The founders of the cryptocurrency exchange Cobinhood are commissioning the development of a new blockchain capable of processing 1 million transactions per second, a huge effort since the Bitcoin transaction can take hours to complete and Ethereum transactions range from 1 -5 minutes, with even the 2000 tx / s of Visa in comparison.
The company behind the project is DEXON, which focuses on the adoption of blockchain mass in the banking sector and on the requirements of real-world applications.
DEXON reports that the new blockchain technology uses a block-block structure that joins together multiple chains to form what the company claims to be a decentralized and infinitely scalable low-latency transaction processing engine. The company was launched by the executive team of the Cobinhood zero-rate encryption exchange, and the $ 20 million financing round that was just closed was led by IDG Capital, a venture capital company that manages over $ 20 billion asset. The financing round has also attracted investments from various angel investors
Although it seems far-fetched, the company claims to have already recorded test transaction rates at 50 blocks per second or about 1 million transactions on 25 nodes, with each block 2 MB and each transaction is on average 100 bytes.
"Clearly, investors believe in the DEXON protocol" blocklattice ", which is supported by consensus algorithms that allow for competitive transaction speeds with the major credit card companies," said Popo Chen , founder of Cobinhood and co-founder of the non-profit foundation DEXON. "In fact, we hope to collaborate with these institutions, as we are now able to offer the same processing power without the need to centralize In addition to DEXON, current blockchain protocols can process only a few secure transactions per second, leaving them unable to keeping up with traditional solutions. "
Through the use of a blocklattice structure and a total order consensus algorithm, DEXON claims to be able to make decentralized transactions scalable. Unlike traditional blockchain systems that create linearly encrypted blocks, the DEXON block has multiple blockchains working together in parallel, which DEXON executives say makes it easier to scale automatically and energetically.
"With its fundamentally new architecture, the DEXON network is poised to become the world's first mainstream blockchain," said Wei-Ning Huang, co-founder of DEXON. "Investors are recognizing that there is a problem with the current blockchain technology and that the most focused on throughput and scalability protocol will form the basis of Blockchain 4.0.These tests show that the blocklattice works, and this funding is the proof that investors trust the long-term DEXON strategy. "
Launched first, the DEXON blockchain will be the fastest in the world for a long time – if it works. The difficulties in resizing blockchains are well documented at this stage and, with a huge undertaking like DEXON, it remains to be seen if the block structure of the block can scale as advertised. However, if the project is as advertised, the blocklattice system could have a greater impact on the panorama of cryptocurrency and blockchain.
Images from Shutterstock
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