Why RaiBlocks’s design is limiting its listing on exchanges
The RaiBlocks network has yet to be listed on major exchange platforms, ironically, due to its design.
The creator of the platform shed some light on the issue, explaining that the problem lies in its underlying technology and not on the part of exchange platforms. RaiBlocks is completely different from the traditional blockchain system.
It was designed with the intention of solving common issues on the bitcoin blockchain. The goal of its framework is to address the scalability problem, transaction time, transaction cost and the massive energy consumption on the bitcoin network.
The unique design of the RaiBlocks blockchain
It functions more or less like the IOTA blockchain, using an algorithm referred to as a directed acyclic graph. But it aims to go a step further by implementing a novel infrastructure referred to as the block lattice. This lattice system differs from the regular blockchain since every account on it has its own private chain.
While this feature solves almost all of the problems experienced by bitcoin users, it also poses a few of its own challenges. First, these individual accounts can only process up to six transactions per second.
Moreover, exchange platforms ordinarily operate a single wallet for every cryptocurrency listed with a separate cold storage wallet for keeping excess funds. This basically implies that the blockchain’s design limits the speed to the aforementioned six transactions per second, hampering its ability to perform efficiently when there is an upsurge of activity on the network.
In order to eliminate this issue, RaiBlocks would need to scale its individual account performance capacity to match the number of transactions carried out on exchanges. This can be done in two main ways:
- By increasing the number of nodes
- By increasing the number of accounts used to store funds
However, implementing this change will give rise to yet another problem. The fact that every individual chain in the RaiBlocks blockchain is updated independently means that it is almost impossible to get consistent nodes on the network.
Inconsistent data simply cannot work on an exchange platform. This would mean that for an exchange to transmit the network’s data, there has to be a consensus system. However, waiting to get consistent data is not as easy as it sounds.
But the alternative is even worse. In case there happens to be inconsistency in a broadcast block, this block would make all subsequent broadcasts invalid till the platform manually fixes the problem.
In simple terms, exchanges wishing to list XRB have to use multiple wallets or invest in additional infrastructure to ensure data consistency. This extra work is why many exchanges shy away from listing the currency.