BitTube Review & Analysis (Formerly Interplanetary Broadcast Coin) (TUBE)

A Whitepaper review of $TUBE, the native cryptocurrency for the BitTube platform.


Full disclosure & disclaimer: I am an investor in this project. I have been in close contact with IPBC leadership for a few weeks and I purchased my first IPBC coins recently. This article shares only my observations and thoughts and, as always, I tried to be as objective as possible when compiling this. I am not a financial advisor. These are my opinions only. Always do your own research.


Website: https://ipbc.io/

Whitepaper: https://ipbc.io/whitepaper.pdf


SUMMARY

Interplanetary Broadcast Coin (IPBC) is a blockchain-based, decentralized media streaming project that has been in development for over a year (Alpha: Feb 2017, Beta: Feb 2018). They are self-funded, did not do an ICO raise, and did no pre-mine. They are a project that is very unique to the cryptocurrency world, and what they are doing has not been done before.

IPBC is based in Tenerife, Spain — a tech-friendly island, Spanish territory, and part of the Canary Islands. They are the latest project of the team behind Devcups, a successful software development company focused on the legal industry. The team is 22+ with 4 new hires starting in the coming weeks and another 6 hires budgeted for.


Video content management and distribution is not new to the blockchain space (see competitors below). However, to my knowledge this is the first time it has been done completely ad-free, with the content creators being paid by the users through a built in CPU mining program. The user/viewer essentially loans a small amount of CPU power while viewing the media. This power is used to mine the IPBC coin, which in turn is paid to the content creator.


IPBC products already live and functioning:

IPBC Platform — the portal for all services full responsive for all devices*.

IPBC Broadcast — the streaming platform for gaming and entertainment*.

IPBC Live Stream — the live streaming platform for the user

IPBC TV — the streaming channel for TV stations*.

IPBC Education — the streaming channel for schools, universities and training*.

IPBC Video — the video portal with a rewarding system*.

IPBC Upload — the interface to the IPFS network*.

IPBC Remote control — the browser based remote control system.

IPBC Blockchain — the underlying technology behind the systems.

IPBC Coin — the new IPBC cryptocurrency to run the reward system.

IPBC Pool — the cryptocurrency management system.

IPBC Mining — the player based media mining technology and the stand alone miner*.

IPBC Blockchain explorer — for verifying payments and examining the blockchain.

IPBC Offline GUI Wallet — for managing the wallet. *Beta


Broadcasting is decentralized through a P2P network (IPFS Protocol)


Revenue: 90% of the video mining revenue goes to the publishers/users of the platform.

IPBC.io receives only 10% of mining as revenue (there was no pre-mine). Compare this 90/10 revenue sharing model to YouTube.


TECHNICALS

IPBC is built on the CryptoNote code. CryptoNote is the technology that allows the creation of completely anonymous egalitarian cryptocurrencies” (https://cryptonote.org/inside). CryptoNote is focused on anonymity and security and is based on Proof of Work, making it suitable for CPU mining, which is essential for the IPBC platform to work. CryptoNote is the same code used by the popular cryptocurrency Electroneum ($ETN) (~$525m MC), who is developing the first mobile-mining cryptocurrency. Leadership at IPBC has stated that ultimately, they plan to make IPBC into a hybrid coin that also supports POS. The plan is to allow mobile devices to use POS minting, instead of battery-draining POW mining. This will take some time. For now, it is limited to GPU and CPU Proof-of-Work (CPU mining tested and verified by this author).

- No pre-mine, no ICO

- They are currently achieving about 2,500 transactions per second.

- Circulating supply: roughly 23m IPBC

- Target supply by e/o 2018: roughly 100m IPBC

- Total fixed supply: 1b IPBC (by the year 2050 approximately)


USE CASES FOR THE COIN

1) As a currency

2) IPBC as fuel for advanced features of the IPBC.io ecosystem (to be implemented in 2018)


TEAM / LEADERSHIP

https://www.linkedin.com/company/ipbc-io/

Saber Maram (CEO) — a developer and entrepreneur, he has a background in building successful tech ventures from the ground up.

Kai-Uwe Schnier (CFO) — a seasoned tech entrepreneur, he built and sold a German ISP company in the mid-late 90’s as well as partnered with Saber on building Devcups and IPBC. This is clearly someone who likes to be on the cutting edge. He has a background in IT, finance, HR, business development and leadership.

https://www.linkedin.com/in/kai-uwe-schnier/

Joni Kautto (CMO) — online marketing expert and entrepreneur from Finland, specializing in ecommerce and SEO.

https://www.linkedin.com/in/jonikautto/

Thoughts on leadership: I believe this team has a nice balance of: tech/dev experience, seasoned leadership, entrepreneurship and the ability to scale.


ROADMAP

Plans for development are listed on their roadmap on the website and the whitepaper. I’m told that the primary focus for the project in 2018 will be on user acquisition.


PEERS/ COMPETITION COMPARISON

BitTube ($TUBE)

- Current MC: ~$1.4m (600 sats/ per coin); ~23M coins in circulation


Viuly ($VIU)

- Current MC: ~$15m; ATH: ~$54m (Jan 2018)

- Airdrop of initial coins

- Viuly is a blockchain-based, decentralized video management service. Alpha was Q3 2017, Beta Jan 2018

- Viewers are rewarded in VIU coin for viewing advertisements or regular videos with ads in them. Creators are paid by charging VIU to viewers. It’s an interesting system but dependant upon ads for revenue.


Flixxo ($FLIXX)

- Current MC: ~$11m; ATH: ~$68m (Jan 2018)

- ICO for crowdfunding

- Decentralized video distribution network still in Alpha demo version (Beta rumor is May 2018)

- Also advertiser-focused for revenue

- Monetization based on “likes”


LBRY Credits ($LBC)

- Current MC: ~$51m; ATH: $169m (Jan 2018)

- No ICO but pre-mined by the company; PoW

- Decentralized video distribution network similar to Flixxo and Viuly but without ads.

- No ads, which is great, but they’re lacking a novel payment solution at this point. If creators want to be paid, they charge LBC coins. Viewers have no way to get LBC coins but to buy them on an exchange, convert/sell other assets for them, earn them through referrals or bounties, or to mine them using a GPU rig.

- From their website: “we don’t see CPU mining as economically viable at this point.”

*Of these video-focused projects — the closest comparisons to IPBC’s platform — I believe IPBC to be superior. They’re the only one with BOTH a lack of ads and a unique, burdenless payment mechanism to the viewer.


Steem (DTube) ($STEEM)

- Current MC: $992m; ATH: ~$1.8b (Jan 2018)

- Steem is a decentralized multimedia content management platform and social network, including DTube — their streaming video service without ads.

- Steem is a very interesting project, also currently in Beta, but is a difficult comparison due to their multimedia scope.

- Probably IPBC’s most legitimate video competition, due to lack of ads and a novel payment system.

- Admittedly, I don’t know enough about Steem, as I just started using their platform. Steem’s tokens (it’s a little confusing, there are 3 kinds) seem to drive usage of the platform, in addition to having a payment function. So, content creators are essentially paid via upvoting by the viewers. In an egalitarian world, this upvoting would be shared fairly amongst content providers — as each upvote carries some weight of value (cryptocurrency) depending on your stake. However, from what I’m seeing it doesn’t always work that way and users can decide who to upvote based on selfish reasons or greed….including upvoting yourself or making a pact with another person to just upvote each other.

- The success of this platform seems to depend on the voluntary redistribution of wealth. I’m sadly pessimistic of that idea succeeding in the long run, given what I know of human nature. But of course, I could be wrong.

- I think this same issue may exist when Flixxo goes live, with their monetization of “likes.”


Key differences:

- IPBC is ad free.

- First video content platform to embed mining into their viewer as a means of payment (objective, unbiased payment).

- CPU mining also possible for the individual, to increase their IPBC coin holdings.

- Mobile mining likely to come in the future.

- Monetization of website traffic possible by the client embedding the IPBC player. There are entire cryptocurrency projects based around just this idea (monetization of website traffic). None have done it like this to my knowledge (see below).

- IPBC had no ICO (self-funded) and no pre-mine (read: no greed and financially secure).

- IPBC is only focused on video for now, where Steem has many different irons in the fire (blogging, video, social, even a coin creation mechanism). Steem is a very interesting and exciting project but they are a bit too different to compare. And as far as video platforms go, I would bet on the project that is mastering one thing first, rather than going after a bunch of things at once.

- I also don’t think a utopian payment system will ultimately work when it boils down to human nature. But again, that’s just the cynic in me.


IPBC RISKS

From the WP:

• Lack of capital: To build worldwide marketing IPBC needs funding.

• Reputation: IPBC had no time to build up a reputation.

• New: No brand visibility today.

• Competition: Other players might come with similar technology.


My take on risks:

· Viewers may not want to click “I agree to share a small part of my unused power while watching this video.”

· Team has limited experience with video as media. Their vision comes from being leadership who refuse to share their website visitors with advertisers.

· Isolation: while I believe their location on Tenerife Island to be a special draw for tech friendly talent, it may also limit their ability to make new hires and engage their product with the rest of the world.

· Whether or not content creators feel they are being adequately compensated will depend on both the hash rates for mining, electricity costs, the block rewards and the value of IPBC coin on the open market. If the market does not value the coin higher than the cost to mine it, GPU miners will go elsewhere and so will content creators.

· This is project is a BIG idea. It will take a lot to be able to execute on it. But the good news is they are already halfway there.


TAKEAWAYS / FINAL THOUGHTS

YouTube/ online video distribution is at a bit of a crossroads (as are so many other industries that blockchain could disrupt). Top content creators are starting to explore other platforms due to a perceived lack of fair revenue split. Some are also being censored or just outright banned. Most are not protected from copyright infringement. Couple this with advertisers being squeezed over pricing, ad-blockers and bot traffic, and it could be time for a major overhaul to online video distribution.


Blockchain for digital media content is one answer to that crisis. There have been previous movers in this space. However, IPBC is doing it differently by removing the ad revenue entirely and introducing a payment solution that is unbiased and burdenless. This idea ALONE has the potential to be disruptive.


Relative to their peers, I am more confident in a trustless, objective payment system based on viewership than one that depends on a person’s willingness to spend their limited “Likes” or their limited “Upvotes.”


But the real value appeal to me is the potential for mass adoption of IPBC/IPFS platform for website traffic monetization. There have been entire crypto projects solely created to focus on this idea (Oyster $PRL is one that comes to mind — $117m MC — but also offering distributed storage). Oyster’s traffic monetization idea comes with a disclaimer to a website viewer — something like: “click here before entering our website to mine for the website owner.” I, personally, believe that to be a bit of an overreach — to be required to mine just to view a website. For instance, if I want to shop for shoes on Nike’s website, I’m already going to be spending money there and now you want me to mine for you just to enter your site? I don’t think so. That’s a No for me on principle. However, if I’m already shopping on Nike’s website and I see a cool-looking video that I want to watch, I am MUCH MORE inclined to click Yes to watch the video. That’s just me. The whole website traffic monetization through video idea seems a lot more viable, and the passive income that could be created from this for millions of different websites worldwide??? ..…..well, that’s a valuation that is simply unquantifiable.


The author believes IPBC to have a much more viable chance at successfully implementing their platform/ convincing websites to use them than the aforementioned projects or any of the other website monetization or content management blockchain platforms with ads. Period. The ad-free component simply has much more appeal. Yes, it is a tiny bit invasive to technically “mine” for someone else. However, I have done it on a 4-year-old PC and did not even notice a difference when watching a video. I believe IPBC has the best viable solution to fairly compensate content creators, doing away with annoying ads, while maintaining a safe, censor-free, copyright protecting, decentralized system with no central point of control or failure. I think this could be the answer everyone has been waiting for.

Brief CPU mining while viewing content is an entirely new concept, and that alone has value.

The IPBC project is completely under the radar, yet totally unique. They have been quietly in development for over a year and will finally now focus outwardly, since their blockchain launch a few weeks ago. Once the crypto world figures out what this is, and the potential value of this project, I believe it will skyrocket.


Overall, I’m EXTREMELY bullish on IPBC. With so many avenues for revenue growth (I haven’t even touched on the TV and Educational broadcasting options), a completely new concept, at a time when the world wants transparency, objectivity and fairness and YouTube content creators are unhappy (and people hate ads), this project has come along at the right time.


Overall, I think IPBC has the potential to be a top 10 performer in crypto markets in 2018, from their current valuation. Lofty goal, I know, but this little-known project has all the pieces for serious disruption if they can execute.


IPBC can currently only be purchased on Livecoin.net but other exchanges are forthcoming, as well as a CMC listing. If you’re interested in buying some, please use my referral link below, as I’ve received no compensation for sharing my research :)

https://livecoin.net/?from=Livecoin-s7PkzDN5


Video interviews with IPBC leadership are forthcoming. Thanks for reading! Comments/ suggestions/ insights welcome!


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