As Wallebi reported previously, The DeFi projects increased Ethereum fees to $15. As a result, a new blockchain for DeFi apps needs to offer less fees and fast transactions. Hence, it could decease the fee from 15 to $0.0008. So Lightstreams’ blockchain is offered to solve this problem.
DeFi applications on Lightstreams’ blockchain can be executed for a tiny amount of fee. It also offers 12 months of gas-free transactions to projects, which switch to the new blockchain.
What is Lightstreams?
Lighstreams incorporated in 2018 and registered in Estonia. The company vision is to level the playing field in financial markets by providing a peer-to-peer technology. The aim of the platform is to promote more cost effective and democratized services and products. Micheal Smolenski, the founder of Lightstreams is an award-wining blockchain specialist. He was working for Goldman Sachs as a software engineer and solution architect, before his involvement in blockchain. It means that he knows the financial services sector pretty well.
A new blockchain for DeFi Apps; the existing issues
Most of the DeFi protocols are running on Ethereum blockchain, which has a scalability issue. Although it scheduled to release Ethereum 2.0 in January 2020, the phase 0 of Ethereum is not yet launched.
The Lightstreams team believe that urgent solutions are required. The reason is that Ethereum 2.0 project is experiencing delays and it can affect DeFi project negatively.
It’s around one year that Lightstreams’ blockchain is running. This blockchain has compatibility with Ethereum’s Virtual Machine. It means that all the applications on Ethereum network can run on the Lightstreams’ blockchain.
Lightstreams is providing a faster network
The team behind Lightstreams believe that their blockchain is 25 times faster. In addition, transactions process instantly compared to Ethereum, which take around 2 minutes. Lightstreams is much easier to use as well. By using the gas relay service, users do not need to top up an account anymore in order to use the network. dApps on this network have the option to pay transaction fees on behalf of their customers until they are ready to begin paying.
Furthermore, the new blockchain provides “unique privacy layer”, which makes DeFi apps to be able to exchange data securely and potentially monetized.