Conflux (CFX) claims to be the first private blockchain that complies with regulations in the People’s Republic of China.
To explain, many blockchain products, including private cryptocurrencies, are illegal in China. However, the People’s Bank of China (PBOC) is promoting a blockchain and a Central Bank Digital Currency (CBDC). To explain, a CBDC is a cryptocurrency issued by a central bank.
The PBOC is testing its CBDC, the e-CNY, in 15 of China’s 23 provinces. The e-CNY had been used in over 360 million transactions worth 100.04 billion yuan ($13.9) billion as of 31 August 2023. Thus, there is enormous interest in blockchain in China. However, private cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH) are illegal in China.
A Blockchain they can use in China
Conflux (CFX) claims to be a regulatory compliant, public, and permissionless blockchain that can operate in China. That means it is a private blockchain that is legal in China.
For example, Little Red Book, or XiaohongShu, a social media platform similar to Instagram, is integrating Conflux as its permissionless blockchain, a press release reveals. To elaborate, Conflux will help XiaohongShu users mint nonfungible tokens (NFTs).
Conflux is a blockchain built to process more transactions per second (TPS) than Ethereum (ETH) and Bitcoin (BTC) through its Tree-Graph ledger structure. To explain, Tree-Graph organizes ledger blocks in a tree structure.
Can Conflux Process 3,000 to 6,000 Transactions per Second?
The consensus algorithm of Conflux, which is called Greedy-Heaviest-Adaptive-SubTree (GHAST) to reach a consensus fast and process transactions fast. GHAST lets the Conflux nodes detect some attacks.
The Tree-Graph and GHAST let Conflux nodes generate new blocks fast without forks. This means they can add enormous capacity to the Conflux blockchain allow it to operate a high speed. Hence, Conflux is a scalable blockchain. Scaling means expanding a blockchain fast.
Conflux claims the Tree-Graph Proof-of-Work (PoW) consensus algorithm can process 3,000 to 6,000 transactions per second (TPS). In contrast, Ethereum (ETH) was processing 14.444 TPS on 29 January 2023, ETHTPS.info estimates. Hence, an Ethereum platform could only process 14 transactions while a Conflux app could theoretically process up to 6,000 transactions at once.
The Conflux (CFX) blockchain
Conflux’s (CFX) scalability eliminates the consensus bottleneck, which slows transactions.
Conflux’s features include built-in staking interest, which finances DeFi apps. They claim Conflux staked tokens receive a 4% annualized rate generated by the issuance of tokens.
A Fee Sponsorship Mechanism allows users with a zero wallet balance to use the Conflux blockchain. Sponsors can pay other users’ transactions fees through the Conflux wallet.
Conflux users pay transaction fees with the CFX token. Users can earn rewards in CFX, rent storage with CFX and participate in network governance. They also use CFX to reward miners.
ShuttleFlow and Hydra Hardfork
Conflux’s Shuttleflow connects different blockchains. For example, Binance (BNB) and Ethereum (ETH). They claim Shuttleflow allows users to access the Tree-Graph.
The Hydra Hardfork will enable several major upgrades to Conflux. For example, Hydra will introduce a proof-of-stake (PoS) system to Conflux. Hyrda will let CFX holders stake CFX to POS to protect high-value transactions and earn CFX.
Conflux eSpace, or CIP-90, is a fully Ethereum Virtual Machine (EVM) compatible space. To explain, the EVM is the digital computer that runs Etheruem. You need access to the EVM to interact with Ethereum tokens and DApps.
Hydra Hardfork will introduce three new InternalContracts. The Hydra Hardfork is now live on Conflux.
The Conflux Ecosystem
Many apps are running on the Conflux Ecosystem. Those apps include the Flux Protocol lending mechanism, Sushiswap, Binance, and Pancakeswap.
Moonswap a high speed decentralized exchange. The Phantom crypto wallet. Ramp a multi-chain DeFi lending platform. The Open DeFi DAO, the QCAD stablecoin solution. DFI.MOney, a DeFi-farming aggregator. Venus universal money markets. SciFi Finance which provides investment funds for Web3 entrepreneurs. The ForTube DeFi Lending Platform. TrustSwap. Magic Exchanges and Wallets, Cobo Exchanges and Wallets.
The Hashkey Hub digital asset management platform. Truffle Smart Contracts. The REACH Blockchain development program. Obsidian Labs. Oasis Labs. The Razaor decentralized oracle network. Fetch.ai. And more.
Organizations the Conflux Network is working with include the University of Toronto, Tsinghua University, the Shanghai Tree-Graph Blockchain Institute, Sequoia, MetaStable, Huobi Capital, and F2pool.
What Value does Conflux (CFX) offer?
Mr. Market suspects Conflux (CFX). For example, Conflux was CoinMarketCap’s 11th most trending cryptocurrency on 29 January 2023.
Conflux was CoinMarketCap’s 200th ranked with a 5.474₵ Coin Price on 31 January 2023. CoinMarketCap gave Conflux a $114.445 million Market Cap, a $289.589 million Full Diluted Market Cap, a Centralized Exchange (CEX) Volume of $20.224 million, and a 24-Hour Volume of $20.205 million on 31January 2023. They base those numbers on a Circulating Supply of 2.091 billion CFX and a Total Supply of 5.278 billion CFX.
In contrast, CoinGecko gave Conflux a 5.45₵ Coin Price and a 251st ranking on 31 January 2023. CoinGecko gave Conflux a $114.416 million Market Cap, and a $23.102 million 24-Hour Trading Volume on 31 January 2023. They base those numbers on a 2.098 billion CFX and a Total Supply of 5.285 billion CFX.
I think Conflux is an interesting blockchain with enormous potential. The value at Conflux is potential access to the Chinese market. If Conflux starts working with e-CNY it could become one of the biggest and most valuable blockchains around.
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