Making hard things easy for people who lack specific technical abilities is a key goal for any consumer product. In order to reach mass market, Grandma has to be able to learn how to perform the task without too much hassle. Thus, when my late Grandma figured out how to Facetime, I knew Apple had won. But there is a very hazy line between consumer and professional products, with many falling in the cracks to become niche and “prosumer.” Balancing a fine line between complexity and power, prosumer programs, such as Adobe Lightroom, iMovie and others allow for home users to access powerful tools with only a small learning curve.
One of the many problems tech companies have been trying to solve for an extremely long time is to create software which lets anyone design code. With claims a mile high, hundreds of types of software have been pumped out with the express purpose of simplifying a normally arduous task. I spent almost a year learning code on and off again and its complexity still gives me issues today, but what I saw is that coding gives granular control over programs and other applications necessary for solving case specific issues. Enterprise use is even more granular, as businesses have varying software, architecture and other various tech differences which make integration difficult.
This is why I think Sparkster, the most hyped ICO as of right now, will fail.
Sparkster is building two things. First an “easy” smart contract builder that uses English grammar. Second, a decentralized cloud service.
Let’s pick apart the smart contract builder first. Colleagues of mine have looked at the Sparkster code and said that its well written and designed. The code allows for “any” business or person to create their own smart contracts based logically using English grammar. After laying out the requirements, the Sparkster program would write all of the code in the background to meet the specifications and produce ready to use code.
My gripe with this is how big is the user base for this? Large businesses would not use Sparkster, they would rather bring in their own developers to write code for their legacy systems. This isn’t really a consumer product either, as most smart contract logic can be already implemented with other existing programs for trading, security and other uses. This leaves a small batch of customers, namely small businesses who may not have access to high end coders and who want to implement crypto into their business. More so, they need to have existing systems which integrate with Sparkster in order to draw up the smart contract rules. As of right now, there are exactly ZERO businesses who would use this product. There is no demand right now and how many other businesses can be expected to commit to using a small Indian teams smart contract system for the future. This alone is enough to bring my opinion of the project down to near useless and extremely overvalued and hyped.
Second, Sparkster is also releasing its own “decentralized” cloud service. In reality though, its not decentralized, rather its just many localized instances of its cloud, joined together. Each network can act independent of the others and it’s unclear how the team can even call it “decentralized.” Another claim which I have issue with is that their system will be cheap than AWS, Azure or one of the many other cloud services currently on the market. They repeatedly made this claim in their white paper, but there was little to no expansion on this topic and exact figures were not given. Their claims of 10 million TPS are utterly false as well, as they represent the total number of transactions across all instances. Real TPS is closer to 1000, achieved on a test net and not under real loads. Bullshit claims all around it seems.
To sum up, this project will be an overhyped low cap token. It’s competitors are not even in the top 500 and I doubt that in the long run this token will be worth anything. However, with the amount of hype bestowed on the project with the addition of Ian Balina, OhHeyMatty, and others as advisors, the project is bound to pump. But hey, true valuations don’t matter in crypto land. All you need are a few influencers, big claims and buzzwords like “10 million TPS” to get to a few hundred million USD valuation. If you can ride the wave and not get dumped on, you probably will make some money, but I would not want to hold this token for a year.
This brings me to my last point, I’m extremely worried about Sparkster’s commitment to using 2% of tokens for exchange listings. This 100% would classify it as a security in the United States, as they are promising to create a secondary market. Sparkster is domiciled in the Cayman Islands, are not accepting funds from the United States and say they are not breaking the law. This alone is enough of a red flag to stay completely away from the project.
All in all, Sparkster has the lowest score on my Due Diligence Sheet, coming in with a failing grade of 59. But at the end of the day you can’t fight hype and dump.