The new blockchain network claims to act as a much cheaper alternative to Ethereum, thus lowering the cost of decentralized finance applications.
As Cointelegraph reported, the transaction fees paid by Ethereum users were at an all-time high of late, and due to network congestion, the average commission reached $ 15 in early September.
But Lightstreams says the blockchain app itself can be executed for a fraction of a cent, and it even offers 12 months gasless transactions for projects that are switched over.
A large number of DeFi protocols rely on the Ethereum blockchain despite scalability issues. An update that will increase the flow of the blockchain is in development but is constantly delayed. Ethereum 2.0 Phase 0 has yet to be launched, although it is slated to launch in January 2020.
The Lightstreams team says solutions are urgently needed because Ethereum 2.0 could be a year or two away – driven by concern that the current level of congestion could stifle the growth of the DeFi industry.
The Lightstreams blockchain has been in operation for a year now, and compatibility with the Ethereum virtual machine means any Ethereum app can run on the Lightstreams network without problems. According to the team, a number of audits have been conducted to verify the reliability of the infrastructure.
The company says the blockchain is 25 times faster, with transactions processed almost instantly compared to waiting two minutes in Ethereum. Ease of use is also a priority. With Lightstreams refueling service, users do not need to top-up to start using Lightstreams. Instead, the decentralized apps have the ability to pay transaction fees on behalf of customers so they are ready to start paying to use them themselves.
Finally, the blockchain provides a “unique level of privacy” for DeFi apps to securely share data and potentially make money.
More information from LYSSTREAM here
Leveling the playing field
Lightstreams registered in Estonia was registered in 2018. It can be said that the timing of the company has not been better, as no one could have anticipated the extraordinary levels of growth that the DeFi sector would have had, and the impact that the Ethereum network would have.
The company’s vision is to level the playing field in the financial markets using peer-to-peer technology that promotes more democratic, fair and cost-effective products and services.
Lightstream founder Michael Smolenski is an award-winning blockchain specialist and has scored highly in competitions run by ConsenSys, Santander and Citibank. Prior to joining blockchain, he worked for Goldman Sachs as a software engineer and solution engineer, which means he has a solid knowledge of the financial services sector.
The performance differences between Lightstreams and Ethereum blockchains can be small. While Ethereum can handle 24 transactions per second, Lightstreams can handle 600. Settlement times on the second largest blockchain in the world take around a minute and a half, but they can be scanned on this new network in less than three seconds. Then there are costs: Ethereum has variable costs, but recent accounts have shown that while a complex transaction on Ethereum can cost $ 10.07, a similar transaction on Lightstream will only cost $ 0.0008.
Lightstreams says the technology with which it operates will mean that all exchangeable tokens can be transferred between the blockchain and Ethereum. All of these things can accelerate the user experience in line with customer expectations in the 21st century.
Lightstream blockchain is built with Tendermint Consensus for its proprietary verification engine for fast completion and high transaction throughput.