What is LON token (Is LON token valuable)?

What is LON token? LongHash reported that according to DuneAnalytics data, the token LON of decentralized trading platform Tokenlon reached a peak of 12 trillion coins on June 28th. It is understood that the project is created by French blockchain startup LaBancoGroup (Banque de France) and American blockchain technology startup Everledger. Its main purpose is to provide a open, secure, and interoperable network environment for global users. In addition, the company will launch a “Token Incentive Program”.

Is LON token valuable?

A recent article published by LongHash discusses the value of the LoanNetwork project’s token LON and how it will develop in the future. First, let’s take a look at the introduction of LON.

In simple terms, it is a decentralized protocol that runs a blockchain network and provides peer-to-peer (P2P) transaction services. It is developed and created by the LonProtocol team, which allows users to send their own cryptocurrencies to others to earn profits or exchange them back into fiat currencies. This can be understood as a way for users to generate income by depositing funds into another platform.

Currently, LON is priced at approximately 1 USD, with a market capitalization of 377 million USD; compared to the prices of Bitcoin and Ethereum, its total supply has reached 1.4 billion USD. However, as its ecosystem becomes larger and continues to expand, market demand also increases. According to CoinMarketCap data, there are over 400 million addresses holding LON as of the time of writing.

Now let’s take a look at the details of this project: What is a DEX built on the LoanNetwork protocol?

Technically, LoanNetwork is a distributed and programmable network application layer designed to facilitate cross-chain communication. LoanNetwork is different from Bitcoin because it is the first blockchain project to use the Lightning network for smart contracts, while Bitcoin uses proof-of-stake consensus mechanism.

Specifically, applications in the Bitcoin network are conducted through the Lightning network; whereas Solana uses a second-layer scaling solution similar to the Lightning network.

Therefore, in order to become a successful exchange, there must be enough nodes participating to support the project’s development.

Furthermore, LoanNetwork is positioned as a “decentralized oracle” network, which achieves the process of data transmission and validation by providing predictability. In the blockchain world, anyone can help build their own security and economic models by accessing and updating the resources they use. In addition, LoanNetwork can also be used as an open-source public infrastructure for designing and developing a variety of functionalities. For example, you can use existing blockchain technology to create highly interoperable and secure DApps, including Uniswap and PancakeSwap.

Finally, it is important to note that in order to ensure the security of users’ assets and protect against the risks of loss and malicious attacks, we introduce a term called “anonymity” to make identity identification easier. In terms of privacy protection, LoanNetwork proposes a new cryptographic method, using cryptographic concepts instead of traditional signature algorithms (such as Merkle trees), zero-knowledge proofs, and homomorphic encryption (C++).