Vexanium is public blockchain platform that mainly targeting Indonesia and South East Asia, different from Bitcoin which is mostly used as a store of value and reserve currency, Vexanium and other blockchain such as Ethereum are both blockchain and Dapp platform where developers can build a decentralized application on top of it, that means there are a lot of type of actions/transactions inside the Dapp.
What is Dapp or Decentralized Application?
A decentralized application is an application that does not need a central authority that runs it. Example of Decentralized app is decentralized exchange, where the exchange does not handle the user funds, they don’t have a central server that controls your funds, but the user handles the funds and transactions.
Decentralized application has a lot of potential to bring disruption to the industries (financial, social media, games, content, ecommerce etc) because it enables a new business model.
As the biggest blockchain platform in Indonesia, what are the difference between Vexanium and Ethereum?
Transaction Model
In Ethereum, users have to pay a small amount of Ether every time they make a transaction in the network. Whenever users use the Dapp and want to talk to the smart contract, they have to pay. The burden is on the user.
Vexanium uses stake based system to protect the system from spam, you must stake your Vex token to guarantee that your account gets network bandwidth proportional with numbers of Vex token that you stake. Doing staking means committing your resource to Vexanium network.
When you stopped using the resource (network bandwidth) you will get your token back. The transaction costs are paid by the inflation cost and Vexanium is not charging per transaction.
Consensus Mechanism
Ethereum uses Proof of Work (PoW) consensus mechanism and is in the process to move into Proof of Stake (PoS) Mechanism.
While Vexanium uses Delegated Proof of Stake (DPoS) consensus mechanism.
Proof of Work Characteristics :
In a proof-of-work system, a computer or computing power is required to solve a computational problem of a predetermined level of difficulty before it’s allowed to take some desired action (get rewards).
Because PoW needs a lot of computing power, it is costly and not efficient.
Proof of Stake Character :
In Proof of Stake (PoS), you need to stake some amount of cryptocurrency to become block producers, PoS has a lower barrier to entry than PoW for block generation rewards because PoS avoids expensive computations. This makes it more environmentally friendly than PoW
In PoW, an attacker would need to acquire 50%+ of the computational power in the network, but in PoS, an attacker would need to acquire 50%+ of the currency within that system.
Proof-of-stake eliminates some of the major security issues associated with the Proof-of-work scheme. The most obvious of them is the 51% attack.
Delegated Proof of Stake (DPoS) Characteristics :
Proof of Stake (PoS) is “direct democratic” while DPOS is representative democratic. Stakeholders elect their delegates to generate and validate blocks. With significantly fewer nodes to validate the block, the block could be confirmed quickly, leading to the quick confirmation of transactions.
DPoS consensus mechanism leverages the power of stakeholder approval voting, to resolve consensus issues in a manner which is democratic and fair.
Delegated proof of stake uses real-time voting combined with a social system of reputation to achieve consensus.
Because Vexanium use DPoS, it needs fewer nodes to validate the block, it has faster transaction per second (2000 tps) compared to Ethereum (20 tps)
Why speed of the blockchain is crucial ?
Bitcoin has 7 transaction per second.
Ethereum has 20 Tps.
Vexanium has 2000 Tps but can scale to 100,000 Tps - 1,000,000 Tps in the future.
While Spotify now process 1 billion streams everyday.
Visa now process 1700 Tps (based on a calculation derived from the official claim of over 150 million transactions per day) .
How about IoT ? Gartner predicted there will be 20 billion IoT devices by 2020, with average 1-5 event records/day, means 60 billion event records per day, it will need 694,000 TpS.
For blockchain technology to achieve mass adoption it must have speed/transaction per second that meets the needs of the application such as financial apps, social media apps, music apps and right now it is achievable using Delegated Proof of Stake consensus mechanism.
Account Naming
Vexanium has a different account structure compared to other cryptocurrency addresses. Vexanium uses account names, a unique human readable name instead of long wallet addresses in Ethereum. Vexanium account names are exactly 12 characters long and may only include the characters 12345abcdefghijklmnopqrstuvwxyz. If an account name isn’t claimed by anyone else, a Vexanium user can create an account with that name.
This 12 characters human-readable account system has some benefits. Example, if you misspell the account, your wallet will show an error that it is an invalid address. And checking a 12 character name is easier than 30 – 50 character addresses in other cryptos.
The 12 character name is similar to how ethereum or bitcoin public keys work. People use them to transfer funds to other accounts. Vexanium still has random hashes in the form of public and private keys, but Vexanium has the concept of an account. Accounts can be controlled by the owners of a public key.
Programming Language
Vexanium uses a C++ programming language which is already familiar for a lot of programmers, it already being studied in many universities and has a lot of libraries available so programmers do not need to reinvent the wheel.
While Ethereum uses Solidity, it means programmers need to learn new programming language and not many libraries available to reuse. Reinventing the wheel.
Here is the comparison of Google worldwide search volume for C++ and Solidity.
That is just some comparison of Vexanium blockchain to Ethereum blockchain. The market itself could bring big differences: Vexanium targeting Indonesia and then South East Asia, while Ethereum targeting the international market. It is interesting to see how things are going in the next 3-5 years. As developers or investors, knowing some of these facts will help you to make a favorable decision for you.
Rhein - Vexanium team
More about Dapps Development in Vexanium here : dev.vexanium.com