The unprecedented trajectories seen with blockchain emergence have been a game changer to many sectors today. However, one challenge that results in blockchain inefficiency is transaction finality delays. This is more complicated in the financial ecosystem that requires real-time transaction processing and execution.
For that reason, the DMD diamond blockchain is here to bring solace to the aftermath of transaction finality delays seen with traditional blockchains by offering instant transaction finality in its ecosystem. All thanks to the DMD diamond blockchain’s unique consensus algorithm – HBBFT, complemented by the delegated Proof of Stake (DPoS) election validation mechanism and smart contract capabilities.
What Is Transaction Finality?
Transaction finality in blockchain is an assurance that once a transaction is confirmed and added to a blockchain, it cannot be modified or reversed. The transaction finality of a blockchain is attributable to the consensus mechanism of such an ecosystem. In Bitcoin which operates on Proof of Work (PoW) consensus, the finality of a transaction is just an increasing probability as a blockchain micro-reorg (orphan-block) or replaced by a longer chain, decreasing usually after an additional six new blocks are added to the blockchain. Most refer to it as final at low-value transactions, even at 2 confirmations. While the system is secure, a major bottleneck is the apparent delays.
Instant Transaction Finality Offering On The DMD Diamond Blockchain
DMD diamond blockchain doesn’t only offer a secure ecosystem but also offers instant transaction finality, through its unique HBBFT algorithm. Transactions on the DMD diamond blockchain experience instant finality as soon as the block containing the transaction is written to the blockchain. This removes the need for multiple confirmations or long waiting durations before finality.
The HBBFT consensus enables the DMD diamond blockchain to engage a set of 25 pre-selected validators who decide on transaction validity. Validators are selected based on their stake in the blockchain, their network trust score and a random element to make sure not always the same candidates are in the active set. This ensures both efficiency and true decentralization of the network.
Furthermore, the DMD diamond blockchain integrates the DPoS algorithm into its ecosystem. With DPoS, stakeholders who don’t want to run their own validator candidate can delegate to an existing candidate their coin weight and increase the chance he gets into the active set more often. The dPOS staker, in turn, gets an incentive for choosing the most stable and well-maintained candidates to stake on top – as they are only entitled to share rewards if their validator candidate is part of the active set. This offers an added layer of security to the DMD diamond blockchain, where users by staking vote for the node they consider stable and well-maintained.
In conclusion, the DMD diamond blockchain capability to support smart contracts is incredibly enhanced by the instant transaction finality offering. Smart contracts on decentralized applications (DApps) usually experience numerous transactions that need to be actualised swiftly. With the DMD diamond blockchain’s instant transaction finality feature, transactions can be validated quickly, ensuring not only efficiency in the smart contract’s execution but also for the ecosystem in general. Therefore, blockchain adopters who don’t mind providing a seamless user experience to their target blockchain patrons shouldn’t think twice about hosting their project on top of the DMD diamond blockchain.
Learn more – https://bit.diamonds/blog/
