This is a valid question.
@mg@rrhoover increasing decentralization contributes to accurate validation that the data tokens have that much value.
Also the throughput of mobile data exceeds the ETH throughput limits, that's why they have billions of tokens.
@rrhoover@datarade Seems reasonable. It's more about demand-based transactions. I was considering larger chunks of data, so the per-use model does make sense otherwise.
According to the FAQ, this whole concept relies on the ability to use Telco APIs to transfer data allowances from one account to another? But they are f*cking over the Telco so wouldn't the Telcos just shut them down?
I hope I'm mistaken.
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@tombielecki that makes sense. Interested to hear an answer this.
@tombielecki The reason this is exciting is because there's MVNO to Tier 1 provider arbitrage on lengthy contracts.
An MVNO can opt-in to the network without the permission of the Telco.
That's how the cookie crumbles...
@tombielecki Allso, look who's on their team, if they needed to spin up 2 MVNOs in different countries and lock down these agreements, they're capable of that.
Some questions for the founding team:
- How are you going to transfer data from one user to another? As @tombielecki mentioned, if this becomes big enough, the telecom networks will shut it down as it cuts into their already slim profit margins.
- Why are you building their own token on the Ethereum blockchain when this could be simply written as a smart contract using Ethereum? Why add an extra layer of complexity (unless the promise of strings-free funding is too enticing)?
- Why is your token legal? The entire platform is pre-product - according to the leading legal theory in the space, most (if not all) of pre-product ICOs illegal given the tokens should be classified as securities after passing the Howey Test.
You've raised $4.5MM in two weeks under the premise of "tokenizing" cellular data without answering some of the most basic questions about the functionality and legality of your product - curious to hear your thinking.
@tombielecki@nickabouzeid
1/ MVNO to tier 1 provider arbitrage.
2/ Data topography won't be covered properly by throughput and speed of ethereum smart contracts. You need billions of tokens.
@datarade
1. Cool. What guarantees do investors have that this kind of data transfer lane will stay open as this market (potentially) grows?
2. Please expand. Blocks of ethereum transactions are solved every 20-ish seconds - how quickly do you *really* need to transfer data? The number of tokens is never the limiting factor since you can divide them into units smaller than one, the issue is # of transactions/second & building a token on top of the ethereum blockchain holds you to the same limits as ethereum.
3. Still no answer on three. Why is this legal?
@nickabouzeid
I am not a lawyer.
1/ MVNO moating and blocking and tackling. One of the founders, Mikko co-founded a product, DOVECOT, that has 72% of the worlds Email users.
I have confidence that he'll be able to block and tackle any number of telcos b/c the team has already locked in tier 1 telcos. That's the hardest part!
@datarade
1. Cool that Mikko built a widely used product. I'm hesitant to believe that telcos will actually enjoy this since they make money when data goes unused.
2. No answer on the rationale behind launching their own token on top of the ethereum blockchain as opposed to building their own.
3. No answer on legal (even on their website).
Guess we'll have to wait for answers...
DENT doesn't work until they lobby Telcos to play ball, or lobby governments to play ball.
They hope to amass enough users to matter to telcos/govs.
So why an ICO? Unlike some blockchain projects, they don't need a huge amount of cash for underlying infrastructure, they just need to have enough users sign-up to an app or email waiting list to start showing small telcos are interested in this.
It shouldn't cost $31M USD to do this. ($207 per Ether, 150K Ether worth for sale).
I'm pretty bullish on many ICOs. I can even appreciate how some of them need to raise a large amount of funds pre-product to develop the infrastructure. But, those groups have the ability to build their own infrastructure, they aren't dependent on third-party buy in.
I posted this product because for brief periods of time I grew up in parts of the world without adequate telco or electricity infrastructure. The telcos have no motivation to move quickly on providing telco access to the 83% of Indians who do not have telecom access.
India doesn't have viable electric grids because westerners won't allow us to have uranium and we live in a sort of unusual purgatory of energy capabilities vs. telco impact.
The swings that dentcoin could motivate telcos to build out capacity in remote areas of India.
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