If you thought chemistry was over in high school, you are so wrong. And if you think the booming blockchain tech has nothing to do with chem, then man oh man, are you wrong. There is an ICO, which goes around by the name ZrCoin. In case you have forgotten all about the periodic table, Zr stands for zirconium oxide (ZrO2). Zrcoin is a Waves platform meta-token backed by the production of Zirconium oxide (ZrO2), which is a valuable industrial input most commonly derived from zirconium sands.
The fundamental reason behind the launch of this token is to meet Russia’s whooping demand for Zirconium oxide. Currently, Russia’s domestic annual demand ZrO2 is about 150,000 tons, according to the Zrcoin FAQ. This aim is going to be achieved using the proceeds earned from the token sale, which will be used to construct a factory for the production of ZrO2. It is estimated by the team that their first factory will be able to produce 400 tons of ZrO2 per month. The factory will be constructed in an industrial center of the Ural region of Russia.
— ZrCoin (@ZrCoin) August 24, 2018
Uses of ZrO2
Zirconium is a material with a high demand, due o several reasons. It is very durable at high temperatures and pressures, which makes it ideal for the process of glass making and other such applications. Usually, the zirconium used for firebricks in kilns is extracted from the earth, at a rather high cost, both financially and environmentally. Furthermore the produced are periodically replaced because they degrade under the extreme conditions to which they are subjected. The ZrCoin’s team has coined a process that recovers ZrO2 from the industrial wastes, and the end result is a product that has superior properties and greater cost benefits than the natural alternative.
According to the team, there are three main ways in which ZrCoin might be used in the future.
As an alternative to ZrO2
It is very much possible to take physical possession of the ZrO2 reason being it is backed by real commodity. The team expects manufacturers who need zirconium for their factories, will buy the ZrCoin ahead of time, at a discount, which will allow them to purchase zirconium at a price below the market. This will prove an attractive choice for forward-thinking businesses that have the money to invest in their future.
As an investment in itself
As a blockchain-powered option, traders will treat ZrCoin as an investment. Those who invest at ICO can expect a healthy return on investment. Because ZrCoin will be traded on secondary markets after the crowd sale, other investors will have access to it and may be able to pick some up at an attractive price.
As a store of value
Lastly, ZrCoin is backed by a real commodity, and has a theoretical real-world value of $2.80, depending on market conditions. It should therefore have a relatively stable price, specifically in longer term. ZrCoin will be a way to hedge against inflation.
Further perspectives of the ZrCoin
Considering the company’s predicted financial indicators, its capitalization can increase twice over during the first year and six times over during the second year, without any additional terms and conditions. ZrCoin developers are planning to scale up the technology and then introduce it worldwide. With such a promising business model up their sleeves, there is no doubt that investors will be interested in opening new factories in various locations around the world.
The proceeds from the construction of new factories and royalties for the use of the technology have the potential to multiply the incomes of production alone many times over.