Bitcoin was first designed as a decentralised, permission-less, peer-to-peer transactional system which has since took the world by storm. Before anyone discovered the true potential of blockchain technology, it was designed to offer a method of transferring value to anyone, anywhere at a low cost in a faction of the time traditional centralised payment systems could do this. Fast forward a few years, and with the growing popularity of bitcoin and other cryptocurrencies a few of these features have suffered; mostly the fees and the time it takes for transactions to confirm. Well now there is an answer to these problems… QuarkChain. But what is QuarkChain and can it become the next bitcoin?
What is QuarkChain?
“QuarkChain is a high-capacity peer-to-peer transactional system.” “It is an innovative permissionless blockchain architecture that aims to meet the global-wise commercial standard. It provides a secure, decentralized, and scalable blockchain solution to deliver 100,000+ on-chain TPS.”
What does this mean in simple terms? This means that QuarkChain will be directly focused on a peer-to-peer payments solution which will not only rival Bitcoin, Ethereum and many other cryptocurrencies, but they will also be rivalling the likes of Visa and PayPal. The global-wise commercial standard right now is set by companies such as Visa, their systems can supposedly handle up to 50k TPS (transactions per second). While the actual number may be less, they allow their systems to handle more so as to cater to the global standard of fast transactions. Right now one of the major issues with blockchain technology, is the ability to scale blockchains to be able to handle greater amounts of users and larger volumes of transactions.
How does QuarkChain compare to Bitcoin?
Well Bitcoin can handle 4 transactions per second, and there have been major issues in recent times over whether or not bitcoin is able to scale to be able to handle the amount of demand on the Bitcoin blockchain right now. This has resulted in number of attempts to scale this (non successful so far), a number of forks and questions marks as to whether bitcoin is truly a peer-to-peer transactional system that can handle global demand, at least without improvements to the network.
QuarkChain has been able to take into account all of these issues and provide a solution which will not only revolutionise blockchain technology, but will also see them improve upon the standards currently offered by Visa and other payment processors. QuarkChain will provide a blockchain network that allows for 100,000+ TPS while providing a higher level of security than Bitcoin currently does. Not to mention QuarkChain will also support smart contracts once their mainnet is launched.
How will QuarkChain achieve this?
QuarkChain will use a technology known as sharding. Sharding is a is a type of database partitioning, in which very large databases are separated into multiple databases a fraction of the size, making the individual ‘shards’, faster and much easier to manage.
More specifically, QuarkChain will provide a “reshardable two layered blockchain”… two blockchains, thats twice as many as Bitcoin. One will consist of the root blockchain, the other will consist of the ‘shards’. The shards will be known as the first layer and the root chain will be the second layer. The root chain (second layer) will confirm the transactions (blocks) from the first layer (shards).
Any number of shards can exist and each will be able to confirm and process a “sub-set of all transactions independently”. This means as the number of shards increases, so does the number of transactions a particular shard can process. This allows ta greater amount of transactions to be processed as the number of shards increases.
The root blockchain will then confirm all of the transactions within the shards, the root blockchain does NOT process any transactions, as this would not be efficient within the system. However, the root chain does have sufficient difficulty so as to attempt changing the root chain would also not be efficient… Which take us onto security
Will this affect Security?
What is QuarkChain going to do protect users? QuarkChain identify in their whitepaper all of the current issues with blockchain technology. QuarkChain will use a proof of work (PoW) algorithm, this is the same algorithm used by Bitcoin. One of the major issues with PoW is the ability of what is known as a double-spend attack. This requires an attacker to have at least 51% of the hash power and then they would in theory be able to change or revert transactions to make it look as though their blockchain was correct.
To prevent this QuarkChain has a number of security features. Firstly all shards will incentivise hash power to be distributed across them evenly. Not only does this enable a greater number of transactions but this doubles as a security feature. The root chain will have a significantly large portion of hash power (over 50%). Therefore to perform a double spend attack, an attacker would require a significantly greater amount of hash power to perform an attack.
Further security is then provided by the QuarkChain consensus algorithm.
The root chain will use a PoW algorithm, identical to the Bitcoin network, the individual shards will use a “root-chain-first PoW algorithm”. This means if a shard is forked then a node will compare the root chain first… then it will compare the forks. If one has a longer root chain it will survive no matter what.
QuarkChain is by far one of the most exciting projects not only of 2018, but of all time. The testnet has so far achieved results of 2200 TPS, and the whitepaper does an excellent job at explaining not only how they will scale the network up, to achieve never before seen capacity. But they are also very serious on security and making sure users are protected.
I am always against comparing individual cryptocurrencies to bitcoin, as bitcoin provided us with the first ever use case of blockchain techno0logy and has allowed other to develop it and improve it to get us where we are today. But if every a blockchain project can be compared to bitcoin, just in terms of a peer-to-peer transactional system then is it is QuarkChain.
QuarkChain will initially be an ERC20 token before their mainnet goes live in Q4, 2018. Then there will be a token swap. It would come as no surprise if QuarkChain is the best performing ICO of 2018 and we cannot wait to see the development of this project unfold.
It is certainly a project we will be adding to our Investment fund.