Third-generation blockchains tackle scalability issues and promise high-throughput transaction processing capable of competing with centralized systems. These systems are just starting to emerge. At the same time, fourth generation systems that promise taking scalability to a whole new level are starting to attract investor’s interest. The latest project to announce a successful funding round, DEXON, has attracted a $20million private placement led by venture capital firm IDG Capital. The project joins an impressive portfolio managed by IDG worth an estimated $20 billion USD.
The DEXON project is not new to the crypto space. The company was founded by the COBINHOOD leadership team. COBINHOOD is a cryptocurrency service platform and exchange that surprised the community with its zero-fee policy when it launched.
Popo Chen, the founder of both COBINHOOD and the non-profit DEXON Foundation, provided the following statement in a press release:
“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.”
DEXON’s blockchain platform provides a Turing-complete transaction processing platform designed to compete with general-purpose DApp platforms, such as Ethereum and EOS. The project proposes the blocklattice protocol, which allows nodes to generate blocks in parallel, promising sub-second transaction finality and infinite scalability. A total ordering algorithm is meant to keep consistency and avoid double-spending situations.
In addition, a consensus mechanism called Randomized Proof of Participation (RPoP) is marketed as a fully decentralized and energy-efficient alternative to proof of work and delegated proof of stake consensus.
If that wasn’t enough, DEXON also plans to provide interoperability between blockchains by providing an interchain bridging protocol aimed at making transactions between different blockchains.
As a second part of the announcement, DEXON also published a number of results from preliminary performance tests. A test setup of 25 nodes and a 2MB block size, reportedly, produced a transaction throughput of 1 million transactions per second. Transaction size was 100 bytes and 50 blocks per second were generated.
Of course, the reported performance results have to be taken with a pinch of salt, as the DEXON platform is not yet available to the public and the experiments cannot be replicated independently. Furthermore, a limited setup of high-performance nodes linked up through fast connections will always provide better results than an open and public test network.
However, it is good to see investors taking this type of high-performance blockchains seriously and investing in what essentially amounts to quite fundamental distributed systems research.