Due-Diligence report on Dragonchain
Dragonchain empowers security, scale, and coding flexibility on a business focused blockchain platform
There are three main components that make up DragonChain:
- Platform
- Incubator
- Marketplace
WHAT IS DRAGONCHAIN IN GREATER DETAIL?
What is the relationship Disney and Dragonchain?
Dragonchain was originally developed at Disney’s Seattle office in 2015 and 2016 as the Disney Private Blockchain Platform. Over 20 use cases and applications were explored and documented publicly via the W3C Blockchain Community Group. The platform was later released as open source software under the Apache 2 license in October of 2016.
The Dragonchain Foundation, a Non-Profit Corporation was created in January of 2017 to maintain ownership and responsibility of the open source code.
What is the problem DragonChain is attempting to solve?
Existing platforms restrict the creation of truly secure and scalable blockchain applications in real world business use cases.
Dragonchain™ offers:
- Protection of Business Data & Operational Smart Contracts
- Scalable system via Serverless Deployment
- Creation of Smart Contracts with established, general purpose languages (Java, Python, NodeJS, C#)
- Ecosystem for sharing and monetization of Smart Contracts
The Solution:
- Security — Enterprise ready architecture; creates spectrum of trust
- Development — Established language support for smart contract development (Java, Python, Node, C#)
- Scalability — Serverless deployment on Amazon AWS
- Protection of Business Data and Processes
- Ease of integration
- No Base Currency + Currency Agnostic + Multi-Currency Support
- Interoperability with other Blockchains
- Short, Fixed Length Block Time
What value will a Dragon have?
Dragons are modeled to reflect the value of Dragonchain fundamentals (i.e. platform + incubator + ecosystem) and we expect that value to increase as the ecosystem matures.
We have announced a powerful and valuable Board of Advisors and incubated projects to reflect that.
Do you have any contacts with amazon and google for implementing your services?
Our architecture is a hybrid blockchain with levels of trust.
The base level where business logic lives is trusted and therefore allows running an independent blockchain.
This also allows us to host on a serverless or microservices cloud platform.
Our first integration will be on Amazon AWS, and we expect to follow with Google and other platforms.
PLATFORM
Dragonchain provides a commercial platform for application developers to rapidly and securely deploy Blockchain applications while maintaining existing language development environments (e.g. Java, Python, Node, C#, Go); a tremendous costing and speed to market advantage. The Dragonchain architecture is also designed to allow nodes to handle approval of transactions based upon five levels of network consensus to provide a spectrum of trust to data consumers; a level of security and flexibility unseen in the market by current blockchain solution providers. These design attributes position Dragonchain for exponential growth.
- Serverless system and smart contracts
- Established language support for smart contracts ( Java, Python, Node, C#, Go, etc.)
- Scalable - Amazon AWS and Google deployments
- Secure - Protection of business data and operations
- Advanced currency implementations
- Smart contract libraries
- Currency Agnostic
Benefits
- Lower development cost utilizing existing development languages
- Faster speed to market
- Significantly higher levels of security
- Higher scalability
In the open source Dragonchain Architecture document, we introduced the concept of “context based verification” wherein Dragonchain adds another dimension to the common blockchain model. This new structure may be best thought of as a “blockchain of blockchains,” where business nodes handle approval of transactions based upon local and sometimes proprietary business logic.
The Dragonchain architecture provides five standardized levels of consensus to provide a spectrum of trust to consumers of data;
- Business (Approval) Verification
- Enterprise ( Validation) Verification
- Network Diversity Verification
- External Partner (Notary) Verification
- Public Checkpoint Verification
INCUBATOR
Incubator & Fund : DragonFund works with companies to help them identify how blockchain technology and smart contracts can advance their mission, and in select cases to build-out token marketplace environments that will build and increase long term value. Dragonchain will benefit from licensing fees and token ownership. We will also provide access to strategic resources to advance an incubated project.
Dragonchain will provide project incubation as well as professional services with strategic partnerships to develop successful tokenization ecosystems focusing on long term value. This includes;
- Standard processes for the incubation of blockchain startups and new integrations
- Marketplace dashboard for community engagement to monitor and compare projects
- Direct access to legal, technical, marketing, and economic subject matter experts as partners for advice and support
- Dragonchain platform team to model digital economics aligned with token model; business design, user acquisition and retention, lifetime value, creation of network effects, monetization models, data strategy, and KPI’s.
- Expedited launch cycles
- Sustainable token marketplaces
MARKETPLACE
Leverage an ecosystem of pre-built library smart contracts, qualified vendors, specialized experts, and incubated projects.
CHALLENGES
The immediate challenge I see are:
- Technology
- Marketing
Technology
It is hard to say what exactly is the unique selling proposition for DragonChain. I can’t say that the team has created anything cutting edge. The challenge I see is convincing the public that DragonChain is a revolutionary blockchain technology. It seems that what they have developed is some use cases for building technology for certain customers while utilizing some blockchain ethos of decentralization, cryptography, and linked data records. Still unclear as to what exactly they have developed.
Marketing
As with any new crypto project, gaining mass user adoption and acceptance is a tough task. Especially when there already exists a list of major players in the space such as Ethereum, Bitcoin, Litecoin, Decred, NEO and WAVES, not to mention new but old upstarts like Cardano.
Overcoming these already well-established players will be a formidable task.
I am unsure as to how DragonChain differentiates themselves technology wise and how they plan on dominating a space already dominated by such solid projects with even more rock-solid teams.
The Disney relationship is still unclear and if Disney plans to use its $152B to influence the market and dominate in the crypto sphere well the more the merrier.
This connection really seems to be the only saving grace to this crypto project.
TEAM
Joe Roets - CEO / Principal Architect / Vision
Dragonchain Foundation, Disney, Lockheed Martin, FBI, DoD, Symbiont, Overstock : 25+ Years Software Development Design and Architecture.
George Sarani’s - Chief Business Officer / Business Strategist / Partnering
Dragonchain Foundation, Digital Ventures Group, Big Fish Games, Sega of America, Google : 17+ Years Business Management, Strategy, Finance, Partnerships
Brandon Kite - Lead Developer - Open Source Dragonchain Foundation, Disney
Dylan Yelton - Developer
Dragonchain Foundation, Disney
Alex Benedetto - Developer Dragonchain Foundation, Disney Moh Kilani - Policy Advisor / Fedbiz BD
Galvanize Partners, Truman National Security Project, Washington State Department of
Commerce
Lewis McMurran - Government And Industry Partnerships
Washington Technology Industry Association :25+ Years Management Experience
Paul Salzman - Operations Manager HydraMedia, Apple, Hydrobee
Mike Grabham - Incubation Lead
Start-up Grind NW Chapter Director, Start-IT TV Host, Founder of multiple successful start-ups
Chelsea Anderson - General Counsel GSB Law International, Seattle WA US
Scott Warner - IP Attorney
GSB Law International, Seattle WA US
Rayan Goutay - Blockchain & ICO Counsel (London)
Lykke Corp, Goldman Sachs, Societe Generale Corporate and Investment Banking
Casey ONeill - Growth and Marketing Technology 21.co, Leantime
TREND ANALYSIS
Of the approximately 650 crypto-currencies available worldwide, Bitcoin remains by far the largest. In January 2017, Bitcoin had a market capitalization of roughly 12.6 billion euros, about 15 times as much as its most valuable competitor Ethereum and nearly 55 times more than Ripple, which completes the top 3. Even combined, the market caps of currencies two to ten are worth only a fraction of Bitcoin’s value, suggesting that Bitcoin’s lead will continue in the foreseeable future.
Size of the blockchain technology market worldwide from 2016 to 2021 (in million U.S. dollars)
This statistic presents the market for blockchain technology worldwide from 2016 to 2021. In 2017, the global blockchain technology market is predicted to reach 339.5 million U.S. dollars in size and is forecast to grow to 2.3 billion U.S. dollars by 2021. More insights on blockchain and bitcoin can be found in our Statista Report 2017.
The statistic presents the total number of Blockchain wallet users worldwide, from the first quarter of 2012 to second quarter of 2017. The number of Blockchain wallets has been growing since the creation of the Bitcoin virtual currency in 2009, numbering approximately 15 million Blockchain wallet users in July 2017.
Number of Blockchain wallet users worldwide from 1st quarter 2012 to 2nd quarter 2017
CONCLUSION
DragonChain is a crypto project that I am unclear as to its potential. I can only think that it plans to dominate and/or leave a lasting impression via its connection (relationship) with Disney. However, I am uncertain as to how deep that relationship goes.
The technology that DragonChain and more so the problem that it proposes to conquer is equally unclear.
There are many uncertainties that I was unable to overcome, once again, those are:
- Technology
- Business solution
- Marketing
- Strategic relationship with Disney
Now, granted, I am not the end all be all when it comes to crypto projects, and there have been many projects that I did not understand thoroughly, that catapulted to huge market share/capitalization gains. So, it is quite possible that I just need more time to investigate this project and maybe have a change of heart.
I just have so many doubts that it is hard to truly present this project as a true contender in the crypto space, especially considering when the competition is so fierce with the likes of Ethereum, Bitcoin, Litecoin, Decred, NEO, & Waves.
DragonChain does have some sort of connection with Disney, and as I have mentioned time and time again, this may be a connection that can make the difference. I just don’t know.