Hedge fund firm IDG Capital has allocated $20 million to blockchain-enabled private placement Dexon, a company founded by Cobinhood, a cryptocurrency services platform and zero-fee exchange endorsed by U.S. football player Richard Sherman.
In a statement, Dexon said unidentified angel investors who believe in the potential of the super-fast decentralized protocol also made investments.
"Investors believe in Dexon's 'blocklattice' protocol, which is underpinned by consensus algorithms that allow for transaction speeds competitive with major credit card companies," said Popo Chen, founder of both Cobinhood and the non-profit Dexon Foundation.
Chen added they intend to form strategic business alliances with like-minded institutions that can provide the same processing power without relying on centralization. He said, existing blockchain protocols can only process a few secure transactions, unlike Dexon. This makes their system incapable of keeping with traditional solutions, he said.
At the same time Dexon announced the results of its first transaction speed tests which showed a high 50 blocks per second with 25 nodes – or equivalent to at least one million transactions per second with each block the size of 2MB and an average 100 bytes of transaction size.
It explained by using the blocklattice structure combined with a total-ordering consensus algorithm, the platform has made decentralized transactions scalable particularly for exacting demands in real-world applications. The blocklattice structure is unique compared to existing traditional blockchain systems that are built on encrypted blocks linearly. It features multiple blockchains that work in parallel, which makes it more efficient to scale automatically and save more energy.
Cobinhood co-founder Wei-Ning Huang added:
"With its fundamentally new architecture, the DEXON network is poised to become the world's first mainstream blockchain. Investors are recognizing that there is a problem with current blockchain technology and that the protocol most focused on throughput and scalability will form the basis of Blockchain 4.0. These tests prove that the blocklattice works and this funding is proof that investors trust Dexon's strategy over the long term."
Last month, Cobinhood launched crypto-fiat pairs as part of its strategy to take a much more significant portion of the digital currency trading market. The company said it allows exchanges between US dollar and three virtual coins, Bitcoin (BTC), Ethereum (ETH) and Tether (USDT).