Ether Universe – Due Diligence Report

Summary

Total supply: 100 000 000 000

Token allocation:  30%

Accepted currency: ETH

Underlying platform: EOS

Ticker: ETU

 

Pros

  • An ambitious project with demanded use case
  • Vesting periods on tokens allocated for the team and marketing purposes
  • Quite detailed roadmap

 

Cons

  • Very optimistic assumptions about the revenues of the platform in the future (360k USD per an hour – calculating with a usage of 10k transactions per second)
  • A strong competition which will most probably be only growing in the future
  • Not the best token metrics (the team keeps most of the tokens for various reasons)
  • Not very engaged community, numbers show that most of the community are “flippers”
  • Team members links to Linkedin profiles are not working.

 

54%

 

Team: 2/5

Project: 4/5

Token use case: 2/5

Token Metrics: 2/4

Roadmap: 3/3

Community and marketing: 2/5

Hype: 1/3

 

Description

Ether Universe provides cross-chain services to EOS, Ethereum, Bitcoin and other mainstream networks. Industry, commerce, real estate, finance and other organizations and corporations can also build their own blockchain platforms. Different industries can form their own alliance chains and enjoy the cross-chain services provided by Ether Universe. In the ecosystem of Ether Universe, the team encourages and support third-party developers to develop high-quality applications including: DApp, protocol, smart contract, etc. They also encourage third-party developers to join us to work on the cross-chain platform of Ether Universe and drive the landing of blockchain technology.

 

Team

Many links for Linkedin profiles are not working or are linking to the official Linkedin profile of the ETU and not to individuals person profile.

 

vast zhao

(according to their website)

  • Senior Blockchain & Software Engineer
  • Early Pioneer of Blockchain Technology
  • Authored 10 theses about robots
  • Robotics algorithm specialist

https://github.com/vast-z

 

Eavean Yu – Software Engineer

  • A former security researcher at Orion Labs Former
  • Software Engineer at China Railways

https://www.linkedin.com/in/eavean-yu-170a1b162/

 

Somiar Zhang – Blockchain engineer

(according to their website)

  • Blockchain engineer, cryptocurrency specialist
  • Experienced in the distributed systems and data science
  • Former Software Engineer at Baidu

 

Gump Lee – Blockchain developer

(according to their website)

  • Ethereum and smart contract specialist
  • Former Data Scientist at Baidu M.S., CS at UESTC

 

Project

Ether Universe applies the mixed technology of “notary scheme + sidechain/relays” to cross chains.

One of its important commercial functions is to allow the exchange of digital assets among different chains directly instead of through centralized digital currency exchanges. Similarly, more and more traditional industries may transform their productions into token and record them on the blockchain. Ether Universe will build a strong and competent infrastructure for blockchain networks. It shall provide a series of external services including flexible status channels and service APIs. Any applications based on Ethereum, EOS and etc. can make use of the service provided by Ether Universe and implement inter-blockchain information exchange functionalities. Be it a public blockchain, a private blockchain, an alliance blockchain, or an application based on a blockchain, it may integrate with Ether Universe seamlessly to allow high-speed and secure cross- chain connection and asset exchange at an extremely low cost.

ETU allows all accounts to use an exclusive, human-readable name as an index with the length between 2-32 characters. Account users can choose their own account names. ETU virtualizes ETH or other blockchain accounts and designates a key for each account. The users can use the keys to access subchain logic on different blockchains to exchange information.

Ether Universe is structured over the high-performance third-generation public blockchain which allows 10,000 transactions per second. Ether Universe adopts DpoS consensus mechanism and is equipped with 48 service node. Verification takes only 2-30 seconds which means a transaction can be completed within 30 seconds. ETUChain uses a light-weight Merkle proof (LCV), independent of the trust of other block producers to ensure a minimum expense for any block producers to sync with other blockchains.

ETUChain is the base chain of Ether Universe, a public blockchain based on EOI.IO whose cross-chain functions are developed over EOS. The performance of EOS chain allows ETUChain to provide data services with high throughput and processing capability and low latency. It also supports multiple functions of EOS including accounts, the certainty of applications, concurrent execution, Token model, resource usage and management, script, virtual machine and cross-chain communication.

ETUChain shares computing resources with EOS chain or other EOS side chains. ETUChain has its own committee, witnesses, and computing resources. The computing resource sharing mechanism of ETUChain allows providers of computing resource to share their resource with multiple chains.

Notaries, guarantors, and miners

Notaries and guarantors are introduced in ETU. At the early stages, there are only a very few miners to participate in the verification process which reduces the security of the entire system if verifications only depend on miners. Therefore, notaries will vote with the miners to decide the unlocking of tokens. Different notaries have a different weight which is decided by the system construction schedule and guarantors. The guarantors are a community with weight. They trust the security deposit to the notaries, elect notaries or groups to represent them in the voting.

ETU doesn’t want to use all the miners to vote and generate verification information even though it is a relatively secure plan, it dramatically increases system latency. Therefore, ETU will randomly choose a proportion of the miners from its system to vote. The proportion is dynamic. When the base number of miners is small, all miners will be chosen to vote while the base number is huge, only some will be chosen. All miners have reputation value which is linked with random seed to ensure miners with extremely low reputation value will never get to vote so that the system security is guaranteed.

The security is also strengthened by the 48 supernodes Ether Universe set up around the globe. Even under a hacker attack, as long as the majority of the nodes are functioning normally, the whole network would remain unaffected.

The Latency of the network

While communicating with EOS blockchains, the average time is around 45 seconds relying on the appointment interest proof and 21 miners. If miners on a certain chain don’t wait for the transaction confirmation, the transaction would be seen as accepted and then revoked which will affect the effectiveness of chain consensus. The time needed to communicate with other types of blockchains depend on the confirmation time of the notaries and miners. While communicating with EOS blockchains, the average time is around 45 seconds relying on the appointment interest proof and 21 miners. If miners on a certain chain don’t wait for the transaction confirmation, the transaction would be seen as accepted and then revoked which will affect the effectiveness of chain consensus. The time needed to communicate with other types of blockchains depend on the confirmation time of the notaries and miners

 

Token use case

Ether Universe consists of a base chain and subchains based on different blockchains. The base chain is the most essential part of the entire ecosystem which bears the interchange logic of the whole platform and records all exchanged information. The tokens generated from the base chain will be used to pay for the GAS cost for each cross-chain service. The subchains assist the base chain to make two-way anchoring towards other blockchains. Users play the role of consumers in the ecosystem. They purchase GAS using ETU tokens to get cross-chain services.

ETU bears the function of payment, circulation, and exchange on the platform. As both the need for inter-blockchain transactions and the number of platform users increases, plus the sustainable development of eco-economy, the need for ETU will also increase which could result in the rise of ETU value. ETU can be also used as a payment to purchase Ether Universe cross-chain cold wallet or third-party application services.

Ether Universe locks ETU position to motivate the users without short-term transaction needs and reduces circulation volume may also cause inflation.

 

Token metrics

In order to motivate all participants in Ether Universe ecosystem, promote a healthy development of the platform, Ether Universe releases 100 billion platform token ETU as the “fuel” of the ecosystem which can be used for payment in cross-chain transactions.

As seen above only 30% of the whole supply will be offered in pre-sale.

Ether Universe reserves 20% of its tokens as an eco-fund that will be used to incubate or support high-quality application in the ecosystem and motivate the top contributors.

25% of the tokens are used for operation and marketing of which 5% are used to motivate early stage community users. As for the remaining 20%, 50% of the total amount will be released every year and will be fully released in the fifth year.

15% of the tokens will be used as a reward for the core team. Ether Universe promises that no more than 10% of the entire proportion will be unlocked each season

Management Foundation: This part of the tokens will be used to motivate the excellent contributors in the ecosystem as well as maintain the daily management of the foundation.

 

Roadmap

A three-phase promotion strategy is adopted:

In Phase One, Ether Universe will reach cooperation with different subchains in order to reach the purpose of using their nodes to help verify transactions for Ether Universe.

Ether Universe will rely mainly on notaries and guarantors for transaction verification in Phase Two. Trust nodes accumulated in the previous stages can act as guarantors. In this phase, miners on various blockchain platforms start to join in the verification

In the third phase, miners, notaries, and guarantors will all participate in the verification with the purpose of guaranteeing the steady and iterative development of Ether Universe.

 

  • Jan 2018, complete the market research of cross-chain value transfer over EOS, Ethereum, and other main blockchains.
  • Jan 2018, completed technology research and confirmed system framework.
  • Jan 2018, the official launch of the project. Official website 1.0 went online.
  • Feb 2018, research is completed. Platform product format is confirmed. Mar 2018, complete overseas community construction. Reach more than 180K overseas community users.
  • Apr 2018, Angel round funding started. Apr 2018, initial cross-chain technology framework built on EOS test network.
  • Jun 2018, Funding started in countries where digital currency investment is illegitimate.
  • Jul 2018, ETU listing on one of the top 15 global digital currency exchanges.
  • 23 Sep 2018, published first on-chain asset exchange platform. Sep 2018, set up supernodes.
  • Oct 2018, test subchain compatibility of EOS main chain.
  • Dec 2018, test cross-chain interaction between EOS and Ethereum network.
  • Feb 2019, release Beta 1.0 version. Open source code at Github.
  • Mar 2019, officially launch cross-chain API and relative documents.
  • Apr 2019, release Beta 1.0 cross-chain wallet.
  • May 2019, carry out multi-center cross-chain node network security protocol using independent nodes.
  • Jun 2019, test and optimize the main network.
  • Aug 2019, build Ether Universe eco platform and accept third-party developer.
  • Oct 2019, launch the first series of third-party applications.
  • Nov 2019, build developer communities and optimize the entire platform with developers.
  • Jan 2020, digital assets from traditional industries begin to integrate into Ether Universe.

 

Community and marketing

Their Github https://github.com/EtherUniverse is not very active, they only forked few repositories they needed, but their only coding contribution so far is for token distribution and Telegram bot. On Linkedin https://www.linkedin.com/company/ether-universe-labs/ they have 23 followers.

Their Twitter https://twitter.com/ETU_Official has about 1700 followers. On Facebook https://www.facebook.com/EtherUniverse/ they have almost 2000 followers. Their Telegram https://t.me/ETU_Official channel has about 5300 members. They also have another bigger channel – for a community – on Telegram https://t.me/EtherUniverse and that has more than 72 000 members.
Although they have a misleading information on their website:

The differences between the number of people who are following their social media and who are just following Telegram, lack of Discord or Slack channel and most importantly lack of any discussion on Reddit, shows that the community is just building hype and there is not really a strong engagement in the long-term success of the project. They also have no official blog. Also, most of the members on Telegram seem to have come just because of the airdrop, there is not that much activity in the channel compared to how many people are there.

On the website, they claim to have a lot of partnerships, but it is questionable which of those are real partnerships. For example, they claim to have a partnership with Yahoo Finance, but it seems that it only included that they wrote a small and unengaging article about them.