Credits Blockchain

Hi ! I had a look to the Credits blockchain (https://www.credits.com/en/#a).

First I was attracted by the statement "processing up to 1 million transactions per second" with a block time of 3 seconds. I was thinking how do they manage to do that technically, so I started to dig a bit in the provided documents:

• White Paper: https://www.credits.com/Content/Docs/TechnicalWhitePaperCREDITSEng.pdf
• Long Presentation: https://www.credits.com/Content/Docs/CREDITSdeckENG.pdf
• Technical Paper: https://www.credits.com/Content/Docs/TechnicalPaperENG.pdf

From the WP, there are different kind of nodes with different trust level:

• Common Node, Trusted Node that can verify a transaction, common node is not trusted.
• Main Node responsible for adding transactions to the ledger.

Consensus: it is a kind of hybrid between DPoS and a little bit of PoW. A leader election is performed using PoW and the Main Node generates the block that is spread out to the network.

It handles Smart Contracts coded in Java.

Interesting:

• Homomorphic Encryption: I would like to have a lot of details on this part, because it is really important. Check out this link :https://en.wikipedia.org/wiki/Homomorphic_encryption
• Merkle tree changed with Tiger Tree Hashing: each block is hashed using Leaf Tiger Hash then each pair of hash is hashed with the Internal Tiger Hash.
• The Block size is dynamic, but we are missing the details.
• Blockchain backup storage: it should be further explained how they implement such compressed storage.

Problems:

• Parallel Processing of Transactions: where it is detailed ?
• They say the new consensus principle has a 0.1 to 0.5 second, when we look to just latencies on the Internet, I am very skeptic.
• They say there is no mining but "The one who calculated the function faster, who has a higher performance server and better network quality - wins in a competition for the right to be the main network node ... and the user get its 50% commission". So there is a mining on the fees.
• Centralization: The processing of the transaction is performed by only one main node that write it to the registry.
• Network/Storage: Such wished high transaction throughput is not achievable on a single node at large scale even when using compression techniques and state of the art storage and network.
• Java for SmartContracts is not so trivial from security point of view, details are needed.
• Open Source Software, where is the code ?