lol I liked the idea of the POS but then I seen the marketing tricks.
Good luck with your idea.
Topic: [ANN] [EDR] E-Dinar - Media Social Platform - page 2. (Read 1560 times)
MLM coin....
.................and the scam continues!
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Delegated Proof Of Stake
POW systems use real energy produced by the GPUs in order to mine coins whilst users of cryptocurrencies based on POS systems must only have a certain amount of funds in their wallet in order to earn and help blockchain reach a distributed consensus.
By saying a distributed consensus, a term which is used in computer science and cryptocurrencies, we understand a mutual consensus between all members of a network, blockchain in our case, on what is false and what is correct.
When we talk about cryptocurrencies, the concept of false and correct has to do with validity of the transaction and coin data that a block contains. If the data in the last block is false and is not agreed upon by the network nodes to reach the distributed consensus, it may lead to various kinds of attacks that jeopardize the system integrity or result in double spending.
And though POW based cryptocurrencies present a sensible means to reach the distributed consensus through mining, the system requires enormous costs associated with purchase of state-of-the-art mining equipment and energy spending for its well-functioning.
POS based cryptocurrencies use a completely different as well as a much more sustainable and eco-friendly model by substituting physical mining with staking coins on a wallet and reaching the distributed consensus between all users of the system this way.
However, though POS systems allow for getting rid of highly complex computations made by users through mining and therefore avoid wasting energy, they still remain far from the ideal due to the security vulnerabilities that may be caused by centralization of the system due to the wrongdoings of the most powerful stakeholders.
DPOS algorithm that E-Dinar Coin uses offers a crucially important element—called delegates—that prevents the system from becoming centralized and corrupt on account of misbehaving network nodes that, deliberately or not, make the system insecure.
Delegates are common people who may be chosen via a democratic vote by the stakeholders for purposes of securing the network through validating the blocks, making sure that the information in them is correct, and signing them.
These delegates, which are also called witnesses, are elect via the general vote for purposes of network integrity supervision, minimizing the risks of centralization through taking on the role of block signing in an unbiased way. In such manner, stakeholders still can stake and receive ROI but choose the most responsible delegates, who will ensure that the system integrity stays intact and receive a compensation in form of coins, instead of concentrating wealth in their hands and presenting security threats to the whole blockchain.
Apart from all other things associated with the block validity, delegates must also ensure that the previous block was signed by a trusted node. This way a lack of necessity to wait for the distributed consensus from all members of the network allows for cutting the transaction and block signing times to the minimum, precisely 2.5 seconds in E-Dinar Coin.
Since delegates are paid for their job and do not have the incentive to manipulate fees because they can be downvoted, and as opposed to physical mining in POW systems where the most powerful miners can set higher transaction fees at their sole discretion, commissions on all internal transactions in E-Dinar Coin are fixed at a low rate of 0.001 EDR.
Delegates and Voting System
The main advantage of any cryptocurrency is decentralization and lack of control of a single entity or institution over the whole system. Following the launch of Bitcoin in 2009, cryptocurrency developers tried to improve on the platform that Satoshi Nakomoto created because of appearance of mining pools, members of which tend to control the fluctuations of transaction processing fees, block production speed, and transaction approval processes therefore jeopardizing the decentralization of cryptocurrencies that use POW.
Proof-of-stake cryptocurrencies streamlined the system by avoiding the need to waste energy in order to produce blocks and ensure the security of the blockchain, but POS platforms still present significant—although lower—risks that a node may take control of the blockchain through a 51% error.
DPOS cryptocurrencies resolve this issue by adding delegates in order to make the cryptocurrency more decentralized, eco-friendly, democratic, and inclusive.
A delegate is just an employee to the stakeholders because they are paid for signing blocks with transaction data. Since all delegates are chosen through approval voting by all stakeholders, they may be downvoted by the people if they present a threat to the system’s security, misbehave, or fail to produce a block.
Stakeholders at E-Dinar Coin may choose any number of delegates depending on what at least 50% of the total number of stakeholders think is right in order to make the system decentralized enough. Stakeholders can only vote for the number of witnesses that coincides with the level of decentralization that they would like the system to have.
By being able to choose the exact number of delegates and who would they be, stakeholders become the voice of the cryptocurrency without being able to manipulate its structure or make it insecure.
Each delegate is paid for every single block they sign and produce and the pay rate is decided by all stakeholders through approval voting, too. If due to this or that reason a witness doesn’t produce a block, they will not be paid and may be voted out by the users.
Since delegates tend to be the most trusted users among all stakeholders, they also have a right to propose amendments in the system associated with their pay rate, transaction fees, block interval, block size, and so on.
Such changes may only become effective if they are approved by the majority of all other delegates as well as the stakeholders, which may either approve the change or disapprove it and even vote out the delegate who proposed it during a two-week period.
The active delegate pool is updated and shuffled daily during the maintenance interval. The system that E-Dinar Coin uses ensures that the delegate participation rate never falls below 99%, therefore making the cryptocurrency and user assets highly secure.
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