Blockchain technology has become one of the revolutionary concepts in the financial landscape since the advent of the first cryptocurrency Bitcoin more than a decade ago. The arrival of Ethereum paved the way for smart contracts to be successfully deployed on the blockchain.
Since then there have been tons of blockchain projects that have been launched with the promise of building on the problems of Bitcoin and Ethereum. One area that has posed difficulty is that of scalability.
IOST is a project that focuses on scalability and offers the technical underlay for tons of transactions to occur simultaneously on its blockchain network.
How IOST Compares To Other Smart Contract Networks
IOST is an enterprise-grade blockchain that is centred on Internet of Services (IoS) ecosystem. Scalability is the name for IOST that is built on an ultra-fast blockchain using the unique Proof of Believability (POB) consensus network.
To fully understand the capabilities of IOST, means comparing it to its closest competitors, Ethereum, EOS and TRON. Ethereum is the most popular since it was the first major smart contract platform while EOS and TRON offer scalable blockchain platforms with the capacity to deploy huge numbers of transactions.
IOST offers a major difference to its three competitors as it is able to process up to 8,000 transactions per second when compared to Ethereum (20), EOS (4000) and Tron (2000).
To achieve these transaction speeds, IOST created a complex blockchain system that combines several concepts. This includes Proof-of-Believability consensus algorithm, Efficient Distributed Sharding, Micro State Blocks among others.
Efficient Distributed Sharding divides the blockchain network into smaller bits by randomly assigning nodes to work together. This results in a blockchain system that works efficiently. The Proof of Believability consensus algorithm is unique as it ensures high levels of speed and security by using several interrelated factors.
The consensus assigns a believability score based on the amount of IOST tokens held, percentage of positive reviews on the node and prior history.
In addition, the algorithm also integrates a fairness component that ensures decentralization of the blockchain network while also deploying other protocols to increase transaction speeds within its ecosystem, Thus giving rise to a blockchain platform that offers speed, scalability and security.
IOST is also a truly decentralized blockchain network and has more nodes (400) compared to EOS (21) and Tron (27) respectively. This makes it more decentralized with a diverse ecosystem of global nodes governing it’s blockchain network.
The blockchain platform is also well optimized for Defi since it offers fast transactions, zero fees and easy account names.
IOST and DeFi
The success of the DeFi sector in 2020 has posed more questions on how important scalability is to the development of a smart contract network.
Ethereum that is currently considered the top smart contract network has faced huge problems with its blockchain as more products and transactions have been performed due to the rise of DeFi.
IOST is one of the blockchain platforms that is better suited to the deployment of DeFi applications and products. It is one of the oldest DeFi blockchain platforms and has been developing its DeFi ecosystem long before the 2020 boom.
As earlier highlighted the ability of IOST to process up to 8,000 transactions per second gives it a major edge in technology than Etrhereum. IOST also optimized its blockchain platform with the development of a decentralized staking system in 2019.
Since then it has continued to commit towards the development of DeFi products and revamped its roadmap in 2020 to place more emphasis on the emerging sector.
Key Partnership and Developments
Interoperability is a major aspect that IOST has been working on. The blockchain platform entered a partnership with Polkadot parachain Bitfrost in 2020 to develop a cross-chain defi platform.
IOST is also in a partnership with oracles provider Chainlink to provide accurate off-chain data for its smart contracts. The blockchain platform also launched a DeFi fund worth $1 million to support new products and projects within its ecosystem.
This was followed with a partnership with fintech company Stable Universal to deploy stablecoin HUSD on its blockchain network. This makes IOST, the second platform to host the popular stablecoin after Ethereum. To celebrate this event, IOST and HUSD team are organising a 35,000 HUSD giveaway exclusively for IOST users.
It is expected that the integration of HUSD will bring increased liquidity on its platforms and ensure easy payments across the IOST ecosystem.
Compliance and regulations is also a crucial aspect in the finance industry. Governments globally are beginning to Regulate blockchain based platforms and protocols.
IOST excels in this as one of the few blockchain platforms that has taken conscious effort towards regulation. Notably, IOST is the 29th compliant token in Japan which is considered one of the strictest markets in the world. IOST has also been able to attain a major relationship with the Chinese government.
Recently the blockchain platform became the first and only in the industry to make a lecture presentation to the China state and industry leaders in the Great Hall of the People. IOST was also invited by the Indonesia Ministry of Finance to be legally traded in Indonesia and perform the role of a government consultant. These are among some of the steps taken by the blockchain towards regulations.
Although the DeFi industry is relatively in its early stages, IOST has shown that it is serious about staking a major claim in the sector. Its ability to process a high volume of transactions is a major plus while ensuring adequate security on its blockchain network.
IOST has created an innovative blockchain platform by tackling the problems of ETH and EOS once and for all. Being inherently a latecomer than ETH, EOS, and Tron might have put IOST in a huge disadvantage in securing partners and gaining recognition within the blockchain industry. Against all odds, IOST is the one to watch and is an underdog in this long-term competition with its excellent stability and completeness. With HUSD’s joining of IOST Ecosystem, investors can expect more adoption and expansion DeFi scenarios with IOST.