The barriers to blockchain mass adoption are clear: issues with transparency, inefficiencies like high transaction costs, operational hurdles, limited scalability, and unfair market structures. But the numbers tell the full story.
According to Chainalysis’ Crypto Money Laundering Report, $22.2 billion worth of cryptocurrency was laundered last year (as the industry looks ahead to the 2024 report expected in early 2025). While this marks a notable decrease from 2022’s staggering $31.5 billion, it remains a significant figure. The most commonly exploited services for money laundering were bridge protocols and gambling platforms, underscoring persistent vulnerabilities in the system.
In terms of regulatory action, the crypto industry faced over $5.8 billion in Anti-Money Laundering (AML) fines in 2023, far surpassing fines in other sectors such as banking ($835 million) and trading/brokerage ($194 million). Binance stood out with the highest single fine – a record-breaking $4.3 billion.
Not only are there the legal challenges, but the rising transaction fees are a big turn-off too. Crypto Slate reports that, following the Dencun upgrade, there has been a slowdown in network activity and reduced demand for transaction processing on the Ethereum blockchain, with transaction fees reaching as high as $5.50. Given these high costs, it’s easy to see why people may be hesitant to use blockchain for everyday transactions.
On the other hand, Avalanche and Moonbeam have made waves in 2024, with Avalanche recording 51,000 daily new unique addresses in a single day and Moonbeam surpassing 17,000 on another. This surge reflects a broader trend: L1 blockchains like Solana, Aptos, Kava, Avalanche, BNB Smart Chain, and Sui are seeing increased interest. Their faster transaction speeds and lower fees are drawing users away from slower, costlier alternatives. On top of that, seven out of the ten fastest blockchains by transactions per second (TPS) are L1s, and, for everyday users, these advantages make L1s an increasingly attractive option.
But, most L2s and L1s have this one major drawback in common: reward systems often favor validators with costly hardware and high-end setups, sidelining average users without extensive server setups and overlooking entry-point nodes.
As Finbold previously reported on its launch, Graphite is a newly introduced L1 that takes things a step further by enabling earnings through entry-point nodes, along with several other features that enhance its value. While it’s built as an L1, it goes beyond traditional solutions, addressing all of the key challenges that hinder blockchain mass adoption with a more scalable, accessible, and fair approach.
Graphite’s Blueprint for Global Reach
Bringing More People Onboard With Entry-Point Income
Continuing with the discussion on nodes, Graphite’s reward system ensures that entry-point nodes are not left behind by introducing a solution where each node earns a portion of transaction fees when users initiate transactions through them. Transaction fees from entry-point nodes are split evenly, with 50% going to the operators and 50% to the block sealer.
This system provides a way for participants to earn rewards without needing substantial resources. Graphite makes it easier for more people to participate in the network, driving adoption and increasing accessibility for users with fewer resources.
Trust as the Foundation
Graphite stands out from other blockchains with its reputation-centric approach, which focuses on creating trust-based interactions. In today’s world, reputation can go further than money, and Graphite has integrated this concept into its blockchain.
First, users must activate their wallets with a small fee before they can send transactions, reducing the chances of clutter from inactive or disposable accounts. Then Graphite assigns each user a Trust Score based on factors like Know-Your-Customer (KYC), account longevity, transaction history, and volume, helping evaluate credibility and enhancing trust across the ecosystem.
Additionally, Graphite introduces a unique validator competition system where those with better reputations and higher-quality services can process more transactions and earn greater rewards. Since reputation and trust matter to new or cautious users, by applying this practice, Graphite makes blockchain feel safer and more reliable, helping it gain wider adoption.
KYC With Control
Graphite makes KYC flexible and privacy-friendly. Thanks to Zero Knowledge Proof (ZKP) tech, any decentralized applications can verify identity details like age or location without revealing personal information. KYC data is stored securely off-chain, so it stays private, and only the KYC level shows up on the blockchain. Graphite keeps KYC requirements light, offering a less intrusive experience compared to traditional finance institutions.
Plus, users can set up filters to block transactions from accounts with lower-than-expected KYC levels. It’s all about building trust while keeping privacy intact.
Speed and Reliability That Scale
Graphite offers an efficient transaction and fee model that stands out for its consistency and scalability. Predictable transaction fees help users stay in control of costs, removing the frustration of unexpected fee increases.
On top of that, the network supports high throughput, capable of processing up to 1,400 TPS, with confirmation times under 10 seconds. This ensures that the platform remains fast and reliable, even as the volume of transactions grows.
Graphite’s Ecosystem
Graphite’s ecosystem is made up of several key components and consists of:
- Graphite Wallet: A Chrome extension that helps users interact with Graphite’s features and apps on Ethereum-compatible chains.
- Graphite Bridge: A simple tool to transfer assets between different networks, making it easier to use Graphite across multiple blockchains.
- Graphite Explorer: A tool to explore and track blocks, transactions, tokens, and addresses in real-time, so you can see exactly what’s happening on the network.
- Graphite Testnet: A key part of the ecosystem, providing developers with a quick way to access testnet funds through the Graphite Faucet for building and testing on the Graphite network.
Whether it’s transferring assets or tracking transactions, these products make interacting with the network straightforward. By keeping things simple and user-friendly, Graphite helps bring in more people, pushing the platform closer to full-scale use.
Graphite Nodes
Graphite has two types of nodes on its network: entry-point and authorized nodes, each playing a key role in ensuring that the network runs smoothly and efficiently.
While any user can run an entry-point node, for a server to become an authorized node, it has to pass a strict compliance test from the Graphite Foundation that checks everything from server reliability to speed and storage capacity. Once approved, these nodes can verify and validate new blocks of data and earn rewards based on their performance. They help keep the network running securely and efficiently, with the best performers being rewarded.
A part of both entry-point and authorized nodes are also managed and maintained by the Graphite Foundation to keep the network up and running, even if all other nodes go offline. They ensure that the network remains operational at all times.
As mentioned, the Graphite Foundation is approving validators, which obviously adds some centralization. However, the choice to do so was intentional, as full decentralization across the system would bring significant technical challenges and added complexities. This balance helps keep the network efficient and manageable.
Proof-of-Authority (PoA) with Polymer 2.0 Algorithm
Graphite’s PoA system makes things more efficient by using trusted nodes to validate blocks, cutting down on energy and computation costs compared to traditional Proof-of-Work.
Top-tier authorized nodes, the best-performing nodes, get priority when validating blocks, encouraging them to perform at their best. These nodes have a better chance of sealing a block and earning a share of the transaction fees.
And, to make sure block sealers are chosen fairly, Graphite uses an Oracle system that randomly selects which node seals each block. This helps prevent bias and reduces the chance of collusion.
Other Standout Features
EVM Compatibility
To make things easier for developers and users, Graphite decided to be compatible with the Ethereum Virtual Machine (EVM). This means developers can easily connect to Graphite, making it more accessible and speeding up its adoption. While Graphite utilizes the PoA consensus, amplified by Polymer 2.0 algorithm, being EVM-compatible means it works more smoothly with tools that developers are already familiar with.
Tagged Addresses
As an extension of Graphite’s KYC system, tagged addresses will provide an additional layer of transparency and accountability on the blockchain. These special addresses will be linked to specific purposes, such as charitable donations, ensuring clarity around fund usage. For instance, if funds are sent to a tagged address designated for charity, it will be evident that the money is meant for that cause. If misused, such as being redirected for gambling, the system will flag the activity immediately. Additionally, smart contracts will be able to block transactions originating from problematic addresses, further enhancing security and trust. This feature is yet to be implemented but promises to strengthen Graphite’s commitment to responsible blockchain activity.
Ticker System (@G)
Graphite’s exclusive Ticker System is a simple but effective system that helps users quickly recognize which network a token belongs to. For example, a stablecoin named USD@G clearly shows it’s part of Graphite’s network, making it easier for users to identify tokens and eliminate confusion in the market.
To Round Off: Graphite Addresses the Needs of Users, Developers, and Enterprises in Blockchain
Graphite for Everyday Users
Graphite offers a secure and user-friendly blockchain experience with fast transactions and low fees. It also ensures that users can verify identities without exposing personal data while the ability to set KYC filters and tag addresses gives them the power to interact on their terms.
By supporting the network through entry-point nodes, they can also earn a portion of transaction fees, making it possible for users without technical expertise to participate and profit from the blockchain’s activity. This provides an opportunity for more people to contribute and benefit directly from the network’s success.
Graphite for Developers and Integrators
The benefit for developers is that Graphite’s EVM compatibility makes it easier to integrate and interact with existing Solidity-based tools and applications. Developers can use familiar frameworks and infrastructure and save time and resources. This compatibility streamlines the development process, reduces complexity, and enhances adoption by making the blockchain more accessible to developers already working within other blockchain ecosystems.
Also, for developers and integrators, entry-point nodes also offer a way to earn directly from the network by processing transactions. They can build and maintain these nodes, receiving a share of the transaction fees as a reward for supporting the blockchain.
Graphite for Enterprises
Graphite bridges the gap between traditional finance and DeFi by offering transparency and privacy so that banks and other financial entities can also engage with blockchain technology. Features like tagged addresses will ensure accountability, while the ticker system makes asset integration clearer and more straightforward for businesses.
Graphite lets businesses create custom reputation-based smart contracts to target specific user groups. For example, a bank could set up a smart contract to offer loans only to users who meet certain criteria like credit score or account history, which ensures adherence to regulations.
In this way, Graphite also stands out as a blockchain for bank compliance and offers features that go beyond what other blockchains can provide.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
