The cryptocurrency the world is maturing too the struggle over the right long-term consensus protocol is intensifying. The outcome of this struggle volition shape the hereafter of the entire ecosystem.
The role of a consensus algorithm inwards a populace Blockchain network is to brand for sure that the network’s participants concord on the electrical flow terra firma of the Blockchain without the demand to trust each other or to have got a fundamental authority.
It all started amongst Proof of Work
The utilisation of Proof of Work mining was initially proposed to found that a given block had required a for sure amount of operate to endure mined. This allowed users to only selection the longest valid chain amongst the highest amount of operate equally the right chain.
However, Proof of Work is extremely inefficient inwards damage of unloosen energy consumption. This makes it expensive too incentivizes miners to centralize the hashing power. So, instead of pushing us towards a genuinely distributed network, these concentrated mining farms have got kicking the bucket de facto authorities.
Another choice was needed.
The focus switched to Proof of Stake
A Proof of Stake algorithm has goose egg to exercise amongst mining. Instead, it is almost validating. The specific instrumentalist responsible for the side yesteryear side block inwards the chain is determined yesteryear the Proof of Stake algorithm. In social club to avoid overly concentrating this power, the algorithm must have got some sort of randomness. At the least, voting shares must endure distributed properly to avoid morphing into a centralized system.
In a Proof of Stake system, each validator must ain some stake inwards the network. These stakes are bonded, which way that network participants deposit some money into the network using it equally a collateral to vouch for a block.
In a Proof of Work network, everyone accepts the chain equally valid because a pregnant amount of endeavour has been employed. Meanwhile, inwards a Proof of Stake network participants trust the chain amongst the highest collateral.
Within the cryptocurrency the world Proof of Work remains the most widely adopted consensus algorithm. However, a few prominent projects including NXT, BitShares too Ethereum utilisation or are migrating to Proof of Stake.
Even inside the Bitcoin community, some members are considering trying to alter the digital currency’s Proof of Work consensus machinery to address scaling issues too improve the network’s operation.
But could in that place endure a ameliorate alternative?
One projection that launches its ICO on May 1st uses a technical blueprint that goes far beyond both Proof of Work too Proof of Stake. The projection is called VIVA too it introduces the concept of Proof of Authority.
What is Proof of Authority?
VIVA introduces the concept of Proof of Authority equally an algorithm which delivers minute transactions too seamless consensus over a genuinely distributed network.
We lately asked William Banks, CTO at VIVA, to compare Proof of Authority amongst POW too PoS models. “While Proof of Stake powerfulness have got for sure advantages, it is non a panacea. The work is that in that place is no guarantee that the validator amongst the highest collateral deposited for a block is going to operate the network inwards its best interests.”
“In fact,” he says, “Proof of Stake coins are plagued amongst issues because rational people tend to deed inwards their ain self-interest. PoS plant alone because the best interests of the largest stakeholders commonly exercise align amongst those of the network. In the instance of a disagreement, however, the largest stakeholder powerfulness assume the role of the supreme commander.”
Keeping the endgame inwards heed is important
The distributed Proof of Stake algorithm was created to solve problems amongst the before Proof of Work algorithms. To acquire into operate the decisions are weighted based on multiple factors.
First too foremost, the size of the stake too the interests of a validator are taken into account. Secondly, it is of import to cheque when their determination in conclusion became the primary determination agreed upon yesteryear the network’s participants. Finally, it needs to endure considered whether the outcome of this determination met amongst blessing yesteryear the bulk of the network participants.
Banks says:
“The proposed algorithm, however, does non line of piece of work concern human relationship for the long fourth dimension instrumentalist who has the in conclusion endgame inwards heed from the real beginning.”
The Proof of Authority model suggested yesteryear VIVA disposes of for sure egalitarian notions involved inwards weaker consensus models replacing them amongst cryptographic signature proofs too line of piece of work concern contracts enforced too backed yesteryear the network.
The ascendence inwards this algorithm is de juris usual assent to a short town betwixt the diverse parties based on the pledge of ane laid of assets against a whole other set. Thus, if ane political party falls out of consensus, the other parties automatically assume the non-consenting party’s assets too liabilities too hence that terminate users rest unaffected.
Banks goes on to explain:
“Nothing is lost inwards this scenario too a worst instance lawsuit results inwards bankruptcy of the ane who issued the uncovered notes, rendering it feeble too powerless until debts are repaid too the political party is brought dorsum into consensus.”
Each player plays a distinct role too the network is able to answer to toll changes yesteryear increasing or decreasing the unloosen energy inwards the organisation whether inwards a specific place or globally. Price too furnish are used inwards the organisation precisely similar the accelerator too brake pedals inwards a car.
Reinventing the Blockchain
The VIVA team asserts that their Blockchain differs significantly from previous models.
It is designed to endure a multidimensional graph rather than linear similar a traditional chain. Under this design, the VIVA network is said to endure to a greater extent than akin to neural networks, amongst linked, weighted, interconnected information too an optimizing mechanism. This solves the NP difficult “traveling salesman problem”, inwards social club to reroute the network into multiple optimal configurations depending on the tasks required of it.
By drawing from information inwards their Content Addressable Network (CAN), the VIVA ecosystem allows for a to a greater extent than robust too intelligent network. Rather than reinvent the wheel, the VIVA squad took wages of hundreds of millions of dollars inwards interrogation too investment yesteryear starting off amongst a custom fork of the powerful Hyperledger Fabric, which is backed yesteryear the likes of IBM too Intel.
VIVA has a three-tier cryptocurrency model consisting of VIVA Crowns, VIVA Coins too market-pegged instruments called vX which are tied to local fiat currencies for storing value similar vUSD, vMXN or vEUR, etc. Within the system, VIVA Crowns are an indivisible digital property secured yesteryear the best cryptography available. They grant the possessor rights to access the network, operate a line of piece of work concern referred to equally a mint, too have a Treasury Right (TR) every ninety days to mint a portion of the full VIVA coins allotted inside that quarter.
Within the VIVA network, coins are non mined, they are minted. Influenza A virus subtype H5N1 mint hither tin endure idea of equally a hybrid betwixt a master copy node too a mining pool, which is allowed to deport whatsoever line of piece of work concern activity except minting VIVA Coins to sell on the opened upwards market. VIVA Crown Holders who exercise non operate a mint tin sell their quarterly Treasury Rights to other mints who demand them to embrace their operational expenses.
With a few tricks upwards their sleeve
The VIVA Network goes far beyond beingness precisely some other cryptocurrency. From its inception, it relies on existent the world line of piece of work concern applications to convey inwards unloosen energy into the system. For example, TradeQwik is the crypto/fiat substitution too the primary gateway inwards too out of the VIVAconomy. It is the initiatory of all operating mint on the evolving VIVA Network too is currently available inwards beta.
All transactions on TradeQwik are done using the network token VIVA Coin, amongst a few substitution pairs beingness offered for trading, including Bitcoin, Litecoin, Ethereum, Steem, Dash, Golos, XAU/GBG, USD, too MXN.
Another VIVA Business Application is Cashola, which is a peer-to-peer payment organisation which utilizes text messaging equally a tool for making transactions. The solution volition enable money transfer services to people to a greater extent than or less the the world who may non have got smartphones amongst a stable Internet connectedness but exercise have got a cellular service. The VIVA squad is planning to expand their money transfer licenses to farther prepare the service spell also making it to a greater extent than uncomplicated too convenient for terminate users.
VIVA has also developed MedicAxess, an application which hopes to kicking the bucket a game changer inwards the medical industry. The app volition let individuals to command all of their medical records rather than having them scattered betwixt medical clinics, hospitals, labs too wellness tending providers. Individuals volition endure empowered to command who has access to their records when they seek medical care. MedicAxess is a unique application inwards that medical services providers volition endure allowed to shop medical records on the network securely too for free. They volition alone pay a small-scale fee when they access records on behalf of a patient.
Last, but non the least, VIVA introduces POETS (Proof of Educational Transcript System). In the close future, this application volition connect educational institutions into a unmarried network of credits earned yesteryear students. They volition endure able to guide courses too instructors from a puddle of institutions, collecting the credits over a lifetime, too ‘cashing them in’ when they are degree-ready, too the issuing establishment agrees. Influenza A virus subtype H5N1 lot has been said almost life-learning, instantly in that place is an actual tool to ensure it, provided yesteryear VIVA.
The VIVA squad is edifice an entire ecosystem encouraging each too every fellow member of the community to participate. On May 1, VIVA is launching their ICO, which is going to in conclusion until May 21. During the ICO, a full of 6500 VIVA Crowns volition endure available for sale. After the ICO alone ane Crown volition endure discovered per calendar week amongst no to a greater extent than than 42,000 Crowns always beingness issued.
To acquire to a greater extent than almost the VIVA project, applications currently beingness developed too the upcoming ICO, delight catch their website.
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