Imagine trading crypto on a massive network of 10 billion people instantaneously, with no gas fees.
Harmony drew the eyes of the world and over USD 18 million in initial investment to make this vision a reality. And as of this February announced a collaboration with Southeast Asia’s largest P2P lending network, Constant.
Internally called “decentralization at scale”, Harmony’s system was created with a vision to right the wrongs of older cryptocurrencies like Ethereum and Bitcoin. Both protocols have had difficulty scaling features like gas fees and transaction volume to their vast and growing user base while maintaining security and low latency.
The expansion of blockchain tech has brought a wave of tools and applications that rely on its decentralized nodes and smart contracts. One of these platforms is Constant, a peer-to-peer lending application allowing borrowers and lenders to utilize crypto for fully-collateralized loans online.
“It has become apparent that the blockchain has run into scalability issues. Harmony’s recent innovations are super important to the DeFi community as they continue to provide greater use cases for their platforms,” said Constant CEO Zon Chu.
Harmony’s solution is an innovative shard-based node approval system.
In the Harmony system, transactions are verified by shards or groups of users compiled by random assignment. This method makes it extremely difficult for malicious coders to attack the system as they have a hard time finding which shard is processing their transactions. It also helps verify a larger amount of transactions in less time as transactions only need to be verified by a fraction of the network.
Harmony ONE is a mineable proof of stake (PoS) currency with 20% of its 12.6 billion total tokens currently available for trade. ONE token holders now can borrow against their holdings for cash without selling them through Constant’s secure P2P lending service.
“Through this collaboration, we hope to help expand the ONE community and blockchain usability by letting them unlock the buying power of their assets in the real world,” said Chu. “Crypto-backed loans are a great tool for holders who need money now but want to keep staking.”
Harmony is a California-based 2018 startup with a goal to deliver scalability and decentralization to the blockchain. They believe the promise of blockchain is to enable decentralized coordination at scale, but no platform has yet been able to achieve both. With their new shard-based solution they hope to finally find the solution to a fast, secure, and decentralized blockchain.
Constant was founded in early 2019 by a diverse team of engineers, designers, scientists and engineers. The California-based startup is dedicated to building powerful yet simple financial tools for an increasingly connected world starting with its flagship fully-secured P2P lending platform.