What is DopeCoin?
DopeCoin is a decentralized and open source cryptocurrency for the Smoke Exchange. The coin was created to help make sale and purchase of marijuana easy. Following the widespread legalization of marijuana by different countries, the demand for cannabis has been growing steadily. However, the markets lacked a reliable platform that traders and buyers could use reliably for standard transactions.
To address the problem, James Allen created DopeCoin to act as the native coin for the Smoke Exchange. The coin uses proof of stake (POS) protocol that guarantees even distribution of coins to users throughout its network.
- The performance of DopeCoin in the market
When DopeCoin was released into the market early in 2014, its value was $0.002. By April 2014, the price had dropped by $3900% to $0.00005. The coin’s price ranged between $0.00002 and $0.001 between April 2014 and April 2017.
In 2017, the value of DopeCoin experienced a steady bullish trend that culminated to $0.2 in early January. This was a sudden rise of about 9900% between April 2017 and January 2018. It also marked the highest point in the history of the coin. But the positive show was short-lived.
Immediately after hitting the peak in early January 2018, the value took a downtrend that persisted the remaining part of the year. By early December, the value of DopeCoin reached a low of $0.003.
What is the problem that DopeCoin solves?
The Smoke Exchange and DopeCoin were designed to address the issues of advertisement and purchase of cannabis in the society. The team also extended the focus to address the problems experienced in the crypto and financial services sector. Here are some of the problems that DopeCoin addresses.
- Poor uptake of crypto coins in the marijuana niche
While cannabis was associated with negative health for many years, it is now emerging that it also has desirable traits that are making countries to legalize it. Some countries that legalized it include Canada, some states in the US, Mexico, Argentina, Peru, and Jamaica. However, the opening space for legal sale and use of cannabis is lacking in that the existing structures were made for other products such as foodstuffs and industrial products. DopeCoin was created to fill this gap by providing stakeholders with a legal and free platform to sell and buy cannabis easily.
- Negative perception about cryptocurrencies in the market
When cryptocurrencies entered the market in 2009, they were cast in bad light. Many administrations went to great lengths to demonstrate the risks of using cryptocurrencies. For example, the EU Central bank, Russian administration, and Chinese government have been asking their citizens to exercise caution when handling cryptos. In Russia, the administration has sent the Digital Financial Assets draft bill proposing to criminalize payments for products using cryptocurrencies.
DopeCoin seeks to change this perception by demonstrating the positive side of digital coins. The DopeCoin network targets to demonstrate that users can make purchases with crypto coins just like they do with fiat currencies.
- The high cost of transactions using the traditional payment services
If you want to send funds to another country using the banking system, the transaction fee is very high. The high cost arises from the fact that traditional financial services are profit based. This means that they have to charge high transaction fees to optimize returns for investors. But this is not all.
The banks and credit card companies have to charge high transaction charges to cater for operational expenses. For example, most banks have to run multiple branches downtown where the cost of rent is very high. Other expenses include paying wages, advertisements, and security.
- Lack of privacy when making transactions
When you decide to invest, save, or send value through a banking system, there is no privacy. From cashiers to the financial system administration, it is very easy to pull out your transaction details. This puts you and your investment at risk. For example, a case can be targeted at you to ensure you hire some attorneys who will charge a fee for representation.
How does DopeCoin solve the problem?
To address the above problems, the DopeCoin development team adopted a multi-dimensional approach that sought to endear the platform even to others outside the cannabis supply sector. Here are the four main methods used to address the problems.
- Use of proof of stake (PoS) protocol
Proof of stake (PoS) is a consensus protocol was discovered by Dan Larimer as a solution to the issues that faced cryptocurrencies that use proof of work (PoW) protocol. Unlike proof of work protocol that requires the nodes to generate high computing power to be allowed to mine the network, proof of stake (PoS) is different.
To mine the DopeCoin network, one is only required to acquire some stake in the selected coin. This means that you do not need to acquire special equipment such as Application-specific integrated circuits (ASICs). Simply acquire a standard CPU or GPU and stake some native coins on the DopeCoin network.
- Proprietary encryption system
To ensure that people using the Smoke Exchange and DopeCoin systems can operate privately, the system employs a proprietary encryption system. Under the system, the encryption technique is maintained by the Smoke Exchange developers as an additional layer of security.
Though proprietary encryption system has helped to make the DopeCoin system faster, concerns about its safety still abound. Experts insist that the best encryption should be open source so that it can be supervised by the community.
- Grow network
As a cryptocurrency designed for the cannabis niche, one of the goals is providing a reliable network that can connect the entire niche. The Grow Network is a feature on the Smoke Network that helps to connect marijuana growers with the market.
The network allows the cannabis growers peg their products to DopeCoin like the way fiat currencies are pegged to gold. This feature is aimed at helping to stabilize the price of the coin to reduce the threat of high inflation.
- Complete decentralization
DopeCoin operates as a network of nodes spread in the Smoke Network. When you initiate a transaction in the DopeCoin system, it is taken over by miners who follow back to confirm the balance of the public address. Making the DopeCoin an ERC-20 token helps to add another layer of security to keep user funds more secure.
What makes DopeCoin better than it’s competitors?
When DopeCoin was founded in 2014, the development team knew they would face major competition from other crypto coins entering the market. By mid-2018, the number of coins in the market had risen to about 1600. Here are some of the things that make DopeCoin better than competitors.
- The coin has been in the market for long and its structures demonstrated to be stable
Today, many people have become skeptical about emerging crypto projects because some such as Bitconnect have proven to be Ponzi schemes. Besides, others have a poor focus on security and risk users’ investment. However, DopeCoin has been in operation since 2014 and, therefore, demonstrated to be reliable.
Since its creation, the DopeCoin features have been tested and proven to work. This means that users joining the network can operate without worrying about losing their funds. Indeed, the fact that the coin and its network have been in the market for a long time is attracting investors even from outside the cannabis supply chain.
- The DopeCoin is targeted at a niche that is less explored
As more cryptocurrencies focus on the finance sector, many niches have been left out. By targeting the cannabis niche that has been less explored, DopeCoin is likely to enjoy near monopoly status. This means that the chances of DopeCoin’s growing into a major token are very high. This makes it a high potential coin for people interested in joining the crypto niche.
- The DopeCoin platform allows users to make private payments
To help users complete their payments anonymously, DopeCoin is encrypted to ensure that no third party can easily pull out user details. Even the miners who help to confirm transactions on the network can only follow back to check the balance of user wallets. This means that only you can know the balance in the wallet and transaction history.
- The DopeCoin network is led by a committed tech team
The DopeCoin and Smoke Exchange network is led by an aggressive team that seeks to help the niche grow to the next level. For example, they have been working on new features that the Grow Network and Proprietary Encryption System.
- The DopeCoin system is used even beyond the marijuana supply chain
Though the DopeCoin was initially created for the marijuana niche, its structures have made it appealing even to other sectors. This is one of the reasons why the demand for DopeCoin has been growing steadily in the market.
How can DopeCoin be categorized?
DopeCoin is a unique cryptocurrency that seeks to help the cannabis niche operate legally just like other networks. Even as other networks appear unwilling to support the cannabis niche, the Smoke Network and its native network have created a secure and private system for all to use. Whether you are a marijuana grower or trader, the network has proven to be a reliable solution.
The effectiveness of the privacy features used on the DopeCoin has made it appealing even to other sectors. Because people can make payments anonymously, they prefer it to operate without worrying about third-party seizures. Whether you want to pay for services or products in a local store, DopeCoin ensures that you can make payment privately to avoid chargebacks.
What is DopeCoin’s vision on security?
The DopeCoin’s vision on security is to provide the marijuana dealers and the entire supply chain with a secure payment system. The development team was concerned that attacks on crypto networks were threatening the adoption of crypto coins and success of blockchain technology. Therefore, the team adopted the following strategies
- The native coin based on the Ethereum blockchain: The DopeCoin is based on the Ethereum platform that serves as an additional layer of security. This means that before an attacker can break your coins, he will need to break through the tough layer of Ethereum protocol.
- It uses proof of stake protocol. The DopeCoin system uses proof of stake protocol that requires people to own some stake in it to participate in its governance. This implies that by simply purchasing some native DopeCoin on the Smoke Exchange system, you are entitled to some rewards in native coin. You will also be called to participate in the governance system through voting.
- The DopeCoin platform uses complete decentralization: By adopting total decentralization, it implies that the DopeCoins are evenly decentralized to reduce the danger of 51% attacks.
Examples of DopeCoin’s use cases/ applications
To know if a cryptocurrency is good, simply take a closer look at the applications. Like other cryptocurrencies such as Bitcoin, the DopeCoin development team has been working extra hard to increase its use cases. Here are some of them:
- The DopeCoin can be used to help send value on a peer2peer basis. Like other coins such as Bitcoin, you can also use DopeCoin to send funds across the globe. Note that both the sender and respondents must be in the DopeCoin network.
- The DopeCoin coin can be used to pay for goods and services from stores that accept it. As more stores start accepting the cryptocurrencies, it is becoming possible to pay for goods and services. Note that even if only a different coin is supported, you can still use DopeCoin by converting it to the accepted coin.
- Pay for your cannabis from the legal stores online or downtown. The DopeCoin was created to facilitate direct payment for cannabis either from the growers or the legal sellers. Remember that the DopeCoin network makes it possible to complete the payment anonymously.
- The DopeCoin can be traded in the markets. If you want to trade cryptocurrencies in the markets, one of the options is DopeCoin. Remember that to trade cryptos, you are required to join an appropriate exchange and open a trading account. You also need to create appropriate trading pairs with other coins such as Bitcoin or Ripple.
https://coincheckup.com/coins/dimecoin/discuss
https://coincheckup.com/coins/dimecoin/analysis
https://coincheckup.com/coins/dimecoin/charts
https://coincheckup.com/coins/dimecoin/predictions
https://coincheckup.com/coins/dimecoin/purpose
https://coincheckup.com/coins/dimecoin/markets