ICO Analysis: Dispatch
Although it has the highest market cap and is the most popular cryptocurrency, Bitcoin is able to proceed on average only seven transactions per second. This means that when twenty people try to send their BTC at the same time, more than ten of these people have to wait until their transaction is confirmed and for the receiver to get their BTC.
It is the same with Ethereum as well, due to its average fifteen transactions per second. Cryptocurrencies face a problem of scalability and if they are to reach the holy grail of main-stream adoption at some point in the future, this issue must be solved.
But that is not all. When there is a network congestion and you need to send your tokens immediately, you might have to pay high transaction fees as well. Consider the following scenario: You are at a coffee shop, getting your morning coffee. They accept cryptocurrencies and you want to pay with your ETH. Unfortunately, there is a network congestion so that in order to pay ETH worth of $3 immediately, you have to pay a transaction fee in ETH worth of $5.
Dispatch is a project proposing solutions to these issues. Its protocol enables fast, scalable, secure DApps without any transaction fees. It handles governance on-chain and data off-chain, making high transaction throughput a possibility as the network works more efficiently this way. Although Ethereum is deemed to be the main platform for DApps, the protocol is backward compatible, meaning that almost every decentralized application built on Ethereum can be moved to and work on Dispatch.
Three key components of the Dispatch Protocol are as follows.
- The Dispatch Ledger: Just like with Bitcoin and Ethereum, the Dispatch Ledger keeps the record of transactions.
- The Dispatch Artifact Network: A network of data farmer holds data that cannot fit in the ledger.
- The Dispatch Virtual Machine: DVM connects these two main components.
Dispatch’s own Delegated Asynchronous Proof-of-Stake (DAPoS) consensus algorithm enables a fast and eco-friendly environment for decentralized applications by incentivizing collaboration among validators, instead of competition as in other blockchain projects. It’s main difference from its competitors is its dependence on individual transactions’ gossips rather than the sequential distribution of blocks.
The Dispatch token will be used to conduct transactions, for community building and as a bridge to other components of the Dispatch ecosystem.
The total supply of DAN is 25,000,000,000 tokens. 42% of the total supply will be allocated for the token sale. No other information on the token distribution and how the team is planning to use the token sale proceeds are made public yet.
CEO Matt McGraw: McGraw was the vice president of culture, client and staff experience at Synoptek and the manager of consulting services at All Covered.
Patrik Wijkstrom: Wijkstrom has worked as the director of advisory services at PwC, as the senior manager of user experience at Juniper Networks and as the content and attribution tools manager at Nortel Networks.
Zachary Fallon: Fallon worked as senior counsel for eight years at the U.S. Securities and Exchange Commission and as an associate for about 3 years at Latham & Watkins.
Darin Kotalik: Kotalik was a marketing operation strategist at Cisco and a senior product manager at Adobe Systems.
Colin Lowenberg: Lowenberg has worked as a solution architect at Cisco Meraki, as a chief wireless architect at Accenture and as a wireless field applications engineer at Broadcom.
Denis Molchanenko: Molchanenko was a lead automation engineer at Hitachi Data Systems, a performance engineer at IBM and at Charles Schwab.
Dmitri Molchanenko: Molchanenko has worked as an automation engineer at Intuit and as a staff QA engineer at VMware.
Nicole DeMeo: DeMeo has provided her marketing consultancy services to Babbel, Peak Games, Trendyol, Hewlett-Packard and Organic.
Gil Penchina: Penchina has held respectable positions at eBay, Bain & Company and General Electric.
Tim Siwula: Siwula was a software engineer at ConsenSys.
Andrew Segal: Segal is an assistant professor of computer science at the University of San Francisco.
Paul Lambert: Lambert has worked at Marvell Semiconductor, Oracle and Motorola.
Jordan Burton: Burton was a case team leader at Bain & Company and the director of business development at EzGov.
Fenbushi Digital: Fenbushi Digital is an Asian leading firm investing in and promoting blockchain projects.
Below is a breakdown of the risks and growth potential of Dispatch Labs.
- The main problem which transaction fee-free blockchain projects usually face is that either the network is highly centralized or successful attacks on the network are not costly. It is not clear that how the Dispatch Protocol can operate without facing these two issues. (-1)
- Very limited information on token metrics and token distribution is made public so far. (-1)
- Great team and advisors. (+2)
- The token sale will be conducted after the main-net is launched, which is something we do not see very often. The team seems to do things right and this should provide trust in the project for the ICO investor. (+4)
Top cryptocurrencies such as Bitcoin and Ethereum are known to have problems of scalability and occasional high transaction fees. Although most decentralized applications are built on Ethereum, the low transaction throughput makes it inconvenient to use them as well. Dispatch provides a fast, secure and transaction fee-free network to solve these issues. By dealing with governance on the chain and data off the chain, it is able to provide high transaction speed and its own consensus protocol Delegated Asynchronous Proof-of-Stake provides an eco-friendly mining solution by incentivizing collaboration instead of competition among validators. Thanks to its backward compatibility with Ethereum, any decentralized application working on Ethereum can work on Dispatch as well. There is very limited information on token metrics and token distribution as of the time of writing and this makes it hard to evaluate the project’s financials and estimate any potential return on investment.
The usual problem that blockchain projects without transaction fees are that either they are highly centralized, or they do not have strong defense mechanisms to evade attacks. It is not clear that how the Dispatch Protocol can operate without facing these two issues. On the bright side, the project has a great team and is backed by an all-star advisory board. The token sale is planned to be conducted after the main-net is launched and this is something we rarely see nowadays.
Dispatch Protocol receives a 4/10.
- Type: ERC20 – Utility
- Symbol: DIS
- Platform: Ethereum
- Crowdsale: Unspecified
- Minimum Investment: Unspecified
- Price: $0.005
- Hard Cap: $39,500,000
- Restricted from Participating: Unspecified
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