Liesa Huang: Welcome to the fourth SCO Lab AMA. Tonight, we invited AccuChain Co-founders Tim Connelly, Maura Sparks and Maxim Martynenko.
Tim Connelly is a high-tech executive and co-founder of three high-tech companies. Holds US patents in electronics engineering. Former President MIT Club of Northern California. MIT BSEE, Stanford MBA.
Maura Sparks is an experienced entrepreneur. Co-founder of three technology companies in emerging markets. Advisor to early-stage companies in connected consumer appliances and software industry. SFSU and Dominican University.
Maxim Martynenko is an expert in blockchain security and development. 10+ years as a developer in all programming languages. Knowledgeable in crypto-currency market analytics. Kherson National Technical University.
Liesa Huang: We welcome to Maura to give us a brief introduction on AccuChain..
Maura Sparks: AccuChain is a credentialing, achievement & certification blockchain solution. There will be multiple use cases. Our first use case is to validate college application data for high school students. In parallel, we are expanding the application development to include professionals. This includes academic diplomas, awards, letters of recommendations, references, certifications, and credentials.
- AccuChain Vision: Our vision is to create a blockchain platform for all ages which will provide a customized record of personal achievements that will last a lifetime.
- AccuChain Mission: Improve the process of validating university applications and professional resume data.
Liesa Huang: Can you please tell us why you started AccuChain?
Maura Sparks: When the college admissions scandal hit the news, we knew there had to be a better way. The level of deception uncovered a very flawed system. Honest, hard-working students were denied placement at their top university. We knew there had to be new measures in place to prevent this from happening again. Thus, we began to think of immutable and validated records on blockchain. This was the genesis of AccuChain.
The current US selective colleges receive 1.7 million applications for less than 100,000 seats. The current situation with a 13% accept rate is much different than just 18 years ago in 2001 when only 0.66 million applications were submitted, and 31% were accepted. This means that a students’ admission can often hinge on how well they stand out with their extracurricular activities, and other non-academic achievements. This has created a unique opportunity for AccuChain to fill.
For adult professionals, employment-oriented portals are a target partner. The user entered data is not checked for accuracy — thus, there is an obvious need for validation of many of the information entered by users. For example, there are over 500,000,000 LinkedIn users (global total).
A relative of a co-founder applied for a job that requires three references from prior employers with a very short deadline. AccuChain would be a vehicle for our customers to solicit Letters of Reference for their blockchain file whenever they leave a job — thus having that record available easily. The employer also wanted proof of her certification for a particular skill. The applicant could have benefited from AccuChain’s validation of their credential — providing a validated record and quick turnaround.
Liesa Huang: The second question I have is for Tim on your revenue forecast? Every member should pay close attention to this one. My understanding is they have already plan on their income revenues.
Tim Connelly: The graph of our annual revenue figures in millions of US dollars is for the US market only. Revenue is shown for our two main market segments: 1) The HS (High School) Validation market, and 2) The Adult Professional market. We will be working hard to increase our FY2020 revenues. The initial sales of Adult Validation Services is expected to start Q3 of FY2020.
Liesa Huang: Maura, I have another question for you. What are your plans for Chinese market?
Maura Sparks: AccuChain is currently focused on the US market initially, but we have plans for expansion globally, to include the Chinese market. Students seeking higher education understand the importance of being admitted into a top university. Chinese youth are seeking admittance into top universities in America, Europe and Asia. We think AccuChain can help all students met that objective and standout with validated credentials.
AccuChain can also help professionals keep a chronology of their career achievements ready for use when needed. We see this as a universal demand and an important step to creating authentic and accurate records for hiring manager.
Liesa Huang: What are the usage and application scenarios of your ACCU Tokens?
Tim Connelly: In its role as a ‘utility token’ the ACCU Tokens are needed to reward the four types of token holders or platform users:
1) New AccuChain token holders will be incentivized with ACCU Tokens.
2) The NULS Community individuals that monitor, maintain and upgrade the NULS consensus node network need to receive ACCU Tokens on a continual basis as an incentive to keep our customers’ blockchains active.
3) Ongoing marketing that is not paid for in US dollars is able to use ACCU Tokens to retain customers, and promote our Company via branding, with colleges in Phase 1, and later with the larger professional community.
4）The AccuChain team which includes our software developers on staff need to be compensated in both fiat currency and ACCU Tokens.
Liesa Huang: Why do you want to participate in the SCO program?
1) We have already committed to working with NULS as our blockchain technology partner.
2) The SCO program provides a near term vehicle for AccuChain to obtain seed funding for the development of our MVP as described in our White Paper.
3) Launching our project which will positively impact NULS creating a win-win partnership for both companies.
4) We are looking forward to our prototype product demonstration this week as it is readied for submission to the NULS Hackathon.
Liesa Huang: What will be the total supply of ACCU Tokens on SCO?
Tim Connelly: There will be estimate of 14,862,600 ACCU tokens issued through SCO mechanism over a period of 6 months. And that makes up to 0.99084% of total supply. NULS holders have 100% liquidity of their investment. The skaters will receive ACCU tokens each month based on a ratio or multiplier times the number of NULS that are rewarded. The current plan is that this ratio is 100 to 1.
Liesa Huang: 1% totally supply will be issued in 6 months.
Last question: What are the advantages of AccuChain and why should NULS token holders support our node?
Maura Sparks: Let me enumerate key advantages that AccuChain will be creating:
1） Our ‘Achievement Validating Platform’ will guide users in the establishing of third-party validated achievements and credentials using blockchain technology. Currently, it difficult for individuals to prove that they have accomplished a major ‘success’ in their personal life in a way that can be shared with potential gatekeepers (e.g., universities and employers).
2）AccuChain is creating a new type of Smart Contracts between the users, third-party validators, and the AccuChain platform.
3）Our AccuChain Utility Tokens will be attractive to multiple NULS participants:
a. SCO program participants;
b. Post SCO token holders;
c. NULS Community developers;
d. AccuChain users and individual validators
Liesa Huang: Thank you, Tim and Maura, for your introduction on the principles of AccuChain. Now lets answer questions from the Community.
Liesa Huang Q1: How many ACCU tokens will be generated through the SCO?
Tim Connelly: We are being conservative with 6 nodes having 350,000 NULS per node, and a 6 month time period. This is the basis for how many NULS are rewarded. Our Whitepaper indicates that the ratio is 100:1 for ACCU Tokens to NULS.
Liesa Huang Q2: I took a look at your whitepaper and you mention the need for an exchange to sell the token. It seems to me that the usefulness of your token is well thought out on the platform but not attractive to the second market. What are the reasons for buying the token? Merely speculative? Because then it will be difficult to sell the token without buyers. And the devaluation of the token will be huge. Correct me if I’m wrong.
Tim Connelly: Regarding the sale of the ACCU token — we consider our tokens Utility tokens, however, they can be listed on an exchange. The price on the exchange is difficult to predict as we all know. There are some issues with the US buyers of tokens, but that is beyond the scope of this answer.
Your question is related to whether our token will become a Security Token rather than a Utility Token. We can explore this in more detail in the post AMA group.
Liesa Huang Q3: What is the initial issuance of AccuToken and how many of those will be in circulation? What consensus mechanism will be put in use and how to mine AccuToken or to unlock it?
Tim Connelly：Initial number of ACCU Tokens will be in the 225 million range. Most AccuChain team tokens will not be in circulation as we discussed earlier.
On the unlockaing of the AccuChain Team tokens — most of these tokens will be locked for at least one year, and that will be extended. We understand that it is important to keep those AccuChain team tokens locked up. We can share details about this in a special group after this AMA.
We have a more detailed break-out by category sub-category, and we can share that with anyone after this AMA. It does get rather complex.
Liesa Huang Q4:
1. Why do users have to use your platform? Although LinkedIn is not a blockchain project, they have a lot of user base..
2. How do you make a profit?
3. Even if your project is making a profit, what’s the connection between that and your token price?
Maura Sparks: Regarding why users should use our platform: Here is the key point: once an individual has achieved something of significance that fact can be validated and stored by the AccuChain blockchain-enabled platform that information can never be lost, even if the achievement happened decades earlier. Access to that immutable record is available and protected — private and only granted to official parties, such as: university admissions offices, a validators, or hiring executives.
Tim: Our business model, and making a profit — our users will pay for the service. The universities and hiring entities will not be charged initially.
AccuChain’s uniqueness is that it is a service that can be used by over 80 million Americans right away!
Liesa Huang Q5: The LinkedIn is free of charge. If you start with a service fee it will be a long process for you to build your customer base.
Maura Sparks: LinkedIn has tiered pricing. Our costs are nominal.
Tim Connelly: The question about the link between the Company’s profit and the value of our tokens: there is no direct link. However, we expect that there will be an indirect link in that as AccuChain grows as a software company it will help drive the demand for our tokens upward.
LinkedIn has a premium service of $50/month — so that does bring in revenue for them. We have ‘free’ access to the blockchain data when the user’s authorize a hiring entity or school to view it.
Liesa Huang Q6: Do you have any plans on IEO or any other fund raising methods? What made you decide to choose SCO? SCO is a slow process, so how does your project make sure you have enough funding? Relying upon SCO alone is not enough.
There are advantages for both investors and AccuChain with the SCO program:
• For token holders, they maintain complete liquidity based on NULS tokens or digital assets ‘allocated’ to an SCO project. They hear firsthand news our development and business, and become part of our AccuChain community. We appreciate our early adopters and look forward to building a successful company that improves our market.
• For developers, there is the opportunity to obtain early or seed funding for AccuChain. Early token holders have the greatest opportunity for financial gains.
AccuChain believes that it is well positioned to work with NULS in the pursuit of the project described in our Whitepaper. We consider the SCO program a closely linked partnership between the investors and AccuChain.
Tim Connelly: On the question of having other funding besides the SCO program — the answer is definitely yes. Since we are focused today on SCO Lab that has been the emphasis here.
The other fund raising will be timed for when our MVP is ready to be introduced. Today, we have a prototype running. In 4–6 months, we are planning on having our MVP ready to be released. Thus, the SCO is a good vehicle for helping right now.
Liesa Huang Q7:. How do you ensure their privacy is protected?
Tim Connelly: The users have the feature of being able to control who gets to view their blockchain record. These security features are being designed into our platform.
Maura Sparks: Each AccuChain user or customer will provide a secure link that points to his or her blockchain data as part of the standard application process. They will also receive a validation emblem they can use in their documents with admissions or hiring managers. The user can set the parameters of what is visible and controls their data at all times.
Liesa Huang Q8: How are you thinking of proceeding to reach your target audience?
Maura Sparks: We are reaching several different groups of users.
The AccuChain community will be comprised of students, professionals, validators, employers, admissions officers, investors, blockchain enthusiasts, the NULS community, and other partnerships. We aim to grow our community as fast as possible.
AccuChain will market and promote its platform in multiple ‘Branding’ campaigns (e.g., digital marketing, creative PR, job fairs, college fairs, and endorsements, etc.).