The first initial coin offering (ICO) on Bitcoin will take place in November using the RSK sidechain and will prove that Bitcoin has the potential to function in the same manner as Ethereum. The company behind this ICO launch is TEMCO, a South Korea-based blockchain startup that is trying to raise $19 million.
RSK Sidechain – a Smart Contract Platform Created for Bitcoin
The team behind RSK, which will be used for TEMCO’s ICO, has been working since the beginning of 2016 on its Turing-complete smart contract sidechain for Bitcoin. The platform is built using the Solidity language – the dominant language for smart contracts, which is also used for Ethereum.
However, this platform is still in the beta version and is used only by a limited number of crypto projects for smart contracts. Nonetheless, the CEO of TEMCO, Scott Yoon, is confident that this platform
will be dominating [the smart contract] ecosystem and [for] bitcoin that will open another era of bitcoin, like ethereum.
The TEMCO Bitcoin Based Token – the First Step Towards a New Supply Chain Model
The mission of TEMCO is to integrate blockchain into the supply chain and thus revolutionize the entire business model. The ICO in November aims to raise $19 million. Temco is targeting mainly small and medium sized enterprises with its token offering. The company claims that SMEs using cryptocurrency will be able to improve the traceability of products throughout the entire supply chain – from its origin to the end consumer. This, in turn, will allow them to reduce their expenses by having a more cost-efficient method for storing their supply chain data.
The TEMCO tokens will be used for sales and purchases among vendors and consumers, with incentives for both categories. Consumers will receive points which can be converted into tokens simply for participating in the blockchain-based transaction system. The vendors will enjoy
better insight, better operating system [and] better planning, according to Joey Cho, head of business development at TEMCO.
RSK Sidechain Ensures a Similar ICO Process for Bitcoin as for Ethereum
The public offering of TEMCO tokens will undergo a similar process as a sale on Ethereum, according to Yoon and Cho. Moreover, they believe that, in contrast to the Ethereum and other blockchains, Bitcoin is able to sustain the development of “real products”.
We believe RSK is one of the best blockchain technology because … if we create our supply chain on top of let’s say ethereum … number one the gas fee is amazingly expensive…which is not ideal for the Temco supply chain since we use lots of smart contract transactions, said Cho.
RSK Sidechain Still Has A Few Hurdles to Pass before Large Scale Adoption
Despite the TEMCO’s expressed confidence in the RSK sidechain, the platform is still in beta version and undergoing further development. At present, RSK has managed to obtain 80% of all Bitcoin miner support. Its managers – a group of blockchain companies calling themselves “the federation” – have announced that they are still working on addressing the scalability issues of the platform.
Want to learn more about ICOs? Check out our article Understanding Token Sales and Initial Coin Offerings (ICOs).