“Do one thing, and do it well”
Such is the motto of the RaiBlocks (XRB) project, aiming to establish itself as a definitive alternative to Bitcoin. Where the latter has fallen short, revealing already well-known problems in terms of latency (high confirmation times) as well as scalability issues (high transaction fees), RaiBlocks (XRB) promises to completely solve those issues for a much better user experience, with almost instant transactions and no fees whatsoever.
Through an innovative data architecture – the block-lattice – RaiBlocks (XRB) presents an alternative structure to the common block-chain platform. Each account is given its own block-chain, which means individuals are no longer dependent on the whole network to update their balance, resulting in a system capable of processing a much bigger amount of transactions per second. Transactions are done in two steps: creation of a sending block, which deducts the transfer amount from the sender’s balance, and of a receiving block, which adds said amount to the receiver’s balance. Validation is dependent on confirmation from both ends, meaning a transaction is only complete once the receiving party signs a block confirming his balance was updated. Since each account is updated by its owner, this can be done instantly and off-sync with the rest of the network, resulting, once again, in much quicker transactions.
Lets have a look at a graph illustrating how RaiBlocks (XRB) should perform, in terms of transaction speed, in comparison with other cryptocurrencies:
Image 1 – Comparison of transaction speed between RaiBlocks (XRB) and other crypto currencies – Source: https://www.reddit.com/r/RaiBlocks/comments/7lx1ax/what_it_means_to_have_7000tps/
For now, the network’s capability still hasn’t been completely put to the test, with only around 10000 transactions per day. However, if the RaiBlocks (XRB) system is actually able to achieve the kind of processing supposedly guaranteed by their lightweight infraestructure, sustaining a volume of 7000 TPS would be absolutely impressive.
On the other hand, RaiBlocks (XRB) also offers a different approach to Bitcoin in terms of system security. Instead of verifying transactions through the Proof of Work (PoW) mechanism, RaiBlocks (XRB) uses a Proof of Stake (PoS) model, in which the participant’s vote weight is proportional to the stake of currency they hold at a given time, which means those with higher stakes are encouraged to maintain the system’s legitimacy to protect their own investment.
Additionally, because of the block-lattice structure, transaction verification is only necessary if an actual problem arises. The RaiBlocks (XRB) network guarantees much lower energy consumption, compared to a Proof of Work (PoW) based one, since, in the case of a valid transaction, no voting process is required. Agreement is only dependent on “sender” and “receiver” confirmation. This method is depicted in the following figure, taken from the RaiBlocks (XRB) whitepaper:
Image 2 – RaiBlocks (XRB) transaction verification system – Source: https://raiblocks.net/media/RaiBlocks_Whitepaper__English.pdf
Let us now examine how RaiBlocks (XRB) market value has changed in recent times:
Image 3 – RaiBlocks (XRB) value on the market for the past month – Source: https://coinmarketcap.com/currencies/raiblocks/#charts
In the beginning of December, the currency was valued at around $0.200 USD on the market, making it to the $10.00 USD mark about three weeks after and breaking the $35.00 USD threshold on the first of January! This constitutes a very significant leap for the project in a short amount of time.
RaiBlocks (XRB) is showing impressive growth on the market, already establishing itself as a high ranking asset on the Coin Market Cap. If RaiBlocks (XRB) is able to guarantee some major exchanges and truly deliver on the promise of providing “instant, feeless, scalable transactions”, we might be looking at a contender to break the big league in 2018’s e-coin market!
After Binance announced that RaiBlocks was elected Community of the Month and saying that it will list XRB we can expect big gains coming from this distinct project. We can expect it to climb top the top 10 coins sooner than you think.