This article is about what is Coreum in the crypto field. Coreum is a blockchain network designed to provide infrastructure for enterprises, ensuring it can handle high demand with impressive scalability, currently supporting 7000 transactions per second (tps) with a fast 1.5-second block time.
What is Coreum in the Crypto Field?
Coreum is an Enterprise Grade Layer 1 Blockchain, designed specifically for business use cases. It serves as the infrastructure for various applications such as digital assets, stablecoin issuance, tokenization of traditional assets, Central Bank Digital Currencies (CBDCs), smart tokens, and Non-Fungible Tokens (NFTs).
Users can deploy smart tokens on the Coreum network, which are distinct from traditional smart contracts. These smart tokens can perform contract-like functions while utilizing their chain's storage.
Some examples of programmable tokens on Coreum include Soulbound NFTs for records and credentials, tokenized securities, and programmable money.
How does Coreum work?
The network is built on the Cosmos SDK, leveraging Byzantine fault tolerance and the Tendermint consensus engine, utilizing a bonded proof-of-stake consensus mechanism. Coreum focuses on achieving scalability through sidechain research and development.
To enhance interoperability with other Cosmos-SDK-based chains, Coreum utilizes the Inter-Blockchain Communication Protocol (IBC), enabling seamless interactions between enterprises using Coreum and other chains. Additionally, Coreum positions itself as an ideal choice for financial institutions by adhering to the ISO20022 standard for communication between financial entities.
To create a developer-friendly environment, Coreum supports coding dApps in different languages using WebAssembly (WASM).
Coreum's consensus mechanism employs Cosmos's Tendermint, offering a Bonded Proof of Stake approach. Participants can choose to stake their tokens for block generation, or contribute to network security and maintenance without operating a node.
For incentivizing block creation, Coreum employs a variable inflation model, minting tokens and adding them to a rewards pool along with fees. The reward amount inversely relates to the Total Value Locked, promoting sustained participation in the network's security and maintenance.
What are Smart Tokens?
Smart tokens are a solution provided by Coreum to address the issue of heavy smart contract transactions that can congest even highly scalable networks. These tokens have the capability to function and execute actions without requiring a smart contract function call because their features are known to the blockchain. This results in more reliable, faster, and secure transactions.
Reliability is crucial for DeFi applications and wider adoption. High gas fees are a major concern in the DeFi space, and their unpredictable fluctuations can be a deal breaker for governmental organizations or late adopters. Smart tokens offer fixed transaction fees, providing users with upfront cost certainty. Additionally, bulk transactions receive a discount, which is advantageous for enterprises.
In terms of security, traditional smart contracts must undergo multiple audits before deployment due to the potential risks of exploits. Smart tokens, on the other hand, have reduced risk since their functionalities are known and audited by the blockchain, making them more secure.
Smart tokens share similarities with smart contracts, as they can execute various functions and once issued, their attributes cannot be changed. These tokens can interact with smart contracts, enabling added customization.
Coreum ensures that all smart tokens developed on its platform include common functions such as minting, burning, and sending. These functions cater to common needs within the DeFi space, with the platform planning to expand functionality as new use cases emerge.
What is the Native Token of Coreum?
Coreum's native token is $COREUM. The network utilizes a bonded proof-of-stake consensus mechanism, with delegators and validators using $COREUM to secure the network and earn rewards. The Coreum team has allocated 50% of the token's current supply for community members through airdrops, aiming to ensure significant community ownership and involvement in the project's future and success.
Bottom Line
In this article, we have discussed what is Coreum in the crypto field. For the time being, the Coreum roadmap is focused on two main objectives: interoperability and ecosystem expansion.
