Dragonchain

Originally developed at Disney’s Seattle office in 2015 and 2016 as the Disney Private Blockchain Platform, Dragonchain platform was later released as open source software under the Apache 2 license in October of 2016.

The purpose of Dragochain is to provide a commercial platform to the enterprises to integrate business applications onto a Blockchain. Whitepaper of the project claims to provide a solution to businesses that want to leverage Blockchain technology, but cannot do so because of the business need that can exist in having to protect sensitive information such as customer data.

“Data exposure and security is a known issue to large institutions wanting to leverage Blockchain technology, as they typically have very sensitive customer data that sometimes has regulatory or legal risks associated (e.g. banking, health, identity, etc.). The data exposure risk can be somewhat alleviated by either obfuscation or separation, however, in both cases, this requires extra design and development work up front, as well as reduces somewhat the utility of the Blockchain system itself.

A so far generally unrecognized risk in the use of Blockchain technology is that associated with the public exposure of smart contract logic as necessary on most Blockchain platforms. The smart contract is exposed and transparent which means that the team must implement very sensitive proprietary business logic in a separate system. Also, any obfuscated data may be unraveled by an interested viewer of transactions.
Most important however is the combined risk of exposed data and business logic, as it is the equivalent of placing your operational system, all of your data, and a bounty of funds in the public domain.”

Dragonchain proposes to solve this problem with its novel use of ‘context based verification’.

Context Based Verification

Bitcoin uses proof of work algorithm which is used to add block to the blockchain and reach network consensus. Dragonchain introduces another design layer to that architecture, by requiring five levels of network consensus which are designed to produce a spectrum of trust for sensitive business information, and an increased level of security and flexibility.

Level 1: Business Verification (Approval)

Business logic is implemented in order to provide for transaction approval. In other words, business logic, as defined by the business, will determine the required parameters of a transaction. Transactions will be approved or denied according to the parameters that have been laid out by the business.
Any data contained in the business defined payload of a transaction will not move across the network unless explicitly authorized by the owner of a node(s).

The second aspect of this level concerns system logic. The system logic is analogous to traditional blockchains such as Bitcoin, in that transactions are also arranged into blocks and chained together.

Level 2: Enterprise (Validation) Verification

The second level of Dragonchain’s consensus architecture checks for block and individual transaction validity in form, signature, and required data elements such as block signatures, transactions signatures, and header element.

Level 3: Network Diversity Verification

The purpose of this level is to verify the diversity of Level 2 validations and to ensure that transactions are coming from a sufficiently diverse set of distributed sources. In order to achieve this, a Level 3 node will check the following criteria:
-Level 2 verification records have been received.
-That those records have come from unique sources.
-That those records have come from unique deployment locations.
-That those records have come from unique key management authorities.

Level 4: External Partner (Notary) Verification
This layer of the consensus process serves as a notary function in the Dragonchain architecture. A Level 4 node, in this context, is hosted by an external partner that will cryptographically sign all Level 3 verification records that it receives. This function allows the Level 4 node to act as an independent witness to level 3 verifications

Level 5: Public Checkpoint

A Level 5 node will act as a bridge to allow the interoperability of the Dragonchain platform to one or more public blockchains such as Bitcoin and Ethereum.

Dragon Tokens

To interact with Dragoncahin Platform and services, Dragon tokens are designed which act as a tokenized license. They are also instrument of incentive mechanism, to reward individuals and organizations for running public or private nodes for network consensus.

Slumber Score

To discourage speculation and trading of Dragons tokens and to incentivize the people to hold tokens, a nice concept of Slumber Score is created. It is basically a Dragonchain's loyalty program. To calculate the score, dragonchain uses their own algorithm to take the number of coins one own and the length of time the tokens have been owned to calculate “Slumber Score". Higher Slumber Score means early access and more discount ICO pre-sale. Each coin release will have different perks.

Discount structure based on Slumber Score in its first ICO – Look Lateral

Dragonfund Incubator

The Dragonfund Incubator serves as a project incubation service, to assist in the development of tokenized ecosystems. DragonFund works with companies to help them identify how blockchain technology and smart contracts can advance their mission. Dragonchain will benefit from licensing fees and token ownership.

Projects Under Incubation
• Look Lateral - Liquid Art (presale already out)
• Seed2You
• LifeID
• IDPay
• ClevX

References

1. https://medium.com/@dragonchain/
2. https://www.reddit.com/r/dragonchain/
3. https://twitter.com/dragonchaingang
4. https://dragonchain.com/assets/Dragonchain_Business_Summary.pdf