The events of the 21st century are on the brink of outdoing all centuries of the past millennia, even way before it is half spent. The turn of the century flicked off a whirlwind of more or less bizarre and sophisticated technologies in substance and idealistic regards. Amidst these heavy, cumbersome sprouts of contraptions, the century graced the unveiling of a dynamic financial market with hordes of crypto exchange platforms inexorably displacing the world of traditional bank-to-bank exchange systems by every inch.
A new generation of neo-classical software companies is thus on the rise. Fortunately, Technorely is one such company! We seek the contentment of our clients while building on ground revolutionized dimensions of technology. The corollary to this is that Technorely isn’t just like every other software company out there.
While also being involved with developing decentralized software like other companies, here at Technorely we aim at creating valued and timely upgraded solutions to the problems around this newly booming industry. Ours is a robust team with a vast wealth of experience in Fintech, Healthcare, Blockchain, Industrial and some other sectors. Our services, amongst which is the development of cryptocurrency exchange platforms, span an eclectic range of countries from Europe to America due to our commitment to helping our clients achieve their goals and complete towering projects with the utmost finesse. One of our recent projects includes Polonics, and we have also invested in Paybis project.
Definition of Some Terms
e-Currency Exchange: a business involving transactions between a seller and buyer using digital currencies.
Consistency protocol: a kind of general voting by ordering operations.
Blocks: the unit where all transactions are recorded.
Decentralized application: an application which allows individual workstations to function independently with their own software and hardware.
Real-time: instant validation of transactions; both sending and receipt of funds are acknowledged instantly at the click of the mouse.
Ledger: financial records of all digital transactions or assets are kept in ledgers.
The Problem
Over the decades, there has been an impressive shift from a centralized setting of financial and currency exchanges through the use of traditional banks to a more efficient and yet evolving decentralized era of digital international exchanges. In addition to their imbued tardiness, the traditional methods had the dent of being quite insecure, which prompted researchers in the fintech sector to seek out better ways to make transactions or exchanges across space barriers at approximately real-time.
Traditional financial institutions offered a type of banking which relied on a central component controlled by the government, and transactions could even take days to complete. In this way, they could act as middlemen between the two ends, hence it’s hardly a surprise that they place certain hidden bank charges on every transaction. The centralized set-up germinated a lot of security concerns: since it was controlled by a third party, it could be manipulated and as such, mildly put, theft and fraud could hardly be at bay yet.
Then came a bright sun revealing unprecedented and brilliant bends around these primitive obstacles; the eruption of new technologies in fintech, projecting the idea of the next best thing after sliced bread, although a handful of its own problems trumped with time. We shall see how good they look against the background of The Big Picture.
The Big Picture: Blockchain, A Series of Tottering Growth
It wasn’t until about a decade ago that the area of financial technology witnessed a tremendous technical revolution which ushered in the Age of Crypto-Currencies and Blockchain Technology. Now, trustless and boundless exchanges can be made without the need for something of a third party. Unlike the conventional banking system, the crypto world created an entire reliable column where transactions were done in ledgers which were crammed into a block; the data were encrypted in codes and peer-to-peer currency exchanges were made possible through blockchain.
Blockchain is an open and decentralized ledger, which is capable of recording transactions between two parties in a form which can be verified and authenticated. Once a transaction was recorded, its data cannot be altered, without corresponding alteration of all other blocks. This also allows users to verify and audit transactions without much cost. It offers an accurate ledger of all digital currency transactions. Years after its introduction to the crypto world of Bitcoin and other e-currencies, blockchain now finds application in a number of areas of human endeavors which require a considerable level of rigor, including:
Banking: Owing to its impressive success in reducing fraud in cryptocurrency exchanges, blockchain is viewed as the antidote to the alarming financial fraud experienced, on a daily basis, in the centralized banking systems.
Health Sector: In our modern world, there is as much a growing need to establish a database of transactions between drug manufacturers and retailers as there is to keep confidential records of patients’ medical history and the like.
Cloud Storage: Blockchain also finds application in data storage.
Stock Exchange: Blockchain has only begun to bloom in this sector, offering a bright prospect in the aspect of forestalling frauds to the barest minimum. Experts even think it may find future applications in managing mishaps in system operation.
Public Sector: A wide range of applications in data management ranging from keeping a directory gotten from a Census to the registration of eligible voters in an election.
Below are some fascinating numerical data about the use of blockchains in recent years:
According to a report in Edureka, 0.5% of the world’s population currently uses blockchain technology. This estimate is expected to increase four-fold in 5 years and a lot more in subsequent years.
About 90% of banks in Europe and North America are currently involved with blockchain, as recent studies have shown that blockchain can reduce about 30% of the cost on bank infrastructure.
It is estimated that global blockchain market size is expected to grow from $1.2 billion in 2018 to $23.3 billion by 2023, and by 2030 blockchain technology market will have reached a revenue of $3.1 trillion.
By 2016, blockchain market value in South Korea had reached $20.1 billion and is expected to peak $356.2 Billion by 2022.
At the end of 2016, there were about 11 million blockchain wallet users worldwide. This figure had risen to a whopping 31.9 million by the end of 2018, and it is expected to reach 188.4 million in 2021.
Using the earliest blockchain, transactions were made on distributed systems where these transactions and their data were encrypted onto blocks right from the get-go. Although it solved the problems of crashing the entire network when one of the systems is tampered with and though the security of assets was considerably strong, exchanges and closure of ledgers on this blockchain didn’t match up to the miner’s expectations of a real-time dispense.
The Birth of A Revolution: Stellar on Blockchains
Technorely, as a custom software developer, has participated in hundreds of projects involving setting up a working and user-friendly system using blockchains. In earlier days, the security of each transaction was under a work-proof which kept a tab on every single transaction carried out on each ledger although it had no access whatsoever to individual account details or their assets. Hence, one user cannot claim to be someone else and a particular transaction cannot be replicated by the same user on another block since a documented record of transactions with the time and date are encrypted on the work-proof, without which the entire system was suck.
As of April 2018, we had no blockchain solutions to some of the problems our clients presented which skirted around real-time and data integrity, on the most part. This was the period when we developed Polonics using blockchain with work-proof.
Now, in a bid to achieve a faster and cheaper means to guarantee e-currency exchanges, the blockchain had to undergo a bit of reform to accommodate new features. Then Stellar came into light and it was a timely arrival. At a time when cyber fraud rampaged the borders of the internet by leaps and bounds. In simple terms, Stellar solved a whole world of problems on blockchain. One of these problems pertained to the time it took to transact an exchange or for a ledger to open or close a transaction.
Stellar brought with it a different order of its own. With Stellar, exchanges could then be made on blockchain at real-time. How incredible! Although it took only about 5 seconds for the ledger to close. So we began working on Stellar’s R&D, ran a series of performance tests and it proved superb. Moreover, the security of transactions was maintained at a high level where Stellar keeps the transactions and quora are created whereby all validators must agree that the transaction is true before its execution. Although this feature inscribes a minor problem for Stellar which we discovered: Stellar could not manage synchronization of these quora and the transaction on each node, especially if the number becomes large. With an increasing number of blocks on a node, time was increased to as high as 190 seconds and real-time flopped. In such cases, synchronization could then increase the time of transaction and thus real-time is lost in the process. We sought to solve this problem again and on other outlooks, we discovered other tools.
The Beacon of Hope: Tendermint, How We Solved The Problem
While Stellar was indispensable for a small quorum to run on a platform, it faulted when the population of transactions to synchronize snowballed. Soon we discovered that real-time could not be achieved through Stellar, so we decided that Stellar keeps the transaction while real-time was left to frontend and backend. It was a powerful and speedy system that way until we encountered Tendermint. Tendermint was the basis on which Binance was created. A super-fast and reliable blockchain which made transactions in real-time highly possible, although it has issues with stability. Consistency Protocol agreed that it was a powerful tool. So we began working on Tendermint’s R&D. Now we can boast of a robust blockchain which can achieve real-time in Tendermint.
Closing Remarks
After taking the financial world by storm in 2009, the crypto world has evolved in a short while and has really come to stay. This new technology works on a limited amount of valuables which could take the form of icons on a blockchain. With series of improvement in this Blockchain technology and the recently included use of Tendermint on blockchains, the old problems of excessive charges have been trumped and Technorely still holds a generous pie of assurance for its clients and their services of a software experience which could render a soothing blend of swift transactions with real-time situations at incredibly minimal fees.