Dragonchain — Altcoin Appreciation Month
Today we have the first of a double header in the Altcoin Appreciation Month series and will be looking at the project Dragonchain and its ERC20 token dragons (DRGN). Dragonchain is a US based company and was the brainchild of individuals at Disney. We’re going to take a look at the history of Dragonchain, the issues it looks to solve, the solutions it proposes, and the current stage of development. So, without further ado let’s kick this off with some brief information about price.
The Dragonchain token (DRGN) is currently trading at a USD price of 1.15 or 0.00014014BTC or 0.00207685 ETH. The total supply of the token is just over 433 million tokens and the circulating supply is at 238 million. With that price and coin supply the market cap of Dragonchain sits at $275 million and has daily volume of 4 million at the time of this writing. The all-time high for DRGN in BTC was $5.20 on January 10th2018.
Dragonchain was originally developed by Disney at their Seattle office between 2015 and 2016 as a private Disney Blockchain. The W3C Blockchain Community Group documented over 20 use cases and applications of the project. In October 2016, the platform was released as open source software. One year later the Dragonchain project that we know today had its initial coin offering (ICO).
Dragonchain’s initial coin offering had no cap on contributions, which means contributors received the amount of tokens equal to their total percent contributed. Dragonchain did not actually meet its funding goal, but decided to continue work on the project.
55% of Dragons (DRGN) were distributed to investors during the ICO (about 238 million dragons). The other percentages breakdown as follows; 20% were given to the team, 10% placed in reserves, 10% given to the foundation, and 5% placed in the Dragonfund. Following the ICO and distribution a Non-Profit Corporation called the Dragonchain Foundation was created in January of 2017 to maintain and manage the open source code of Dragonchain.
Let’s get into the project. The problem Dragonchain is attempting to solve is “existing platforms restrict the creation of truly secure and scalable blockchain applications in real world business use cases.” In other words, the current technology that is available does not provide appropriately scalable and secure solutions for existing businesses. The team is attacking that problem with three features: the Dragonchain platform, the Dragonchain Incubator, and the Dragonchain Marketplace.
First let’s hit on the platform. The platform itself is a hybrid public and private blockchain with five layers that are used for security and verification. Those layers also have different uses in the overall platform. Some specific features of the platform are “easy integration” 5 second block times, multi-language smart contracts, and currency agnosticism. The hybrid blockchain itself uses serverless architecture where the smart contracts available, execute in a manner most would be used to seeing on a trusted node. This architecture is where the five levels of network consensus come into play. The layers are used to provide security to the data stored and used for both businesses and users. A more detailed article covering the specifics of the 5 layer architecture may be found here.
The Dragonchain platform can be thought of as the backend aspect of Dragonchain that stores and secures business-client data through their 5 layer architecture and makes use of smart contracts and serverless technology. This is where developers can create and store Smart Contracts in common programming languages and is built around the securing of business assets. Furthermore, included in the platform is access to Amazon Web Services (AWS). AWS is a subsidiary of Amazon.com that provides on-demand cloud computing platforms.
Next we have Dragonchain Incubator. This portion of the platform is where companies who wish to use Dragonchain will be able to develop their blockchain projects by following DragonChain’s standardized process. Following that development, which will make use of the marketplace and prebuilt smart contracting, companies will have their blockchain project in this “incubator” space and from there offer ICOs. Users will be able to buy into those ICOs using Dragons (DRGN). Holding DRGN will also impart special bonuses to users based on the length of time they have held their tokens. Companies will be required to offer those bonuses via the Dragonchain platform.
That aspect of users investing in the ICOs is how the Incubator gets the crowd-scaled. This feature is one of the major benefits of launching on the Dragonchain platform. Users holding dragons are more likely to invest in projects on a platform they already have tokens in and are further incentivized to invest via the bonus offerings. If the process is successful, the incubation will drastically reduce the resources needed for a project to gain exposure.
For businesses what this incubator provides in terms of outcomes is a streamlined launch of their blockchain product with easier marketing and larger exposure for a highly reduced cost.
Lastly we have the Dragonchain marketplace. This marketplace is designed to further simplify the blockchain deployment process. The marketplace has an ecosystem of pre-built library smart contracts, qualified vendors, and startup projects that are all discoverable through the Incubator. Additionally for businesses, the Marketplace will act asa support system for client companies. Here they can access a pool of verified Subject Matter Experts on topics like crypto, marketing, and software development.
This is all well and good, but what does a DRGN actually do? A Dragon is legally a micro-license for intellectual property on the blockchain.
Dragons are required by companies to access the Incubator and users may invest in other start-ups with dragons at a discount. That discount is calculated based on your Dragon Slumber Score (DSS). The DSS is determined by two factors: how long you have held your dragons and the amount that you are holding.
Also, Dragons are required to pay for the products available in the Marketplace. A developer of those products (the smart contracts that a company will implement on its blockchain) may be offered to companies at a one-time rate, recurring fee system and others, so companies may need to be purchasing or spending dragons continuously in the Marketplace. Lastly, Dragons will also be required to make use of nodes and execute smart contracts on the blockchain, so even if a company develops all the features of their blockchain inhouse, they will still need dragons to function.
To sum up the project, Dragonchain will offer each company their own blockchain. That blockchain will make use of the hybrid public and private systems in place to provide trust. Furthermore, each blockchain will be scalable thanks to the platform design and integration with AWS. The dragon token (DRGN) is required to make use of the platform, so companies wishing to use the platform will have to invest in the token. Additionally, those investors holding the token (you and me) get special discounts for ICO’s on the platform for holding the coin. For more information about the project please see the links below.
Dragonchain has a very detailed roadmap with multiple markers and milestones. The most recent and major milestone hit was the release of the platform beta for those with “Senior Slumber Scores” on April 9thof 2018. In order to qualify, a company would need a score of 500 million to enter into the Early Access Program on the Beta platform. That launch information may be read here. Upcoming milestones for the project include the smart contract library, a commercialized dashboard and marketplace, and promotion of the marketplace as well as more partnerships.
Dragons (DRGN) may be purchased on multiple exchanges including a couple of decentralized exchanges like IDEX and EtherDelta. The vast majority of all volume however is though Kucoin. Kucoin currently processes ~87% of all DRGN trades and offers BTC, ETH, USDT, and NEO pairings. Fatbtc is second with around 7% of daily volume and offers two pairings in BTC and ETH. Links to those two exchanges are below.
Kucoin – https://www.kucoin.com/
Fatbtc – https://www.fatbtc.com/
If you would like to learn more about the Dragonchain project or team please see the following links.
Website – https://dragonchain.com/
Twitter – https://twitter.com/dragonchaingang
I am not associated with the Dragonchain team other than being a bagholder.
Follow me here or on Twitter @thant1194 or on InvestFeed @thant11 to hear my thoughts as well as be up to date on all the articles I release! Thank you again for reading today’s article! I have to return some video tapes.
This article was originally post on April 19th 2018. Find the author on twitter @thant1194 or InvestFeed @thant11