The covalent coin is a new token that seeks to improve one of the fundamental features of existing crypto currencies; the privacy of transactions. The coin’s infrastructure will be built to monetize and use data in a secure, accurate and efficient way without letting any party gain direct access to the data itself.
The company believes that improving the privacy of the computation itself will ensure security for the data providers as well as users of the platform. At the same time, the proof of computation provided by the platform will ensure that results are verified and accurate for data consumers.
The Background Engine
The developers intend to build a Covalent Virtual Machine (CVM) that will render a Trusted Execution
Environment (TEE) for the users. This will improve scalability allowing much larger computations to be compatible and improve the execution of smart contracts.
The infrastructure will be built on network nodes that perform the standard function of authentication and production of new blocks as well as mining for new COVA coins. The nodes will also be used to build off-the-chain computations which are expected to reduce on-the-chain network usage and improve privacy.
The developers believe that TEE will serve a dual purpose. First it will allow network operators earn an income through proof of computation. Second, the environment will provide greater privacy for parties dealing in smart contracts.
The Covalent Ecosystem
The Covalent Data Marketplace is built on three types of users.
They are the users who will list their data sets on a public index for use in exchange of payment in coins.
They are the people who search the index and select a data set for use in a transaction. The model trainer submits a buy order to the owner through an IPF P2P protocol. If the data owner agrees to the trade, the data set is sent to the SGX Host Miner with a hash of the dataset.
SGX Host Miner
The SHM facilitates transactions on the platform by verifying privacy and proof of computation.
Covalent Technical Analysis
At first glance, Covalent appears to offer a lot. The coin allows improved data sharing through traceable ownership functions. Data owners get some control over how their data sets on the platform get used and who can purchase it, unlike other cryptocoins.
Privacy of information is particularly important in medical and legal professions. Medical patients or defendants in a trial would prefer to have their data stored in a secure manner. This gives them control over who can get access to their information. It is no surprise that Covalent is aiming to target their platform to the healthcare industry in particular.
However, the platform is not without its weaknesses. Despite its emphasis on privacy, the token doesn’t really bring anything new to the crypto world. There are already a number of tokens that are doing a great job of providing additional privacy to transactions such as Monero, Dash and CloakCoin.
Second, the platform is still a long way away from being launched. The team indicated that the network is under development but no product demo or code has been launched for testing purposes yet. We can imagine that the team might be focused on building the tech side of things, but they should at least launch a detailed roadmap so that we can determine where it is headed in the near future.
We also could not find details about the token’s ICO launch such as hard cap, total number of tokens, adoption efforts, incentives or marketing strategy.
While the product concept is sound, we would need to see a more concrete and testable platform along with a detailed ICO breakdown before we can give a final verdict.