Dragonchain: What It Is and How It Works

All about Disney's Dragonchain blockchain and Dragon crypto token

A green dragon coming out of a computer and attacking a young boy wearing knight armor
Disney's Dragonchain is a blockchain with a difference.

Andrew Bret Wallis / The Image Bank

Dragonchain is a blockchain platform created by Disney in 2014. The blockchain was eventually made open-source and, since 2017, has been managed by the non-profit Dragonchain Foundation.

What Is Dragonchain Used For?

Dragonchain is quite similar to Ethereum in that its blockchain network can be used by companies to secure transactions and protect their data.

Companies or individuals can create smart contracts on the Dragonchain blockchain and it's promoted as being easier for developers to work on due to its support for existing coding languages such as Java, Python, Node, and C#. Dragonchain also supports Amazon Web Services (AWS) and has plans to integrate Microsoft's Azure and Google Cloud technologies.

Other main features of Dragonchain are its built-in incubator and marketplace. The former can be used to test and experience new projects on the blockchain; the latter provides access to pre-built smart contracts, vendors, experts, and other coding resources.

Some examples of how the Dragonchain blockchain could be used are in personal identity databases, ticketing systems, digital rights management, legal contracts, loyalty programs, and online booking systems.

Is Dragonchain a Cryptocurrency?

Dragonchain is a blockchain network, not a cryptocurrency. It is, however, powered by a token called Dragon (DRGN) which can be exchanged on the Dragonchain blockchain to complete certain tasks.

Dragon isn't technically a cryptocurrency, though it can work as one. Dragons can be traded on some exchanges and they increase (and decrease) in value as well, much like other crypto coins.

Can I Buy Anything With Dragons?

Dragons aren't really accepted by online or offline merchants as currency. That functionality is really something that's been well and truly dominated by popular crypto coins like Bitcoin, Ethereum, and Litecoin.

What Is a Dragonchain Slumber Score?

While you can't use Dragons to buy a cup of coffee, they can be exchanged for services or products built on the Dragonchain blockchain. They're also used to grant users more voting power on certain Dragonchain projects which gives them a secondary value of sorts beyond their individual market price listed on exchanges.

Basically, the number of Dragons you have in your crypto wallet and the time you've held them determines how much power you're given in Dragonchain projects. This voting power is referred to as a Slumber Score and it can be calculated by entering the wallet address of where you store your Dragons in the special form on the Dragonchain website.

The Slumber Score is only really important for programmers and companies who are working on active projects on the Dragonchain blockchain. The average crypto user shouldn't worry about it too much.

Can I Use Dragon Cryptocurrency at Disneyland?

The idea of using cryptocurrency to buy things at Disney theme parks is definitely a cool one, and it isn't too farfetched when you consider The Walt Disney Company has, in fact, experimented with creating their own currency, the Disney Dollar, in the past.

Unfortunately, Disney Dollars were scrapped in 2016 and the Dragonchain project itself no longer appears to be directly connected to the company.

Can I Mine Dragon Coins?

Unlike Bitcoin and some other cryptocurrencies, the Dragon token cannot be mined.

Where Can I Buy Dragon Cryptocurrency?

Dragonchain held an ICO (initial coin offering) where interested investors could purchase Dragon tokens in late-2017. With the ICO well and truly over, the easiest way to get your hands on Dragons is to trade some other crypto coins for them on a centralized or decentralized exchange.

What Cryptocurrency Exchanges List Dragon (DRGN)?

Support for the Dragonchain's Dragon token on cryptocurrency exchanges isn't as large as it is for Bitcoin, Litecoin, Ripple, and Ethereum. Some crypto exchanges that trade Dragon are Kucoin, FatBTC, and EtherDelta.

How Can I Store Dragon Cryptocurrency?

Dragonchain's Dragon token can be stored in the MyEtherWallet software wallet. The Ledger and Trezor cryptocurrency hardware wallets can also be used for storing, receiving, and sending Dragons.

Using a hardware wallet for storing cryptocurrency is always recommended due to their added layer of security, making them harder to hack.

What Affects the Dragon Token's Price?

Like most other cryptocurrencies, the price of Dragon is affected by its limited number of units and the level of enthusiasm of traders on crypto exchanges.

With a fixed number of 433,494,437 Dragons in existence, the value of each individual token should theoretically increase in value as more people begin using the Dragonchain platform. With fewer Dragon tokens to go around, the demand for each one will increase. Conversely, if Dragonchain usage decreases, so will the demand for the token and its price.

Trading cryptocurrency works in a similar way to trading stocks. An exciting news story about Dragonchain could motivate traders to sell their Dragons for a higher price, while a negative report could scare investors into selling them as quickly as possible for lower prices.

The price of Dragonchain's Dragon tokens is not affected in any way by the price of Disney's company stock.