With cryptocurrencies being a focus for many CFD traders who deal with forex markets, a new platform that arrives on the scene usually comes under the spotlight. The latest addition, LindaX, is looking to take on Ethereum ERC20 with claims that it is both faster and cheaper than its intended rival.
The developers behind LindaX believe that it is a “more attractive and accessible destination” for hosting tokens than Ethereum’s platform because it offers other developers support and allows them to build and take to market their own custom tokens.
In a white paper published to announce the arrival of LindaX, the team behind the new initiative singled out Ethereum’s ERC20 platform as one that it aims to differ from.
Claiming that its developer support system is a major distinctive USP, the white paper states: “Linda will provide support to all developers that use the LindaX platform. Linda will help with development, marketing and the launch of their token on LindaX. This will make LindaX a more attractive and a more accessible location to host their token.”
Cryptocurrency as a whole still faces many problems in terms of gaining wider acceptance beyond those who already recognise the merits of the systems involved. For many outside of the sector, and even for some who are familiar with the nuances of digital coins, questions frequently arise about how and why one differs from another.
LindaX’s developers want to empower entrepreneurs with the tools that they need to create “absolutely unique tokens with exclusive features for designated transactions.” Recognising that crypto is an unfamiliar environment for many people, the start-up’s white paper says that the team will have a hands-on approach in helping new businesses connect with exchanges that can list their tokens.
With any relatively new and innovative sector across the spectrum, there will always be investor concerns about credibility and trust issues. This is still one of the large stumbling blocks for digital coins, as the wider public even misunderstands the popular Bitcoin.
However, as blockchain tech enters into more areas of daily life behind the scenes, new concepts such as the LindaX platform are likely to become more common. Building relationships of trust with other businesses and customers alike will be a major hurdle for cryptocurrencies.
LindaX is guaranteeing that any tokens that it hosts will be “credible and trustworthy.” and it plans to vet business proposals from any company looking to create its own unique token. A list of requirements will need to be adhered to before the new coin can go to a vote by “approved community validators.”
Any application that passes the tests will then see tokens that can work in many different areas, including but not limited to cryptocurrency, international assets and proof of membership.
LindaX’s start-up team said that its platform is already in full development, and while team members acknowledge that it does have some similarities with Ethereum, they are eager to highlight what makes LindaX unique.
The platform’s aim is to be far more efficient in terms of costs by reducing gas fees for participants. Its team went as far as to claim in a blog post that merchants who use LindaX could save as much as 50% on transaction costs compared with ERC20. Any entrepreneur will always be looking to keep overheads as low as possible for a new venture, and this will be no different for those thinking of creating their own digital coins.
One of the great advantages that cryptocurrencies have over traditional currencies is speed of transactions. This is a factor that many forex traders find appealing. The prospect of LindaX producing faster speeds than Ethereum centres around the new platform offering a starting point with the potential to process 179 transactions per second.
The start-up’s team claims that Ethereum only manages around 15 transactions per second cleared, with the likelihood of further delays due to increasing numbers of trades.
A Proof of Authority (PoA) algorithm is a big part of LindaX’s platform, as it relies on “trusted validators” on the chain with formal verification. These validators must hold a set number of the native LX tokens in order to show their commitment to the project and put their trust in the system on public display by becoming investors in it themselves.
LindaX executives claim that this approach is vital because Ethereum has security flaws. They added: “Data breaches led to millions of dollars in losses.” The executives suggested that many entrepreneurs are also reluctant to use blockchain tech but might want to do so if there is a more secure environment on offer.
As well as a core LindaX network for vetted tokens, the start-up is also aiming to provide a separate test network that “can be used by developers to try out their contracts or apps at zero cost.” This could be a vital USP, as getting a blockchain-driven service to market can be a huge financial undertaking that falls well beyond the means of many who would otherwise have a successful business idea.
The LindaX team itself is based in the US, Canada and Australia and has plans to debut mobile wallets for Apple’s App Store and Google Play so that both iOS and Android smartphones and tablets can work on the platform.
Transaction scalability is a long-term aim for sustainability for the network, which will have both businesses and developers as users. A presale for its initial coin offering began in August.