5 Things to Know About the Harmony Blockchain

Concord (CRYPTO:ONE) is a considerably newer blockchain community that’s gaining extra traction, as an increasing number of builders and crypto buyers see the capabilities of the community. The worth of the ONE token, which fuels the community, is now at about $0.23 and roughly a $2.5 billion market cap, which represents a rise of greater than 5,200% over the past yr, and I see nice potential going ahead. Listed here are 5 issues to learn about Concord.

1. Addressing core blockchain considerations

When among the first cryptocurrencies like Bitcoin got here alongside, their objective was to exchange fiat currencies and function an alternate or substitute for the normal monetary system. They had been outdoors the management of banks, the federal government, and the Federal Reserve. Now, that did not precisely occur, or no less than it hasn’t occurred but. One cause for that is that it has been troublesome for blockchain networks to keep up their core values reminiscent of safety and decentralization whereas scaling and having the ability to deal with the entire transaction volumes that come by means of a standard monetary community.

Concord believes it is ready to scale whereas sustaining decentralization and safety as a result of its community is powered by sharding, which establishes a number of separate teams of validators and permits them to approve transactions and new blocks concurrently. Concord can presently course of 2,000 transactions per second (TPS), corresponding to Visa, one of many largest fee rails on the planet. Lengthy-term, Concord thinks it may rise up to processing 10 million TPS.

Picture supply: Getty Photos.

However even whereas scaling, Concord doesn’t sacrifice safety or decentralization. The community makes use of a distributed randomness technology course of to assign nodes, computer systems that connect with the community and validate transactions, to totally different shards. Concord additionally maintains a low threshold of One tokens that nodes must have with a view to be part of the community as validators and preserve decentralization.

Concord believes that the huge scalability of the community, coupled with decentralization and safety, will allow the blockchain to perform feats that beforehand weren’t reasonable on different blockchain networks reminiscent of organising giant decentralized exchanges, giant fee rails, and “internet-of-things transactions.”

2. Power-efficient

The unique method that blockchain networks validated transactions, mined new tokens, and created new blocks was by means of proof-of-work, wherein miners would see who may remedy a cryptographic puzzle the quickest to get the chance to substantiate transactions and reap the rewards of recent tokens. Nonetheless, the competitors to get new tokens acquired so aggressive on sure networks like Bitcoin that mining firms would use enormous quantities of laptop energy to resolve the puzzles, which began to be seen as a priority for the surroundings.

Now, lots of blockchain networks are shifting to a proof-of-stake idea, which Concord has used from the start. Below this course of, nodes put up current tokens as collateral to have the prospect to get picked at random to validate transactions. Numerous validators should confirm transactions for a block to get accepted. Concord stands out from different networks as a result of its proof-of-stake consensus mechanism and structure allow the community to finalize blocks in simply two seconds.

3. Decrease gasoline charges

Due to the TPS that Concord can course of and its use of proof-of-stake validation, the community not often will get clogged like Ethereum and subsequently doesn’t have high gas fees — they’re presently a really small fraction of a penny per transaction on Concord. Now, clearly, a community like Ethereum is seeing far more total demand and transactions than Concord, however on its web site, Concord says that even when it will get to a degree the place the community is being absolutely utilized and seeing extraordinarily excessive demand, it may remedy congestion points by merely including extra shards.

Picture supply: Getty Photos.

4. Cross-chain capabilities

Concord’s know-how has the ability to share information throughout a number of blockchain networks, whether or not they run a proof-of-stake or proof-of-work governance, by enabling nodes on different networks to validate transactions. Towards the tip of November, Concord launched a bridge referred to as Horizon, which permits cross-chain interoperability with Ethereum so property may be transferred between the 2 networks. This characteristic is doubtlessly enormous for furthering cross-border funds and making cryptocurrencies simpler to change amongst each other. Concord has additionally made bridges with different chains like Binance.

5. Big potential for NFTs

Concord’s cross-chain capabilities open the community as much as some fascinating potentialities for non-fungible tokens (NFT), that are digital artwork, video, and audio information which are secured and may be transferred on a blockchain community. For one, with decrease gasoline charges, the community could also be extra interesting for creators who need to mint NFTs. Concord has identified that bridging NFTs from one community to a different could also be costly at first, however then the next transactions might be low-cost. Concord additionally stated on Twitter that it’s creating different capabilities reminiscent of NFT Lending, NFT Verification, and rationalization.