WaltonChain overview

WaltonChain is named after Chalres Walton because half of the project is a blockchain and the other half is base on RFID tags originally created by Chalres Walton

• Walton Chain will have different sub chains each focused on specific industries.
• 100 million coins have been issued at the ICO for a price of 1 ETH = 680 WTC ~ 0.001471 ETH
• Block times are 60 seconds
• 225 transactions per block
• PoS – proof of stake

WaltonChain masternodes

5,000 coins (50,000 USD at the time of writing)

It seems there will be masternodes for the main chain and also masternodes for the sub-chains

WaltonChain Strengths

• WaltonChain will enable retail items to be tracked from start to the end of their lifecycle. They can track movements within the store and provide a treasure trove of data to the marketing quants.
• WaltonChain has created their own RFID chip, trackers, and scanners (which also have embedded miners)
• Has a real-world use, rather than just another x11 based Cryptocurrency. WaltonChain services will help companies increase the efficiency of there just in time stock management.
• The value of Walton coin will depend on how many sub chains will be connected to the master chain. The first chain selected was clothing. One could have thought of other high-value items which companies need to be tracked such as phones or TV. Higher value items have a higher cost of locked capital to the companies.

Concerns about WaltonChain

• The communication with Western-based investors is lacking but this is slowly improving.
• WaltonChain token owners do not have a share in the company but a token which drives the current WaltonChain database. This is an important distinction. WaltonChain need income in order to survive and need to sell their products at a profit to cover their expenses and then some otherwise the company could fail.
• Other masternode coins such as Crown, Pivx, Dash have a deflating economic model, this is desirable because as they become more popular their value increases and this is a desirable trait for token owners. This is not the case for utility tokens, a utility should become cheaper as more and more people use it. This is driven by both competitors entering the market and innovation. WaltonChain has designed a system which is weak against a competitor who will compete with a similar system on price.
• Masternode will earn tokens when tokens are moved between sub chains or from the sub chains to the main chain. Unlike other tokens which earn from fees from all transactions. Thus Walton masternodes will probably have a much lower return than other comparable masternodes. In this case would masternode owners sell trying to lock in their gains or accept a smaller reward?

Open Questions, I am still researching.

• What are the requirements to set up a masternode?
• What is the difference between the main chain masternodes and the side chain masternodes?
• Will side chain masternodes earn transactions from side chain transactions?
• Will the side chain have their own tokens and will these be used to create masternodes?
• How will the genesis event for side chain coins take place?
• How does Walton compare to other stock tracking products in terms of cost and value for money?
• How will Walton integrate with existing stock tracking packages?
• Will this project be integrated into mainstream software suites such as SAP?

Conclusion

Walton has exploded in price, as it has a product to sell. Unlike other masternode coins that are just masternodes and nothing else. Walton has value to offer, however, a utility token needs to provide services to businesses. There are two large issues which put into question Waltons valuation. First is that this coin deflates thus as more and more firms use it it will become more expensive to use.

While it’s blockchain has been designed to scale through side chains, the economics of the coin does not scale. Secondly, this model if successful is bound to be copied by a well-established competitor (for example SAP), such a competitor using EOS, for example, can provide the same functionality at a fraction of the price. In conclusion, cryptocurrency based masternodes such as Crown System nodes, Crown Masternodes, MUE (or MUE Shares) Pivx Masternodes and  Dash (or Dash Shares) and the upcoming ZCash Masternodes offer a more interesting investment than utility based token masternodes such as Walton.