temtum, the cryptocurrency that doesn’t cost the earth

Adam Grist
03 June, 2019
  • Posted in Energy
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Cryptocurrency operations, and in particular coin mining, have rightly come under increased scrutiny due to their vast consumption of energy. Bitcoin is the number one offender, its network is accountable for 0.27% of total global energy consumption.

At temtum we think it’s unacceptable that digital currencies should have such a huge impact on our environment. temtum is keen to find another way, a network that can operate using dramatically less power through technological solutions and updated cryptography.

temtum has already achieved this through it’s network and can demonstrate how it dramatically reduces energy consumption. The temtum network has been designed from the ground up to run at full capacity on low-powered devices such as smartphones or IoT devices.

We want to allow all users to fully participate in the temtum network regardless of the resources they are able to contribute and with limited impact on our planet.

temtum

The temtum network achieves truly decentralised scalability, near instant transaction speeds and unprecedented transaction throughput, using low resources and future-proof quantum security.

Prototype network performance analysis demonstrates that temtum is able to operate at high speeds despite the varying computational and storage capacity of the resources available to it. Delivering higher transaction throughput while using less computational power and energy than alternative proof-of-work blockchain networks such as Bitcoin.

temtum has achieved a throughput of up to 120,000 transactions per second (a multiple of the peak capacity of 56,000 TPS on the global VISA system), prior to the launch of future Shading and Delegation technology. The original prototype temtum network has been fully deployed and functional on a wide range of devices that include low power personal computers, servers, basic android mobile devices, and even a smart car – a BMW i8.

The results show temtum could power the entire crypto industry and its networks, and VISA, on less than 50 iphones. Where Bitcoin uses the equivalent energy of Iceland, temtum could operate the same network consuming the equivalent as a UK home.

Existing Networks

Bitcoin has changed the face of finance forever, the original cryptocurrency made significant progress in a decentralised and blockchain based finance system, but it’s no longer fit for purpose outside of a store of value or speculative asset.

Perhaps the key invention in the original Bitcoin white paper (2008) was the integration of the proof-of-work consensus mechanism. This allows all nodes that comprise the Bitcoin network to ensure they share the same copy of the distributed ledger so that it is impossible to double-spend.

The proof-of-work mechanism is essentially a method of randomly selecting the next node that will confirm previous transactions in a way that prevents the reasonable economic prediction of the next confirming node.

Proof-of-work is effective at a certain scale, but it is also extremely resource and energy-intensive, and has failed to adapt to growth. Proof-of-work can only achieve payment security if mining income is high, but if that is the case, the transaction market cannot generate an adequate level of income.

This is just one of the reasons why for blockchain cryptocurrencies to be truly effective, there needs to be a step-change in their evolution and impact on the environment.

  • Scalability: Current blockchain technologies are not truly scalable. They are not able to be fully decentralised and in many cases require high entry points to participate in them e.g. massive computational power.
  • Resource intensity: Many leading cryptocurrencies use highly wasteful and restrictive consensus mechanisms such as proof-of-work, which require enormous energy use and have a significant environmental impact.

temtum’s Solution

The combination of the temtum Consensus Algorithm and Temporal technology allows the temtum network to deliver extremely high transaction throughput and short transaction confirmation times with low resource requirements.

The temtum network incorporates – and is enhanced by – the Temporal Blockchain, a new mechanism that allows local nodes to define themselves as 'Temporal nodes' to archive data in order to minimise storage space usage. This follows the same logic as Bitcoin in terms of establishing a timestamp network, but crucially it does not require proof-of-work mining.

Temporal technology provides the temtum network with an archivable blockchain, distributing blockchain data storage across a range of specialised nodes in order to allow low-powered devices to participate in the temtum network.

Although data is archived locally, the Temporal system has been designed to ensure the integrity of the blockchain – making it possible for nodes to validate previous transactions without downloading and storing the entire blockchain.

This data storage method allows low-power devices to fully participate in the temtum network and confirm transactions without requiring the resources demanded by traditional proof-of-work blockchain networks such as Bitcoin.

temtum’s Consensus Algorithm is a unique approach to blockchain consensus, which by definition allows one – and only one – leader to be selected at any given time.

This eliminates any potential malicious fork. It also eliminates the energy cost associated with proof-of-work consensus model, improving the overall network efficiency.

The temtum Consensus Algorithm, combined with Temporal Blockchain technology, is able to confirm all transactions with one machine at a time and in contrast to Bitcoin, is highly secure and does not require intensive computational resources. It also eliminates block size limitations and implements, again reducing the need for energy.

  • Scalability: The Temporal Blockchain eliminates the need to store the entire chain history on all nodes by locally archiving data, while preventing competition in node selection. This significantly reduces resource requirements and allows anyone with a basic form of technology – such as a smartphone user – to fully participate in the network, delivering true decentralisation and infinite scalability.
  • Resources: temtum’s Consensus Algorithm, constructed around leader nodes and our innovative Node Participation Document, removes the need for mining and wasteful, inefficient and restrictive Consensus mechanisms such as proof-of-work. temtum uses substantially less energy and has less environmental impact compared to POW networks.

Saving energy, saving money

We believe that temtum network transactions are 36,633,497 times cheaper than Bitcoin transactions, based on the current projections. The economic impact of the consensus method used to operate the Bitcoin network absorbs an estimated cost of $3.6 billion annually.

The Bitcoin network is currently limited to a maximum transaction throughput of seven transactions per second. The average fee for a Bitcoin transaction from 2017-2018 was $57.35 – and the total cost of a Bitcoin transaction in the same time period, including miner and energy fees, was $104.701.

Operating at the same size as the Bitcoin network and executing the same amount of transactions, the temtum network reduces the cost of an individual transaction to $0.0000029 by eliminating miner rewards and reducing energy consumption. The Bitcoin transaction cost is dependent on network load – higher load = high fees, with temtum network load does not impact the cost of a transaction – there is never any network fee.

We estimate that the Bitcoin network is 16,573,693 times more expensive than the temtum network based on energy costs alone, assuming both networks are operating at the same size.

Bitcoin energy usage chart

Bitcoin cost chart

Cost per BTC transaction chart

The next generation cryptocurrency

The fact that current blockchain networks have limitations at their core, means that they cannot satisfy the key transaction demands for many of the industries and applications which should have the highest need for blockchain networks, such as large global payment networks and credit card companies.

temtum builds on the significant opportunities of blockchain technology and overcomes many of the existing limitations faced by current peer-to-peer networks, which means that they have only been adopted in a limited way.

As such, temtum offers a giant leap forward with technology that has the potential to meaningfully transform the way that value is globally exchanged and stored. Perhaps the greatest leap forward of all is that it can be run on almost any device connected to the internet – including smartphones and IoT devices, cars and drones.

Our integration of the temtum network in a BMW i8 is a worldfirst in terms of using a car as a full node in a network, without the need for additional hardware. This makes it accessible to ordinary people who have so far largely been excluded from the benefits of blockchain technology.

The temtum network can be scaled rapidly and at minimal cost. temtum eliminates the need for centralised pools of specialised hardware, delivering a blockchain network that’s environmentally conscious and can be run on any device connected to the web – even a smartphone.

This means that temtum’s vision of a truly decentralised, fully scalable network that can be placed in the hands of the many rather than the few is fully achievable.

With previous blockchain technology – which theoretically supported a similar vision – that simply wasn’t the case. temtum’s technology innovations have supported the necessary evolution of blockchain, which in turn means that the temtum cryptocurrency represents a compelling mass-market proposition at a global level.

We invite you to join us on our exciting journey to the future of finance. We have outlined all this and more in our white paper, which you can view here. We’d be delighted to hear from you to ask questions and learn more about temtum.