An Introduction To Concordium

Concordium

Dec 21, 2021

3 min read

An Introduction To Concordium

Unlocking the potential of blockchain technology for the future of business and the economy. That’s what Concordium, the blockchain for business, is all about. Ambitious? Maybe, but with the recently launched Alpha Centauri Mainnet, the network is coming closer than ever to making their vision become a reality. Thus, let us explore this new blockchain network, and it’s potential.

So, what is Concordium? Concordium is a privacy-focused, public, and permissionless blockchain architecture that, along with a range of other features, allows individuals, businesses, and public institutions to use the blockchain technology in a trusted, scalable way and compliant with regulations. As Chairman Lars Seier Christensen mentioned in the blockchain’s Genesis release video:

The idea behind Concordium is to take all the best of the distributed permissionless blockchain and make it usable in the real world within compliance regulations”.

The blockchain itself calls it regulatory compliance by design meaning, Concordium is designed so that it can integrate with the current financial and business systems that require knowledge of a user’s identity. However, by developing unique protocol-level identity primitives, Concordium helps application developers, individuals, and companies build products that comply with local regulations while retaining the benefits of a privacy-focused, public and permissionless blockchain. However, compliance intentional is not the only thing that makes this network stand out. Let’s have a look at some other aspects of Concordium.

Concordium’s innovative identity layer allows for a compliance-centric balance between anonymity and accountability. That means a user’s identity is anonymous on-chain. Still, the anonymity can be revoked, and their real-world identity revealed responding to a valid request from a government authority via established legal channels.

Fast transactions at scale are also part of the Concordium Platform’s design; thus, the TPS (transactions per second) and the time it takes to finalize these transactions meet the needs of business applications on a global scale. Additionally, Concordium has developed the first provably secure and fast finality layer to run on top of a Nakamoto-Style (NSC) blockchain. This means that a Concordium Platform transaction is confirmed and immutable in a short amount of time. This is a significant benefit over other NSC blockchains, which presume block finality only after many consecutive blocks have been generated. For more info on this benefit, have a look at the explainer video session below.

Concordium is built for high-volume corporate applications with demanding uptime requirements. The platform's two-layer consensus design assures that it remains available and secure even under the most extreme circumstances. When malicious parties hold less than 50% of all stake, blocks are correctly added to the longest chain. Concordium gains considerable speedups and efficiency under typical conditions when less than 33% of all stake is controlled by malicious parties. In the future, it will also be possible to build private networks on top of Concordium for internal communication.

Now, you might think: “that’s all great, but what about interoperability?”. Well, Concordium has kept this in mind by developing a novel design for interoperability that allows the platform to send short authenticated messages to other chains and entities without the recipient being required to operate on the Concordium Platform.

Finally, Concordium has a standards-based smart contract core with multi-language support. WebAssembly (Wasm), a portable, well-defined assembly-like language, is Concordium's primary on-chain language. Wasm is an internet standard that has gained a lot of interest recently and is now supported by all major browsers. Many programming languages can currently be compiled to Wasm, which means they could support a wide range of smart contract languages in the future. Concordium's initial high-level smart contract language is Rust, which is both safe and allows for low-level resource control.

Governance and Native Token

Concordium’s native token is called $CCD, and it is the fuel of the Concordium Network. The Concordium Platform's payment token, $CCD, serves as a means of payment and incentivization, ensuring that network participants are paid for their activities.

$CCD can be used for a variety of things, including payment for smart contract execution, payment for user transactions, and so on.

Concordium has a Delegated Proof-of-Stake consensus. ​​Delegated Proof of Stake (DPoS) allows stakers to earn rewards passively from their staked cryptocurrency while maintaining some control over the blockchain. This is accomplished by entrusting their assets to a node runner, who takes part in the generation of new blocks. This delegation is chosen through a nomination process. The delegated coin is not transferred to the node runner; nevertheless, the node runner gains the ability to incorporate the delegated stake in its own stake. The node runner's incentives increase as a result, and a portion of the higher earnings is returned to the delegating user.


DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.

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