One of the major barriers to enterprise adoption of the blockchain is the risk associated with data exposure and security, as these companies typically have very sensitive customer information that carries regulatory or legal risks. This concern is largely driven by the public exposure of smart contract logic, as necessary on most blockchain platforms.
While the larger crypto community has yet to come to a consensus on the utility of private blockchains, with many simply calling them glorified databases, there are a few projects actively building unique hybrid chain solutions to promote the secure integration of business applications onto a blockchain.
One such project is Dragonchain, which is developing a hybrid private/public blockchain platform that features easy integration, fixed 5-second blocks, currency agnosticism and multi-language smart contract interactivity. Dragonchain’s hybrid blockchain functions through a serverless architecture where smart contracts are executed in a traditional model and on a trusted node. This architecture enables nodes to handle the approval of transactions based upon five levels of network consensus, providing a flexible spectrum of trust to data consumers. To further simplify the blockchain deployment process, Dragonchain has created a marketplace ecosystem of pre-built library smart contracts, qualified vendors, specialized experts, and startup projects discoverable through its Dragonscale incubator.
Interested in Dragonchain? Here’s a quick rundown of the project:
Platform & Development
In short, Dragonchain is building out its enterprise-level ecosystem through the use of a hybrid private/public blockchain architecture. This architecture provides five standardized levels of consensus to provide a spectrum of trust options for consumer’s data, where business nodes handle the approval of transactions based upon local logic:
- Business (Approval) Verification L1: Analogous to other blockchain systems, the business context provides localized approval of transactions and operates primarily on a trust basis. This is considered to be a web application layer where developers can easily integrate existing systems in common programming languages including Python, Java, Node.js and C#.
- Enterprise (Validation) Verification L2: Described as providing “real-time enterprise governance,” allowing for enterprise-specific checks on blocks and individual transaction validity.
- Network Diversity Verification L3: Verification that ensures that all validations of transactions from Level 2 are coming from a sufficiently diverse set of distributed sources. Monitors the decentralization and health of the network.
- External Partner (Notary) Verification L4: Provides a notary functionality to the consensus process via an external partner. This allows the Level 4 nodes to act as an independent witness to level 3 verifications.
- Public Checkpoint Verification L5: Provides a bridge to one or more public blockchains and allows clients to interact with them.
Together, this architecture provides a trust mechanism where risk is accepted based on a combination of real-world contracts, the reputation of nodes, and trustless system assertions. Additionally, it allows for serverless deployment that is initially being integrated on Amazon’s AWS.
It’s important to note that Dragonchain chose to be “currency agnostic,” meaning that the architecture allows blockchain creation without the necessity of a platform currency, an ideal system for utilization within a business. However, the project has issued its own ERC-20 token (DRGN), which has a variety uses within the Dragonchain ecosystem.
For example, DRGN can be used by companies to purchase third party smart contracts and to launch or compensate other nodes to record business data. Additionally, it’s often used by the Dragonchain Foundation to compensate open-source developers, and it also functions across the Dragonscale startup incubator.
Dragonscale provides project incubation, as well as professional services with strategic partnerships, to develop successful tokenization ecosystems focusing on long-term value creation. These companies will have special access to the suite of tools and APIs made available through the launch of the Dragonchain marketplace in Q4 2018, and it is anticipated that DRGN investors will be provided with opportunities to participate in the startups’ token sales. Here are a few of the startups that have already been announced:
- Look Lateral: Blockchain-based arts provenance and liquid marketplace. Provides market-based provenance in advance of a service to securitize rare assets for a liquid market.
- Metropolis: Platform where it is easy and cost-effective for employers to connect with top talent
- Givewithnothing: Increase transparency and accountability of charitable giving through blockchain technology.
The Dragonchain roadmap is very detailed, and the project has a number of major upcoming milestones. While the main focus has been the rollout of AWS serverless platform, Dragonchain is looking to further build out its incubator and marketplace.
Dragonchain was originally developed at Disney’s Seattle office in 2015 and 2016 as the Disney Private Blockchain Platform. The Dragonchain Foundation, a non-profit, was created in January 2017 to maintain ownership and responsibility of the open source code and a commercial entity was formed to build the project’s serverless architecture blockchain platform and incubator.
Dragonchain (DRGN) currently has a market cap of ~$255 million with a circulating supply of 238,421,940 DRGN and a total supply of 433,494,437 DRGN.
Dragonchain aims to lower the risks associated with enterprise adoption of public blockchains through a serverless architecture that offers a variety of trust levels. Ultimately, the Disney-backed project’s clear approach and technical backing should propel the project to higher valuations.
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Disclaimer: The author(s) of this article may have a position in one or more of the cryptocurrencies mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.