We’re headed down the road where blockchain will be a technology pegged to numerous industries. It isn’t anything miraculous, as many people are seen claiming it to be, nor is it the best ledger currently available. However, it holds a high potential for a lot of purposes.
It would be wrong to say that blockchain can revolutionize the world, but a part of it, yes, it can. The one thing that blockchain does well is store records, just like any other ledger, but with more security and transparency; the latter depending on the type of blockchain we’re talking about. The technology is gaining grounds across a multitude of countries as tech experts and companies are investing more time and money to find better use cases.
With this massive adoption en route, the question that troubles the blockchain community is, whether or not the blockchain is scalable enough? Is it prepared for the mass-adoption that the community is so excited about? Can it handle the billions of transactions that happen each day?
The answer to all these is still a big fat no. But things are changing. More people stake their belief on the blockchain and more innovation and development comes through.
Today, there are hundreds of blockchains that come with different specifications and promise a different set of benefits. In such a time, it’s important to realize how far reaching the effect of choosing one blockchain over the other for a particular purpose can have in the long run.
It can be the same as choosing the right programming language for building your application or website. There is no “one size fits all” type to it. Based on what you would want to build and how you would want to manage it, you must brainstorm and choose the right fit.
Soul of a Blockchain
A blockchain is majorly defined and differentiated from other blockchains on the basis of the consensus mechanism it uses. Consensus mechanisms are protocols that ensure that all the nodes in a blockchain get an equal say while validating a transaction before it is added to the blockchain.
We’ve long heard of the tremendous amount of energy that the Bitcoin blockchain consumes. It is because it uses the Proof-of-Work (Pow) consensus mechanism, which also happens to be the first protocol designed for a blockchain. Compared to Bitcoin blockchain, Ehtereum has some huge differences, but it uses the same consensus mechanism.
The PoW protocol requires miners who solve complex puzzles by trial and error method. This comes with usage of high-power CPUs and GPUs and other mining gadgets that consume tons of energy, hence, making the whole process inefficient.
The Delegated Proof-of-Stake is a more efficient version of Proof-of-Stake mechanism which is a more efficient version of the PoW mechanism. In DPoS, before each block is created, the users of the blockchain stake their coins to vote for their preferred delegates who get to validate the transaction. The more coins a user stakes, the more weight their vote bears. This mechanism is used by the Tron blockchain which renders a more efficient functioning.
Lastly, we have the XinFin DPoS, exclusively tailored for the XinFin hybrid blockchain. Apart from a regular DPoS consensus mechanism, it comes with KYC enforcement on the nodes themselves, thus solving substantial problems with traditional Enterprise KYC providers. This can help corporate members of the XinFin blockchain to create and maintain their own identity while also allowing participants to view the KYC data.
The Faster the Better
Consensus mechanism directly correlates to the transaction speed and the block creation rate. The PoW consensus mechanism as we discussed comes with a bunch of inefficiencies. This limits how fast the transactions can be processed on a blockchain that functions over the PoW protocol. Ethereum is an example of it. It has a maximum transaction rate of 15 transactions per second while bearing an average block creation time of 15s.
Tron, which uses a DPoS mechanism, can support as many as 2,000 transactions every second. It also boasts of a block creation time of merely three seconds.
The fastest of the three, however, remains the XinFin blockchain which has the potential to scale up to 3000 transactions per second and has a block creation time of only two seconds.
Is Old Really Gold?
The second most widely recognized and used blockchain is Ethereum. Launched in 2015, it was a revolution in the field of blockchain and cryptocurrencies. For the first time, the world saw the use of smart contracts over a blockchain.
But in this rapidly growing space thirsty for adoption, things tend to prove unfulfilling after very short intervals. This gave rise to other blockchains that could fulfill the rising demands of the industry. And the reality is that newcomers often tend to learn from the mistakes that had been made earlier. As a result of this, more efficient and expeditious blockchains were developed, two of which we’ve talked about today.
Tron launched less than a year ago and has already left behind Ethereum in terms of efficiency and speed. On the other hand, XinFin, which will launch in June 2019, holds enough potential to prove better than both the blockchains. Being a hybrid blockchain, it also ensures it can deliver the functionality of both public as well as a private blockchain depending on the need of the organization using it.
Coin Price and Market Capitalization:
Source coinmarketcap.com as on 17th May, 2019.
We’re only 10 years into the blockchain revolution, and it already seems we have had commendable progress and growth. And we still believe that it’s only the initiation. Much has yet to come.
At this point, however, blockchain is aimed to help every common person on the face of the earth with the use of blockchain technology. This requires a blockchain that can be both highly scalable and energy efficient, which circles out blockchains such as Bitcoin and Ethereum because of their low transaction rates and high energy consumption for mining the block.
Though the two serve as the base of a majority of the blockchain industry, many industry players now seek more efficient methods to utilize the technology. And because XinFin is a blockchain that is both fast and energy efficient due to its XinFin DPoS consensus mechanism, it’s perfectly ready for wider adoption.
Also, public blockchains such as Bitcoin, Ethereum, and Tron are suited for public transactions, but they do not fit the needs of enterprises who wish to keep their transactions to themselves. Thus, an enterprise-ready blockchain such as XinFin is the need of the hour for getting major enterprises across the globe to use the technology.