DEXON raises $20m

The DEXON Foundation announced in a press release CoinReport received from 5W, zero-fee exchange COBINHOOD’s PR agency, a $20 million private placement led by venture capital company IDG Capital.

Set up by the executive team at COBINHOOD, the non-profit foundation guides the development of decentralized blockchain platform DEXON, which was launched by the U.S. football player Richard Sherman-endorsed digital currency exchange back in June.

IDG has had over 150 successful exits and manages over $20 billion in assets. Some of its portfolio firms include 5Miles, App Annie and WeCash.

In addition to the venture capital firm, the DEXON private placement was reportedly joined by angel investors who reportedly recognize the potential of a lightning-fast decentralized protocol.

DEXON Foundation and COBINHOOD founder Popo Chen said in the news release we received, “Clearly, investors believe in DEXON’s ‘blocklattice’ protocol, which is underpinned by consensus algorithms that allow for transaction speeds competitive with major credit card companies.”

He added, “In fact, we hope to partner with these institutions, as we’re now able to offer the same processing power without a need for centralization. Other than DEXON, current blockchain protocols can only process a few secure transactions per second, leaving them unable to keep pace with traditional solutions.”

The foundation also announced the results from its first speed test, which clocked an amazing 50 blocks per second with 25 nodes – a projected one million transactions per second provided a block size of 2MB and a typical transaction size of 100 bytes.

Utilizing a blocklattice structure with a total-ordering consensus algorithm, DEXON, says the foundation, can make decentralized transactions scalable for the demanding requirements of real-world usage. While conventional blockchain systems build encrypted blocks linearly, blocklattice boasts several blockchains that collaborate in parallel, making it easier to scale with low energy and automatically.

COBINHOOD co-founder Wei-Ning Huang commented, “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.”

Image via PR firm 5W