Enterprise Application Software (EAS), sometimes shortened to Enterprise Software, is prevalent among businesses, governments and charities. However, its use rarely impacts in an obvious way upon individual users outside of these institutions so it is not widely known among the general public.
For organisations, EAS generally provides a suite of tools and programs that allow them to function more efficiently. These can include customer relationship and billing systems (CRB), enterprise resource planning (ERP), supply chain management (SCM), human resource management (HRM), customer relationship management (CRM) and content management systems (CMS) to name but a few.
As the EAS name suggests though, this software is aimed at solving data issues that effect the whole enterprise, which can span geographical locations or several diverse stakeholders, rather than just individual departmental problems.
The stakeholders can be internal or external customers, vendors, suppliers, distributors or contractors.
Being customisable, these complex programs can build frameworks that are company-unique or project-specific. As such it is difficult to pin down the exact characteristics of an average EAS but generally they are intended to improve performance, security, robustness and scalability.
The sector is a considerable one and Loyakk seek to engage with it through their Enterprise Relationship Platform.
Although purists would probably resist such a simplification, Loyakk’s basic concept is to handle data better by implementing a blockchain element to EAS.
This would be innovative for business today as many companies, for example, still rely on e-mail and file downloads to share data which raises all sorts of issues for security and governance of information. Access control and traceability increase exponentially on the blockchain so the concept is a logical step forward.
Loyakk are well-placed to attempt this as they are an existing, non-blockchain EAS provider for several multi-billion dollar blue chip companies such as German-based multinational software corporation SAP and pharmaceutical giant, Novartis.
These clients and others have been using Loyakk’s Customer Relationship Platform for a couple of years and have contributed to the developmental thought process by providing insights into their own requirements and expectations. This input has guided Loyakk’s strategy in designing the Loyakk Vega Enterprise Relationship Platform, a blockchain-based solution for EAS.
As mentioned in the overview, global companies interact with a diverse range of stakeholders and it is intended for the Vega Enterprise Relationship Platform to operate not just within one company structure but also scale to encompass multiple business networks. This would allow for inter-company interaction and overlap that brings proficiency and value for all parties involved in what have been termed as “Enterprise Value Webs.”
Three useful documents are provided on Loyakk’s website that collectively constitute the project’s whitepaper: a 30 page business overview, a 16 page solution overview and a 16 page tokenomics paper – whose intentions are all self-explanatory.
All of the publications are logically structured and take the reader step-by-step through the key pieces of the project itself, the platform mechanics and the token offering.
Four possible use cases are explored in the business overview that relate to the high tech industry, insurance sector, wealth management and life science health care. With the help of diagrams the interaction and token movements are explained in more detail to provide examples of LYK’s utility value.
The solution paper delves into the platform architecture, looks at private and public transactions within the network and explains the consensus mechanism.
As one would expect, the token offering document covers the ICO but it also outlines the “Loyakk Index”, a patent-pending data pipe that provides token holders with what is claimed to be “ground breaking visibility.” We cover this in more detail in the platform section below. In addition to these white-papers, the website also carries a useful series of FAQ summaries which readers may also want to browse.
At its core, Loyakk’s Vega Enterprise Relationship Platform is built on the public Ethereum blockchain along with some elements which leverage the Quorum’s private distributed ledger technology along with Loyakk’s own patent-pending extensions.
This Vega platform will be powered by the Loyakk utility token (LYK) which will be be needed to enable data sharing and all other transactions between participants.
The structure of the platform will allow for multiple layers of permission, partition, propagation and to prove provenance of the information involved set to the clients requirements and protocols.
The patent-pending part of the platform, the Loyakk Index, converts into a signal on the Ethereum network that can be queried on-demand for data on the spread, effectiveness and usage of the Loyakk platform across all private Business Networks.
The data attributes will result in a single smart contract that bundles all of the data into a single numeric value. To access this information, Loyakk will provide users with a template that will allow them to construct their own formula and personalised index relevant to their needs.
Loyakk believe that this ensures transparency and will grant token holders the ability to gain unprecedented insights into private or permissioned instances of use along with the volume of interactions while ensuring confidentiality of the Enterprise Customer’s data.
Incidentally, earlier in the year, Loyakk announced a partnership with Civic (CVC) to incorporate their identity validation service onto their platform to add a further layer of security.
The team is lead by the co-founders Salim Ali and Jitu Telang. CEO Salim Ali joined Loyakk Inc. in 2014 from his previous role as Group Marketing Vice President at SAP; and CTO Jitu Telang has experience in developing automated high frequency trading models for the equities, currency, futures and options markets.
They both have traceable digital footprints with Mr Ali, and other members of the management team, appearing in several videos on social media where they can be found discussing the merits of Loyakk and different aspects of blockchain in general.
As well as Jitu Telang, the company are served in the technical area by award winning Chief Architect Jaijiv Prabhakaran as well as Tsvetan Georgiev and Jimjees Abraham who have worked on Hyperledger projects for or with the likes of SAP.
At a time when the input and effectiveness of advisors in all ICOs has been under scrutiny, extra kudos goes to Patricia Hatter, ex-CIO of McAfee, for taking to Youtube to discuss the industry need for Loyakk with customer success lead, Marzanne Deloof.
Loyakk, through a constant and relevant stream of postings, has developed a substantial media presence and acquired almost 26,000 Twitter followers and in excess of 90,000 in their Telegram group, one of the largest ICO Telegram groups around.
Their B2B marketing will be handled by CPO Suresh Ramakrishnan and CMO Rakesh Sreekumar, both of whom have several years of marketing experience within the software industry.
Although no specific marketing campaigns or targets are set out in the combined whitepapers, 15% of the ICO funds raised have been earmarked for marketing plus an extra 10% for sales and customer adoption.
Loyakk have set a hard-cap of £30 million – approximately $40 million USD – for their ICO but have no soft-cap presumably since, as an established company, start-up costs are not an issue and investment is required purely for the blockchain initiative. Bonuses of up to 35% were available in the pre-sale which has now ended.
It should be noted that, in addition to the figures below, there is an un-mined pool of 123 million LYK tokens kept for on-boarding “proof of license” Enterprise Customers who purchase a Loyakk Platform License. These customers are not allowed to resell the tokens and so this pool will not be in general circulation.
Out of a total active supply of 177 million, 60 million LYK tokens will be available for purchase during the ICO priced at £0.50 (approximately $0.65) each, with a minimum purchase of £100, payable in BTC or ETH.
Discounts will apply depending on the size of the investment, and the percentage itself decreases as the ICO progresses:
- June 15-25: 20% (up to 10 ETH) to 25% (equal or more than 10 ETH)
- June 26 – July 6: 20% (up to 10 ETH) to 15% (equal or more than 10 ETH)
- July 7-17: 7% (up to 10 ETH) to 10% (equal or more than 10 ETH)
- July 18-22: 0%
Employee and advisor tokens will account for a quarter of the total supply and be vested for one year.
The Loyakk tokens will be deposited into ERC-20 compliant wallets on the Ethereum network about 8-12 weeks after the close of the ICO.
The roadmap shows that the all-important version 2 of the platform (the first blockchain version) will be released by the end of this year. This would lead into 18 months of platform extensions and customer growth followed by version 3 towards the end of 2020.
Solution expansion features prominently as the timeline progresses so it is worthwhile to expand upon some of the potential growth in this area.
As the product niche is so specialised, Loyakk appear to have no direct competitor currently within the blockchain realm. That is not to say one won’t emerge for that another traditional EAS company won’t build their own version, but it appears that Loyakk have both field experience and first mover advantage to face down potential future challengers.
It would have been preferable for a platform prototype to be available for evaluation but, as Loyakk already have a ‘legacy’ EAS system operational within the business world, the existing business could be seen as the MVP itself.
The team’s presence within the EAS is proven, as is its credentials, and given its current client list the obstacles to future adoption appear to be minimal in comparison to the vast majority of ICOs in operation today. Technically, the team appear suited to the task and the advisors have been well chosen to add wider skill sets to compliment those the team already hold.
With the direction of the project being at least partly guided by initial customer feedback and ongoing consultation, the business need-case for the product is also clearly demonstrated.
The hard-cap is high but perhaps not excessively so for a project that essentially carries global ambitions. The final amount raised will determine how fast and how far the blockchain platform is rolled out rather than covering start-up costs associated with many ICOs.
Potential investors may have wished to see more of the tokens available in the ICO, perhaps with a lower % allocated for the team and advisors, but the lock-up period for those tokens will possibly offset those concerns.
Another point to consider is the un-mined pool of tokens used to on-board license holders. It is undoubtedly a useful product selling point and should help to drive adoption but even though these tokens are not available for resale, ICO contributors will need to evaluate if they believe this will increase or reduce secondary market demand for LYK.
The ICO bonus structure is well thought out and the promised delivery of the second version of the platform within the next 6 months will be an early indication for investors of the company’s true potential and growth possibilities.
Overall, then, this appears to be a stand-out ICO from a qualified team with established credentials, proposing a sound business model that makes for a good blockchain fit.
Ratings Score Methodology: a weighted average across three scores: Concept (10% weight), Blockchain Fit (30% weight), Execution (60% weight).
Disclaimer: Please note that all ICO reviews on ICOExaminer are non-technical assessments, in some instances are sponsored, and are very often sentiment-based and should not - under any circumstances - be construed as professional investment advice.