Why FLETA Utilizes an Independent Multi-Chain Structure
Existing blockchain networks process all decentralized applications (DApps) and smart contracts that are live on the network through one single primary blockchain. This means that all of the transactions resulting from the numerous DApps and smart contracts get processed by one blockchain.
This has led to periods of massive congestion for such networks as they become encumbered by having to process too many transactions that are beyond what they are capable of. This has been witnessed in Ethereum when CryptoKitties brought the network to a slowing halt.
Another primary issue from heavy congestion is exorbitant transaction fees that are charged as a consequence of miners prioritizing higher reward fees. Bitcoin suffered terribly from this in late 2017 when the crypto market boomed. This makes it costly for users to make transactions, and also results in significant delays almost making the network entirely unusable.
FLETA’s Independent Multi-Chain Structure
In FLETA’s blockchain platform, an independent multi-chain structure is implemented in order to solve these two primary issues:
- Overload of transactions resulting in congestion; and
- Exorbitant transaction fees that are a consequence of greater congestion.
The independent multiple-chain structure allows for far greater scalability in FLETA with the possibility for infinite DApps to operate simultaneously in a parallel and independent manner.
The FLETA mainchain handles the process of creating any new DApp chains with their respective tokens, and further serves as a communication route between chains for each chain to interact with one another.
If the mainchain shuts off or ceases to operate, all other chains on the platform will still continue to function as they will each have their own formulator group and observer nodes to run their independent blockchain networks.
Independent Chain Governance and Token Economy
Each independent chain can have its own native token that is used for smart contracts and as a reward to miners in accordance to the chain’s governance rules and mining reward algorithm that is selected by the DApp manager. This means each independent chain led by the DApp manager has the ability to create its own token economy by choosing how the chain is governed through its mining algorithm.
Benefits of Independent Multi-chain Structure
Through this multi-chain structure, it is possible for FLETA to accommodate a limitless number of DApps (scalability) as each independent chain will handle their own transactions, meaning the mainchain does not get overloaded. FLETA’s alpha testnet results showcased the ability for an independent chain to process 10,000 transactions per second.
The other major benefit is that this solution also resolves high execution fees that are associated with Bitcoin and Ethereum as a result of congestion, and also means reasonable staking fees are required such as in EOS for DApp managers as they have the choice of selecting no execution fees at all for their independent chains.
As each chain operates independently from one another, interchain communication is up to the discretion of each DApp for transferring tokens between independent chains and this is done so through the mainchain.
Each independent chain will regularly report their block header information to the mainchain, thus leading to the inscription of the chain’s information. As each independent chain works under the same address system, users can then easily send tokens from their address to another address on a different chain, and it would seem as if all independent chains were connected through one wallet. This design allows for any tokens to be transferred from one chain to another chain seamlessly.
The process works by the independent chain first transferring the token to a different address, which will delete the token, and this is then reported to the mainchain. When the receiving chain of the sent tokens takes the latest block header information from the mainchain, it can then record that this transfer has taken place and thus create the new tokens for the receiving wallet address.
Only tokens that have been authenticated through the mainchain will be able to be transferred through the independent chains to different DApps that are received by a user on another independent chain.
This process allows all chains within FLETA to possess and function using the many different types of tokens live on the network, that can then be used throughout all smart contracts and DApps hosted by the various independent chains.
FLETA’s independent multiple chain structure enables limitless DApps to function simultaneously without scaling bottlenecks, or high network congestion fees that result from transaction overload allowing users and developers to access the network easily, with faster speeds, and much more reasonable fees. The DApp developers are minimally constrained by the rules of the mainchain and the mining is more democratized. For more information, read about FLETA’s consensus algorithm Proof of Formulation.
At the same time, even though chains are independent, it is still possible for all chains within the network to interact with one another so that users may transfer tokens between chains, as well as use different tokens for any DApp or smart contract that is live in the network.