SophiaTX – Blockchain for business. Blockchain integration with SAP and enterprise software.

If you’ve ever worked for a business larger than 50 people, chances are they utilize SAP. SAP offers some of the top enterprise software Germany has to offer, with over 335,000 customers in 180 countries and revenues in 2016 of 22 billion Euros.

SophiaTX styles itself as blockchain for business, and their objective is to create a business blockchain platform and marketplace. The platform itself will contain open source APIs to connect primarily with SAP and other enterprise software, used by most of the biggest multinational corps across the world. A pretty ambitious plan right? According to one of their press releases, 87% of global businesses use SAP, along with 98% of the top 100 highest valued brands in the world also utilizing it. If blockchain can get its fingers into this market, SophiaTX could be a key tool for businesses.

Two companies are behind $SPHTX. DECENT is a blockchain-based digital medium distribution platform, whose token $DCT currently has a marketcap of 105 million USD. The other team are from Venaco Group, a ‘best in class’ SAP advisory and implementation firm.

The ICO was opened on 7th of Dec 2017, and finished just 10 days later on 17th Dec 2017, a fairly short run when most firms ICOs run for months. They did manage to raise the equivalent of $7.3 million USD, priced at 1 SPHTX = 0.00062789 ETH. A quick video used to market the ICO is here, but doesn’t have much content to be honest, their blog is a much better read to see some actual use cases.

The Product

As broken down by the SophiaTX whitepaper, there’s three core elements to the business.

  1. A blockchain built for business.
  2. a development platform to integrate blockchain and SAP/enterprise apps.
  3. Marketplace for companies and communities to buy/sell apps or data.

The blockchain itself is  a hardfork from the Decent coin,as stated in an interview with CEO Jaroslave Kacina by Bitcoin Magazine. Interestingly, the testnet blockchain is using Delegated Proof of Stake, so avoids costly mining in terms of both transaction fees and electricity. While proof of stake may not be ideal for a distributed consensus protocol, for a business app such as the one SophiaTX is developing it could be ideal. Being centralised also means they can bring the product to market faster, and is easier to keep secure. Data security is a key selling point to large firms with data breaches being all too common in the last few years. If you plug a email you’ve used over the past 10 years into HaveIBeenPwned chances are your data will have been exposed by atleast one company.

This does raise some questions about the utility of an ERC20 token on the ethereum blockchain, when the actual product is a private blockchain, with companies even being able to licence their own private blockchain. Isn’t that just a database?

However, from what the whitepaper says, and responses from the team in their Telegram chat, once the mainnet is online (Q3 2018 according to page 12 of the whitepaper), the ERC20 tokens will be swapped for those on the SPHTX mainnet, and used to purchase assets on the marketplace, licencing for private blockchain, reward for devs when customers are using dapps, and to payout transaction fees and rewards for miners validating transactions.

Partners and Projects

SophiaTX has recently signed a joint letter of intent with a Riyadh-based logistics company that every year handles more than 2 million tons of cargo. The intent is to bring blockchain to the pharmaceutical industry by facilitating a track and trace product across manufacturing processes, quality assurance points, shipment, and receipt of the products.

Sounds a little like modum but encompassing the entire supply chain, not just the shipment to end users from the manufacturers.

According to the press release from SophiaTX: “Each of the current top twenty prescription drugs (amounting to 10% of the global market in 2016) is produced by a company using SAP software products within their sourcing, manufacturing, or supply chain processes. SophiaTX’s integration with the system will allow pharmaceutical companies to write their products directly into the blockchain, thereby addressing issues of counterfeiting; compliance; supply chain conditions; traceability and recalls.”

Modum, Ambrosus and Waltonchain have all cited counterfeiting, traceability, recalls, and compliance as a key area they are seeking to disrupt with their business model, so it’s no surprise SophiaTX are seeking to do the same. However by integrating SAP into their model, it could potentially be much easier for firms to integrate blockchain into their existing systems.

Even more exciting than this, is the demonstration of a proof of concept at a recent blockchain seminar in Zurich, where the team demonstrated sending a variety of documents between SAP systems. An invoice was created within SAP, then transferred via the SophiaTX testnet to another firm using another SAP system. Read more over on their blog.

Competition – SAP itself moving into blockchain tech.

What is a concern is SAP is moving into blockchain tech, which poses the question – Why would you need a third party when SAP is already developing in the field? Surely they wouldn’t want to miss out on the huge revenue this disruptive new tech could bring to enterprise across the country.

Back in November, SAP announced the addition of 27 new members to the its blockchain program, from across major industries – including pharmaceuticals and logistics. At the same conference they announced three key use cases they hope to standardize across digital supply chains, these include:

  • SAP asset intelligence – a registry of equipment OEMs can use to share asset information to improve uptime and service.
  • SAP distributed manufacturing – An app to connect manufacturing with supplier and technical cert companies.
  • SAP transportation management – International trade on the blockchain to reduce fraud and theft.

All seems a little scary for SophiaTX. However, SAP’s project Leonardo (Blockchain as a Service) on which these 3 use cases are being built on, has been described as ‘relatively expensive‘ for smaller firms, and less transparent as it is cloud based by Kacina. We also MUST remember, the founders of SophiaTX (Venaco Group) are a company that specializes in SAP advisory services and implementation of SAP. These guys can target custom blockchain solutions and its integration with SAP, not just a few standardized use cases. This here is where SophiaTX can make a real name for itself.

Token Economics

Total supply currently lies at 350 million tokens, and the future total supply will sit at no more than 500 million tokens, with 70% of the tokens dedicated to development, operations, marketing, team will not be sold for 12 months after the initial SPHTX generation. Circulating supply sits at 202.5 million after adding the 30% of the team tokens, plus TGE tokens.

Currently marketcap is unavailable as ICO has only recently ended,  but ranked 1135 on coinmarketcap at time of publishing.

*Update*

Previously I didn’t list the marketcap as I couldn’t confirm if the 30% of the team tokens not required to be held for 12 months was to be included in the circulating supply. As of 20/01/18 it sits at $238 mil USD.

$SPHTX is only available on QRYPTOS, and Cobinhood, but hopes to be listed on Binance and KuCoin soon


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2 thoughts on “SophiaTX – Blockchain for business. Blockchain integration with SAP and enterprise software.

  1. market cap = circulating supply x price i.e. $166m

    • admin

      I wasn’t sure at the time if the 30% of the tokens that were not promised not to be sold were part of the circulating marketcap or not to be honest! When I get some time i’ll clear this part up as I do look like an idiot!

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