5 Key Factors to Look for When Choosing a Blockchain
Disclaimer: The text below is an advertorial article that was not written by Cryptonews.com journalists.
Although Ethereum has solidified itself as one of the most popular blockchains on the DeFi market, its costly gas fees are a common criticism of the technology. As this fatal flaw remains one of the blockchain’s most notorious pain points, fellow blockchains have been forced to pioneer alternatives that will incur lower fees. However, this is just one point of contention. There are many more.
Concordium, a new proof-of-stake (PoS) blockchain, prides itself on its stable, low-cost transaction fees, is dedicated to tackling this problem. Concordium’s technology uses an ID framework to help individuals operate in a safer, more secure way and is leading the industry as the only blockchain that facilitates regulatory compliance by connecting the identity of persons and companies to every transaction while still preserving user privacy. In a nutshell, Concordium is a permissionless, decentralized PoS blockchain with double layered finalization protocol for fast finalization. Concordium intends to implementing a sharding design, to provide virtually unlimited transactions per second (TPS).
Minimizing its carbon footprint
In addition to its low-cost structure, the blockchain platform offers its users complete cost transparency to encourage sustainable business models over time. It also uses innovative price stability mechanisms to ensure that transaction costs are fixed in fiat, despite the potential volatility in the price of the native token. Concordium turns away from the Proof of Work (PoW) consensus mechanism. PoW causes massive energy consumption contributing to the climate change crisis.
PoS approaches consume over 99% times less energy than PoW. The use of energy-efficient programming languages, particularly Rust, helps keep Concordium’s operational consumption at a minimum. Concordium is on the path to certified, science-based net-zero carbon emissions.
Another common problem that blockchain products face is regulatory compliance. While governments and regulators are actively enforcing laws prohibiting money laundering and tax evasion, blockchain technology hasn’t focused on protecting retail users. Concordium has proposed an identity disclosure mechanism that can be triggered if the relevant regulator requires it to solve this problem.
The technology’s primary goal is to lead the world with solid, industry-standard user self sovereign identification provided through renowned dedicated organisations, focusing on parameters vital for financial organisations. In doing so, the company’s CEO Lone Fønss Schrøder explains that Concordium allows any organization to “issue identities based on parameters of their choice, and for users to have seamless, accountable access to the world of Web3 and the decentralized economy”.
All transactions are encrypted with an ID stamp that only government authorities can access, if a court of law so orders. This is to ensure that if there’s ever a mandatory need for regulation within the space, it would be easier to comply with regulations if you build on Concordium´s blockchain. Blockchains that haven’t considered this in the EU region may have a tough time with some of the new regulations such as MiCA and FATF’s Travel Rule.
NFTs and the world of DeFi continue to take the world by storm, enabling user bases of millions across commercial, industrial, and web2 companies to experience and benefit from the decentralized future. Concordium believes this is crucial to unlocking the future economy. “Connecting these two worlds is essential,” Schrøder explains, which she says can only be achieved if users can be held accountable for their actions in the new Web3. “Building trust by knowing that if the need arises users can be held accountable while ensuring user privacy is key and underpins our entire technology architecture.”
Examples of some of the capabilities Concordium affords its users, Schrøder explains, “brands with customer databases can push NFT to customers using branded wallets, open their entire community to third parties who can invent and develop services around the largest database of people in the world without storing or revealing any personal information”.
Blockchains are also commonly facing issues with responsible governance† Concordium aims to combat this issue through its decentralized governance committee, which will act as “a decentralized entity deciding for the core principles of the Concordium blockchain, including privacy with accountability.” Key functions are delegated to the Governance Committee and the Concordium is on its path to a fully decentralized blockchain.
Low costs, regulations, and sustainability are all issues that applications built on blockchain face. Newcomers disrupting the blockchain space like Concordium provide new alternatives within the blockchain market by providing solutions that tackle these complex but genuine problems.
Check out Concordium’s website to learn more about this exciting new technology!