Silvermint blockchain wants to rule them all
Pyrofex Corporation is building Silvermint with the intention of competing with the world’s largest payment and blockchain companies, from Visa and Mastercard, to Venmo and Cash App, to Bitcoin and Ethereum.
In cryptocurrency, there are several generations of cryptocurrencies. Emerging cryptocurrencies and blockchains seek to solve the problems faced by the former, such as Bitcoin and Ethereum. One of them is performance.
“Bitcoin and Ethereum…they don’t have the throughput to support end users the way they want. Their transactions are too expensive and far too slow,” said Pyrofex co-founder and CEO Nash Foster. “If you’re sending payments of $1 million or even $10,000 or $15,000, it might make sense to send them via Ethereum or Bitcoin. But if you’re trying to make a $65 payment for your dinner at a restaurant, it doesn’t make sense at the moment.
Eventually, says Foster, there will be one blockchain mainnet to rule them all.
“I think it’s the winner who takes it all,” he says. “I tend to think that eventually there will be a blockchain network that will make up the vast majority of the market and then there will be a bunch of secondary players that will fill niches that may be specialized environments or have needs specialized, but they will be suspended outside the major player’s ecosystem.
Foster thinks Silvermint can be at the top because of its safety and speed potential. On its website, Silvermint claims transaction acceptance in around 10 milliseconds, blockchain transaction posting in around 500 milliseconds, completion times of around two seconds, and the potential for 140,000 transactions per second.
According to The Street, Ethereum could only handle around 30 transactions per second in mid-2021, although Vitalik Buterin, one of the founders of Ethereum, said that Ethereum 2.0 could eventually scale up to 100,000 transactions per second.
Other next-gen blockchains like Solana, which are also looking to create faster and more scalable payment options, can provide similar transaction speeds to Silvermint, so Silvermint’s progress won’t happen without fierce competition. .
There are hundreds of blockchains, which are growing all the time. However, Foster and Pyrofex aren’t the only ones catching other blockchains.
“Obviously the crypto market is very competitive, but we think if we’re building something that’s just trying to beat another crypto, another blockchain, then we’re aiming too low,” he says. “We view the competition as the traditional financial industry.”
The public shift from traditional methods of finance to the new decentralized finance, if it is to happen, will not be immediate. The general public is not going to give up on their proven payment methods if it does not benefit them, although it is not impossible.
Right now, for many people, apps like Cash App or Venmo are the gold standard for peer-to-peer payments. If you’re going out to dinner with friends, need to split a bill, or even bill a roommate for your electric bill, many people will simply send a Venmo request. The friend completes the request and you can transfer the money from your Venmo account to your bank account within days, free of charge.
Venmo represents the latest evolution in peer-to-peer payments. In the fourth quarter of 2021, Venmo had a payment volume of $60.6 billion, according to Statista, up from $6.8 billion four years prior. Before Venmo emerged, people still had to find ways to pay themselves, be it cash, PayPal, or check, all of which are still used today. People who adopted Venmo did so because it’s more convenient than writing a check, so Silvermint will have to be more convenient than Venmo if people are going to leave the app and others like it.
“Why would you disable Venmo for a blockchain-based thing unless it’s better? What does it mean for it to be better? We’re currently working with developers who are looking for ways to innovate that way, and I think we have enough leads to come up with some pretty cool ideas,” Foster says.
Speed and convenience are important in the financial industry, from traditional credit card payments, but security might be the most important aspect of any financial system and the crypto market has its fair share of hacks and schemes. . A hack of the Ronin blockchain, which powers Axie Infinity, one of the world’s most popular games, resulted in the loss of more than $600 million in March.
According to protocol.com, hackers from Ronin, a sidechain of the Ethereum network, “have taken control of four Ronin validators running on the Sky game studio Mavis, and one third-party validator run by Axie DAO.” Five of the nine validator nodes were enough to deposit or withdraw funds from the network, protocol.com said.
Sky Mavis, the company that developed Axie Infinity, said it would reimburse people who lost funds, according to Bloomberg. Bloomberg also reported that 173,600 Ether tokens and $25.5 million USDC were taken in two transactions, including 56,000 Ether belonging to the Axie Infinity Treasury.
One problem is that, unlike a traditional bank heist, the chances of recovering those funds are low, Rishav Rai, lead investigator at blockchain analytics firm Merkle Science told Bloomberg.
Foster says Silvermint can build a network with thousands of nodes, and Silvermint’s website says more than 650 would have to be compromised to drop a shard on the blockchain.
In March, Silvermint announced that it had completed a $5 million private round at a $50 million valuation. Over the next year, Silvermint’s roadmap includes the launch of a testnet in Q2 2022, an initial coin offering (ICO) in Q3, and the launch of the mainnet (fully blockchain developed) in the fourth quarter.