This Cryptocurrency aims to replace the ICO Funding Model
DICE, an abbreviation of the term DIgital CErtificates, is a new form of cryptocurrency that threatens to overhaul the traditional crowdfunding model. Currently, when one thinks of crowdfunding strategies, you would think of Initial Public Offerings(IPOs) or Initial Coin Offerings(ICOs). With DICE, a new type of crowdfunding called Initial DICE Offering(IDO) has emerged. But what is it? To explain more about this, we will need to delve into the inner workings of the DICE ecosystem.
Each DICE unit is essentially a special data block that functions as a cryptocurrency. In DICE, each node in the network are known as operators, and each of these operators are grouped together with other parties known as miners. A miner’s job is to use his or her computational resources to meet certain difficulty requirements to bundle required data into a DICE data block. On the other hand, the job of the operators is to set the difficulty requirements for generating DICE, validate mined DICE units, and maintain a database of the units that are associated with them. Miners can basically create value for themselves by creating more and more DICE units. But how do operators benefit from this? To create a valid DICE unit, miners have to meet both the local difficulty and global difficulty criteria. While the local difficulty is set by the operators, the global difficulty is actually determined by the entire DICE network. When the mined DICE units fulfill the global difficulty but not the local difficulty, they are considered to be invalid to the miners. However, the DICE network still considers these units to be valid as they meet the global difficulty criteria. Thus, operators are able to take(or ‘scrape’) these unclaimed units for themselves as a reward. This provides a monetary incentive for operators to let miners mine DICE for them.
Now, are you able to see how DICE can be used to fund businesses? In an IDO, businesses become operators, and the miners attached to them are equivalent to investors. Businesses can raise funds from scraping DICE units from the miners. Hence, this means that investors are able to invest into the business without actually putting in their own money, making IDOs a win-win situation for both parties.
Another benefit of IDOs is that the costs are miniscule in comparison to IPOs and ICOs. IPOs require legal paperwork like the prospectus and expensive underwriter fees, while ICOs require costs in terms of creating the whitepaper and listing fees for exchanges. An IDO only incurs costs from the server equipment and supporting software.
I believe that with these advantages, IDOs will become the most popular form of crowdfunding. It provides businesses with easy ways to raise funds while rewarding their investors at the same time. Isn’t that great?
Find out more about DICE at:
FB: https://www.facebook.com/DICEsup/
Twitter: https://twitter.com/dicesup
Medium: https://medium.com/@DICEsup
Telegram: https://t.me/DiceMoney
