The Dexon Foundation, which guides the development of the decentralized protocol, Dexon, raised a $20 million private placement led by IDG Capital, joined by angel investors who understand the potential of a lightning-fast decentralized protocol, according to a statement. IDG Capital is a venture capital firm that has had more than 150 successful exits and manages more than $20 billion in assets; portfolio companies include App Annie, 5Miles and WeCash. Dexon was founded by the leadership team of Cobinhood, a leading cryptocurrency services platform and zero-fee exchange.
Dexon’s ‘blocklattice’ protocol is underpinned by consensus algorithms that allow for transaction speeds competitive with major credit card companies, explained Popo Chen, founder of both Cobinhood and the non-profit Dexon Foundation, adding that the firm hopes to partner up with those very companies since the protocol has 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,” Chen noted.
The results from the first test of transaction speeds clocked 50 blocks per second with 25 nodes, translating to an estimated one million transactions per second given a block size of 2MB and an average transaction size of 100 bytes. Through the use of a blocklattice structure along with a total-ordering consensus algorithm, Dexon is able to make decentralized transactions scalable for real-world usage. Unlike traditional blockchain systems that build encrypted blocks linearly, the block lattice features multiple blockchains that work together in parallel, making it easier to scale automatically and energy-efficiently.