- Build and deploy a next-generation blockchain business with DMD Diamond
Many crypto founders are now switching from Ethereum to Binance Smart Chain in search of lower fees and faster processing times. However, BSC is a bit of a poisoned fruit: it’s highly centralized and controlled by Binance. By contrast, DMDv4 is just as fast and cheap, yet decentralized and censorship-resistant — all in all, a very interesting option if you want to start a blockchain business.
In early 2021, all eyes were on Binance Smart Chain — a new blockchain that Binance designed for DeFi, with fast confirmation times and low fees. As it became clear that Ethereum gas fees weren’t going to fall below $10 anytime soon, DeFi capital began flowing over to BSC, where one transaction costs just $0.05. As of mid-April, the total value locked in Binance Smart Chain stood at $35 billion.
However, there’s something about BSC that DeFi founders and users either don’t realize or prefer not to see. Binance Smart Chain is centralized, like everything that Binance does.
The blockchain has 21 validators, which isn’t a problem in and of itself: for instance, in the highly decentralized DMDv4 the system picks 25 nodes to act as validators for every epoch.
The real problem is how those 21 BSC validators are selected. They are picked daily by the 11 Binance Chain validators. Therefore, which transactions go into blocks and in which order on the Binance Smart Chain is completely controlled by the validators of the Binance Chain. And those are almost certainly connected to Binance in one way or another.
It’s quite a paradox, really: BSC is positioning itself as the perfect solution for decentralized apps (especially DeFi), and yet it’s under the control of the world’s largest centralized exchange. Basically, if Binance wants to prevent some BSC-based dApps from operating, or if it decides to destroy the whole structure altogether, it has the tools to do so.
From the very beginning, we wanted to make DMDv4 an ideal blockchain on which to build dApps. — and we have succeeded. Indeed, the new DMD Diamond offers everything that BSC has — and more:
- Fast transaction processing: over 400 tps thanks to the dynamic block time mechanism
Extra-low fees that won’t grow sky-high (like it happened in Ethereum), because the transaction processing capacity is higher and the risk of congestion is lower;
Smart contract support based on EVM (Ethereum Virtual Machine): smart contracts developed for other blockchains can run on DMD;
Interoperability bridge: you can easily transfer value from other blockchains and even integrate DMDv4 with third-party interoperability solutions (something you can’t do with Binance Bridge). The first planned bridges will link DMDv4 with Ethereum and Binance Smart Chain, allowing for easy dApp migration and integration.
Instant transaction finality.
Even more importantly, DMDv4 is truly decentralized, fork-resistant, and censorship-resistant. We use a cooperative consensus algorithm together with staking and validation mechanics to ensure that no resources are wasted and that no validator accumulates too much power.
The reward distribution is fair, too, Every validator receives an equal share of the epoch reward, and up to 70% go to the delegates (stakers).
Ultimately it’s the users who decide which nodes enter the candidate pool (i.e. become potential validators). The developers don’t have any control over it, and the code is open-source, so everyone can review the rules that define how validators are selected.
DMDv4 is equally suitable for DeFi and other types of dApps. If you plan to launch your own blockchain business, you should take a close look at DMDv4. You’ll get:
- a fast blockchain that can’t be forked or taken over by anyone;
cheap and fast transactions for your users, without any risk that fees will rise over time;
full support for smart contracts written in Solidity;
a convenient dApp development environment that will look and feel very familiar if you’ve worked with Ethereum;
low deployment costs;
a possibility to run your own validator node and earn epoch rewards;
easy scaling and interoperability.
To learn more about DMDv4, check out our Light Paper and join the official Telegram chat — we’ll be pleased to answer all your questions!
- Date of publication:
- Fri, 04/23/2021 - 04:06
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