Revolutionising Financial Capitalism

The rise of cryptocurrencies has changed the way businesses raise funds. Previously, businesses could either raise debt or sell shares in an Initial Public Offering(IPO). However, cryptocurrencies have given rise to Initial Coin Offerings(ICOs) which have replaced IPOs for many businesses. In 2017 alone, more than $6 Billion was spent on ICOs. Truly, it seems that ICOs are here to stay as a fundraising alternative. However, the time has come for a new type of fundraising to enter the scene.

Meet DICE: a new form of investment that allows investors to contribute computing power instead of money to fund businesses. DICE acts in a similar manner to real world money, but instead of notes and coins, DICE uses prepackaged blocks of data. These data essentially function in the same way as cash and can be used to purchase goods and services. Here are just some of the ways in which DICE can fund businesses compared to other ICOs and IPOs.

Crowdmining versus Crowdfunding

Crowdmining is similar to crowdfunding where funds are raised to support a venture by a large group of people. However, the key difference is that investors do not actually contribute real world money. Instead, they use computational power to help generate new blocks of DICE. These new blocks are generated based on a set of parameters. When these blocks are mined, not only do the investors get richer(by accumulating more DICE) but the operators(businesses) that they mine for get richer as well because they gain additional DICE units that add to their market capitalization.

This brings us to scraping, which is the key element to incentivise operators to get miners to mine for them. To understand this, we need to learn about the terms global complexity and local complexity. Essentially, global complexity refers to the global difficulty encountered by miners to mine a single unit of DICE. On the other hand, local complexity is a difficulty that is individually chosen by every operator. This local complexity helps to determine the minimum value of each unit for each operator.

To explain further, the local complexity can only vary within a certain range from global complexity. For example, if the global complexity is 40, and the local complexity can only vary by 10, then the minimum local complexity is 30 and the maximum is 40. Anything outside this range does not produce valid DICE units. The minimum local complexity thus refers to as the absolute global minimum.

Let’s say the operator sets its local complexity as 33. That means newly mined units with complexity of 30,31 or 32 are not validated by the operator. This means that miners cannot claim units with these complexity numbers. However, this does not entail that these particular units are lost. They are still valid in terms of global complexity as they are greater or equal to 30. Hence, the operator can ‘scrape’ these units for themselves while miners get to keep any mined units with complexity between 33 and 50. This demonstrates how operators like businesses can earn DICE units from others mining for them.

Therein lies an important question:

“Why would any sound miners mine these units which have higher minimum complexity than the global minimum?”

Well, the reason for this could be a variety of preferential options given to the miner when dealing with the particular operator. It could also be because of brand loyalty or even just for the sake of pure speculation.

Donation Mining

Another way in which DICE can be used for funding is in donation mining. It is a new concept in which users mine for the operators without earning any incentives whatsoever. All the mined units are given to the operator, with none for the miners. This is similar to how charitable organizations solicit donations from the public without giving anything in return. Hence, this provides a new way for non-profit organisations to raise funds for their programs.

To conclude, DICE is able to bring society closer by being a new social economy that is advantageous to both miners and operators, allowing them to unite and raise funds without the need of investing huge amounts of money. By building upon the traditional concept of money, I believe that DICE has the potential to usher in a new wave of financial capitalism. Learn more about DICE from their website and social media links below!

FB: https://www.facebook.com/DICEsup/
Twitter: https://twitter.com/dicesup

Medium: https://medium.com/@DICEsup
Telegram: https://t.me/DiceMoney