Can A Cryptocurrency Exist Outside Of A Blockchain?June 17, 2018
The question may sound ambiguous with all the talks going around about cryptocurrencies and blockchain. When we came across DICE (Digtal Certificate), a blockchain less cryptocurrency, we got curious.
While the world was witnessing the massive adaption of cryptocurrencies, the industries where the final products cannot be digitized were not able to adapt to the new model. For example a Robot manufacturing organization. Another roadblock was to raise the funds using ICO that had its own overheads of cost and infrastructure. The requirement of a Proof of Work network made the matters worse for an organization who wanted to be adapt to cryptocurrency model.
What is DICE?
DICE brings around a potent solution that is decentralized but is NOT a blockchain.
Unlike the regular cryptocurrency, DICE is a sequence of 1024 bits. The DICE units can be traded just like the cryptocurrency and need to be validated before they can be exchanged for any physical or digital goods. The process of validation is carried out at the time of trading.
A new DICE is created by the process of mining. A powerful computer is used to generate a new DICE and is known as a miner. Such small clusters of miners come together to work with an Operator (business owners IT) and perform the validation of any DICE units coming its way. These miners not only validate but also store the DICE on behalf of the operator. Anyone can act as a miner once associated with an operator and he can mine for more operators also.
Anyone can become the operator for the DICE ecosystem. A business or an individual who can be trusted within limits can become an operator. Operators work completely independent of each other, but the DICE units that are part of their capital can be used globally.
Each DICE is generated over a miner and operator relationship and remains associated with only that operator unless it is traded over the global economy of DICE.
The DICE economy is simple, once a new DICE is mined, it is added to the capital values of the operator who requested the cluster of miners to validate a transaction for them.
What is an ownerless Dice?
If the owner of a DICE unit wants to print it on a paper currency and distribute it, this paper currency becomes ownerless until it is handed over to some operator. The owner of the DICE unit will also release the ownership and the DICE becomes invalid for his database. The ownerless DICE are only distributed when full unencrypted in a 1024-bit data block. They hold no value until they find a new operator. But must say it is not so secure.
DICE does not require a digital Wallet:
DICE could be stored in an ownerless way on an email or USB. They can be transacted only when they reach the right operator.
Initial DICE Offering (IDO)
Eliminating the limitations of ICO, IDO helps business to raise funds rather than going to VC’s or using ICOs that are quite complex and costly. The investor can choose to be an IDO thus he gets some DICE and the business gets the capital it requires.
DICE economy is basically a self-supporting decentralized infrastructure. A simple fee free mechanism where the operators and miners that become part of the economy are automatically incentivized making sure a trustless environment is maintained. It brings a blockchain less free environment for all businesses.
Name: Dilip Chandar
Email: [email protected]
Telegram link: https://web.telegram.org/#/[email protected]
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