From its humble beginnings as only a peer-to-peer digital cash transfer platform, the cryptocurrency industry is shifting in new, complex yet enhanced ways for the benefit of the user. The past decade has seen the industry blossom into the mainstream with Bitcoin.
Yet, the pioneer cryptocurrency, around which many other altcoins are conceptualized, has increasingly concerning flaws. In fact, some of the best Bitcoin features are turning out to be the very aspects that might challenge further rise for Bitcoin.
What some of these gaping flaws that have exposed a need either for a Bitcoin update or a wholly fresh cryptocurrency?
Cryptocurrency 1.0: Since 2008
When Satoshi Nakamoto unleashed the first working cryptocurrency type, the main aim was to allow digital, peer-to-peer and secure electronic cash transfers. Bitcoin was not really intentioned to become a digital equivalent of fiat money.
It offered anonymity, impregnable security and an affordable way to move cash around without government and banks’ interferences. It all worked great until drug and human traffickers, digital hackers, and other financial crimes took advantage of the features.
Especially over the last three years, altcoins that follow the Bitcoin mining and decentralization model are reeling in cybercrime. And there has not been a central governance structure to help steer the core of such digital currencies.
Millions of Bitcoin users have to reach a consensus to introduce a new Bitcoin feature—which, as history indicates, has not been nearly as progressive as it might have been intended.
Cryptocurrency 2.0: Since 2017
At the height of the rise of Bitcoin, a few cryptocurrency firms have learned from the weaknesses of the original model to come up with more, well-rounded Bitcoin alternatives.
One of the significant ones is DasCoin.
In its 2016 white paper, the company scrolled out its unique model.
i. DasCoin Hybrid Model
DasCoin combines a centralized “Trusted Role” entity and a decentralized coin distribution system. There is a board charged with governing policy across the entire DasNet, their network.
The central authority also services the system, including updating the security, scalability and speed aspects of the blockchain at the core of it all. Yet, the chain authority or DasCoin Board members are non-executive.
However, unlike other altcoins, where the governing entity could pre-mine, pre-mint or pre-distribute coins to themselves, DasCoin’s blockchain technology would not allow it.
ii. Authenticated Blockchain
To boost trust and good faith among users, the Board ensures all members verify their identity using the Know Your Customer (KYC) standard.
That happens as a new member applies to join the network.
The company assures that all personal identification details will remain secure and confidential in a personal Vault Account. No one can alter or retrieve a member’s details, apparently not even the management.
iii. Minting
Mining is different from mining. Instead of solving complex math equations to earn digital coins, DasNet members purchase a cryptographic license. The company calls this “Proof of License”, which differs from other coins’ Proof of Work model.
Interested members use Bitcoin or euros to buy a NetLeaders license, which is offered in varying packages. The license is first changed to Cycles, which represent “stored capacity”, and then to DasCoins—when submitted to the system for conversion.
The DasNet algorithm determines randomly determines how many Cycles are enough to yield a DasCoin without inflating or deflating the digital asset system.
iv. DasEcosystem
NetLeaders, the parent company to DasCoin, has built a multifaceted system around the digital currency. DasEcosystem is a host of related services to help the network’s users enjoy more utility, value storage, network independence, and security.
Users can use DasEcosystem to create, transfer and account for a number of different cryptographic assets.
Unlike in cryptocurrency 1.0, the DasEcosystem comprises supporting infrastructure, the blockchain, and network. Those include consortium blockchain, secure web wallet, hardware wallet, third-party auditing, independent-party authentication, DasPay, and exchanges (internal and public).
v. Hardware Wallet System
The digital asset system has a digital wallet that requires a separate, physical authenticator to verify transactions. Referred to as WebWallet, it uses a flash-drive-like physical key that contains additional security features to help users avoid phishing and account hacking scenarios.
Users have to order for the Validator after registering for a WebWallet account. The Validator also acts as a physical store for the users’ blockchain keys.
vi. DasPay
To enhance its utility functionality, the firm plans to launch DasPay in June 2018. DasPay will function as a blockchain-based payment gateway system.
DasEcosystem members across the globe will be able to use DasCoin to pay for goods and receive payments as well as trade the currency in for fiat money.
The service is reportedly rolling out to over 60,000 merchants across the globe. It will also work with major card payments companies like Visa and MasterCard. The company also promises all transactions will take about 6 seconds to go, with the infrastructure supporting up to 100,000 transactions per second.
