By Shaun Neal
Dynamo is a unique cryptocurrency blockchain project which seeks to incorporate a number of unique technologies. Dynamo is first and foremost a proof of work blockchain secured by an ASIC proof algorithm.
Future development items for Dynamo include native NFT support, a native custom virtual machine, on chain voting and hybrid proof of work/proof of stake security. These unique features will allow commercial entities to develop novel business models.
Use case categories
Store of value: this is of course the trivial use case which is enjoyed by every cryptocurrency. Simply buying and selling crypto as an asset class is a basic commercial value proposition.
Transactional money: this also is one of the most frequently claimed benefits of crypto — the ability to send and receive money with very low fees and little friction compared to traditional money transmission routes. Dynamo has a rapid block emission schedule (15 seconds) and a large block size (10mb), so it is well positioned to allow for high transactional throughput for monetary transmission purposes.
Programmable money: this is where things start to get interesting. Note that not all blockchains can offer this benefit, only those with a native virtual machine can support smart contracts. Programmable money use cases include things like swaps, futures, time locked funds, interest earning deposits, event locked funds and anonymous lotteries. Basically anything that you normally think of a bank or securities firm as doing can be done on a blockchain trustlessly with no intermediary.
Asset ownership: this is the realm of NFT aware blockchains. Using NFTs one can track ownership of specific assets and trade those assets on marketplaces which are connected to the blockchain. Combining NFTs with a virtual machine offers very powerful on chain commercial uses, such as automatic auctions. NFTs also pair well with the gaming industry by representing collectable items for example. Finally, NFTs which store binary data can be used to represent any digital asset, such as a contract, an invoice, a video or audio recording, etc. and they can be transmitted easily and cheaply while retaining chain of custody — e.g. its similar to sending an email, however there is an immutable public record of how the asset changed hands. It is also possible to securely encrypt the binary data with a private key using symmetric encryption.
Voting: the utility of on chain voting is provided by governance token based blockchains. When combined with virtual machines and NFTs this can provide unique solutions in a variety of business cases.
Concrete use cases
Below are some examples of commercial use cases for Dynamo. Please note that these are presented for example only. They are not business or investment advice and any or all of them may not be legal in your local jurisdiction.
NFT marketplace — this allows buyers and sellers to meet and exchange currency for NFTs. This is typically done on a central exchange (i.e. website) however because Dynamo supports both NFTs and has a virtual machine, this can now be done in a totally decentralized way. The marketplace can exist as a decentralized wallet, as a website or even a 3D virtual world where merchants can buy or rent space.
Micropayments — due to extremely low transaction fees and quick confirmation time, Dynamo can be used to complete small dollar transactions in a peer to peer marketplace.
Gaming — by integrating crypto into online games, publishers can reward players with in game native crypto currency or allow them to purchase in game assets represented by NFTs which can then be traded on a secondary market.
Coupon tracking — retailers can issue single use electronic coupons which can be redeemed in store and are guaranteed to not be re-used and can be fully tracked.
Admission tickets — venue operators can issue NFT tickets which are redeemed for admission to an event. Redemption can be facilitated by a mobile wallet app which can only be unlocked by the holder’s private key.
IoT integration — real world devices can be connected to smart contracts or NFT transfer such that events can be triggered (e.g. locker unlock, dispense drink, etc) when funds are received, with no requirement on a trusted intermediary.
Software license — applications can be made blockchain aware and allow users to access licensed software based on NFT or smart contract proof of ownership. Smart contracts can also “dispense” software installation programs automatically when payments are received.
Supply chain management — for some applications where market participants are not known or there are large numbers of smaller participants, it is possible to develop supply chain traceability markers using blockchain. These can be made public or can be encrypted on chain with user’s private keys.
Conditional payment — through the use of data Oracles, it is possible release stored funds based on externally monitored events. For example, peer to peer sports betting may be facilitated by users depositing their funds into a smart contract along with their wager (over/under/points/etc). Then an Oracle monitors the agreed upon source of data and when the game is decided, the smart contract automatically releases funds based on the rules of the wager. This can be applied to all manner of financial scenarios which currently have to rely on a third party intermediary — insurance, wills, trusts, estates, etc.
Because Dynamo incorporates several novel technologies, it is uniquely positioned to provide commercial solutions to problems not solved by other blockchains. I have presented several theoretical and concrete commercial use cases for Dynamo which either enhance existing processes or create entirely new solutions.