETH

Soft cap: $ 2M (already raised $ 1,5M)

Hard cap: 60 000 ETH

Minimum contribution: 5 ETH for Public Presale, 1 ETH During remainder of TGE

Country: Switzerland

 

NOTE:

  • Hard cap is enough to build the project but from the view of the crypto investor Hard cap is too high to make ROI on the current market (investors can bring only up to $ 5-6M);
  • Hard cap is more than 10 times higher than Soft Cap.

 

Token and funds breakdown

Token Allocation:

64% Token sale (from them 27% for Airdrop, 11% for Private sale and 62% TGE)

10,3% Team

10,3% Advisors

10,3% Partners

5% Bounty

 

Use of Funds:

34% Marketing

28% Development

14% Partnerships

7% DCARPE alliance

17% Reserve

 

Protective measures from token depreciation

Team and Advisers tokens will have 1 year lockup.

Allocation for Sale will have no lockup.

Provided information about the lockup of Partners tokens: “If an enterprise user; No. All others yes.” Unsold tokens will be “dropped” (it can be assumed that it means airdropped).

 

Auditchain intends to make four Airdrops to contributors of up to a total of 42,685,499.996 AUDT following the ICO. Distribution of AUDT for the Airdrop will only be made to holders who do not move any amount of AUDT from their wallets at any time. The Airdrop terms were designed by Auditchain is they are calling it a “Proof of HODL” Airdrop. The Airdrop will reward holders and punish short term sellers. The method of determining the amount each contributor receives can be summarized in the following formula;

 

ALLOCATION=Airdrop Amount* Number of AUDT Held by Contributor

Total Number of AUDT Held

 

The team states that the result of the formula is designed in such a way that if a single contributor is the only contributor who complied with the Airdrop terms, that single contributor gets the entire amount of the Airdrop.

 

Token economy contains the inflationary model.

Approximately 12,500,000 additional AUDT (not included in the initial supply) tokens will be rewarded to all Federated and Non-Federated nodes per year which amounts to approximately 237 AUDT tokens per block.

 

Token Emission Date: TGE begins with public presale on November 15.

Token will be listed on the first exchange 30 days after the TGE (team is in discussions under NDA with most major exchanges).

 

NOTE:

  • KYC verification and whitelisting allows the team to trace all token holders.
  • The address of the smart contract is not released yet.
  • The company that will perform the escrow service foк the sale is not specified yet, but team is in conversations with some companies.
  • Completion of VQF registration and launch of ICO platform with escrow governance is expected.
  • White Paper has no information on the return of investors’ funds in case of soft cap non-achievement.

 

 

 

PRODUCT

Project products and technologies description

Team is developing Decentralized Continuous Audit and Reporting Protocol Ecosystem “DCARPE™, which will be used by enterprises to submit to continuous audit (external validation) of all enterprise data and to stream financial statements in real-time in order to exceed current levels of assurance quality.

 

Technology stack includes: the base protocol layer; GAAP, IFRS and GAAS smart contract layer; application layer; audit node layer; real-time open and permission-based reporting layer.

 

Auditchain will include an implementation of an XBRL layer for enterprise external reporting and compliance and as a tool for research and analytics. The implementation will allow researchers and stakeholders the added benefit of configuring financial statement data in a manner that allows the automated production of proprietary and thesis-based reports.

 

Every business contract and transaction is processed through the appropriate accounting treatment contract and written to the general ledger. Additionally, each transaction as well as accounting and tax treatment data is hashed and timestamped as the third entry to the blockchain. Transaction verification is made through a Proof of Stake (PoS) consensus mechanism. Proof of Assurance (PoA) methodology is used by Non-Federated Nodes to validate the attestations of the Federated Nodes (auditors) Rewards will be allocated as follows: 42.5% of the block reward goes to Non-Federated nodes (PoS), 42.5% go to Federated nodes (PoA) and 15% is allocated to Auditchain and its affiliate for continued development of the network and education of the Auditchain community.

 

Network and Consensus Governance:

 

Federated Nodes are the full audit nodes, that are deployed and operated by qualified System and Organization Control (SOC) auditors and Financial Statement Auditors. They must stake AUDT as collateral to participate on the network. Federated nodes will earn AUDT fees while providing the following services:

1. Continuous audit of all enterpises.

2. Certification of original installation, state and expansion of each user;

3. Supervision and enforcement of new regulatory implementations;

4. Continuous certification of network, node and enterprise user state.

 

Non-Federated nodes will be admitted to operate nodes and be required to stake AUDT as collateral to participate. These nodes will provide:

1. Monitoring and validation of all transactions, blocks.,

2. Monitoring and validation of the state of all smart contracts.

3. Validation of audit attestation.

4. Enforcement of consensus.

 

AUDT will be used by each enterprise to join Auditchain and to pay services on the network. AUDT fees are deducted from the collateral stake and paid to validating nodes in connection with the validation of the deployment. Additional AUDT fees are deducted from the collateral stake in connection with SOC certification and paid to all Federated Nodes.

 

PoS is base protocol for the platform. Blockchain will work on 10,000 TPS speed, but it depends on the number of nodes in the network (more nodes = higher scale and TPS).

 

Stage of development and development strategy (Road Map)

Links to the GitHub not disclosed due to patent pending on the project developments (statement from the admin on the Telegram).  

 

According to the Roadmap in Q4 2018 project should provide the MVP to the public (according to team’s statement MVP will be launched in mid-November 2018).

 

Roadmap provides brief technological overview on the development and is mapped out till the end of 2019:

4TH QUARTER - 2018 Launch of MVP & Token Generation Even

1ST QUARTER - 2019 Auditchain TestNet

2ND QUARTER - 2019 Node Testing

3RD QUARTER - 2019 DCARPE™ Portal xBRL™ Analytics

4TH QUARTER - 2019 MainNet Launch

1ST QUARTER - 2020 Commercial Launch

 

Blockchain importance in the project

Auditchain enables a network of auditors to externally validate enterprise data sets in a similar manner as a BTC or ETH transaction. Current audit methodology only provides for one auditor to provide an opinion on traditional financial statements of an enterprise.

 

Public facing and/or permission based financial statements are impacted by every enterprise transaction and are validated with straight through accounting treatment (STAT) resulting in books and records that are considered as audited in real time.

 

Every business contract and transaction is processed through the appropriate accounting treatment contract and written to the general ledger. Additionally, each transaction as well as accounting and tax treatment data is hashed and timestamped as the third entry to the blockchain.

 

 

 

TEAM AND ADVISORS

Team experience and achievements

Stuart Haber, Chief Scientist - His work “How to Time Stamp a Digital Document” and "Improving the efficiency and reliability of digital time-stamping” was mentioned in the Satoshi Nakamoto’s whitepaper. He has over 30 years in Engineering experience. Research Scientist at Bell Communications Research (6 yrs) / Research Engineer at HP (13 yrs) / Co-Founder at Surety (16 yrs).

 

Chris Danusiar, CEO - brings over 25 years of extensive experience in assurance and accounting technology, most recently as Global Assurance Deputy Technology Officer at EY (2 yrs 9 mths) and Global IT Director- Global Technology lead of Audit Transformation programme (4 yrs). Global IT Services Director at Deloitte (4 yrs 7 mths) / IT Director at PWC (1 yr 11 mths).

 

Eric Cohen, Director of Assurance and XBRL Architecture - He is one of the founders of the XBRL format for the financial industry. He has over 29 years in Finance experience. Assurance Working Group at XBRL International (11 yrs) / XBRL Global Technical Leader at PwC (17 yrs 2 mths) / Owner at Cohen Computer Consulting (26 yrs 7 mths).

 

Jason Mayers, Co-Founder - With over 30 years in venture capital, Investment banking and technology experience. Founder at Vestcomp Ventures (6 yrs 2 mths) / Co-Founder at Matreya (1 yrs 4 mths). Matreya concentrates on enterprise, smart contracts and dApp development, while Vestcomp ventures is concentrated on the incubation and  investment in blockchain projects.

 

Touradj Ebrahimi, Director - With over 24 years in Engineering experience. Professor at EPFL (23 yrs 10 mths) / Adjunct Professor at NTNU (4 yrs) / Founder and Advisor at Emitall SA (10 yrs). Convenor of JPEG.

 

Bogdan Fiedur, Full Stack Developer - With over 24 years in Engineering experience. Senior Software Developer at Online Business Systems (2 yrs 1 mths) / Smart Contract Developer at Voterz (5 mths) / Solidity Dev at MyBit (4 mths) / Advisor & Decentralized Voting Creator  at Swarm Fund (11 mths) / President at Softfornet Solutions (20 yrs 1 mths). He works at the many projects at the same, but team is stating that he is participating in the Auditchain project.

 

Additional members can be found on the Linkedin page of the project.

 

Hector Mariano, Javascript Developer - With over 10 years in Software Development experience. Frontend Engineer at Morgan Stanley (1 yrs 5 mths) / Technical Assistant at Wyncode Academy (1 yrs 1 mths) / Frontend Developer at NightPro (1 yrs 10 mths).

 

Duncan Johnson, Community Development - With over 18 years in Marketing experience. Founder at Groovy Services (10 yrs) / Founder and MD at Yodelay (4 yrs 8 mths).

 

Georges Al Medawar, Director of Business & Community Development - Co-Founder of Omnistry (1 yr 5 mths) / BDO at Humaniq (5 mths) /

Associate at EY (2 yrs 1 mth).

 

Srinjoy C., Security Engineer - Associate, Cyber Risk Assurance → Senior Consultant, Cybersecurity & Infrastructure at PwC (4 yrs)

 

According to provided by the team information on the blockchain development are working: Stuart Haber, Validity Labs, Matreya.io.

 

Project advisors

 

Jonathan Mohan – Advisor with 5 years in blockchain use case analysis. Founding member of Ethereum, Founding contributor to Consensys, Founding contributor to Factom and EOS. His participation in the project is not confirmed.

 

Scott Price - With over 11 years in Auditing experience. Technology Risk Manager at Andersen (5 yrs) / President at SAS 70 Solutions (7 yrs 3 mths) / Managing Partner & CEO at A-LIGN (8 yrs 10 mths).

 

Yaroslav Belkin, Marketing Advisor - With over 11 years in Marketing experience. Head of Marketing at Cointelegraph (8 mths) / Director at KeyDifference (4 yrs), Founder & CEO at Belkin Marketing (11 yrs).


Charles Hwang - With over 18 years in Finance experience. Senior Equity Trader at El Trade Professional Trading (5 yrs) / Advanced Financial Advisor at Ameriprise Financial Services (2 yrs 10 mths) / Forensic Accountant and Valuation Consultant at EY (2 yrs).

 

 

 

PARTNERS AND INVESTORS

Strategic partners

Matreya.io - company provides comprehensive blockchain development, and integration services to enterprise customers. They are developers of the Auditchain.

 

It is mentioned that on the blockchain development working Validity Labs, but there is no confirmation to that in the open sources.

 

Not complete list of partners (confidential) looks good and brings the additional confidence to the project.


DCARPETM Alliance is a coalition of members of the accounting, audit, financial reporting, enterprise and regulatory community. Team will announce the first 30 members during the ICO.

 

Large investors and investment funds

Information about large investors and investment funds is not disclosed.

 

 

 

MARKET

Market competitive environment

Official project documents do not disclose the main competitors of the Auditchain project and do not publish the results of a comparative analysis of their characteristics.

 

Competitors in the blockchain industry:

  1. VeChain but no audit and reporting expertise and no audit network;
  2. Quantstamp but they only do decentralized smart contract audit.

 

Competitors on the traditional market The Big 4 (Deloitte, Ernst & Young, KPMG, PwC) and many other companies that are offering financial auditing services, but they are not offering decentralized audit, (enterprise engagement with many auditors).

 

At the same time, consortium of the key auditing market players Deloitte, Ernst & Young, KPMG, PwC is developing a project, that can be a competitor to the Auditchain, but, according to Eric Cohen, the potentially competing project only covers bank confirmations, while Auditchain provides audit for all spectrum of enterprise data on a decentralized basis. It’s not clear would there be a demand in other auditing services (except blockchain transactions auditing), because if such demand would exist - such services would already be offered by Big Four. Also, he states, that the Big Four move very slow and they will never build a network that will enable them to compete with each other or enter into an audit consensus engagement.

 

The team is not aware of the development of any network that provides or proposes to provide decentralized consensus based external validation of system and control and financial statement data.

 

Project advantages

The main advantages of the project are:

  • Strong team with Stuart Haber, who’s work was referenced in the Satoshi Nakamoto whitepaper;
  • Close work with global regulators
  • Project aims to operate in a very specific niche (with no signs of competitors);
  • Network is secured by combined PoS and PoA (audit attestation independently validated) consensus mechanism;
  • Support of GAAP, IFRS and GAAS smart contracts open libraries;
  • Migration of AUDT tokens to the their own blockchain on the mainnet launch;
  • XBRL layer development is led by Eric Cohen, one of its original co-founders decades ago, and was working on it for many years. Now used by many regulatory jurisdictions including SEC and HMRC in the UK.

 

 

 

SOCIAL ACTIVITY

Project’s popularity in social networks and at topic forums

Team quickly provided requested information for the report. Also, team is responding quickly on the Telegram.

 

As of 10 October 2018, the user base in social networks of the project counts over 8K users, but the audience’s activity is low.


Twitter — 3,1K followers, average number of likes is 32 and to 15 retweets per post, with no comments. The audience activity is low.

Facebook  - 363 followers. average number of likes is 2 and to 0 retweets per post, with no comments. The audience activity is low.

Telegram – 4,1K members, the audience’s activity is medium-to-high but seems natural.

 

Instagram - 474 followers, from 5 to 64 likes and up to 3 comments per post, but those comments are not valuable.

 

According to the SimilarWeb, number of monthly visits of AuditChain’s site achieved 7,9k (23,8k in total for 3 months, which is -83,34% from the last month)

 

 

 

RISK ASSESSMENT

Strengths:

  1. The project team members have solid experience in the project domain;
  2. Token has signs of payment AND utility;
  3. Beta of the platform will be ready in November;
  4. Close work with global regulators;
  5. Network is secured by combined PoS and PoA, (Proof of Assurance) consensus mechanism;
  6. Support of GAAP, IFRS and GAAS smart contracts open libraries;
  7. XBRL layer development is led by Eric Cohen, one of its original co-founders decades ago, and was working on it for many years. Now used by many regulatory jurisdictions including SEC and HMRC in the UK.

 

Weaknesses:

  1. Some metrics, token distribution and vesting information is not disclosed;
  2. No public repositories on the GitHub;
  3. Information on investment funds, which invested in the project, wasn’t posted;
  4. Information on signed strategic partnerships, wasn’t posted;
  5. Some advisors are not confirmed.
  6. The company that will perform the escrow service for the sale is not specified yet, but the team is in conversations with some companies.

 

 

Fraud risk - low. Community interest - low.

Product - 7.3
Team and partners - 7.4
Market - 8.5
Average score - 7.3

DISCLAIMER: This is not financial advice! None of the members of ICOPools.io are licensed financial advisors, hence you are urged to do your own due diligence and take your own decisions. (read more)