As the world realizes the many benefits that blockchain technology has to offer, the technology has continued to grow in popularity. The financial industry has been especially receptive to blockchain technology. Many companies in the sector are eager to take advantage of the transparency and reliability that is offered by blockchain technology.
The Main Problems with Blockchain Adoption
When companies in any sector are trying to utilize the blockchain in their daily operations, they are usually faced with two main issues. The first problem they face is that programming blockchain applications is a highly complex undertaking. It requires highly skilled developers with a lot of experience. Unfortunately, experienced and skilled blockchain developers are in short supply.
The second issue that companies that wish to adopt blockchain technology is the scalability issue. Classic blockchains such as Ethereum and Bitcoin have major scalability problems. The result is that projects based on these blockchains usually face problems in the maximum number of users and various other technical aspects.
The Libonomy Solution
Today we will talk about the new Libonomy Blockchain solution – a scalable, secure, and universal blockchain ecosystem that allows you to write Smart Contracts, create DEX, or any other decentralized application that thanks to interoperability can interact with other blockchains. The idea belongs to Fredrik Johansson, but it wouldn’t be possible without co-founders Richard Haverinen and Therese Berglund. Richard as a founder and owner of multiple companies through the years has picked up everything there is to know about running a business. Fredrik comes in with his unique ideas and leadership abilities. And Therese, being extremely structured, coordinated and with a very broad perspective, is the glue that keeps it all together. Collectively they form a strong, well-balanced team. So, it’s no surprise that they have created something as revolutionary as Libonomy.
What is Libonomy
The Libonomy blockchain is a fifth-generation blockchain. It is founded on the principles of regulated AI and consensus. When creating the Libonomy blockchain, the creators wanted to come up with a unique consensus algorithm that was different from anything that currently exists. The reason for this is that current consensus mechanisms used by some of the largest blockchain networks in the world have some major issues, especially when it comes to scalability.
To deal with the problems that come with existing consensus algorithms, the developers designed an error-free and evolutionary consensus algorithm that is powered by AI. The logic is that an algorithm created via an intensive mathematical analysis by an AI and controlled by the same AI is devoid of human imperfections. Consequently, it offers the highest level of security.
The Main Benefits of the Libonomy Blockchain
The Libonomy blockchain offers several benefits, besides a better consensus mechanism. It makes the blockchain a great alternative to current blockchains and the next step in the evolution of the blockchain. Some of the benefits it offers are:
- It features a more equitable reward-distribution mechanism
- The blockchain is fully decentralized
- It is highly energy-efficient
- The nodes within the network do not need to have huge amounts of computing power
- The TPS is very high and it is designed to grow with time
- A highly scalable blockchain
- It eliminates all security weak points
- The blockchain is fully autonomous
- It is interoperable with other blockchains
- It comes with significantly lower fees compared to existing blockchains
The Libonomy Blockchain is significantly different when compared to current DApp development platforms, which are built around the Ethereum and Bitcoin blockchains. The main difference between the two is that Libonomy creators found a permanent solution to the scaling issue. To achieve this, the Libonomy network has been designed to utilize the power of all the nodes. Consequently, as the number of nodes grows, the computing power of the blockchain will grow.
Another major difference from current blockchains is that the Libonomy blockchain comes with adjustable block sizes. To achieve this, the developers have included an AI in the Libonomy ecosystem. The AI will conduct the optimal value for each block size and make alterations when necessary.
The starting TPS of Libonomy is set at 6000. It is already quite high compared to other blockchains. However, thanks to how it has been designed, it could go higher with time. However, the main advantage of the Libonomy blockchain is not its speed; it is the massive scalability and high level of security it offers users.
The Libonomy blockchain is interoperable with other blockchain networks. With the interoperability capabilities offered by Libonomy, developers can come up with smart contracts and DApps that work on different blockchains. It represents the first time that a solution has been developed which allows total compatibility between different blockchains. As a result, the developers of Libonomy do not want everyone to abandon existing blockchain networks. Instead, they have created a blockchain network that can co-exist with current blockchains, allowing them to interact inside a single ecosystem. Besides DApps, smart contracts can also operate harmoniously within the Libonomy ecosystem.
Libonomy will soon launch the first fully interoperable decentralized exchange in the world. The exchange will allow P2P trading with all data being secured within the blockchain. As a result, there will be no intermediary, which will help to reduce the risk of loss of funds due to mishandling and human error. Once Libonomy’s DEX is launched, the decentralized trading engine is going to be shared publicly. It will allow developers to utilize their APIs and SDKs to come up with DEX’s based on the Libonomy blockchain.
The Libonomy blockchain focuses on the need for a consensus algorithm in blockchain networks and augments it with AI. Its developers of the Libonomy blockchain are working to achieve universal interoperability in the blockchain world. The developers are also promising that all updates and upgrades to Libonomy in the future will occur without the need for hard forks. It is often the case when coming up with upgrades to other blockchain networks, which has caused many divisions.
Summary
If the world gets behind the Libonomy vision, it could represent a more efficient and secure world when conducting all types of transactions, especially in the financial world.
Image(s): Shutterstock.com
