The Dexon Foundation, a blockchain startup, has announced that it closed a USD 20 Million private funding round led by IDG Capital. Dexon was founded in June by the Cobinhood team, a cryptocurrency services platform with zero-fee exchange, to provide a platform to develop decentralized applications.
Its protocol is called “blocklattice” which makes use of a blockchain peer-to-peer database where all peers in the network acknowledge transactions. It is supposed to allow the Company’s platform to provide transaction speeds competitive with major credit card companies when many blockchain networks that support a currency, like Bitcoin, cannot sustain fast transactions at a large scale.
The founder of Cobinhood and Dexon, Popo Chen, saw the public need for the Company and said “Blockchain is still in its early stages, though many industries are looking to implement blockchain and talk constantly about its benefits, it has yet to reach rapid adoption. Factors like speed of transactions have been a crucial inhibitor in allowing this technology to be implemented into the real-world banking ecosystem. The innovation surrounding blocklattice architecture like Dexon will enable use cases such as everyday banking, stock and cryptocurrency exchange, micropayments and other markets.”
Relative to current competitors in the market, Bitcoin sustains an estimated maximum of seven transactions per second and current runs three, while Ethereum supports a maximum of 15 transactions per second. Visa and MasterCard process an average of 1,971 transactions per second.
Dexon announced results of its own tests of transaction speeds at an estimated rate of 1 Million transactions per second. Chen aims to partner with credit card institutions. The founder of Ethereum, Vitalik Buterin, stated he doesn’t expect technology to come into the market to replace Visa transactions for a couple years.
Dexon is expected to launch a test network that will demonstrate its capabilities at the end of 2018 and to become publicly available in the first quarter of 2019.