>Author>: ShirleyLi
According to the official disclosure, on May 6, the L1 Blockchain protocol Announced litha strategic financing of $750,000, led jointly by Alphemy Capital and Amber Group.
The Litheum team believes that in monolithic blockchainchdesign mechanisms, nodes often need to compete for generate block production an incentive. In other words, the traditional monolithic blockchain incentive system mainly covers the core block production phase, while other basic links such as wallet wallet and chain data synchronization, node propagation efficiency are not directly incentivized, so nodes naturally naturally focus focus on how to enhance their competitiveness in block production competition.For example, the Bitcoin network uses a PoW mechanism, so nodes on its network will invest costs in powerful mining machines, while the Ethereum network uses a PoS mechanism, so nodes on its network will tend to stake more ETH to increase the probability of becoming a block proposer. However, nodes' investment in mining machines or staking funds cannot directly improve the overall network's performance and scalability, which is the key reason why the Litheum team believes traditional blockchain scalability bottlenecks exist. Theoretically, if multiple miners or validators participate on a blockchain, due to the "decentralization" characteristic, these miners or validators need to repeatedly execute a transaction and store multiple data copies in a distributed manner, which invisibly increases execution and storage costs. According to Litheum's argument, Bitcoin miners deploy billions of dollars in infrastructure annually, but the Bitcoin network can only process 300 million transactions per year, with infrastructure costs of 10-100 dollars per transaction, while the total deployment cost per transaction on the Ethereum network also exceeds 100 dollars, which means that infrastructure investment on the blockchain is not proportional to its scalability.
To solve the above challenges, Litheum has proposed a new solution by taking a different approach.
