Periodic Reporting for period 1 - BitBox (BitBox Enterprise - Enterprise-grade Solution for Digital Assets Custody)
Berichtszeitraum: 2019-03-01 bis 2019-06-30
However, mainstream adoption is hindered by the lack of trust and security, as well as a structural problem of the main cryptocurrency, Bitcoin: scalability. Bitcoin can process around 7 transfers per second while payment methods like VISA claim to be able to process 24,000. The best solution to this scalability problem is the Lightning Network (LN), which creates a series of connections above the blockchain infrastructure and allows a virtually infinite amount of transactions. However, in order for this network to work, the number of nodes in the network has to be large.
BitBox Base, former BitBox Enterprise, aims to be the solution that will make LN nodes and cryptocurrency payments a mainstream option both for consumers and retailers. It will provide society with an alternate means of payment, independent from US corporate financial services. Furthermore, a built-in wallet will provide our customers with the level of security they require, and our mobile application will become the go-to solution to every crypto asset related operation, thanks to our integration with the main exchanges and payment platforms.
Our objectives are to finalize the design of our commercial product, BitBox Base and to make it available for the main consumers. Thus, we will prepare for rapid scale up and locate and secure contracts with the main partners and resellers in the different EU geographies.
We performed a patent analysis to determine our Freedom to Operate. We found several patents in the sector, but none including our innovative combination of LN node, HW wallet and comprehensive software application.
We studied the market for our innovation and, although initially targeted to the financial institutions, we finally detected that the best opportunity was amongst retailers and consumers. We studied our competitors and market barriers as well as the emerging regulatory framework.
Finally, we devised a Business Plan and performed a 6-year financial forecast to evaluate the economic feasibility of our innovation.
The results of all these tasks yielded a clear conclusion: the project is technically, commercially and financially sound, and we will seek further investment to carry it on, initially through the SMEi Phase 2 application (Accelerator Pilot).