DEXON Foundation, an offshoot of the world’s first zero-fee, high-frequency cryptocurrency trading platform COBINHOOD, has bagged $20 million in a new funding round led by hedge fund firm IDG Capital. The nonprofit now plans on using the newly raised capital to expand and further strengthen its core specialty, which is to facilitate a unique platform for the development of decentralized applications (dApps).
Investors Believe in ‘Blocklattice’ protocol
Launched in June 2018 by a top leadership team in COBINHOOD, DEXON soon shot into fame because of its promising decentralized protocol, called “block-lattice.” The nonprofit claims the protocol is capable of significantly boosting the speed of crypto transactions, which in all honesty, can be painfully slow at times with existing blockchain technology.
DEXON claims that its blockchain technology can provide transaction speeds comparable to those of major credit card companies.
The organization further stated that IDG Capital is not the sole investor to have shown trust in its future potential. Some angel investors are already on board and ready to put money into DEXON because they have faith in its ability to improve the speed and efficiency of transactions at decentralized exchanges (DEX).
“Investors believe in DEXON’s ‘block-lattice’ protocol, which is underpinned by consensus algorithms that allow for transaction speeds competitive with major credit card companies,” said Popo Chen, founder of COBINHOOD and DEXON Foundation.
“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.”
First Speed Test Results are Out
On a related note, DEXON has announced the initial speed test results for crypto transactions on its network. Per the self-assessment figures, the block-lattice protocol supports a transaction speed of up to 50 blocks per second with 25 nodes. To put that into perspective, the network is optimized to handle at least 1,000,000 transactions each second so long as individual blocks are sized at 2MB (with an average transaction-size of 100 bytes).
Note that the Bitcoin network, with its market cap of $107 billion, can only sustain seven or so transactions (max) per second. At present, it runs just about three using current technologies. Ethereum, the second most popular cryptocurrency in the world (by market cap) can support no more than 15 transactions a second.
In comparison, credit card companies such as MasterCard and VISA, are capable of supporting up to 1,971 transactions each second.
Saying that investors are aware of the fact that there is an underlying problem with the current state of blockchain technology, Wei-Ning Huang, co-founder of COBINHOOD, said:
“With its fundamentally new architecture, the DEXON network is poised to become the world’s first mainstream blockchain.”
Huang also cited the recent test results to back his claim that block-lattice indeed works, and can be deservedly be trusted by investors as a long-term strategic investment.