Cobinhood Raise $20 Million for Blockchain That Processes 1 Million Transactions Per Second
The founders of cryptocurrency exchange Cobinhood have so far raised $20 million as they look to develop a new blockchain, DEXON.
The founders of cryptocurrency exchange Cobinhood have so far raised $20 million as they look to develop a new blockchain, DEXON. This blockchain is expected to process 1 million transactions per second.
DEXON Blockchain to be the fastest
This move is considered an ambitious one considering the fact that Bitcoin transaction can take hours to complete and Ethereum transactions range from 1-5 minutes.
Visa’s 2,000 transactions per second would look relatively small if the team succeeds.
DEXON is the team behind this project and they are focused on building a blockchain that will lead to mass adoption within the banking industry and real-world application requirements.
The team revealed that the proposed blockchain technology will make use of a blocklattice structure that meshes multiple chains together to form what they dub infinitely scalable, low-latency decentralized transaction processing engine.
The DEXON team was launched by the executives of Cobinhood, which is a zero-fee crypto exchange.
The exchange just closed its latest round of funding which was led by IDG Capital, a venture capital firm. It was able to raise $20 million in the process, with some angel investors also taking part in the funding.
According to the company, they have already recorded test transaction speeds at 50 blocks per second or approximately 1 million transactions throughout 25 nodes. Each of the blocks is around 2MB and each transaction is averagely 100 bytes.
Blocklattice structure increase transaction capacity
According to the DEXON team, the blocklattice structure they are using increases transaction capacity. Popo Chen, founder of Cobinhood and co-founder of the non-profit DEXON Foundation 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. 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.
With the help of a blocklattice structure along with a total-ordering consensus algorithm, the team claims it would be able to make decentralized transaction scalable. Blocklattice works differently compared to traditional blockchain systems.
Normal blockchain systems build encrypted blocks linearly while DEXON’s blocklattice features multiple blockchains that work together in parallel. This makes it easier to scale automatically and is energy efficient.
Wei-Ning Huang, co-founder of DEXON commented 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.
The DEXON blockchain will be the fastest in the world if it works. Scalability is a big problem in the cryptocurrency and blockchain industry. At this stage, it is still uncertain if DEXON would be able to surmount those difficulties and succeed in their quest.
If they succeed, then blocklattice would make a huge impact on the cryptocurrency and blockchain sphere.