Electroneum: Britain's first ICO

         

  While China's ban on initial coin offerings (ICOs) has shown that cryptocurrency can be volatile, and no doubt there are some major disappointments across the globe concerning regulations of the market there, cryptocurrency has shown much fortitude by rallying very quickly. There are some who believe this simply opens more opportunity for new coins elsewhere. Enter Electroneum. Britain's first foray into the cryptocurrency market, and they have some very interesting and possibly disruptive ideas. I recently got the opportunity to talk with Electroneums CEO and one of its founders Richard Ells. Not exactly a simple thing to do considering their ICO starts in three days as of this writing.

Me: So tell me a little bit about yourself and how you became a part of the Electrodneum Team

Richard Ells: I started a digital agency called SiteWizard Ltd in 1997 (it's still running today, with 20+ staff, but I don't spend much time there!).
That lead me into the world of social media where I started Retortal Ltd, which has grown to have over 100,000 users, and will soon have millions of users, as we've partnered with some of the biggest brands in the world such as Herbalife, Avon, Forever Living, Mary Kay and more. I've always been about writing software with a great user interface experience that enables us to grow a huge audience.

I've always been involved with writing software, and while I don't get too much hands on time at the office any more, I tend to dabble a bit in new technology when it interests me. I own 18 mining rigs that chug away mining all sorts of things and now we've come up with an idea to get cryptocurrency into mass adoption for the first time.

Me: You say the first time, but people would argue that Bitcoin has already done that…

Richard Ells: Actually bitcoin is KNOWN by a pretty wide audience, but it's not USED or OWNED by a very large audience! A recent study by Cambridge University (http://www.cam.ac.uk/research/news/study-highlights-growing-significance-of-cryptocurrencies) suggests there are only around 3 million bitcoin users and holders. We aim for 10s of millions or even hundreds of millions of users. Remember Pokemon got 90 million app users in 6 months - and they didn't pay their users!!!

Me: How is Electroneum different than other cryptocurrencies?

Richard Ells: We’ve combined a decentralized blockchain with a centralized viral marketing app, that encourages the adoption and accumulation of cryptocurrency through “gamifying” the experience. We call it the Mobile Mining Experience. Our blockchain emits coins to our mobile app users by bringing a DIFFERENT utility to the blockchain. Electroneum FULL miners earn the most coins and that runs on Windows, Linux and Mac computers. They bring the utility of blockchain administration and are rewarded with Electroneum coins. The mobile miners bring the utility of VIRAL MARKETING to Electroneum and are awarded with a number (smaller) of Electroneum coins for doing so. It's done in a way that encourages app usage. We've essentially gamified the mining experience, making it appeal to mobile computer gamers (there are over 2 billion of them!).

Me: How do you think cryptocurrency, in general, will help shape finance in the future?

Richard Ells: Still very hard to tell. We are at the point in cryptocurrencies where aeroplanes were at the start of the second world war. People underestimated their usefulness and power and almost ignored them. Once the technology got the attention it deserved, however, people looked at it in an entirely different way and it changed literally everything. I can't predict the future, but blockchain and cryptocurrencies will be growing exponentially for some time to come.

Another analogy I use (and this might only work in the UK) is the battle between VHS and BETAMAX video players back in the 1980s. Whilst in the UK VHS "WON" - where are they today. A museum at best! We are all part of moving cryptocurrencies forward and each new player brings something exciting and dynamic to the table. Most people have been focussing on technology and features, we are focussing on market share and adoption.

Me: How do you intend to bring micro-payments to people without access to bank accounts?

Richard Ells: Our app makes micropayments simple, and after we raise some funds during our token sale we can take that even further with contactless transfers and much more. However the important thing is that these people have had android devices for ages - they just haven't used them for micropayments because they don't have anything to pay WITH. If we can get some cryptocurrency into the hands of a community through mining, then they can start using it as a means of exchange that never involves a bank. Previous cryptocurrencies have ALWAYS started with a trip to the bank - OR a powerful computer for mining - we're the first that doesn't need either.

Me: Will mobile mining be different with Electroneum compared to other coins such as Bitcoin and Ethereum?

Richard Ells: The mobile app is centralized and runs off a twin algorithm that emits coins from the blockchain at approximately the same rate as the full miners based on a CPU benchmark of the phone. This allows the phone to run without getting hot and without using TONS of power and bandwidth that previous attempts at phone mining have needed. But remember, they are not bringing blockchain utility, they are bringing a different utility - they are bringing on USERS at a ridiculously low CPA, and allowing Electroneum to have viral growth.

Me: Do you have anything else you'd like to say about Electroneum?

Richard Ells: Because we've CENTRALIZED part of Electroneum (the app based part) this also means we can evolve far more than other cryptocurrencies. Because nearly all cryptocurrencies are purely decentralized, once their code is launched it takes a hard fork to change anything.
This is still true of our blockchain model, but because our app is fluid and centralized, we can act very dynamically. We can evolve the app. For instance we are designing an app based game that teaches people how cryptocurrency works and lets them slightly increase the hashing rate of the mining app by interacting with the game. You don't HAVE to play it to mine, but it's got features from some of the most addictive apps that have come before. We have all the benefits of a decentralized cryptocurrency with all the benefits of maintaining centralized control of our app.

My impression at the end of the conversation was that Electroneum genuinely wants to create opportunity for those who feel like they have been priced out of some of the bigger coins, and create a simple app to bring cryptocurrency mainstream. For more info go to

http://electroneum.com