Andrew Ma CEO of LemoChain, a decentralized business data circulation infrastructure which has ´more tokens used in the real world than traded on exchanges at present time´, says „I failed my first startup, was successful with my second one but at some point, I was faced with two major problems hindering the growth of not only my business but other businesses too. Thanks to the blockchain, I found a way to solve them.“
Before founding LemoChain, Andrew Ma did his master in electronic engineering in New York, where he got his first job as an engineer. However, the job did not serve him, he wanted to create his own thing. Hence, he founded his first company which ended up not going well. „ It was an experiment, we did a lot of mistakes, but we learned from them“, he said. His second company, however, seems to be more successful. He partnered up with the ´QQ browser father´ and product manager from Tencent to develop apps and start a business in the social network field.
„That´s the reason why we are here right now. We found a way to massively improve the conversion rate by using a cross-promotion business model, but we faced a problem. Cost and trust, which both seemed to be solvable when we first heard of the blockchain. Now, we know that they are.“ – CEO Andrew Ma
As of the end of 2017, the cost of passengers for major e-commerce platforms in China has soared to hundreds of Yuan. The average customer acquisition cost of companies like Jingdong and Alibaba can range from $20-$50. In the era of competition where traffic is king, LemoChain founder and CEO Andrew Ma said: “In the blockchain data exchange platform we built, the customer acquisition cost is less than one dollar.”
After all, LemoChain is not a big data company, instead, they provide a platform for data exchange. On the contrary, how data is handled today, where data does no longer belong to the rightful owner itself, LemoChain will not own or have access to the data provided by its users. In fact, all data will belong to its rightful owner and can therefore not be sold to third parties, which is exactly what we see big companies doing today.
It is a public chain that is not meant to solve problems first hand, more accurately, it functions as a bottom layer for API (Application Protocol Interface). These APIs then serve as a base for decentralized apps, also known as DApps, which are designed to eventually solve the specific problem.
What is worth mentioning regarding the LemoChain technology is its innovative use of the D-PoVP consensus mechanism and the homomorphic encryption mechanism. D-PoVP is the Delegated Proof of Valuable Participation, which combines the fast consensus of the Byzantine Fault Tolerance Algorithm (BFT) with the characteristics of non-bifurcation and the mature and stable throughput and throughput of the Delegated Proof of Stake consensus (DPoS). This consensus mechanism quantifies user behavior in a variety of dimensions, both to motivate users to contribute to the platform and to identify the quality of the user.
„Data is never the goal, the usage and analysis of data are getting their business result.“
The homomorphic encryption mechanism directly encrypts the data. The most important feature of this technology is the security of data processing, which does not leak any original content during the encryption process. The whole process of homomorphic encryption does not require decryption of the data, as long as it is simply compared and retrieved in an encrypted state to arrive at a correct conclusion. In this way, LemoChain will ensure the security and privacy of the data in the process of circulation.
“At the same time, individual customers have absolute data sovereignty, all data exchange must be initiated by individual customers, which is the essential difference between us and traditional Internet companies.“
LemoChain did an internal test with the idea and technology in place. “Our underlying public-chain platform provides a secure environment, allowing 12 applications to be chained, free to exchange data, and after rigorous testing and calculations, the cost of acquiring new customer data is less than $1,” Andrew Ma stated. The test results, “At the same time, individual customers have absolute data sovereignty, all data exchange must be initiated by individual customers, which is the essential difference between us and traditional Internet companies.” LemoChain does not have any ownership and processing rights of the data itself. „We are not the middleman. We are only providing the channel.“
On the platform of LemoChain, individual users upload their encrypted data, let the platform do its matchmaking job, potentially sell their own data P2P and get the Lemo Token as a reward.
On August 31st this year, LemoChain and 校精灵 (Jiao Jingling) launched the blockchain education data application 选课精灵 (Xuanke Jingling) to create a decentralized education ecosystem.
Two weeks after the DAapp was launched, there have been more than 600 educational institutions using the platform and the circulation of Lemo has reached already millions of Yuan. Besides education, LemoChain is already working to serve the recruitment and social network sector.
„Therefore, we are moving in the right direction regarding this chaotic education market in China.“
In contrast to many other blockchain startups, LemoChain has its own steady cash flow thanks to Andrew Ma´s second company which is still in business. Therefore, they do not completely rely on venture capitalists to finance their project. Nevertheless, LemoChain is backed by multiple investors from China, Southeast Asia, and the Silicon Valley, Andrew Ma said. Launching their ICO in Singapore, they even did not cooperate with investors from China and the United States due to the ICO regulations in the very country.
China Crypto News also asked LemoChain’s about the General Data Protection Regulation (GDPR) regulations. The law was officially promulgated on May 25, 2018, to protect the privacy and security of personal information of EU citizens. The regulation stipulates that there is a technical conflict between the individual’s right to be forgotten and to data erasure and the “non-tamperable” nature of blockchain technology. In the face of such problems, Andrew Ma confidently said: „After one to two months of adjustment work, we are now GDPR approved.“
To us, LemoChain has the advantage of experience. They are not creating something completely new. Instead, they found a way to use blockchain technology to solve the problems they faced in an already successful business model. We believe that the is also a reason for their fast implementation into daily business and their fast customer growth in the local Chinese market.
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