Decentralized Economy and Blockchain
Blockchain was introduced by Nakamoto Satoshi as a decentralized replacement technology for previous, centralized economic systems. Existing central economy systems are largely based on trust of a country or an institution, and are heavily regulated. As they are based on trust, most of the operations of said systems are not transparent, and decisions within such systems are made by central institutions. This process led to questions on whether decisions were made fairly. The evidence of fraudulent transactions in exchanges and insider trading led to distrust on a societal level. To remedy this, Nakamoto Satoshi introduced Bitcoin, a currency system for a trustless, decentralized economy. Bitcoin is a currency that requires no intermediary in possession and trade, and all transactions are recorded and shown transparently. For this, a public ledger system called Blockchain was introduced. Bitcoin caused a large stir within global society, and was followed by other various decentralized systems, spearheaded by Ethereum.
Historically, the current economic system of mankind began as an exchange of services and goods such as animals and plants. Then, as different tribes began to trade, currency was introduced and was used to help with bartering. As countries formed, different currencies were made and used by each country. This led to the system that is being used today. As of now, blockchain is used only between small tribes that use the same language and the same currency - rendering it primitive by today’s standards. For the decentralized economy system to become a full-fledged, widespread economic system, a method of transfer between different blockchain systems and centralized systems is a vital necessity -- a technological lingua franca.
At time of writing, the cryptocurrency market cap amounts $220,615,997,859, with more than 3,000 different coins. Compared to a few years ago, the current amount of money vested in cryptocurrency and the rate of growth is truly astounding. However, considering that Amazon, a single global company, has a market cap of $884,188,000,000, the cryptocurrency market still only accounts for a small percentage of the overall currency market. Whilst new coins are appearing on a daily basis, the overall market cap of the cryptocurrency market is not increasing at a high rate, and it can be deduced that cryptocurrency overall is in its infancy. All of these blockchain projects have in common the following fact: they are based on trustless block producers that continue the block, recording their transactions on a single chain. Therein lies the first limitation of blockchain, which interferes with the growth of the industry. The foundation of a blockchain system relies on a singular protocol to exchange and prove information within its blockchain. However, that also means it is unable to prove and use information on other chains or offline. This is a huge problem in terms of operation of the economic system.
A word that frequently appears while discussing the economy system and related occurrences is “liquidity”. By the definition of the word itself, it is how volatile a subject is. In economic terminology, it describes how easily an asset can be converted into money. Within the current blockchain system, without a middleman, it is impossible to trustlessly trade one blockchain asset to another. The recent development in atomic swap and other IBC protocols have been proposed as a solution to increase liquidity of blockchain assets, but they are not yet implementable for use. We believe that for the cryptocurrency market to grow, the speed and the number of transactions must grow significantly first.
A Blockchain for Decentralized Protocol / Applications
Orbit Chain is a solution to blockchain’s scalability problem. Through Inter-Blockchain protocol, it supports moving decentralized asset across different chains and aims to be specialized as a multi-asset platform.
Bitcoin has a block time of approximately 10 minutes, with 7 TPS, while Ethereum has 15 TPS. Compared with VISA with a 2,000 TPS, these numbers show that they are still far from becoming a viable method of economic transaction. To increase scalability, we developed a chain system that has a higher expandability compared to previous blockchains, based on a PoS consensus algorithm. Through a Staking-based block-producing consensus, Orbit Chain resolves the limitations of previous PoW systems and remains secure against 51% attacks.
Orbit Chain has its own standardized IBC protocol, developed for asset management across different chains. Through this chain, several public blockchain systems with different protocols, such as Bitcoin, Ethereum, Ripple, Klaytn, Terra can communicate with each other. Assets can be moved across this PoS-based decentralized system, and all steps can be verified on-chain, providing a trustless secure protocol.
Orbit Chain aims to become a Hub Blockchain that utilizes multiple assets on its own chain, connecting them all. In doing so, Orbit Chain would be effective in supporting DeFi projects that use multiple types of assets. For many DEX and DeFi financial protocols, liquidity has always been a problem. Orbit Chain solves this problem with its IBC protocol. In addition to providing an environment in which multi-assets can be utilized with ease, Orbit Chain also supplies an SDK for various developers of games and payment systems that want to make the switch over to the blockchain world.