The Rise of AERGO and fall of Coinstack

As a network, Aergo will make infrastructure enterprises utilize Blockchain technology. They will also make them the middleware as a link between public Blockchain and private chains. By linking private Blockchain and private networks, they will be able to drive enterprise adoption.

Aergo realized its key driver by first discovering the existing issues in private and public Blockchain systems that make it impossible to enterprises to adopt them. Aergo set out to come up with a solution to such issues. In doing so, they were able to come up with a creative and innovative solution. They then created an implementation framework and protocols to enable enterprise use.

Blocko is South Korean research and development company, the back support of Aergo. Blocko aims to help industries adopt blockchain. After receiving 4.7 million dollars are venture funding and seed capital between 2015 and 2017. In 2015, Blocko released Coinstack as Backend as a Service for enterprises.

Coinstack is a Backend as a Service solution that allows enterprises to develop decentralized applications. Using the private blockchains, clients can develop decentralized applications. This is possible by exploiting the technology stack and software development kit within Coinstack. Over twenty enterprise clients used Coinstack. These enterprise clients include credit card companies and banks in South Korea.

Of these enterprise clients, Lotte Card stood out. Founded in 2002, Lotte Card is a South Korean credit card company. Blocko used Coinstack SDK to create a blockchain based payment authorization system and biometric login. Blocko used this system in authenticating millions of transactions. As a result, Blocko was awarded the ABS Global FinTech Award and hundred and fifty thousand dollars from Tharman Shanmugaratnam and Samuel Tsien.

Blocko has been able to develop for and deal with enterprises. They know what their potential clients need and want. Coinstack is rigid, implosive and is not compatible with the Ethereum Virtual Machine. Blocko dropped Coinstack because of the many shortcomings. These properties have made it almost impossible for use by developers. Blocko began developing Aergo, which is a hybrid public and private program that will overcome the challenges faced by Coinstack.

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