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Blockchain Startup Receive $3 Million in Seed Money from Coinbase Co-Founder

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A San Francisco-based startup that is interested in creating a protocol built on the power and capabilities of the blockchain infrastructure has received seed funding to the tune of $3 million. The protocol is to be employed in validating information collected from a broad array of datasets.

The company, which goes by the name of DIRT, sent out a press release on Wednesday indicating that various investment firms such as InBlockchain, Digital Currency Group, Zhenfund based in China, and Pantera Capital were some of the companies taking part in the seed round. Individual investors that took part in this particular seed round included Coinbase Co-Founder Fred Ersham and Linda Xie.

What’s Next for Dirt?

Now that the seed round has been finalized, and new financing acquired, its founder Yin Wu went on record with CoinDesk to state that the protocol will be ready for release in the next 3 to 4 months. During this interview, DIRT’s founder noted that the protocol, also called DIRT, will be released together with its own token. Its token is to be based on the ERC-20 standard.

According to Wu, the primary goal of this protocol will be to act as a platform where Dapp developers can develop a TRC (token curated registry). This concept is similar to the one employed by the Wikipedia community in updating and verifying all the data being posted in its community forums.

A TRC is technically a distributed data list which focuses on some particular topics, and one that can allow its users to make proposals, as well as validate the information that should be added to its data lists. Users can then use the token to back up their positions, as well as vote for their preferred data lists.

Wu further went on to say: 

if a person in the network was to come across any misinformation, they would be allowed to challenge that particular dataset and point it out as being incorrect. For such a user to initiate any challenge on the dataset, they would need to be in possession of a stake token. A challenge would then be initiated in the form of a vote. All network users would have an opportunity to make a vote provided that they had enough tokens. The side that wins a particular vote would be rewarded with the tokens; the losing side would in return be penalized.

 

At this point, however, DIRT has not yet reached a consensus on how its tokens will be distributed. But its founder is optimistic that the tokens will be distributed as widely as possible. Wu is of the belief that once released, the tokens will possess a “strong utility angle”, which will then be used to adjudicate on whether information in a dataset is correct or not.

Image Credit: Deposit Photos

 

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