The founders of cryptocurrency exchange platform, Cobinhood, have revealed its intentions to launch the development of a new Blockchain with a daunting capacity of processing one million transactions per second.
This is ingenious and overwhelming as Bitcoin transactions will typically about take hours to complete and Ethereum transactions range from 1- 5 minutes which is far from this new device, the only one which is considerably close is visa which processes about 2000 transaction per second which is still far apart.
The company designing this new technology is DEXON, it seems to be focused on blockchain mass adoption within the banking sector and other sectors of the world economy where the potentials of the blockchain technology are required.
It has been reportedly stated that DEXON’s new blockchain technology is designed in such a way to use the blocklattice structure which meshes several chains together in order to create what the company has described to be an infinitely scalable and low-latency decentralized transactions processing technology.
The company was also unveiled by the executive officers of Cobinhood. The funding section which raised about $20 million was led by IDG capital, a company with a reputation for handling over $20 billion in assets. Also, the successful funding section also attracted investment from several angel investors.
The 1 Million per Second Transaction Processing Technology
Though 1 million transactions per second sound rather unrealistic, DEXON was reported to have already recorded test transaction speeds at 50 blocks per second or approximately 1 million transactions throughout 25 nodes, with each block being 2MB and each transaction being 100 bytes averagely.
In patnership with Cobinhood, the blockchain firm intends to make use of the “blocklattice” structure to increase the capacity so as to enable the speed for a transaction. The company reportedly stated that:
“Clearly, investors believe in DEXON’s ‘blocklattice’ protocol, which is underpinned by consensus algorithms that allow for transaction speeds competitive with major credit card companies,” said Popo Chen, founder of Cobinhood and co-founder of the non-profit DEXON Foundation. “In fact, we hope to partner with these institutions, as we’re now able to offer the same processing power without a need for centralization. Other than DEXON, current blockchain protocols can only process a few secure transactions per second, leaving them unable to keep pace with traditional solutions.”
Using the instrumentality of a blocklattice structure with a consensus algorithm, the company, DEXON claims to be able to make scalable, decentralized transactions. Unlike conventional blockchain technology which builds encrypted blocks linearly but this designed blocklattice comprises of several blockchains that work together in parallel, and DEXON executives explained makes it easier to scale automatically and energy-efficiently to achieve the “1 million per second processing.” Wei-Ning Huang, co-founder of DEXON, said that:
“With its fundamentally new architecture, the DEXON network is poised to become the world’s first mainstream blockchain,” “Investors are recognizing that there is a problem with current blockchain technology and that the protocol most focused on throughput and scalability will form the basis of Blockchain 4.0. These tests prove that the blocklattice works and this funding is proof that investors trust DEXON’s strategy over the long term.”
Another critical feature of DEXON is its native interoperability protocol so that other blockchains can easily interface with it. In its white paper, the DEXON team is highly critical of other interoperability solutions, such as Polkadot.
It is no doubt that the newly launched DEXON blockchain technology will remain the fastest in the world by a long gap (that is if it works as they said it would). The challenges in scaling blockchain are adequately documented at the level and with a company having such a good reputation as DEXON should pull this through with the block lattice structure scaling as proposed. But if the design is as advertised, the system may be about to make a significant turn over in revolutionary progress on the digital currency and blockchain technology as a whole.