Cloud Giant Xunlei Launches Blockchain Platform ThunderChain

Chinese cloud network provider Xunlei has launched a high-performance blockchain platform, which it claims can concurrently conduct millions of transactions per second (TPS).

Founded in 2003, Xunlei operates a powerful Internet platform in China based on cloud computing to provide users with quick and easy access to digital media content through its core products and services, Xunlei Accelerator and the cloud acceleration subscription services.

Dubbed “ThunderChain,” the new blockchain platform is based on Xunlei’s proprietary homogeneous multichain framework. It is designed to realize confirmation and interaction among homogeneous chains and enable multiple transactions to be executed on different chains in parallel.

ThunderChain adopted an optimized practical byzantine fault tolerance (PBFT), a system initially devised for low-latency storage systems – something that could be applicable in digital asset-based platforms that don’t require a large amount of throughput, but do demand many transactions. The platform also supports smart contracts written in solidity language and is compatible with Ethereum Virtual Machine (EVM), making it easy to migrate applications from other blockchain platforms.

Xunlei also announced its partnership with InfoQ, a global leading community for tech developers, to host the Blockchain Applications Global Challenge. The goal is to develop blockchain applications and cultivate talents to help overcome complex challenges facing multiple industries, including logistics, healthcare, education and the public sectors. The deadline for project submissions is June 15.

In January of this year, China’s National Internet Finance Association (NIFA), a self-regulatory organization in the field of Internet finance, issued a warning against risks from the so-called “initial miner offerings” (IMO). NIFA claimed that IMOs are disguised initial coin offerings (ICO), the latter completely banned in the country. The group cautioned investors that IMOs may be using misleading ‎information as part of fundraising campaigns aimed at selling hardware for ‎cryptocurrency mining, and cited Xunlei’s LinkToken as the primary example.

As a result, Xunlei investors formed two class action lawsuits against the company, alleging that it engaged in an unlawful financial activity and that LinkToken was a form of disguised ICO.

According to one of the lawsuits, “defendants during the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Xunlei had engaged in unlawful financial activity; (2) LinkToken, Xunlei’s blockchain-based product, was a form of disguised Initial Coin Offering; (3) Xunlei was engaged in the promotion of an Initial Miner Offering; and (4) as a result, defendants’ statements about Xunlei’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.”

Chen Lei, chief executive officer of Xunlei, rejected accusations that the company misled investors in order to illegally conduct an ICO in China. He also said that Xunlei is currently in the process of hiring legal counsel to refute the allegations.

“ICOs are terrible, and give a bad name to blockchain technology,” said Lei. “Governments should clamp down on these practices – a crackdown is the only way blockchain can rebuild its reputation. We have been very straight on our business practices – we do not sell tokens.”

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