In October 2020, the global blockchain rating and consulting agency Daling Research published an in-depth article on DxChain. By analyzing and comparing the economic model of projects in decentralized storage field, the Daling research team introduces the core competitive advantages of DxChain from the technical and economic aspects. Please refer to the following:
Blockchain innovators have been exploring decentralized storage in different ways since Filecoin came out. Looking through the projects, IPFS creates a protocol for data storing and sharing but does NOT support any sort of data encryption. Storj supports 7 core APIs of AWS S3, can store, retrieve, maintain data, and make payments, however it’s more centralized-based. Sia is a P2P and enterprise level decentralized cloud storage platform on which smart contracts can be executed automatically without consensus algorithms. Later on, the DAG (Directed Acyclic Graph) architecture combines both decentralization and efficiency, but NOT as stable as the blockchain in terms of security.
Thus, how to realize an ideal public storage chain with the following functions becomes a question: decentralization, efficiency, security, minimum redundancy and effective ecosystem incentive. Although the projects mentioned above have explored from different perspectives, the initial architecture design determines the projects’ prospect and bottleneck.
DxChain, the first decentralized data storage chain with DPoS consensus algorithm, may make it possible. DxChain’s main concept and technical architecture hit the sore points directly that making the prototype take shape:
1) DPoS consensus algorithm on mainnet characterizes DxChain both efficiently and decentralized. Implemented storage protocol with lightning network enables all small storage transactions and data encryption can be completed quickly off-chain, only the final result will be submitted, greatly avoiding storing excessive data and increasing the efficiency and scalability of the system. Additionally, fully compatible with Ethereum ensures the migration of Dapps to DxChain without any modification.
2) The latest economic model based on DPoS can intelligently adjust the annual mining reward pool to keep a higher than 7% return rate.
3) DxChain also aims to build an ecosystem that gradually integrates decentralized storage, traditional projects reformation and DeFi together to realize a virtuous economy cycle while reconstructing the new economy.
Keep reading to learn more about DxChain ecosystem scenarios.
Decentralized storage is the basic service of DxChain, one of the storage Dapp developed on DxChain is called DxBox, which uses client-provider model for data transferring. In this model, the client is a node and the demander of data transmission services, and the supplier is a node that uses idle storage space to provide data storage services and earns DX rewards. The testing data of security and reliability has been proved to reach 99.9999%.
DxBox not only addresses the sore points such as the high cost of centralized storage, isolation between data centers, data attack, leakage, and abuse etc, also making the storage and usage more convenient and efficient. Since DxBox mainly serves individuals so far, DxChain is projected to launch enterprise-level storage services next year that save storage cost with only one server.
Differentiated that from traditional e-commerce, the major feature of decentralized e-commerce is the direct transaction between merchants and customers without a third party. In DxChain’s vision, every user can transact DX on the phone and get DX rebates from merchants for each purchase. The way that breaking the closed business loop will also make customers a beneficiary, that’s how DxChain innovates the current economic model.
Take the flower shop as an example, a customer buying a bunch of flowers costs $100, the owner of the florist can set the rebates according to operation condition, e.g., 100 DX for every $100 spent. That is to say, the customer will get a 100 DX reward for this order, and the DX obtained can be used for next shopping or any other merchant on DxChain accepting DX as shopping credit.
Despite the customer from DxChain community, merchants and businesses can also solve the data problem through blockchain technology while incentivizing and strengthening the ecosystem. On the other hand, transactions without intermediaries reduce the handling fee and boost the turnover of small businesses, making operations much easier than traditional e-commerce. Moreover, the start-up fees and franchise costs are waived in the blockchain world.
In this research paper, we mainly dive into DxChain project’s DPoS algorithm, intelligent economic model, and ecosystem. Look ahead, DxChain will continue to make efforts in enterprise storage on the basis of improving the individual data storage, further improve computing functions after that, to achieve a steady progress in data storage and DeFi field.
DxChain firmly believes that the fundamental infrastructure and a reasonable economic model are required to realize the genuine decentralized storage, which is decentralized, efficient, secured, and minimal redundancy. The exploration is still a long way, but it is what the decentralized storage world will look like.