Cypherium meets regulatory requirements through technological innovation and has become a leader in the CBDC track public chain. At the same time, it is also compatible with EVM and can integrate decentralized applications.
Written by: Eric
This year we have witnessed the rise of many new public chains including Solana, NEAR, Fantom, etc. Many new public chains have made a certain degree of innovation, mainly aiming at the inefficiency of Ethereum, and have been blessed by the market and capital. Many public chains have also received considerable attention. This tuyere has also attracted the attention of many traditional companies and even governments. At present, many large companies have begun to test blockchain technology, and governments in many countries hope to rely on this new technology to develop central bank digital currencies.
When it comes to companies and countries, some inherent weaknesses of the blockchain are very obvious, coupled with regulatory intervention, it has brought certain resistance to the public chain as a solution in the traditional field. But even so, there are still public chains aiming at the huge market potential in this field, and Cypherium provides a set of effective solutions.
Efficient two-layer network mechanism
In fact, Cypherium is not a new public chain just launched this year, but a “husband chain” launched as early as 2017. In view of the fact that the audience of the blockchain at the time was not wide, and it did not receive much attention from various countries, it did not cause too many waves.
After four years of ups and downs, Cypherium finally proved the superiority of its innovative consensus mechanism.
Cypherium created the PoW+HotStuff hybrid consensus mechanism CypherBFT. The PoW mechanism that has been verified countless times in the market serves as the “election layer”. This layer of the network is only used to determine “who will be responsible for verifying transactions and packaging blocks.” Specifically, the PoW layer still retains the model of using computing power to calculate random numbers for elections similar to Bitcoin and Ethereum, but the person who wins the election is only qualified to join the “Verification Committee”, and the PoW chain The block is also used to store the list of committees. In addition, Cypherium’s PoW algorithm is resistant to ASICs, and the election of committee qualifications is largely random, ensuring the decentralization of the platform.
After the election is completed on the PoW chain, it is then the turn of the transaction verification and block generation on the HotStuff consensus chain. Verifiers on the HotStuff consensus chain have obtained verification rights in the competition on the PoW chain, can verify transactions and package blocks to obtain incentives, which improves the efficiency of transaction verification. HotStuff is the world’s first algorithm that reduces the complexity of Byzantine fault tolerance to O(n). It solves the problem of PBFT communication complexity while retaining efficiency. It applies the Byzantine fault tolerance algorithm exclusive to the alliance chain to public chain scenarios. . CypherBFT’s reconfiguration and heartbeat mechanism can kick the failed node out of the committee and replace it with other qualified normal nodes.
It is worth mentioning that the algorithm used by Cypherium on the verification chain is the HotStuff algorithm used by Facebook’s Libra before. Although PoW is unremarkable, the HotStuff consensus chain does show unique insights on the algorithm.
Cypherium’s consensus mechanism has higher security than public chains that hope to improve efficiency through PoS. Compared with the extension of Byzantine fault tolerance, I hope to see it as an extension of PoW. The security of PoW is obvious to all, but its inefficiency is also an unavoidable reality. PoW is used to ensure the fairness of elections, and the upgraded version of Byzantine fault tolerance is used to avoid evil. In this way, PoW is purely used as the network architecture of the election mechanism. The chain field is still a relatively rare solution.
Compliance and realization of commercial modularity
Although Cypherium is a public chain, its original idea is to be an enterprise-level blockchain solution. Therefore, in terms of the modular design of the blockchain, many module designs of Cypherium fully consider the needs of actual commercial applications, and these actions Today, four years later, it has also helped them gain a great advantage in the compliance process.
First of all, Cypherium’s choice of consensus mechanism helped them avoid compliance risks. Previously, U.S. regulators treated all cryptocurrencies (including NFTs) that generate income through pledges as securities. This means that the native tokens on the PoS chain must be registered to obtain the qualifications for compliance operations, which severely restricts their liquidity. However, Cypherium’s consensus mechanism does not need to be implemented through pledged tokens, and conforms to the definition of utility tokens, so it is more suitable for the development of DApp ecology and avoids potential legal risks.
In addition, Cypherium’s modular design not only meets the needs of commercial use, especially CBDC (central bank digital currency), but its support for regulatory requirements has further accelerated its compliance progress. Among them, Cypherium has launched the digital currency interoperability solution DCIF, which mainly includes two core modules, Cypherium Connect and Cypherium Validator.
Similar to the pre-payment system, Cypherium Connect has established an information channel for the exchange of KYC/AML, risk control information, handling fees, exchange rates and other payment-related information.
Cypherium Validator is a verification machine. Before a transaction enters the Fed and blockchain ledger system, it must be confirmed by Validation. Its verification rules can be customized according to specific system requirements.
Through the cross-chain recognized framework, Cyperium can provide various mainstream electronic currency mediation services including Libra and central bank digital currency in real time, connecting banks, payment service providers, digital currency trading platforms (optional) and enterprises to provide global payments Provide a smooth experience.
For Cypherium’s adaptable solution for central bank digital currency, please refer to “Cypherium Docking Central Bank Digital Currency Plan” , which will not be repeated here. For traditional public chains including Ethereum, even if the efficiency is improved, it is difficult to achieve interoperability with banks including clearing systems. On the one hand, it is due to the many mechanisms of public chains. The design is for the purpose of “anti-censorship”. On the other hand, we should return to Cypherium’s consensus mechanism. The mechanism design of its verification committee can provide scalability for a variety of systems, while most public chain verification mechanisms do not matter whether they are decentralized or not. The scalability is very limited. Regardless of whether it is facing the traffic intensity of more than 100 million in the traditional field, or the compatibility of its complex multi-module in the cross-chain aspect, Cypherium, which is similar to the consensus mechanism of the alliance chain, has certain advantages.
Cypherium application landing
Although born a few years ago, Cypherium did not publicly issue its native token until October last year. But in fact, Cypherium already has a landing application ecosystem shortly after its launch. It has become a global partner of IBM very early, and released an enterprise-level smart contract platform on the AWS Marketplace in May 2019. On May 30 of the same year, Cypherium joined the US Faster Payments Council, a non-profit organization initiated by the Federal Reserve, and became the only blockchain company besides Ripple. In addition, Cypherium, along with Chainlink, Tezos, Novi, and Protocol Labs, are members of IC3, a blockchain scientific research organization.
In addition, Cypherium has maintained close communication and cooperation with central banks. In August last year, Cypherium and the Bank of England, the Swiss National Bank and the Hungarian Central Bank jointly published the “Central Bank Digital Currency and Blockchain “ discussion report; in December, Cypherium and Facebook and other institutions released the “Future of Payments” report; in April this year, CCTV Reported that Cypherium participated in the closed-door roundtable meeting of the People’s Bank of China; this month, Cypherium and the Boston Consulting Group jointly released the “Central Bank Digital Currency Research White Paper” .
It can be seen that Cypherium has been recognized by many traditional enterprises and even the government. In addition, Cypherium also has many practical applications.
According to a report by People’s Daily Online in March last year, the multinational human resources company Randstad cooperated with Google Cloud through the blockchain smart contract platform Cypherium. Matching talents with corporate needs greatly shortens the time required to verify qualifications. Randstad uses the Cypherium blockchain to record the job applicant’s past employment details, company name, position, date of entry and other information through the blockchain’s non-tamperable features, and add it to the personal file. On the one hand, it ensures the authenticity of the information. On the other hand, it also protects the privacy of job seekers.
Last week, China Economic Net reported that Cypherium has reached a strategic partnership with China Blockchain Service Network (BSN). BSN is a cross-cloud service, cross-portal, and cross-bottom framework jointly initiated and established by the National Information Center, China Mobile Communications Group Co., Ltd., and China UnionPay Co., Ltd., and is used to deploy and run various blockchain applications globally. Infrastructure network. The addition of Cypherium will bring it to include programming, software development, resource and environment configuration, application deployment, key certificates, etc., as well as more applications for building blockchain and distributed ledger technology. As a highly scalable blockchain platform, it is believed that Cypherium will be able to bring complete solutions to more commercial scenarios.
Compatible with EVM, build a bridge between Web2 and Web3
In addition to the many developments described above, Cypherium itself is compatible with the Java language, and it has also completed its compatibility with EVM not long ago. Compared with other public chains, Cypherium naturally has support for commercial scenarios including CBDC, and the compatibility with EVM this time is a major breakthrough. The native DeFi of the blockchain has set off a wave of climax this year, but the low compatibility of the blockchain that supports DeFi with legal digital currencies makes it difficult for DeFi to be practically applied in traditional fields. After Cypherium is compatible with EVM, it can bring the pattern design of many applications on Ethereum, including DeFi, into the traditional field. Its compatibility between the two aspects may be an important bridge to open up the world of Web2 and Web3 in the future.
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