The Problems Divi is Solving

When we first started Divi, in early Q2 of 2017, it seemed that all an aspiring new crypto needed to do was spend a lot of money on hype, and the Lambo-kiddies and moon-babies who made easy money earlier would throw money at you. Good strategies included marketing ideas like paying outright youtube shillers to talk about you on their channels, or giving John Mcafee $100K to tweet about you.

From the onset, Divi decided to do something different. We wanted to solve real problems we saw with crypto. Our advisers aren’t shillers, but people like Tim Sanders with decades of experience in software development.

The crypto hype bubble has popped, we assume it’s not coming back. The great shitcoin shakeout has probably only just begun. Most cryptos fall into one of these categories:

  • Exit scam
  • Well-intentioned but incompetent
  • Ran out of funds
  • Delivered little and kept the rest of the money they raised
  • Couldn’t deliver what was promised
  • Delivered something no one will ever use
  • Delivered something they don’t know how to market
  • Delivered something that’s too early and won’t be used for years

Very few are solving real-world problems and are showing any signs of real use or adoption outside of speculative investing. When you look at the top cryptocurrencies and take out all the crap in the above list, there’s really few left that seem to be worth anything.

Crypto, in general, has hit a wall. Investors are exhausted by the “When moon” mentality, and are starting to ask “When value?” and “When are you going to produce something useful?” We believe that the market will recover, and when it does, it will be because more legislation and control is in place, so institutional investors will come in. They’ll be looking for projects run by teams with a full spectrum of business experience who are solving problems they can understand.

That’s where Divi comes in. While all this hype and big money has been thrown around, we’ve had our heads down, working our butts off to deliver something that solves real problems that have always been there, but were ignored or hidden by market noise.

So how does Divi really stand out from the sea of shitcoins in the crypto space? Here I’m going to try to clearly articulate this so you will see why Divi has great long-term prospects, and hopefully, you’ll want to join our coin-holders community or increase your stake if you’re already a fan.

Cryptos Can’t Get Mainstream Press (unless it’s bad)

Divi’s “Crypto made easy” resonates with the press because it’s understandable, and experienced by everyone on a personal level who tries to get involved. When we have done TV interviews, the journalists are genuinely excited about our idea and always invite us back. That’s why we’ve been on both Tech Republic and the floor of the New York Stock Exchange with Cheddar TV twice. How many other cryptos, even in the top 20, have the kind of press coverage we’ve achieved? It also makes a big difference that our PR company, Krupp, is not a hired firm, but are part of our team. They have been working for our DIVI coins from the beginning and Heidi Krupp’s husband Darren Lisiten was my business partner for 11 years. They are dedicated to our success at a much greater level than a hired PR company would be.

This matters because, at some point, the crypto curious and masses will start to take notice. Wall Street investors will have filled their bags enough that they’ll start talking crypto up instead of badmouthing it all the time. When the mainstream starts to pay attention, Divi will be there in the news channels they’re used to watching, with a crypto eco-system they find easy and familiar. Divi will be a safe haven that’s more like the tech they’re used to.

Ease of Use

Mainstream cryptocurrency adoption has hit a wall, and the main reason is that it’s too difficult to use. Nearly every thought leader in crypto is saying the same thing, that cryptocurrencies aren’t going anywhere until average people can send and receive without being afraid of making mistake or losing their money. Until that happens, they’re going to stick with banks. Despite all the talk about the problem of ease of use, few cryptocurrencies are tackling it. This is challenge is Divi’s main focus, and we are developing many solutions simultaneously to make using DIVI as easy and familiar as PayPal while keeping fees to almost nothing. The entire crypto industry is long past ready for major improvements in the user experience.

User Error

It’s said that up to 20% or more of all Bitcoin has already been permanently lost, mainly due to user error. Imagine how many customers Wells Fargo would have if 20% of the money deposited there was lost forever! Every Bitcoin or Ethereum transaction fills most of us with fear when we hit the send button, which is absurdly bad design.

Divi has a specific focus on our User Experience to make it very difficult to make errors that cause DIVI tokens to be lost. Accounts will be with names, emails, and phone numbers. You’ll be able to see a photo or logo of the person or company you’re transacting with. Our internal motto is, “If you can’t do it drunk, it’s not good enough.”


Bitcoin, Dash, and PIVX have a problem. Their transaction fee algorithms are passed on from Bitcoin and are based on the transaction SIZE in bytes. The idea behind this is that the more space someone takes up in a block, the more they have to pay.

The problem is that in a world that’s ever more interconnected, devices and users need to be able to pay each other through microtransactions. Typical microtransactions may be song views, video plays, but with the Internet of Things growing, we foresee a lot of need for devices to be able to pay small amounts based on use. So when transactions are a couple of cents, the transaction fees of our predecessor blockchains become too expensive.

Divi’s transaction fees are calculated based on both the value of the transaction and the size. That means we can do very cheap on-chain micro-transactions.

More on this subject can be found here: Microtransactions

The Token Velocity Problem

Token velocity is a problem that plagues utility tokens, and other cryptocurrencies that have no good incentive to hold on to them, as described in this article: Token Velocity

Divi has several elements that make people want to hold onto them long term. Our 100% Proof of Stake consensus method, gamification of masternode tiers, lottery blocks, and vaulting. All these keep people holding rather than selling, and thus tend to keep Divi’s value steady even when people are using them.

Hard Forks

Bitcoin especially has become incredibly contentious and political because of hard forks. When new technology upgrades are needed, it takes years to get everyone in agreement. This is bad for Bitcoin and bad for crypto in general because the media is reporting all of this rather than talking about use cases. The main problem is that huge groups of miners now control it, and block progress if it hurts their bottom line. When they can’t get everyone on board, the blockchain can split into two separate chains, each with its own supporters. To implement the Lightning Network, they had to come up with a big mess called Segwit so they could upgrade with a soft fork instead of a hard fork. They did this just to avoid a hard fork.

Divi doesn’t have miners that can control our destiny. We’ll have a governance system that makes it easy for people to vote on decisions about what technology to add. A hard fork is much easier for us because we just send out an upgrade. People who ignore it fall off the chain and have no incentive not to adopt.

Make Money with Your Money - Bank Savings Accounts Pay No Interest

What’s the interest rate on your bank checking account? They charge you money to hold it for you. Then they get free money from the government to loan out and charge interest. The system is designed by bankers, for bankers. Bitcoin and cryptocurrencies were created to take power away from central banks.

However, owning Bitcoin doesn’t make you money by saving it. To make more, you have to buy expensive “mining” equipment. Divi is a “Proof of Stake” blockchain, which means that when you hold your Divi in the wallet on your computer, as long as you have it running, you will be earning more of it. The first few years will be very rewarding, but even later years will be better than bank rates. This works because YOU the Divi coin staker, perform the role of the bank.

Micro Banking

Cryptocurrency experts such as Andreas Antonopoulos have correctly stated that mass adoption will happen first in developing countries where banking and governments are corrupt or non-existent. There are billions of people without access to banks, and they don’t have birth certificates so they can’t open an account even if there was one nearby. But many of them do have cell phones, in within a few years most will. Bitcoin and most other cryptocurrencies won’t work as digital money for them because the fees are too high and they’re too complicated. Divi is designed to work for microtransactions, and basic functions will be simple enough to be used by people who can barely read or write. This is a market of over two billion people.

The Environment - PoW Mining

The algorithm that secures Bitcoin, and most blockchains, is called Proof of Work and uses huge amounts of electricity. When the world is trying to move towards using less carbon, Bitcoin is going in the opposite direction and gets a ton of negative press for it.

The solution is Divi’s 100% Proof of Stake consensus method of securing our blockchain. A rough calculation shows that the electricity for running Divi is less than 1% of a “mined” coin. And with MOCCI, anyone can do it, not just people with cheap or free electricity to use.

Lack of Governance Diversity

Most cryptocurrencies don’t have a governance system. If they do, then they’re usually like DASH where the only people who can vote are those who have masternodes. And the only people who have masternodes are coders or people with a ton of technical skill because they’re so difficult to set up.

We think that long-term, this lack of diversity among the voting population of a cryptocurrency community won’t serve it well in the future. Divi’s MOCCI and general user-friendliness will help us build a more inclusive community. We want artists, designers, marketers, and business leaders who are smart in ways other than coding. We need our community to think a lot more like the 95% of users who are yet to get into crypto.

Centralization of Power

It’s ironic that Bitcoin was the world’s greatest decentralization invention and now has become centralized! Giant pools of miners have the power to block innovation and act in self-interest. Just 3-4 people, the leaders of these big pools, at any time, could get together and collude to control the network using their combined hash power. Of course, doing this in an overt way would hurt them by hurting the price of BTC, but this gives them a lot of soft power to block technological progress that they don’t like.

Divi has no miners, and no big whales to control votes either. The governance system will also be set up so that voters won’t be able to give themselves a raise by increasing the blockchain rewards higher than preset maximum levels per year. The system is designed for maximum democracy and to keep power from concentrating with a few individuals.

51% Attacks on PoW

Until recently, a “51% attack” was mostly a theoretical way to hack a blockchain. Experts said it could never happen to Bitcoin because it was too expensive to control enough of the mining nodes to do it. While that may be true (so far) of Bitcoin, other lower priced coins have been successfully attacked in this way.

Divi’s 100% Proof of Stake system is immune to a 51% attack because there are no miners to control. An attacker would have to spend far, far more to gain control of the network. Perhaps an infinite amount because the price of DIVI would go sky high if they attempted it. A 51% attack is something we’ll never need to be worried about.

UTXO Bloat

One of the problems that Bitcoin and many other cryptocurrencies face is that their UTXO set is growing constantly larger. Every unspent transaction output, and there are millions of them in Bitcoin, needs to be kept in RAM by every single node on the network at all times in order for it to work quickly. Divi has a way of reducing UTXO bloat by combining them, without a transaction fee, when coins are staked. This frees up memory for other tasks and can help Divi run more efficiently. More details are shown here: UTXO Bloat