Ethereum’s high gas fees prevent the network from showing its full utility.
Decentralized finance (DeFi) is booming. But while Ethereum (ETH), arguably the leading DeFi accelerator, has achieved its goal of becoming the world’s most programmable blockchain, its widespread use has also exposed the network’s greatest weakness – scalability. Congestion has become a common occurrence on the network, leading to high gas fees that prevent projects from making microtransaction payments on Ethereum.
Given the limitations this entails, the DeFi space has been actively exploring alternatives, with a direct correlation seen in the increased adoption of network bridge technology. With this model, transactions on an expensive network like Ethereum could be routed through a cheaper bridge network, reducing transaction costs. As a result, the world may find itself in a more efficient space with carefully crafted bridging technologies where once isolated blockchains are now interconnected to ensure use cases are not constrained by network scalability.
The joint efforts of KuCoin and the community around KCS, their proprietary token, aim to solve these issues by creating a powerful KCC blockchain.
KuCoin exists as a well-known exchange that is recognized as offering to the people. In comparison, the developer community of the KCS ecosystem emerged from the KuCoin community and KCS holders. Together, these teams contribute their knowledge to the publication of the KCS whitepaper.
The whitepaper describes how Ethereum’s high gas fees can be addressed with a larger ecosystem. In this ecosystem, several different projects and platforms including DeFi, NFT, gaming and Web3-related application projects are combined to increase the number of scenarios for KCS, KuCoin’s native token.
It is also reported that the release of the KCS white paper will bring together the KuCoin core team, investment institutions, angel investors and other community members to set up the KCS Governance Fund. This effort will oversee research, funding, investment and the integration of KCS resources into the development of new proposals that will help achieve the project’s overall goals.
Transition to multi-chain ecosystem 3.0
The public blockchain uses the Proof-of-Stakes-Authority (PoSA) consensus mechanism to reduce block confirmation time. And while the costs are solved by the exchanges that accept KCS as payment for gas on the network. This allows the team to offer community users a faster, more convenient, and more cost-effective experience. It is worth noting that PoSA, as a consensus algorithm, will also increase security and stability.
Unlike other public blockchains on the market, the KCC chain works similarly to Ethereum Virtual Machine (EVM) compatible chains. The public network will be fully compatible with both EVM smart contracts and ERC-20 smart contracts, which will ensure the low cost of project migration. However, using the KCS token to pay for on-chain gas further reduces costs, and creating blocks every three seconds results in reduced transaction confirmation times.
As the KCC blockchain evolves, it will gradually transition from EVM 1.0 compatibility to version 2.0, making it useful in a multi-chain 3.0 ecosystem with compatibility across different chains and assets. At this stage, it becomes critical for the KCC blockchain to focus on creating an infrastructure suitable for large-scale deployment and development, complete with on-chain and cross-chain protocols.
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At its core, these technological innovations will remain the main driving force behind the blockchain industry. Because of this, the team pledged resources to support developers in early innovation projects by leveraging the KCS fan community and the KuCoin to KCC exchange ecosystem. In summary, the white paper proves that KCC is more than just a network, it is a cohesive ecosystem of technologies, products and users that is the birthplace of industry growth.
Live on the main network
The KCC project was deployed to mainnet in June 2021 and became an entry point to the larger KCC network, further increasing the inherent value of the KCS token. In the KCC ecosystem, the KCS token becomes the main fuel for the network, and its usage is reflected in the form of gas fee