Blockstack ICO statement is filled with SEC! If the SEC approves the Blockstack ICO, this would set a precedent for others in the industry. Now, if you haven’t heard of Blockstack don’t worry about it you will know everything soon. So let’s get to it then, shall we!
What is Blockstack?
The answer to the question would be that Blockstack is a project that is trying to bring Blockchain to the whole Internet. The idea behind is to not rely on remote, third party serves for the access to the Internet, what Blockstack will do is remove those points and give them back through blockchains.
They aim to fix the most significant issues with the Internet They believe that things like insecure connections, users being locked into specific platforms, and of course data breaches can all be fixed.
All apps and services store all of the users’ data in central locations, and that is what makes it easier for hackers to get a large amount of information in just an attack on the servers. Let us not forget that domain names and security are in the hands of untrustworthy (for lack of a better word) third parties to issue certificates that can be jeopardised. And the biggest issue is, the keys used to authenticate on platforms are owned by the companies that own the app or the service that users are using, and not the users themselves. These are the most significant issues with the Internet!
However, Blockstack has made it their mission to fix these issues. For example, the user data for Blocstack’s Internet is stored on the device; then it is encrypted before being backed up to a storage system. To address the third party issue, a blockchain solution will bind all digital properties so that you can verify all data bindings by yourself. Finally, the digital identity keys are generated on your device so that you can take control of your own identity.
The technology used by Blockstack
In the first place is Blockchain. They use a layer that combines the underlying blockchain and the ‘’virtualchain’’.
The layer provides the storage medium for operations and also maintains the harmony of the order that the operations are written. All operational computations and logic are processed by the virtualchain were the underlying blockchain is used as a communication channel that carries totally-ordered operations. The underlying blockchain can also host more than a few virtualchains of various kind, and with that, they resolved the problem of on-chain computations scalability. This allows them to have better security since it will enable them to move to more secure blockchain protocols.
Next is the Atlas network. Atlas is used as a mapping layer for the name and storage layers which allows every ‘’node’’ on the network to find new records and update the old ones. In the naming layer, it makes sure that every ‘’node’’ knows which name points to which blockchain. And in the storage layer, Atlas guides storage needs from the small pointer records that are on the blockchain to more massive storage backends.
Atlas is a peer network which means that nodes talk to one another to be sure that their index is surely up to date.
What Gaia storage is about it proposes utilization of already available storage providers like Google Drive and Dropbox, without trusting them with your information. Using the pointer data from Atlas, can upload and download encrypted data from a storage app. With this, you have your own encryption keys, and the storage apps only see the encrypted data.
BNS- Blockchain Name System
The Blockchain Name System is used to define an operation in the virtualchain and to store the data routing information in the Atlas. What it does is it records addresses on a blockchain from where the users can download a copy of the full index.
Also, BNS names aren’t confined to the names of the official websites. You can set up your own name using the ‘’.id’’ namespace that the Blockstack created. The ‘’.id’’ serves as an identity in the Blockstack ecosystem.
With this, you will get readable blockchain addresses since now the address for sending a bitcoin are super complicated. Also, there are no more passwords! You can sign into Blockstack apps without creating different passwords for a separate app. You will have to make a really long password so you can authorize your device to use Blockstack. And with that, you won’t have to remember multiple passwords.
Yesterday, Blockstack Token LLC announced that they had filled a Blockstack ICO statement with the SEC to conduct a Blockstack ICO of $50 million token using the SEC Regulation A+ frameworks.
When they get approval from the SEC, the Blockstack ICO is expected to be the first SEC qualified token offering of their kind. The amount they will receive from the Blockstack ICO will be used to develop their decentralized computing stack and app ecosystem faster.
Once the Blockstack ICO is approved by the SEC, the tokens will be offered through the stackstoken.com site, and the Blockstack ICO will involve the sale of 295 million Stack tokens.
The 295 million Stack tokens will be sold at between 0.12 to 0.3 dollars apiece. Also, the tokens will be sold through Blockstack’s App Mining program.
In an official blog post from Blockstack CEO Muneeb Ali published today; he stated that upon approval of the Blockstack ICO, the offering could “set a precedent for others in the industry”. He said:
“Recently, U.S. markets have been closed to crypto projects given regulatory uncertainty, and we believe in opening the U.S. markets to innovation in this area. We’ve been working with securities lawyers to create a legal framework that can enable blockchain protocols to comply with SEC regulations.”
Blockstack ICO is a big move by the company. If this manages to get through the SEC; then this will open the doors for other similar companies in the industry. Also, this will be a significant boost for the company to further develop their idea and make it possible. I personally like what they are aiming to achieve. Also, I believe that it will make the Internet even easier to use and of course make it safer. Now, the only thing to do is wait for SEC approval.