Concordium is a first layer blockchain providing all utilities in one platform and supporting completely regulations compatible services. Concordium is been developed by academicians from Aarhus University in Denmark for its founders experienced in institutional investment banking.
The blockchain aims to reduce the cost of financial services while providing safe and secure on chain services without breaking governments rules, preventing illegal activities and preventing tax issues. Concordium foundation published a transparency report on 1st march 2024. This report is an overview and declaration of spendings made by the Concordium Foundation to inform the community and stakeholders. The report is been focused on events and developments happened between July 2023 and February 2024. There is also some information on expectations and predictions for the future of the blockchain.
The mentioned period was very successful regarding developments of the blockchain. The new ConcordiumBFT consensus protocol is been activated in September 2023 and enabled an approximately 80% reduction in transaction finalisation time which is crucial for a blockchain success.
The 99% reduction of transaction fees implemented in January 2024 was another pivotal change for the network. In the first two months of 2024, on chain transactions increased substantially and reached about 200,000 transactions per day.
There were some efforts to increase decentralization of the blockchain via e.g. wallet development, marketing, CCD staking, and custody. Furthermore, the first election of the Concordium Governance Committee by CCD holders is been stated.
The report states that Concordium’s current market cap at the time of this report was 12.88 billion CCDs. Concordium Foundation’s CCDs are approximately 4.52 billion. The staking ratio of this is about 79%. The percentage of CCDs owned by Concordium Foundation are reported to be around 34.1% of the total market cap and staked CCDs were about 7.54 billion of which CCDs staked by Concordium Foundation accounted for 47.7%.
The remaining locked tokens belong to the Foundation and the unlocking process will be terminated on july 2025.
The Foundation is operating 9 nodes and there is a total of 185 nodes on Concordium network. The implementation of the new Concordium BFT consensus increased scalability and diminished transaction finalization to 3–4 seconds. The transaction capacity is been increased. Current inflation rate is about 8% and there are 1860 delegators on the network. Key metrics stated in the report are shown below.
What is expected in 2024?
Frameworks for ‘Track and Trace’ and ‘Real World Assets’ are supposed to launch in the first quarter of 2024. These frameworks may help companies who are searching solutions in these fields. The Foundation is aiming to increase transaction number on Concordium blockchain which may be realized by bringing more users from other blockchains.
Regarding software development advancements are expected to be active in Q3 or Q4 of 2024.
A governance voting is planned for June 2024. The Foundation is aiming to increase decentralisation via governance votings and to work closer with the Concordium community.
The document summarizes a detailed plan for furthermore decentralization over years by adding new members to the governance committee by the votes of CCD holders.
Developer Community is not forgotten since the Foundation believes that building is key for Concordium’s success. This is seen as necessary for decentralization of the network. The newtwork should not be developed solely by COBRA teams at Aarhus University.
The ID layer is very important for Concordium and the Foundation is planning to develop it for both individual and corporate IDs.
The Foundation wants to ameloriate the current wallets including CryptoX wallet.
What novelties are expected for DeFi?
Decentralized finance is very important for Concordium. The Foundation aims to provide safe KYC verified DeFi services and prevent scams while being able to provide necessary data for legal authorities in case of law decisions. Web3ID allows a service provider to issue KYC-verified information as a credential that can be hold in wallets.
Bridges are pivotal for fund transfer between blockchains and Boosty Labs is adding Concordium to their Tricorn crosschain bridge service. Thus bidirectional transfers between Concordium and Ethereum will be possible in the first quarter of 2024.
Umbrella launched their oracle on the Concordium network in Q4 2023 and are continuously adding more data feeds according to the community’s feedback.
Stablecoins are pivotal for DeFi transactions. Stablecoins provide safety in case of volatile market conditions. Membrane Finance introduced a native EUROe stablecoin to Concordium at the end of December 2023.
The native dex of Concordium network, Concordex is supporting various bridged tokens including WUSDC, WUSD, WBTC, WETH, WDAI.
The first launchpad on Concordium; Concorpad is been launched in December 2023 and will provide ICOs in the near future.
The Foundation launched an Indexer in late 2023 which aims to make developing Concordium easier.
Staking options may increase in 2024 by the recruitment of institutional staking companies. Copper.co and Figment.io are two of these solution makers for staking over Concordium network.
In 2024 real world asset tokenization, marketplace platform leveraging, traceability and ID solutions are stated as main focus points of Concordium.
Concordium grant program is aiming to support development of new blockchain properties.
Marketing activities are also increased on Concordium in late 2023 and the Foundation declared to remain active on 2024.
Concordium foundation is aiming to develop the blockchain, expand partnerships, spread the governance to the holders in a timeline and provide fully legal regulation ready, safe, secure, decentralized network supporting on chain activities including tokenization of real world assets.
