Dexon launches on Cobinhood with its Block Lattice Scaling Solution

Every cryptocurrency is looking for an effective scaling solution. Scaling is one of the core fundamentals when it comes to the future technological success of cryptocurrencies. Currently, the proof of work consensus mechanism has been the most effective when it comes to immutability, censorship resistance, and decentralization. Since no other consensus mechanism has been tested at bitcoin’s scale, aside from stress testing, it is difficult to evaluate a promising new consensus mechanism simply because it has not experienced large-scale traffic. Prior to the creation of bitcoin, proof of stake was the most commonly used consensus mechanism. Satoshi invented proof of work as a viable alternative to proof of stake, which was failing to remain decentralized due to the vulnerabilities of 51% attacks.

Similar to Nano, Dexon network is a next generation blockchain technology which does not use a blockchain for its data structure. Instead, Dexon uses a data structure called a Block Lattice. Unlike a typical mainchain, the Block Lattice consists of many blockchains which can all grow in parallel and can later be merged into one blockchain while still guaranteeing things such as security and a viable low-latency byzantine fault tolerance. Instead of running one mainchain, each account on Dexon has its own blockchain. This opens the potential to execute +1,000,000 TPS with only 100 nodes deployed. Block Lattice also solves the issue of latency, with bitcoin you have to wait about 20 minutes for a transaction to be executed but with Dexon the transaction is nearly instantaneous. Dexon is designed with a low fee feature due to its efficient mining algorithm, therefore the network claims to have low overhead when it comes to achieving consensus. The transaction fees are based on a flat fee structure for every transaction, then there are additional fees for excessive storage and gas. If you create a lot of data on the chain, your activity will be much more expensive. This economically disincentivizes users to spam the network with a high frequency of unnecessary transactions.

Block Lattice vs a Typical Blockchain

Another very exciting aspect of Dexon’s Block Lattice is its potential for infinite sharding displayed in the image below. According to Dexon’s white paper, “Sharding can be easily achieved on the Block Lattice data structure. When a node has reached its maximum throughput, it can scale to an infinite number of shards to balance the transaction processing load—achieving infinitely scalable transaction processing throughput.”

Dexon is still in its infancy stage and Cobinhood launched the decentralized platform earlier in June. While the project is very ambitious, one should always be skeptical when a developer claims their network can execute one million TPS. The creator of Cobinhood, Popo Chen, also designed Dexon. Some investors see this as a red flag and assume Chen may simply be ‘project hopping’ into his latest ICO. In addition, Dexon advertises itself as having low fees yet some are skeptical of their Tx fees, storage fees, and gas fees. Currently, Dexon is not listed on exchanges or even coinmarketcap.com, but if you hold Cobinhood (COB) the exchange will airdrop Dexon to you based on your holdings. Investors looking for an astronomical leap similar to Nano’s last January may want to monitor Dexon in its future development and implementation. If Dexon’s form of the Block Lattice can effectively solve scaling issues for transactions and smart contracts it may experience an astronomical leap. For now, the project exists in its early infancy and remains a high risk venture capitalistic investment.

Sources

-Block Lattice interview with Popo Chen available at https://www.youtube.com/watch?v=4jwgIkrAk7g&t=923s&ab_channel=IvanonTech

-Whitepaper https://storage.googleapis.com/dexon-website/DEXON%20White%20Paper%20v0.2.3.pdf

-Cobinhood launches Dexon: https://www.financemagnates.com/cryptocurrency/news/cobinhood-launches-decentralized-platform-dexon/

-Cobinhood exchange https://cobinhood.com/

Image Sources

-All images are from Dexon’s white paper available at https://storage.googleapis.com/dexon-website/DEXON%20White%20Paper%20v0.2.3.pdf

Disclaimer: I am not a financial advisor. This is not financial advice. Please do your research independently and make objective decisions. This article is intended to educate readers about the block lattice technology within Dexon. The author does not hold positions in Cobinhood or Dexon.