There are a lot of apprehensions surrounding cryptocurrencies, especially Bitcoin, in the financial world. Many countries have termed ICOs (Initial Coin Offering) as illegal. The ban on the ICOs in advanced nations like China and South Korea is the principal reason for the clamor to have a new cryptocurrency in place. There is an additional responsibility on the part of the cryptocurrency market specialists to ensure that the new cryptocurrency does no go the Bitcoin way. It has given birth to a new concept, DICE, also known as Digital Certificates.
The principal aspects of DICE
- DICE is a cryptocurrency that uses crowd-mining to raise money for new projects. In fact, it is an alternative to the ICO. It solves the critical weaknesses of the Blockchain technology by using a cluster based system rather than the single public ledger system. It encourages social enterprises to raise money by inducing individuals to mine DICE rather than donate money to support the entity.
- As there are many operators, each having its ledger, there is no need to have a single public ledger. Each operator works independently of the others. Hence, the process is a decentralized one even without having a public ledger. Also though the operators perform independently of each other, they use the same global ecosystem to transfer the DICE units from one cluster to the other.
- DICE does not require an individual wallet to store the units. You can store the digital information in a USB pen drive. You can print and save it in a separate file.
What is wrong with the ICOs?
- It takes unduly long time to mine the coins for the ICO.
- The time taken for processing transactions is also long
- The transaction costs are heavy
- The most important factor is that it requires tremendous energy to mine coins and create the Blockchain. It puts an enormous load on the environment.
- Minuscule of the population (0.5%) own Bitcoins.
- The concept of Bitcoins is complicated to understand
- There are extreme price fluctuations
- Any hacker with access to the wallet address can trace transactions in the Blockchain. It has security issues.
DICE solves all these problems at one go.
- DICE does away with the Blockchain approach and adopts a cluster approach instead
- It has brought in the concept of the operator to validate transactions
- By eliminating the single public ledger, it solves the central problem of synchronization
- DICE does not need any online exchanges to work.
- There is no cost involved in either mining or purchasing DICE.
- Since DICE allows offline mining, the energy consumption is controllable.
How will IDOs (Initial DICE Offerings) solve the problems?
- Various Governments have already clamped down on the ICOs. The SEC and FSA also want to bring down all classes of tokens related to a financial transaction as they want to bring everything under the same banner.
- DICE is comparatively simpler. It is a digital representation of cash. There is no question of having different tokens on the Blockchain.
- Having DICE in both digital and printed forms is an advantage as the hackers cannot steal the physical certificates. They can only steal data.
As ICOs are becoming expensive, the IDOs are the perfect alternative. The ICOs have problems with the regulatory authorities as well. The IDOs do not have such issues. Hence, it is time to bid Goodbye to the ICOs and say Hello to the IDOs.