This article is provided for information and education purposes only and is not intended as investment advice. Readers are encouraged to do their own research and consult a professional before making any investment decisions.
SophiaTX is a joint venture between Venaco Group, an SAP system and innovation firm, and Decent, the blockchain content distribution platform.
Their focus is on creating SAP-integrated solutions for businesses of all sizes, minimizing requirements for programming, and maximizing the ease of creating and deploying applications on their blockchain.
The project’s whitepaper says that 76% of the world’s transaction revenue touches SAP systems, which gives SophiaTX a very large prospective market to work with.
One of their main aims is to be completely compliant with business and legal regulations, allowing worry-free integration into existing business systems.
From their whitepaper: “It is the SophiaTX Team’s ambition to become the principal platform for blockchain adoption by businesses of all sizes.”
The SophiaTX platform is made up of three main areas: a blockchain, a development platform, and a marketplace to buy and sell apps built for the chain.
The SPHTX token will be used for:
- Covering mining and transaction fees,
- Payment for access/subscription fees on the development platform
- Purchasing apps in the marketplace, or making in-app purchases.
Developers are able to earn tokens on the SophiaTX platform by creating apps which harness the benefits of their blockchain and integrate into SAP systems. Revenue earned from the purchase and use of these apps will go to developers.
What problems are they trying to solve?
The SophiaTX project aims to solve the core problems of trust and security. Current ERP systems are a clear improvement upon their preceding disjointed systems in business, but still ofer room for improvement in these two key areas.
Much of this is to do with proof of agreements and document records, which would be made more transparent, accessible, and credible by blockchain.
Currently, the exchange of such information is limited and often involves one of many expensive middleware products, which are neither completely trustless nor transparent in nature. SophiaTX may be able to create a new standard for such interfaces, effectively improving compatibility, trust, and transparency. It could also significantly reduce the software and labour costs associated with existing systems.
Some existing ERP systems are also working on integrating blockchain into their systems, however in most cases this appears to be in a private or consortium. The SophiaTX team has recognized this, and does not view this approach as a satisfactory solution in terms of decentralisation and exclusivity. In their view, a public blockchain is the only acceptable and truly decentralized solution.
The team has an extensive history of working in the fields of SAP and other ERP systems at a high level, including experience in companies such as EY, Deloitte, McKinsey & Co, GE and more.
Perhaps most notably, multiple team members are former employees of Alstom power, a company which has now been acquired by GE Power.
These close ties with GE have resulted in a partnership with GE Power, which may be a huge step into wider adoption of the SophiaTX platform.
The advisory board is equally impressive, and includes executives from prominent companies like GE Digital, NAPEC, Vodafone, ABB Group, Marie Stopes, and many more.
This provides a promising indicator of not only excellent support and guidance, but also various potential networks and connections which could result in future partnerships and adoption.
SophiaTX already have a handful of significant partnerships with notable firms and groups:
The main focus of this collaboration with GE Power is to design and develop blockchain solutions for financial operations and supply chain management. This will include collecting and storing data from IoT devices.
KITA Logistics are a supply chain company who specialise in the pharmaceutical industry. They intend to develop a specific blockchain-focused solution for the transport of pharmaceuticals and other products.
Ernst & Young
EY is working with Equitado and SophiaTX to build an automotive industry-specific supply chain management system. The goal is to improve transparency of processes, which will result in improved efficiency and lower costs.
Hyperledger is a well-known open source group of professionals from the tech, finance, and banking sectors, who share a common goal of applying blockchain to their respective industries.
Current members include Ripple, PWC, Sberbank, and others.
If SophiaTX do things right, they could very well establish themselves as the go-to blockchain solution for businesses of all sizes across the world.
Their careful attention to regulation, compatibility with existing systems, and networks are likely to deliver a very safe and hassle-free option for enterprises looking to harness the benefits of emerging blockchain technology.
They are still very much under the radar, with their token still existing solely as an ERC-20 token available only on a few lesser-known exchanges.
This token will be swapped for their native blockchain token once their mainnet goes live, in July of this year. Following this launch event, we are likely to see attention grow around the project, as well as possible additions to more notable exchanges such as Binance and Bittrex.
With a market cap still under $100m, there is a lot of room for the project’s value to grow as it realizes its potential.
In addition to the mainnet launch, other releases are planned for the next two quarters including a wallet, marketplace, development platform, and SAP client, so stay tuned and watch this space for updates as they become available.