Technical Analysis by Kong Trading - 03/11/2020

SNTVT has been moving remarkably strong lately. It has been consistently making higher lows and approaching its way towards the previous key-area of support, which is currently a key area of resistance. 

Sentivate Network is a hybrid network that incorporates both a centralized and decentralized approach to its architecture. This is because the project aims to merge the best of both worlds and achieve the best user experience, speed, reliability, and security.

source: Sentivate Network Whitepaper

The problem with HTTP and DNS's current system was designed a long time ago when their creators intended it for limited use. Since then, the World Wide Web has evolved into a global scale interconnected communication with ever-increasing demand and use-case. Besides communication, the modern internet has enabled economic globalization, but the outdated protocols aren't equipped to handle this ever-increasing demand.

This has created a bandwidth crisis that threatens to compromise net neutrality in order to resume business as usual. Sentivate Network wants to solve this issue by creating new protocols to revolutionize existing components. The protocol consists of three key components which are explained below.

Universal Data Stream Protocol

UDSP is a low-latency, real-time, bi-directional, encrypted, and reliable Data Transport Protocol. It serves as a replacement for the outdated HTTP and the TCP (Transmission Control Protocol), which has started to prove major bottlenecks, especially with large data moving from one end-point to the other and can thus result in latency and cost issues. 

source: Sentivate Network Whitepaper

Sentivate's Universal Web facilitates all communication, streaming, or transferring of any type of data utilizes this UDSP instead of HTTP. Unlike in the case of HTTP having to use additional encryption to become secure (HTTPS), the UDSP comes with secure encryption by default. 

Another key feature of this new protocol is that its connections are bi-directional which means its less chatty and therefore makes the network less clogged and ensures low-latency. This makes UDSP a highly useful protocol where high-throughput, low-latency and high reliability are required. Due to UDSP's programmatically dynamic nature, it's efficacious in situations of highly variable and or degraded network connectivity. 

This protocol has puzzles in its design that allow those who solve them to earn the network's token VIAT. Because they can vary they are considered dynamic-proof-of-work and may require additional data in order to be solved. This mechanism is placed in order to prevent network congestion and spamming through DDOS attacks. 

Instead of DDOS attacks being harmful to the website, they can be a source of profit because when a client solves the served puzzle, the client and the domain get the equivalent amount of VIAT token. But if the server is under a DDOS attack, then it dynamically changes the reward split in favor of the domain for up to 100%. In this way, the website visitor and the website have an incentive to conduct standard operations, or else the reward equilibrium will shift. 

Universal Domain System - consists of four components 

• Domain certificates

In order to establish a successful “handshake,” a domain certificate and a valid signature are required. On the Universal Web, domain certificates provide routing, cryptography, and additional details associated with a hostname and have to be signed by 3 or more keypairs: Ephemeral, Master, and by an authorized Domain Registrar. The ephemeral certificate also serves as a wallet that stores funds for any puzzles that the user solves when a portion of the mined VIAT tokens gets distributed to the ephemeral certificates wallet address.

• Domain registrar

This is a registrar for domains, and it is used to register and manage a domain’s public certificate and validates and signs its certificate associated with the hostname. It then passes the certificate to the Domain Information System, which stores the certificate for distribution.

• Domain information system 

DIS function is to return domain-specific information in the form of a domain certificate from human-readable hostnames, which includes cryptographic details & routing information. It operates on a centralized server and a decentralized network to enable users with the fast experience of accessing the information on the domain certificate. Decentralized nodes can earn VIAT token with their service.

Also, it functions as another security layer for defending against spam and DDOS attacks related to the certificate, and when invalid certificates are used to request information from the Domain information system, it denies returning a response. 

• Domains

Sentivate Network’s domains format are designed to be an extension of the underlying activity or the service that aligns with the domain’s content, while the name of the domain represents the full name of the trademarked entity. Using Amazon as an example one can just simply type in amazon in the browser to navigate through their main presentational website while accessing their store is by typing .store extension. 

In this way, the design of the network ensures that there aren’t any similar domains that confuse users which help organize the web, disallowed domain squatting, and protect trademarks. All while increasing user experience through descriptive and intuitive extensions.

source: Sentivate Network Whitepaper

Universal Identity System

• Identity certificates 

These certificates cryptographically represent a user on the network, therefore the user must sign into the Identity Registrar first. It has two key pairs. Master which is used for signing Ephemeral Certificates and is the core identifier of the user serving as an authentication mechanism, while ephemeral key pairs can be replaced.  

Ephemeral Certificates, (EC), are a sub-certificate to the Master Certificate and act as profiles. Designed in this way users can link their identity to the real-world and use it anywhere where KYC is required. It also reduces the need to hold various passwords and accounts on the internet as you can always login with your identity certificate. 

• Identity Registrar 

Like in the case of Domain Registrar the IR serves to sign and validate Identity Certificates and is the first layer of protection against malicious attempts. It ensures that false signatures are dismissed and in doing so it utilizes decentralized and acyclic blockchains that can assist in validating if the identity certificate is valid. 

hApps 

On top of the protocol layer, the network has an application layer but unlike current web applications, in this hybridized model they are self-constructing and are streamed as a single-page-applications. As they are built using reactive, dynamic, and modular development methodologies, whose assets are contained in their own file and are presented to the user on an as-needed basis. This ensures quick load time and frees up the bandwidth.

Sentivate Network targets enterprise-level organizations with a financial incentive to switch to a faster data transfer with a protocol that can increase user conversion and retention and thus profits. One of the organizations that the project lists as an example is Amazon, which conducted a study that concluded that a one-second delay could cost them 1.6BB in sales or that every 100ms of latency cost them 1% in sales.

The project aims to power the whole digital economy by increasing network capability, which must follow the increasing amount of devices per user and the development of IoT technology that will operate in a limited bandwidth environment if nothing changes. 

Also, with these large-scale organizations like Amazon, which is mentioned as an example in the white paper, have a security incentive to mitigate to a more identity-centric web as users can be clearly identified without the need to sign up, and thus reduce the number of multiple accounts per user. This decreases the need for large data maintenance and increases the transparency on the internet, reducing fraudulent activity.  

Even though the network benefits are best seen with these large-scale organizations that the project hopes to bring as early adopters, it is aimed at the general internet users alike. With new security standards in place, general users can have a far better experience browsing the web in a new environment that enforces accountability and security.

The network currently doesn’t have any products yet but their main one is hybrid applications that are yet to be built on top of the application layer. Looking on the website there is a call to action for exploring some of the hApps but clicking on the button returns on the same page which most likely means that at the moment there’s nothing to explore.

Once the network goes live thought it would be expected to launch with an ecosystem of native hybrid apps.

Product

Usecase for Sentivate Network is enormous. As a Web 3.0 infrastructure, it aims at powering the digital economy, communication, and information exchange across all sectors and industries. From the white paper, we can see that their main objective is to bring in companies using big data and whose profits rely on the speed of execution. Examples like Amazon are only the most obvious one, but it can find its use case in every field where there is a need for speed. On which comes to mind is high-frequency algorithmic trading that requires that the information is sent to exchange in a split second. Also, streaming service provides like Twitch that requires low-latency near real-time video can potentially find interest in switching to the new Universal Web and so on.

Token

Sentivate Network currently operates with the SNTVT token, an ERC20 utility token on the Ethereum network. The token is used for early access and participation on the network, namely in the development process and voting. Users can vote during development phases and help govern the project, although SNTVT isn’t a governance token. It serves more as a mechanism that ensures that those who are interested in the development of the network have a higher saying in the direction of the project. Thus delegates with more tokens have more voting power and a greater impact on the network’s direction. 

The project's market potential is big because the problem that it tries to solve is real and especially seen by big companies. If the projects succeed in their vision, they will provide and power the whole new "Universal Web," and the VIAT token could potentially be a new Universal Currency of the Internet. 

The project's infrastructure applications can be best found in big data companies and organizations like social media, e-commerce, so mainly put in communication and economy, which are two major use cases for the internet today. 

Its design that enforces identification can also find its application in government affairs like the election process or other processes where citizenship or residency is involved.

Having said that, there isn't a "market" for the project. It recognizes this by saying that it wants to revolutionize instead of evolving the internet, so it would be unclear how this shift would occur. 

Potentially it could develop along the lines of network effects where those big organizations would be the early adopters because of the sheer benefit that it can have on their business (increasing revenue, etc.) while plain users would, in that case, have to use the new Universal Web to purchase on Amazon for example, but this would be a slow adoption process. 

The biggest following the project has on Twitter while the next big amount of project enthusiasts are in the Telegram channel. Discord has a small group but a more loyal one while their Reddit has the least number of followers. 

References and other key information

Github: https://github.com/sentivate/Sentivate-Network-White-Paper/blob/master/WhitePaper.md

Website: https://sentivate.com/