Accumulate Protocol is a high-performance blockchain for decentralized finance (DeFi). While the traditional blockchain networks are function around hash addresses, the Accumulate Protocol blockchain is completely based around digital identities. This model allows the Blockchain to achieve high efficiency, scalability and ensure a higher level of security than traditional blockchains.
The Protocol is led by community developers DeFi Devs. The developers have raised $2.8m funds for the project in a private seed round to support the network’s development in DeFi functions, fast-scaling, and low transaction fees.
Story of Factom
The journey of Accumulate started with Factom, a data publishing layer on major blockchains that was founded in 2015. Factom provided an easy and unique solution for integrating Blockchain into legacy systems without managing cryptocurrency. Paul Snow was the developer and CEO of Factom, and he is also the Chief Blockchain Scientist Defi Devs.
Factom was successful in its operations. The project raised $8M in funding. Its primary focus was to reduce the gap between large enterprises and decentralized data solutions. However, it wanted to move from a solution-based protocol to a blockchain-as-a-service model. Thus last month, the Factom ANO unanimously voted to upgrade and rebrand the project as Accumulate Protocol.
The transition to Accumulate Protocol
Factom’s vision behind transitioning to Accumulate is to create an efficient, fast, and scalable blockchain that stands out among other major networks in the industry and is based on digital identities. The Accumulate Protocol is based on the best concepts of Factom while also introducing new and upgraded features.
The name Accumulate itself comes from the core architecture of the system. In this blockchain architecture, hashes are accumulated continuously over a specific period as transactions occur. The validations are distributed across digital identities, and hashes are accumulated as transaction summaries on the network every second. So, the core model of this blockchain network is based on the accumulation of hashes over the network’s digital identities. Thus, the name Accumulate Protocol.
What makes Accumulate so unique?
In addition to being significantly faster and more efficient, the Accumulate blockchain adds a novel approach to digital identity management. The Protocol adds validation to every layer of its Blockchain. So, the risk of hacking becomes almost slim to none. Also, Accumulate Protocol is based on ADI’s (Accumulate Digital Identifiers), which are human-readable IDs, unlike hashes. The management of ADIs on the Blockchain is similar to managing a website. Users can easily update and optimize the details of the ADI without having to create an entirely new identifier.
The features of Accumulate blockchain
Accumulate Protocol is one of the fastest blockchain networks in the industry. It offers a low transaction fee of an average of $0.025 per transaction and high efficiency of 70,000 transactions per second. To compare, the Ethereum blockchain has an average cost of $51.45 per transaction and scalability at 13 transactions per second. Although Solana provides a lower transaction fee of $0.00025, its efficiency only goes up to 50,000 TPS.
Accumulate is also highly secured, as transactions are anchored from one Blockchain to another. So, for hackers to compromise the system, both blockchains must be compromised simultaneously. Factom is anchored to Ethereum and Bitcoin, but the Accumulate blockchain can be anchored to any Layer 1 blockchain, such as Cosmos or Solana.
A blockchain where organization matters
Fundamentally, Accumulate is more than just a blockchain. It is an architecture and model of how conventional blockchains should be organized for better efficiency and usability. The current challenges of Blockchain, such as high transaction fees and moderate efficiency, create an issue for large-scale businesses to adopt blockchain technology.
Accumulate addresses this problem with its innovative solution. It is the bridge to the digital economy, where the wider industry can adopt blockchain technology with an efficient approach.