FAQs

About Concordium

What is Concordium?

Concordium is a science-based proof-of-stake blockchain, the first in the world with identification built into the protocol and designed to meet regulatory requirements. See our Chairman of the Foundation, Lars Seier Christensen, describe the vision of Concordium here.

What problem is Concordium trying to solve?

Concordium is trying to solve the quadrilemma of scalability, security, decentralization, and regulation. We believe it is necessary to solve for compliance and regulatory requirements in order to unlock trillions of potential business transactions using blockchain.

What is the dominant use case for your blockchain?

Concordium CCD is a standard blockchain asset with customizable options, directly in Layer-1. Concordium is supporting secure transfers and immediate transaction settlement for multiparty transactions built in Layer-1. Concordium Smart Contracts in Layer-1 are stateless smart contracts with numerous possibilities for governed operations. These capabilities can be applied to different sectors and industries, such as IoT, Supply Chain finance, Mobility-as-a-service, as well as tackling interoperability between other platforms and blockchains.

Has the Concordium network been through a security audit?

Yes. You can read more about it here and here

The Concordium Platform is designed to be fast, secure and cost-effective, which is why Concordium and Kudelski Security have been working together to perform threat modeling, code review, and “scenario based” assessment of the underlying code and logic of the Concordium software. The scope of work is split into four categories: Device, Network, Backend and Reverse Engineering.

We are satisfied with the audit returns and positive feedback and will continue to do everything to make Concordium as secure as possible. However, we understand that in the world of security there is never an end to the work that can be done, therefore we ask our community to help us identify potential vulnerabilities by submitting a report or alerting the team and the community on our community channels on Discord or Telegram.

Rewards and Tokenomics

What is the CCD?

CCD is the Concordium Blockchain Platform’s native payment coin. 

The CCD is used to pay for transaction fees (including smart contract operations),  staking, as a reward for node operators, and as a collateral/settlement medium.

Why do we need another token?

The CCD is built from the ground up to be compliant and business-friendly and to avoid the pitfalls of using a network that has known illicit transactions that taint the supply. The CCD is necessary to incentivize the development, support, and security of the Concordium network.

How does the minting of new CCDs work?

CCD is minted on a pre-defined and publicly visible and verifiable rate. The control parameter CCDSEC controls how much CCD is minted per second via a control parameter. Each second, the special Mint account is increased by CCDSEC CCDs.

What are the reward schemes for CCDs?

Bakers on our system have two sources of income: 1) transaction fees and 2) minting - which is distributed in the form of block and finalization rewards. For each new block baked, an amount of new CCDs are minted. The new minted CCDs are distributed as follows:


● 10% is paid to Concordium Foundation 

● 85% is paid to the Baking Reward Account

● 5% is paid to the Finalization Reward Account

The CCDs paid into the two reward accounts will be accumulated until they are paid out as Baking Rewards or Finalization Rewards to Bakers. This will change once delegation is supported.

Is there a Foundation reward?

Yes, the Foundation receives a portion of CCDs minted on the Concordium blockchain to ensure it has the resources necessary to continue the functioning of the network and its associated ecosystem.

When will delegation be ready

Delegation is planned to be implemented in the Sirius release in Q2 2022. You can follow the roadmap here. The team is working hard on delivering everything in the roadmap as soon as possible. 

How do I stake?

If you have more than 14K CCD, you can bake your CCD to get baking rewards. Here is the baking guide: https://medium.com/concordium/how-to-participate-in-concordium-or-how-to-become-a-baker-fd989e4a7be9

You can also use a staking service providers like Northstake*.

*Please note these are third party services. 

What is the release schedule?

You can find our tokenomics here: https://deck.concordium.com/

What is the circulating supply?

Wallets

I lost my keys, what can I do?

Please remember that you are the only person who can access your private keys and no-one can recover your private keys if you lose them. In the future we suggest that you do a backup every time you create an account. Follow this guide to create your backup https://developer.concordium.software/en/mainnet/net/mobile-wallet/export-import-mw.html#import-identities-accounts-and-address-book

How do I create a wallet?

Find an easy guide on how to create a Mobile Wallet on your phone here or watch our tutorial on Youtube.

If you have a Ledger Nano S hardware wallet, you can also install and use the Concordium Desktop wallet.

Using CCD

How do I back up my wallet?

Please export the data from the Mobile Wallet to a file to make sure that you have a backup of your accounts, identities, and addresses. This way, all your accounts, identities, and your address book are saved in a file you can store in a safe location.

Please follow this video tutorial

Or follow this written guide

Token sale, valuation and exchanges

How can I purchase CCDs?

CCD is listed on a number of exchanges and is offered for buying and selling by several crypto brokers and OTC trading desks. You can read more here

Can I buy CCD without being ID'd?

You can not buy CCDs for your usage on the Concordium blockchain without being identified.

On which platforms is the wallet available?

There are many wallets built by the community that supports CCD. Concordium currently offers iOS and Android wallets and also supports hardware wallets via a desktop wallet that connects to Ledger Nano S.

In the near future we will also release a Chrome Extension based wallet, complemented with an entire dApp developer friendly ecosystem.

Corporate structure and governance

What is the Concordium Foundation?

The Concordium Foundation is the Swiss-based non-profit responsible for supporting the Concordium network and IP. Concordium Foundation has a responsibility to govern the Concordium blockchain and ensure further development will be done in a correct manner.

What is Concordium AG?

Concordium AG is contracted by the Foundation to build the initial release of the Concordium network. Concordium AG employs an internal science team.

What is COBRA?

COBRA stands for Concordium Blockchain Research Centre Aarhus, at Aarhus University, Denmark. COBRA produces cutting edge research into ZK proofs, consensus, and sharding, with a focus on getting this research reviewed, tested, and eventually implemented on our blockchain network. The Concordium Foundation is donating DKK 50 million (EUR 6.6 million) over five years for non-targeted research into blockchain technology. All research produced will be publicly available. Watch the inauguration ceremony for COBRA here.

What is Concordium's governance structure?

The vision of the Concordium Foundation is for the Concordium network to eventually become a fully autonomous, open, permissionless blockchain. In the fully decentralized governance, the Transfer of control and decision-making has been given from the Concordium Foundation to the distributed network. Concordium envisions using a stake-based governance system, where the influence of stakeholders is proportional to their stake. The more value an actor has staked in the blockchain, the more likely they are to participate rationally in the governance.

What is the decentralization roadmap?

Concordium is planning to fully decentralize the network over several years. Decentralization is a spectrum and all projects at the start have some degree of centralization, certain aspects are unavoidable. However, Concordium is implementing a roadmap that leads the network to a greater degree of decentralization than most projects.

How does Concordium interoperate with other blockchain networks?

The idea of interoperability is deeply ingrained in Concordium’s vision. As a system that is constantly evolving and innovating, we plan to make this vision for the Concordium platform a reality in the near future. 

Consensus and finalization

Why is Concordium utilizing finalization?

Concordium has developed the first provably secure Finality Layer, which runs on top of a Nakamoto-Style Consensus layer. Transactions make it into the blockchain very quickly but may still be subject to a rollback until they are finalized. This two-layer approach gives our users secure finality in a fraction of the time when compared to other blockchains. This gives the user the option to favor speed or safety when accepting transactions. Users can accept transactions after a certain number of blocks, or they can wait until a transaction is finalized to insure against the possibility of a rollback.

This design also ensures that the network will continue to function in the advent of a network partition, by being able to use finality as a mechanism for the network to adjust operational paramaters governing speed and security that are currently static in other chains The Consensus layer will continue to operate, and finality will resume once the network is healthy again. Watch our Chief Science Advisor, Professor Jesper Buus Nielsen, give an in-depth presentation of our two-layer consensus mechanism in this video.

What is the maximum TPS on the network?

The most recent performance tests put the conservative TPS of Concordium at 400. Efficiency is a major workstream for us in 2022, which we will address from multiple angles: we will focus on tuning the existing Node implementations for vertical scaling, while implementing sharding for horizontal scalability. Beyond 2022, efficiency will remain a key focus area for the engineering team as we add more features to the blockchain and scale out the network.

What is the suggested hardware required to run a full node at launch?

Ideally, a node would have a system with at least 32GB of memory, a CPU with eight cores, at a minimum connection of 1,000Mbps, for optimal performance. However, it will also be possible to run a Concordium node with regular consumer hardware.

Identity layer and revocation

What is the Identity Layer?

The Identity Layer is comprised of several actors: users, trusted identity issuers, the Foundation, and revokers. Trust identity issuers provide users with identity objects to serve as validations of the individual’s identity, including proofs of certain attributes such as their age and nationality for example. The user can deploy accounts with all, or a subset, of the proofs from their identity object attached. This takes place on-chain, except for the identity objects themselves, which are stored off-chain. All identity-related transactions are governed by this engine. Renowned cryptographer, Professor Ivan Damgård gives an excellent overview of Concordium’s Identity layer in this video.

Why even add the ID layer?

Concordium believes that the added ID layer is necessary to help bridge the gap between traditional businesses’ regulatory compliance and the blockchain space. By combining compliance and privacy features, the ID layer is a key link between real-world business regulatory compliance and the blockchain world.

How does the Trusted Identity Issuer work?

The first trusted identity issuers will be on-boarded by the Foundation and delegated with the task of validating and issuing ID credentials to users. There will be a market for trusted identity issuers to process user accounts. These identity issuers give credentials to users that can then be used to deploy accounts on the network and engage with smart contracts.

What are ID credentials?

When a user has an Identity Object from an Identity Issuer, they can then generate Credentials for an account. Credentials can be either attached to an existing account or used in the creation of a new account. A user can hold an indefinite number of accounts, however, the number of accounts per identity object may be restricted by the identity object itself. Listen to Professor Ivan Damgård give an excellent overview of Concordium’s Identity layer including ID credentials in this video.

Who are the anonymity revokers?

An anonymity revoker is an organization that has legal rights in a specific jurisdiction. There is a publicly visible registry of anonymity revokers that is curated by the Concordium Foundation.

How does anonymity revocation work?

Unlocking (decrypt) all credential data is a non-automatic, interactive process initiated by an anonymity revoker. It requires cooperation between the anonymity revokers and the identity issuer. Each on their own cannot reveal the identity of the owner of the credential. Practically, anonymity revokers would require a court order or some law enforcement interaction in their jurisdiction to initiate the unlocking-process. Professor Ivan Damgård gives a good overview of how revocation works on the Concordium network in this video.

Other

Will there be a lot of blockchain bloat?

This largely depends on the usage of the network. If users are running computationally heavy smart contracts on the network, and there is a lot of activity per block, then the network will occupy a lot of memory. However, users do not need the entire chain to engage with the network. Light clients and finalization help reduce the need for users to carry the entire blockchain with them.

What project would you compare your blockchain to?

Our ID layer, zero-knowledge proof technology, and finality layer are unique in the industry, hence we prefer to not compare ourselves directly to any existing blockchain projects as our network opens up a new category of blockchains. However existing blockchains do incorporate different aspects of our network, such as ZK proofs, finality, proof-of-stake consensus and smart contracts. We believe Concordium is a new industry standard when looking at existing blockchain networks. We are the blockchain to enable the next wave of business transactions.

What is Concordium’s Ecosystem/who is building on Concordium?

You can find the projects building on top of Concordium in here

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