Tag: Delegated proof of stake

Categories
Cryptocurrencies

What’s EOS? A Beginner’s Guide

The first (Bitcoin) and second (Ethereum) generation blockchains each brought groundbreaking innovations in the blockchain space. Bitcoin pioneered the concept of blockchain and cryptocurrency – completely changing the face of finance. Ethereum took the idea of blockchain and expanded it to include smart contracts and decentralized applications. 

The first (Bitcoin) and second (Ethereum) generation blockchains each brought groundbreaking innovations in the blockchain space. Bitcoin pioneered the concept of blockchain and cryptocurrency – completely changing the face of finance. Ethereum took the idea of blockchain and expanded it to include smart contracts and decentralized applications. 

The first (Bitcoin) and second (Ethereum) generation blockchains each brought groundbreaking innovations in the blockchain space. Bitcoin pioneered the concept of blockchain and cryptocurrency – completely changing the face of finance. Ethereum took the idea of blockchain and expanded it to include smart contracts and decentralized applications. 

But even with those contributions, the two blockchains somehow couldn’t hack the test of scalability. Both Bitcoin and Ethereum’s transactions per second (at 7 and 15 respectively) pale in comparison with real-world systems that can handle millions of daily active users. 

EOS, a blockchain project by Chinese company Block.One wants to solve these problems. It aims at supporting thousands of transactions per second, as well as providing a free interactive environment for developers from all over the world to experiment with and create decentralized applications. Ambitious goals notwithstanding, EOS has not made it unscathed by a controversy or two.

Let’s dig into what EOS is all about.

Understanding EOS

EOS is a blockchain and cryptocurrency project that supports the creation of decentralized applications (DApps). The EOS team also wants to solve some of the problems burdening blockchains such as low transaction speeds and complexity of use that would lock out many developers. The EOS platform claims to support 1000+ transactions per second. For these reasons, it has been dubbed the ‘Ethereum Killer.’

EOS is the brainchild of Dan Larimer, a well-known figure in the crypto space and creator of successful blockchain platforms, Steemit and BitShares. EOS is known as just that: EOS. There doesn’t exist a full form of the name, and neither have the creators offered any. 

Block.one, the company behind EOS, raised a record-setting $4.1 billion in a year-long initial coin offering (ICO) that ran up until July 2017. This represents the biggest ICO to ever happen in the blockchain space to date. 

EOS’s Approach to Blockchain Applications

EOS believes in and seeks to achieve these requirements for blockchain: 

#1. Support Millions of Users 

If blockchain applications are to compete with businesses such as eBay, Amazon, Uber, and Facebook, blockchain tech would need to support tens of millions of users at any time. 

#2. Free Usage

If blockchain is to realize greater adoption, it needs to be free for users. Developers and businesses using the platform can then explore and implement other monetization strategies. 

#3. Flexibility and Bug Recovery

A blockchain platform should be flexible to allow businesses to upgrade their applications if and when needed. The platform should also be able to identify and root out bugs when they occur.

#4. Low Latency

Blockchain applications should relay high volumes of data with minimal delay (latency). Low latency would ideally be near real-time access to data. Anything less would frustrate users and render blockchain uncompetitive against legacy systems.

#5. Support Sequential Performance

Not all applications can be implemented with parallel algorithms. Applications like, let’s say, crypto exchanges require sufficient sequential performance to deal with high volumes. 

How Does EOS Work?

EOS’s product is essentially like that of Ethereum – offering a conducive environment for developers to create DApps. But EOS wants to focus on the most critical problems currently facing blockchain, such as high latency, scalability, flexibility, that have held back blockchain from achieving its full potential.

EOS endeavors to address these issues by supporting more scalability, flexibility, and ease of use. The developing team claims the network can support thousands of industrial-scale DApps without suffering performance bottlenecks by the use of sequential performance and “asynchronous communication” of data. 

Additionally, EOS achieves scalability by employing certain features. First, it’s ownership model promotes free usage for clients, and significantly reduces or eliminates transaction fees. Developers can also utilize various on-platform resources based on their stake in EOS. This means app developers are in a better position to predict their hosting costs, as well as design the best monetization strategies for their respective products. 

EOS: Delegated Proof of Stake (DPoS)

Dan Larimer conceptualized the delegated proof-of-stake of consensus mechanism. In DPoS, network delegates vote for a few representatives, who are then tasked with securing the network. These chosen delegates will also oversee the generation and verification of new blocks as well as their addiction to the blockchain.

In the context of EOS, 21 delegates (supernodes) are chosen from a pool of potential block producer candidates. Block producers are rewarded for their role in maintaining and securing the network. Rewards are granted on a per-block-basis and the block rewards system bankrolled by a 1% annual token inflation. 

Controversies Surrounding EOS

EOS has not been without a few controversies. It all started with the year-long ICO that raked in $4.1 billion. Some members of the community felt this was irresponsible, greedy, and shady. 

There have also been concerns that its delegated proof-of-stake consensus mechanism, in which there are only 21 producers, is too centralized. Blockchain testing company Whiteblock has also come out to say that the project is not genuinely censorship-resistant, saying “the foundation of the EOS system is built on a flawed model that is not truly decentralized.” 

The EOS network was also rigged with bug after bug, especially leading up to the main net release. This was very bewildering for many people who couldn’t fathom how this was possible with all that money collected. This led to the company establishing a bug bounty system that rewarded benevolent hackers who identified bugs in the system. Even after the project went live, bugs were still reported.

EOS.IO and EOS Tokens

The EOS network houses two tokens: EOS and EOS.IO. The role of EOS.IO is to manage functions in the ecosystem. It facilitates the vertical and horizontal scaling on the network. 

The EOS token allows developers to purchase a stake and obtain access to various natural processes to create and run DApps. Token holders who are not running DApps can rent their bandwidth to others who need it. And lastly, the EOS token can be used as a speculative investment and is available for purchase/trading on various exchanges. 

Economics of EOS

An inflation rate of 1% of EOS is used as block producer rewards. The inflation rate was adjusted from 5% in February 2020. As of Jul 25, 2020, EOS’s per-token value is $2.62, and it has a market cap of 2.4 billion, which makes it the 12th biggest cryptocurrency in the world. EOS’s 24-hour volume is $1, 294, 563, 760, its circulating supply is 934, 603, 711, and its total supply is 1, 021, 303, 722. EOS’s all-time high was $22.89 (Apr 29, 2018), while its all-time low was $. 0.480196 (Oct 23, 2017). 

Buying and Storing EOS

You can purchase EOS from a variety of exchanges, including Binance, OKEx, Huobi, HitBTC, DigiFinex, Bitrue, ConBene, Gate.io, Upbit, LATOKEN, and BitMex.

As for which wallets support EOS, you have several great options such as Ledger Nano, Guarda Wallet, Atomic Wallet, Trezor, Jaxx Liberty, and Infinito.

Final Thoughts

EOS proposes a brave new world of free blockchain transactions. If it can indeed support a TPS of 1000+, it will be a far cry from the single and double-digit TPS offered by Bitcoin and Ethereum, respectively. Could this combination of capabilities bury Ethereum? That remains to be seen.

Categories
Cryptocurrencies

WAX Crypto Marketplace: How Does It Work, Developers, and WAX Tokens

Blockchain is set to conquer all nature of industries. But already, virtual gaming enthusiasts all over the world have a reason to celebrate as the technology makes inroads into this space, thanks to the WAX platform. 

Blockchain is set to conquer all nature of industries. But already, virtual gaming enthusiasts all over the world have a reason to celebrate as the technology makes inroads into this space, thanks to the WAX platform. 

Blockchain is set to conquer all nature of industries. But already, virtual gaming enthusiasts all over the world have a reason to celebrate as the technology makes inroads into this space, thanks to the WAX platform. 

Today, more than 400 million players purchase over $50 billion worth of virtual items every year. This shows the extent to which the virtual industry has grown. 

When you think of an economy that’s already so embraced, and deals with rare assets, it’s easy to see blockchain making things grander if added to the equation. The tech would inject more effectiveness, interoperability, and transparency. 

Virtual gaming fans would also be delighted at the prospect of gaming on a peer-to-peer and decentralized environment that’s free of centralized control. 

WAX is a blockchain-based platform that wants to make this possible. In this article, we’ll explore this exciting platform as well as look into its token, and where you can purchase it. 

What’s WAX? 

WAX is a global, decentralized, and peer-to-peer marketplace for virtual assets. Anyone can run their virtual marketplace without worrying about security, speed, and payment processing. The WAX team is targeting the more than 400 million gamers all over the world who are already buying, selling, and collecting virtual items. WAX’s proposition is a trustless service, ultra-modern security, and real-time payments. 

The platform wants to bring players all over the world into a peer-to-peer and smart contracts-based virtual gaming environment. In the words of WAX president Malcolm CasSelle: “The vast majority of gamers who buy and sell virtual assets today are likely to have their items stolen or pay exorbitant fees through cross-border transactions unless they go to a centralized trading platform. The ideal solution to this problem is a global virtual asset repository accessible to anyone, which provides a complete catalogue of all items available for sale in real-time.”

Who are the Participants in the Wax Network?

The WAX network comprises several key players who keep the platform alive. 

#1. Store Owners – Individuals/entities who operate their own virtual gaming marketplace. Just like the internet opened up new ways for enterprises to reach new audiences, the same way the WAX blockchain network is opening up a new frontier for virtual game owners.

#2. Guilds – These are block producers. They earn WAX Guild Rewards for producing blocks. 

#3. Standby/Reserve Guilds – These are “backup operators” who can be relied on to produce blocks on random requests. Standby guilds also earn their share of WAX Guild Rewards.

#4. Transfer Agents – They review transactions, along with: 

  • Communicating with transacting parties to facilitate pick up and delivery of items
  • Verifying the authenticity of the items
  • Digitally signing the Settlement Execution Contract that shows they have received the items, and also do so again to show that the items have been delivered
  • Delivering the items 

#5. Appraisers – These are members who are well familiar with the pricing of their favourite games. Appraisers can lend their knowledge and expertise of games to verifying various services.

#6. Asset Creators – These are members with an entrepreneurial flair who can come up with their own virtual items that they can trade on the marketplace

Delegated Proof of Stake (DPoS)

WAX employs the DPoS consensus algorithm to maintain honesty and optimize operations on the blockchain. WAX token holders usually choose WAX Guilds via a continuous voting process. To be selected as Guilds, token holders can convince other token holders to vote for them. 

The system ensures honesty in Guilds by implementing a continuous approval rating. As such, Guilds are incentivized to maintain a high level of transparency. Another way of keeping them honest is the knowledge that they will lose their Guild Rewards if they act in a less than trustworthy manner.

The WAX blockchain produces a new block every 0.5 seconds, with one Guild being authorized to produce one block at any time. If a block is not produced when it’s supposed to, its slot is skipped. If one slot gets skipped, a 0.5 gap is created on the blockchain. The network disincentivizes this by withdrawing Guild Rewards from WAX Guilds, who produce 50% or less of their allotted blocks. 

What are Wax Tokens?

WAX tokens are the virtual currency of the WAX network. They facilitate the tokenization and exchange of virtual items for cryptocurrency. They’re also the medium through which buyers purchase virtual games. WAX tokens are also used to reward various participants for their contributions to the network. These participants include: 

  • WAX token holders who select WAX Guilds
  • WAX Guilds who process new blocks 
  • Independent developers whose projects are taken on into the WAX Worker Proposal System

Who is Behind WAX? 

The team behind WAX is also the one behind OPSkin, an online game trading platform. OPSkins CEO William Quigley is also CEO at WAX, while OPSkins founder and CTO John Brechisci Jr is the lead designer. Jonathan Yantis is the COO at both entities, with OPSkins CIO Malcolm CasSelle acting as President of WAX. 

Tokenomics of WAX

As of June 24, WAX traded at $0.055670, while ranking at #93, with a market cap of $67, 083, 809, a 24-hour volume of 1, 941, 051, a circulating supply of 1, 205, 021, 274, and a total supply of 3, 671, 208, 781. The token’s all-time high was $5.01 (Dec 21, 2017), while its all-time low was $0.015961 (Dec 30, 2019). 

Where to Buy and Store WAX

The WAX token can be found on several exchanges, including Huobi, EtherDelta, Bittrex, Upbit, Bancor Network, and Tidex. 

The token is based on Ethereum and can, therefore, be stored in any Ethereum-compatible wallet. Popular options include MyEtherWallet, Jaxx, Parity, Guarda, Trust Wallet, Ledger Nano, and Trezor. 

Final Words

WAX will improve the online gaming environment in a way that wasn’t possible before the advent of blockchain technology. It will enable seamless payments processing, high-level security, and a decentralized platform that’s immune to the whims of centralization. The team behind the project has a wealth of experience under their belt, and this should come in handy in making the project a success. The online gaming community is banking on it. 

Categories
Cryptocurrencies

What is Lisk (LSK)? 

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin’s driving technology, blockchain, is being harnessed for a raft of industries. But one area that’s not so obvious is the one for decentralized applications (DApps). DApps are a new kind of apps not controlled or regulated by any single entity.

They are the polar opposite of traditional applications whose developers are at the whims of centralized entities.

Lisk is hoping to change this by empowering developers all over the world with the means to earn from their work. Let’s get a closer look at how it plans to make this happen.

What is LISK? 

Launched in May 2016, Lisk is an open-source and blockchain-based platform that aims to make blockchain technology more accessible for developers to build decentralized applications (DApps). It does this by employing side chain technology.

Lisk aims to address the problem developers face when creating applications using blockchain. Developers work so hard but are usually under the mercy of centralized entities (such as Google Play and Apple’s App Store), which get the largest share of revenues.

Lisk aims to correct this by creating a decentralized platform that will allow developers to deservedly earn from their work. Also, instead of using a proprietary coding language, Lisk utilizes JavaScript, the most well-known, so as to accelerate development to make it easier for developers to join the platform.

How Does Lisk Work 

Lisk is a platform that lets developers create decentralized applications ((just like Ethereum or NEO). However, Lisk distinguishes itself in several ways.

For instance, Ethereum uses Solidity, a language unique to it, thus requiring developers who wish to use the platform to learn a new language. Also, the platform is majorly dedicated to smart contracts. This ingrained code means third parties have to operate as front-end applications.

Lisk utilizes sidechain technology and a software development kit (SDK) to empower developers to produce high-quality DApps.

Sidechains

Sidechains are independent blockchains that connect to the main blockchain without interfering with its performance. This creates interoperability that enables users to perform previously impossible tasks such as transferring your tokens directly between chains. For developers, sidechain tech allows them to customize things like consensus algorithms, testnets, and asset tracking.

Many side chains feature just one blockchain (e.g., Bitcoin) or are developed for private blockchains. Lisk wants to combine these to create the best solution: maintain security with side-chain flexibility. Developers can create their own blockchain – which will function as a sidechain, while Lisk maintains the mainchain – which is secured by 101 delegates. As such, were a side chain to go down, the network and the main chain would not be affected.

How is Lisk Different?

Lisk seeks to make blockchain tech more accessible to developers. To this end, they’ve created a set of blockchain developing tools based on JavaScript. The platform wants to achieve a high-level user experience and offer unprecedented developer support.

Lisk’s SDK comprises three core parts:

  • Consensus Algorithm – which is Delegated Proof of Stake (DPoS)
  • Sidechain – which lets developers create independent blockchains linked to the main chain
  • Back-end – a fully customizable code that allows developers to create decentralized applications autonomously
  • Front-end – friendly user interface (UI) where the public can interact with the chains

By bringing together the capacity of the main chain with open-source blockchain development kits, developers have the free rein to create exciting, convenient, and accessible digital apps. They can then make the apps available as a package in a decentralized app repository. The LSK token is used to power transactions and services on the Lisk blockchain.

Delegated Proof of Stake 

Lisk uses a delegated proof of stake mechanism that works as follows. Anyone can become a delegate by registering an account on the network. With this account, you can easily collect votes from any LSK holder. 1 LSK token is equal to 1 vote, and an LSK holder can vote with their current LSK holdings.

The 101 delegates with the most votes get to add new blocks on a blockchain and, by so doing, secure the network. These delegates are said to be on an “active” mode. The rest of the delegates are on “standby.” Also, the order of the active and the standby delegates is constantly changing.

The Lisk Team 

Lisk is led by a vibrant team led by Max Kordek and Oliver Beddows. Kordek is President/CEO and co-founder. He has been an avid follower of blockchain,  and he gathered a lot of insights on the technology for years before creating Lisk. He’s also an ardent fan of science fiction.

Beddows is Vice President/CTO and Founder. He has 12 years of development experience under his belt, and he believes blockchain is a powerful tech that can change the world for the better.

What’s the Market Look Like for LSK? 

As of June 4, 2020, Lisk is trading at $1.25, while ranking at #51 in market capitalization. It has a market cap of $154, 891, 635,  a 24-hour volume of $5, 295, 614, a circulating supply of 123, 957, 448, and a total supply of 140, 012, 060. LSK’s all-time high was $39.31 (Jan 7, 2018), and its all-time low was $0.095652 (Mar 02, 2017).

Where to Buy and Store LSK 

You can find Lisk in a variety of exchanges, including Binance, Poloniex, Bittrex, HitBTC, Coinswitch, Kraken, Cointree, KuCoin, YoBitNet and Huobi. For the majority of the exchanges, you’ll need to first purchase BTC or ETH and then exchange it for Lisk.

Lisk has a Wallet available for both desktop and mobile. The desktop version allows you to vote for delegates as well as monitor the Lisk blockchain: inspect delegates, monitor transactions and blocks, and so on. Lisk also recommends these third-party wallets: Trezor One, Trezor Model T, Ledger Nano S, and Ledger Nano X.

Final Words

Lisk is a blockchain project that’s actualizing the Bitcoin dream – taking power from centralized systems and handing it back to the people. For too long, talented and hard-working developers have had to cede to corporate machines, which take the lion’s share of the revenue from their hard work.

Lisk is about to change this by creating a decentralized platform where developers can utilize a set of powerful tools to create decentralized apps and take back their earning power. Also, its use of JavaScript will help it cultivate a user base of millions of already trained developers, and has the potential to thrust it to the forefront of the blockchain space. It’s certainly one to watch.