The phenomenal increase in the price of cryptocurrency, + 1000% on average since the beginning of the year (source: cryptocompare.com) is attracting more and more interest from the general public, companies and authorities. Capitalization of the cryptocurrency market is evaluated today to more than 340 billion dollars and it is not intended to stop as the appetite of investors as individuals and professionals is growing.
The technology that has allowed the emergence of this new market is undoubtedly the Blockchain which brings a real innovation by the disintermediation of exchanges. Indeed, the distributed character of the Blockchain is based on a peer-to-peer network allowing secure transactions to be carried out without the intervention of a trusted third party, thanks to Bitcoin the mother of this new digital economy.
What are the technological limitations of blockchain public protocols?
This evolving technology is faced at the current stage to some technical limits. One of the main problems is the number of transactions executed per second which remains very low, less than a hundred for a large majority of Blockchain protocols, does not allow at the moment to compete with the giants of payment such as Visa and Mastercard who are able to execute thousands of transactions per seconds. Added to this, it is the distributed nature of the network ensuring that the validation of transactions is performed by node/miner of the network. This distributed transaction validation structure has the undesirable effect to accumulate an important number of transactions waiting to be confirmed by the network, resulting in a proportional way of an increase in transaction costs.
In addition, the storage size of the Bitcoin ledger is greater than 170 GB which can be considered as marginal for a universal payment system but not be neglected in order to guarantee the decentralization of the entire system. The owner of a “full node” storing all the transactions in their computer memory have to download the entire ledger state and when he loses the connection he must also wait a lot of time to be resynchronize with the network.
Also, the use of the consensus POW (Proof of Work), to solve a probabilistic mathematical formula for the creation of a new block of transactions by CPU power allocation is always debated within community. The use of POW is certainly energy consuming but it is supposedly to be a security cost to ensure the robustness of the system ? The energy consumption of all computers in the Bitcoin network is equal to Slovakia (27.89 TWh).
How to solve these problems?
Take the example of a Citroën 2cv whose speed is limited to 70 km / h with high fuel consumption. Would it suffice to replace only the engine with a Tesla motor to be competitive and more economical? The answer is obviously not because the performance in competitions also depends on the modification of other elements such as transmission, grip and braking.
Finally, would not the simplest solution be for engineers to create the next generation by rethinking the entire system? It is in this sense that the CREDITS team has developed the first prototype of this “Tesla Blockchain” whose characteristics are very impressive and can be close to the unreal (scam?):
The technology developed by CREDITS allows a significant increase in the speed of transactions (1M transactions per second) by using a hybrid algorithm dPos and mBFT to overcome all computing power while making it possible to achieve cheapest micropayment fees.
This innovation will notably allow certain use cases of financial sector such as high frequency trading to be realized directly on a blockchain & DLT network.
In addition, it will be possible to create smart contracts that is a self-execution by the computers of the network of a set of conditions in the form of a computer program, thus allowing to offer a multitude decentralized services and applications.
What does it hide behind the technical features of CREDITS:
- Transaction rate per second 1,000,000 tx / sec whose confirmation of the transaction depends on the generation of the block having an interval of 3 seconds instead of 13 seconds on Ethereum.
- Securing the enhanced network by using homomorphic encryption to perform arbitrary calculations on encrypted data without having to decrypt them (WTF?).
- A single model of consensus based on the principle of federal node voting as a means of verifying the validity of the transaction and minimizing the likelihood of illegitimate transactions.
- Information compression up to 90% to reduce the data loading time and drastically reduce the memory used for ledger storage.
- Possibility to create “smart contract” using the Java programming language widely used in information systems and thus facilitating interoperability.
- The application scope is very broad and limited only by the imagination of the developers: from the financial sector to the Internet of Things (IoT) through energy.
- Ability to configure hybrid network (private / public) for businesses to develop and use their applications according to their own needs.
CREDITS brings major technological innovations making the use of Blockchain and DLT technology more efficient in many way. These outstanding performances make CREDITS the new generation of distributed system which you will find more information on the website and with which we signed a technological partnership (https://credits.com).