This Blockchain Technology Will Disrupt the Crypto Industry in 2018
| Updated by Maria Konash · 4 min read
Blockchain technology seems to be taking the world by storm, but there are underlying issues that may threaten its future, namely, scalability and fees.
This is where a new blockchain platform and a concept called “Proof of Pact” (PoP) conceived by blockchain experts to utilize the powerful aspects of traditional blockchain platforms, while at the same time filling gaps where the weaknesses exist.
Just out of stealth mode, Soferox, the company behind the PoP concept, started it’s ICO on September 15, 2017, having accomplished the pre-sale. So, what is Proof of Pact and How will it impact blockchain?
Can the Chain Hold the Weight?
Blockchain technology is the newest darling technology among the industry faithful these days. Recently, blockchain tech like the code that Ethereum and Bitcoin are founded on has begun to get mainstream attention in the techno marketplace.
A new blockchain solution appears every day and in every field lately. Recent reports of partnerships between Ethereum and the Russian government in the sphere of blockchain technologies shows the tech’s potential and the powerful impact that blockchain can have. Industries like auctions are using blockchain as well, seeking to bring profound change to their respective fields. Buying and selling property, new messaging applications built on blockchain, and medical fields like dental insurance are being radically changed through blockchain.
In spite of the apparent hype, though, many blockchain developers are aware that under the apparently simple and elegant exterior of blockchain technology is a swirling storm full of holes of weakness, causing profound doubt for consumers and industry leaders alike.
Blockchain technology is akin to the first mobile phones – huge, gray, and bulky. While at the time it was clearly evident that the new mobile technology was going to change the world, phones were still heavy and cumbersome and required substantial effort to bring them safely into mainstream usage. Current blockchain platforms are in need of a reboot.
Upgrading the Chain with Soferox’s Proof of Pact (PoP)
The foundational chains for cryptocurrencies like Ethereum and others have been talked up in the mainstream media with much fanfare.
However, these blockchain technologies, while providing support for the first real acceptance of the systems involved, also have substantial weaknesses. Soferox, though, has created a platform that will disrupt these original systems.
Consider, for example, the issue of block creation.
Bitcoin uses a block generation algorithm termed Proof of Work (PoW), where miners who generate blocks are required to solve mathematical equations to create the next block on the chain and receive the fee associated with it. While functioning well to date, PoW has met with concern among governments and the public because of the substantial electrical resources consumed, often more that of some nations. What’s more, miners are sometimes required to build new empty blocks because the chain causes delay in distribution of new block parameters.
Ethereum, second largest market cap, is utilizing the PoW system as well, but core developers have recently suggested Ethereum may shift to a new protocol called Proof of Stake (PoS). PoS would require that the block maker own a substantial amount of Ethereum, which would incentivize the maker to protect the chain.
The PoS system, however, has been met with strong concern by blockchain theorists who have suggested that it may produce a monopolized blockchain where all the blocks are mined by a small group of powerful miners, destroying the decentralized structure of the blockchain.
Beyond block creation standards, perhaps the greatest debate among advocates concerns chain rigidity. Some feel that blockchain solutions do not give scaling solutions that will be more necessary as the market grows. As blockchain technology has become increasingly popular, transaction numbers have increased on the chain. The rules coded into various chains, though, cause huge debate regarding block size limits.
Soferox, however, has created a twin blockchain platform. Protocols for blockchain management are divided from transactions by creating two different chains. This model provides a means for secure and immutable transaction processing, while also creating a fluid ecosystem where protocols for managing the chain can be edited and changed without hard or soft forks and new coins (ala the Bitcoin Cash problem).
What’s more, Soferox is committed to free transaction fees and has built a new block creation system which is a combination of the PoW and the PoS named Proof of Pact (PoP) providing a great system for both users and miners.
Joining the Disruption
Soferox offers the SFX tokenis in the framework of its current ICO launched on September 15.
Without question, the PoP protocol and the Soferox twin chain platform are the newest solution for the blockchain going forward. Soferox has built a product that manages the underlying problems with blockchain solutions. As blockchain solutions continue to make advances in other fields, ventures like Soferox will be there to answer the issues.
Being a successful graduate of Belarusian State Economic University (BSEU), Maria has acquired competencies in economic and social studies. Given Maria’s previous research working experience, and desire to explore what's really shaping the future, the main research focus is placed on FinTech and Blockchain Technology.