What is Concordium?

Concordium (CCD) is a public-permissionless Layer 1 blockchain that was launched in 2018. It integrates encrypted ID into every on-chain transaction, enabling identification at a protocol level. Concordium aims to strike a balance between privacy and accountability through its ID layer. The project's goal is to simplify the integration of blockchain technology for businesses, with a focus on regulatory compliance. Concordium's native cryptocurrency, CCD, is utilized for transaction processing, network participation, node operator compensation, and as a medium within the Concordium DeFi landscape.

How does Concordium work?

Concordium operates using a dual consensus mechanism. On one end, operators, known as bakers, process transactions using a Nakamoto-style Proof-of-Stake mechanism. On the other end, a Byzantine fault tolerant (BFT) agreement among a set of specialized bakers, known as finalizers, is used to finalize transactions. Any user that participates with more than 14,000 CCD can become a baker, while finalizers need to participate with at least 0.1% of all CCDs. Concordium's unique selling point is its built-in identity layer, which employs trusted identity issuers to provide users with their self-sovereign identity. This layer maintains a balance between user privacy and the need for identification if a legitimate legal issue arises.

What are the potential use cases for Concordium?

Concordium provides a robust environment for executing smart contracts and digital financial primitives, making it suitable for enterprise users. Some of these features include high throughput with fast finality, low, fixed transaction costs, and a regulated DeFi Lab. Concordium's identity layer can be used to create self-sovereign identities for users, which can be useful in various applications where user privacy and identification are crucial. The platform's capacity to handle high throughput and fast finality aims to cater to applications that require high-speed transactions.

What is the history of Concordium?

Concordium was founded by Lars Seier Christensen, the co-founder and former CEO of the online trading and investment platform Saxo Bank. The project was launched in 2018 and has since attracted a team of over 30 experts, including leadership from Volvo, IKEA, Credit Suisse, and more. The team includes notable academics and industry veterans, such as Professor Ueli Maurer, a senior academic at the Swiss Federal Institute of Technology in Zurich, and Kåre Kjelstrøm, a Silicon Valley startup veteran from multiple ventures including Uber. The company has garnered support amounting to 52M EUR and has partnered with Geely, a global automaker and co-owner of Volvo Cars, Volvo AB, and Daimler.