In Part 1 of my analysis of Enigma Catalyst, I took a look at the Enigma protocol level to try and understand its workings and future use. In summary, Enigma is an encrypted data feed, which can be leveraged in different platforms. It’s similar to what Bloomberg does, except has a hybrid on/off-chain architecture to mitigate scaling issues and conduct heavy computing.
As I mentioned before in the Enigma write up, in order to jumpstart the Enigma network users need to be incentivized to set up nodes and facilitate data transfer. To do this, the Enigma team is releasing Catalyst, a peer to peer quant platform which will be the first DApp to utilize the Enigma data sets.
By using the Enigma network to handle off-chain computation, Catalyst will be able to provide quants with a powerful platform to trade crypto markets. Any developer will be able to access and write programs using the data sources provided by Enigma. At first, the sources will be tailored to the needs of quants, providing market data, social sentiment, and other quantitative measures. Python SDK access will be open source and available to all to create, design, and back test new or established strategies in either a paper or live environment. Once the strategy is fleshed out, it can be listed on the marketplace for trading strategies for investors to trade in. Importantly, developers will have the option to run their code locally to protect their trading data and prevent their secrets from being revealed.
Market data will be curated at first, but eventually, Enigma will turn into a massive provider like Bloomberg or Rueters. Initially though, “curators” will be rewarded for writing scripts and other code to integrate new data sets.
Once active Catalyst will be a “one-stop shop” for quant traders and will continually add new data sources for computation and parsing.
The token ECAT will be used for Catalyst operations and give access to the network. The tokens will reward quants for developing profitable strategies incentivize new quants and investors to join the platform.
The token sale will begin on Aug 21, 2017. There will be a fixed supply of 100,000,000 tokens and they will be distributed as follows:
- 50% to be made available in the initial token sale (to be used only for operations)
- 25% retained as incentives for the Catalyst community
- 25% distributed to the Enigma team and advisors (current and future) and retained by Enigma
From the funds raised, the Enigma team will use them in the following manner.
- 60% for product and technology development
- 15% for blockchain research
- 10% for marketing purposes
- 10% for operations
- 5% for legal and administrative costs
The token sale will be conducted using a tiered system so there can be a wide distribution of tokens, more information about the exact methods will be released soon and we will cover it.
I spoke with Guy today and I have to say their project is very impressive. The protocol layer Enigma is a long term project of theirs which has driven them to create the application to spurn growth. There need for encrypted data processing on the blockchain is high and I am looking forward to seeing how this project meets its ICO in just a few days.