Blockchain network users and developers themselves face significant shortcomings in blockchain’s operation. For example, the world-famous Ethereum platform provides an opportunity for transaction registration without requiring traditional legal procedures. However, it is characterised by a low scalability level (that is, simply put, slow transactions), as well as low transaction traffic per second and high commissions.
This is due to the fact that the blockchain is forced to rely on critical functions during its operation. Individual nodes (computers that perform verification and data transfers) are forced to process one transaction across the entire network. In addition, at present, the cost of maintenance of this platform is quite high. So, according to Digiconomist, this platform uses electricity in the same amount as a whole state, being 67th in the ranking in terms of resources consumed. All this leads to the need to charge unreasonably high transaction commissions. These problems constitute a serious obstacle to the development of Ethereum in a number of industries.
According to many experts, this platform should be substantially updated in order retain the leading position of blockchain network ranking. Currently, Etherium developers are actively working on this issue. So, for example, there would be a switch from PoW (a method of confirming transactions with further adding them to the blockchain) to PoS. But until that time, other players may appear that will seriously compete with Ethereum. Therefore, attention can be paid to the CREDITS platform. Blockchain and smart contract implementation technology offered by this network, are unique. Convenience and speed of CREDITS operations will seriously compete with many other platforms.
What can new blockchain networks become?
The new CREDITS project can be considered as an example of how the existing problems can be solved. Thanks to the algorithms and technologies applied, the platform both completes tasks that others cannot, and expands the limits of blockchain technology application in the field of finance and the Internet of things.
CREDITS promises its users:
- up to 1 million transactions per second;
- interval between blocks is reduced to 3 seconds;
- very low transaction costs which can be practically free of charge at a large volume
- providing the opportunity to write smart contracts and use the platform for the Internet of things.
All of this became real because of the application of the original modified FA consensus algorithm and the combined encryption algorithm. The first involves the combined use of methods to confirm PoW and PoS transactions, as well as the Federated Agreement. This makes it possible to use the advantages of each concept: network security and currency generation. The combined algorithm does include the advantages of public-key crypto-systems and performance of closed-type symmetric systems.
Thus, by combining different algorithms and tools, CREDITS provides high speed and low cost transactions. Of course, this fact will have a positive effect on the development of blockchain technology and contributes to its wider application. In addition, this platform is open, users can create technological online services, and all devices will be capable of making micro-payments in a minimum period of time.
This project can be used not just in finance; although representatives of this field are the main blockchain technology consumers. Today, CREDITS can be called a unique product, so badly needed by the financial field for the effective solution of set business tasks.
You can find detailed information about this project on its official website: https://credits.com/. According to the roadmap, the ICo will start on on January 15th 2018, the pre-ICO began in November 2017.