7.0. Technical Architecture
This section is intended for developers and contains technical details. Readers without a technical background may skip this section and proceed directly to Section 8 — "Asset Rating."
When selecting a blockchain for the DeflationCoin implementation, a comprehensive evaluation of existing technologies and approaches was conducted. The analysis included a study of leading blockchain platforms such as Ethereum, Solana, Binance Smart Chain, and Polygon. The main objective was to determine which technology best meets the project’s requirements in terms of performance, scalability, user-friendliness and growth potential.
The key criteria for the analysis were as follows: the ability of the blockchain to handle a high volume of transactions at low fees, a well-developed ecosystem to attract users, flexibility in smart contract development, and ease of interaction for end-users. Another important aspect was the assessment of infrastructure capabilities, as the successful launch of a cryptocurrency requires a reliable and resilient platform that can scale with user growth.
Ethereum was the first candidate due to its leadership among blockchains in terms of developer adoption and ecosystem size. However, its limited throughput and high transaction costs make it less suitable for mass adoption. Solana and Binance Smart Chain offered higher performance with Binance Smart Chain standing out for its operational stability and robust infrastructure.
Polygon, as a Layer 2 solution for Ethereum, provided significant improvements in speed and fees, but its dependency on Ethereum limits its flexibility. Binance Smart Chain, in contrast, boasts a vast ecosystem actively supporting developers and users, along with easy access to DEXs with high trading volumes.
Solana markets itself as a blockchain with ultra-low fees (less than $0.001). However, on-chain operations like swaps on DEXs such as Raydium can incur fees up to $0.7 due to the architecture requiring multiple transactions. This makes the actual cost of swaps on Solana higher than on Binance Smart Chain, where the average swap fee on PancakeSwap is around $0.4 per transaction. Another example is the creation of liquidity pools. On Solana's Raydium exchange, each range of concentrated liquidity incurs approximately $47, while on Binance Smart Chain's PancakeSwap, creating a liquidity pool costs about $12 for a complete set of ranges.
Solana's aggressive marketing strategy has contributed to its popularity. However, this position is not supported by a robust architecture, which has faced significant stability issues under heavy usage. Solana's architectural vulnerabilities have resulted in network outages lasting extended periods. The lack of systematic control over consensus during network overloads increases latency and reduces reliability compared to Binance Smart Chain. Additionally, Solana's developer tools are limited compared to EVM-based blockchains.
The following table provides a comparative overview of existing blockchains and their ecosystems.
Table №7 - Comparative Overview of Blockchains.
TPS
100
15
>1000
7
Transaction Fees on DEX
~0.5$
~5-10$
~0.7$
~0.01$-0.5$
DEX Ecosystem
Advanced
Advanced
Advanced
Moderate
Trading Volume on DEX
High
High
High
Low
Number of Users
~1,000,000
~500,000
~3,000,000
~250,000
Smart Contract Language
Solidity
Solidity
Rust
Solidity
Scalability
High
Limited
High
Moderate
Developer Ecosystem Availability
High
High
Below Average
Moderate
Liquidity Provision Fees
Low
High
High
Low
Binance Smart Chain, driven by the pivotal role of PancakeSwap, ensures high trading volumes and easy access to liquidity, making it an attractive choice for projects focused on DEX and DeFi operations.
As a result of the analysis and based on the blockchain criteria outlined in the table, the decision was made to utilize the Binance Smart Chain platform, which perfectly aligns with the project's requirements. Its high performance allows for processing a significant number of transactions at low fees, which is especially important for the widespread adoption of the cryptocurrency. Additionally, BSC offers convenient tools for developing smart contracts in Solidity, accelerating the implementation of the project.
The choice of Binance Smart Chain is a strategically sound decision that combines high performance, usability and economic efficiency, providing the DeflationCoin token with a reliable platform to achieve its goals in the shortest possible time.
At the time of writing this document, the development of a proprietary blockchain is already underway. However, this task is not currently a priority. The main focus is on developing token functionality, attracting users and building the ecosystem. Therefore, the development team has decided to start by using the Binance Smart Chain.
Leveraging an existing solution in the initial stage of development allows the team to concentrate efforts on ecosystem growth and token functionality, while simultaneously preparing for the launch of a dedicated blockchain. This approach ensures an optimal balance between rapid market entry and the project's long-term strategic independence.
The development of a proprietary blockchain will be a significant leap forward for the project, offering complete freedom in managing the token economy and customizing the infrastructure. However, at the project's launch, it is more prudent to utilize a platform that ensures swift market entry, minimal costs and ease of development. Meanwhile, the DeflationCoin team is concurrently working on its own high-performance blockchain.
Once the proprietary blockchain is fully developed, the migration of the DeflationCoin token to the new platform will take place. This transition will unlock new opportunities for scalability, enhanced security, and integration of innovative solutions (details provided in Section 7.4).
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