Topic: [ICO][ANN] ⭐ CyBit - FEEL THE POWER OF CROWDFUNDING ⭐ - page 7. (Read 4793 times)

 The public networks are inherently very expensive to run and it also have some serious performance issues which comes through the Proof of Work algorithm, where the need is to be in agreement with the transaction order to occur. This mechanism of the algorithm ensures security and consistency. The issue here is that the number of applications gets limited where there is potential to employ such technologies.

On the hand, unlike the public networks, the private type networks limits the usage of the network exclusively for the trusted parties only. The resultant of such approach is considerably low cost and it also enhances the performance of the network quite dramatically. The algorithms employed in such networks have got the potential to ensure as many as 1000 transactions in every second, which is quite speedy and phenomenal. This is especially beneficial when compared with just 7 transaction in 1 second over a Bitcoin network. However, there are numerous loopholes in such a model which paves way extremely vulnerable to DDoS attacks.

A direct comparison of Blockchain VS Hashgraph:

The blockchain technology is rigid in the sense that it provides an incorruptible platform to perform a range of financial transactions. It also has the potential to be programmed for not just the economical transactions, but for anything of a certain value. All the information contained over the blockchain network is available in shared form and that is updated on real time basis. This kind of mechanism ensures that all the data or the records that it contains remains the same all across the network, no matter, wherever it is physically stored. Considering such a model of blockchain, nothing over the network could ever be controlled by any single person or entity. This in other words also means that the blockchain has no single point of failure.

Now let us see what Hashgraph has got to offer. The Hashgraph by nature supports a much diverse and a superior data structure which by every means is fully capable in solving a range of problems which the blockchain network always has been found to struggle with, such as its consensus algorithm mechanism. As per this time, the consensus algorithm technology is broadly categorized into anyone of the below give categories:

     Public Networks - Examples includes Ethereum and Blockchain etc.
     Private Networks - Examples are all those solutions which relies over the Consensus Algorithms (Leader based)

What is Hashgraph?

Hashgraph in one line is the future of the distributed ledger technology. Now let's get to the actual meat of the matter and find out that what Hashgraph really is. It is essentially known as one of the most robust system, especially in comparison to the blockchain briefly discussed above. It also has its own consensus algorithm which provides an absolutely innovative podium for employing the consensus algorithms to get things going in a much smarter way. You may recall the most commonly known attributes which you would associate with the blockchain model and those are consensus based, flexible, distributive, transparent and transactional. Hashgraph is known to have all the mentioned attributes which are also part of the blockchain. The technology majorly is a mix of the innovative consensus algorithm and the data structures which help in providing a more transparent, fast and a highly secure network, especially when compared to blockchain. In order to achieve transparency, speed and top security, Hashgraph make use of the following two highly effective techniques:

    Gossip about Gossip - Gossip about Gossip is such a concept which actually tells about associating a supplementary amount of new information to the ongoing gossip. The ongoing gossip is actually about the 2 x hashes to which the last 2 folks talked to. So, a Hashgraph could then be built on this principle and the same could be updated just as some more information becomes available over the node.
    Virtual Voting - Just as you find the Hashgraph being ready then this is the time when it is very easy to point out that what the node would actually vote. It is because, we as a user are fully aware about what is the exact information at every node and when actually they knew it all. Now this data can now be employed in order to input that in the required voting algorithm and also to skim out the fact that which of the carried transaction have reached to the consensus point in a quick amount of time.

Empowering your crypto network using Hashgraph consensus algorithm

What is a Consensus Algorithm?

In order to understand Hashgraph, we need to first throw light on blockchain and will then build our case in the right manner. Just as you know that blockchain emerged in response to the disaster of multiple financial institutions back in the year 2008. The idea was actually a new monetary system where control was taken away from a single source or point of failure and relying totally over a peer to peer kind of a cash system, especially designed for serving the digital domain. It was considered as a disruptor, a revolutionary solution, only until the cryptocurrency enthusiasts and experts started to talk about another disruptive technology named Hashgraph.

     Byzantine Fault Tolerance (BFT) – Byzantine Fault Tolerance (BFT) is known as a high-tech consensus algorithm, in nature. The BFT algorithm used by different cryptocurrencies projects enable the validators to oversee the state of the blockchain and at the same time, also share messages in between in order to reach the precise transaction record. Ensuring integrity in the carried transactions is also a key aspect of this consensus algorithm. The main application of the algorithm is in the Ripple cryptocurrency where Ripple foundation is responsible for preselecting the validators. The other notable application of BFT is in the Stellar cryptocurrency network, in which, anybody could be a validator and the level of trust is established or gained by the community itself. BFT is highly beneficial, mainly because of its ability to address scalability issues and offering transactions at a much reduced cost. But, just like the DPoS discussed above, it does introduce the entire network to a considerable component of centralization.

Guney Demirci
VP Operation (VPO)
Blockchain Fintech Product
CyBit Limited | Cybit.io
Copyright © CyBit Limited 2018. All rights reserved.

Delegated Proof of Stake (DPoS) – This consensus algorithm was invented by Daniel Larimer which requires support from the coin owners to give their vote for the ‘delegates. The delegates further have their task cut out not only to validate the ongoing transactions but also maintaining the overall processing of the blockchain network. This algorithm, as you might can sense from its name is an alternate to the Proof of Stake (PoS) algorithm (discussed above), which is quite a familiar one these days. The working mechanism of DPoS is quite dissimilar from the conventional consensus algorithms mechanisms. Here, the stakeholders are responsible for electing the witnesses and the witnesses are then obliged and rewarded for producing blocks, which eventually become part of the blockchain. Stakeholders have the liberty to vote for as many witnesses as they want and nearly half of the stakeholders are of the opinion that the required decentralization has been accomplished by the number of witnesses elected. The voting process here is continuous, so this gives witnesses the potential for having an incentive in performing their function to the optimum level or otherwise they become vulnerable in losing their position. Moreover, the delegates are powerful enough to bring in changes to the network, such as in the block size, transaction fees and the amount to be paid to the witness. The real advantages of this algorithm are its ability to save on energy costs and then in promoting decentralization.

Proof of Stake - Proof of Stake (PoS) algorithm is the best alternative for the PoW discussed above. In this one, rather than going for the costly computer equipment for mining blocks, an investment is made by the validator in the coins of the system. The term validator is used here as no mining is done for coin creation in PoS. Instead, all the coins are actually in existence right from the first day and the validator are strictly paid in the fee for transaction. In the case of PoS, the chance for user to be selected for creating the next block depends upon the particular fraction of the tokens that are under your ownership. It means that a validator that has 400 coins is 4 times as likely to be selected as compared to a user with only 100 coins. The block always needs to be fully committed to the blockchain once it is created by a validator. The PoS implemented in different networks varies considerably in handling such a process of block creation. If you consider Tendermint, then each and every node in the network is bound to sign off on the block, until the system reaches the status of the majority vote. On the other hand, in some other systems, PoS make the selection of signers group, randomly. There is one problem that how one should prevent a validator for creating a couple of blocks and in return, looking for double transaction fees? This phenomenon is known as 'Nothing at Stake'. So, a person who has nothing to lose also doesn't have any good reason not to behave badly. The blockchain engineers are driving hard to alleviate this problem. One probable solution insight is to make the validator to employ a virtual vault for locking their currency. The coins gets totally slashed if the validator is found forking or double signing the system. The PoS was first used by peercoin which was then followed by NXT and blackcoin. Currently Ethereum operates using the PoW but in line to benefit from the perks of PoS.

Types of Consensus Algorithms:

The most common and widely used consensus algorithms are given below:

    Proof of Work - The first of the many blockchain based decentralized consensus algorithms was the Proof of Work (PoW). Despite having many other algorithms, it is still entrusted by the top of the line cryptocurrencies such as Bitcoin, Ethereum, Monero, Litecoin, Zcash and many more. However, Ethereum is on its way to move to the Proof of Stake (PoS) algorithm which we will be discussing in the next section. The performance of PoW is dependent upon the participants which it requires to do the computationally intensive work. Miners in case of the Bitcoin platform work to accumulate a set of transaction, called block, to be associated with the network maintained by the global blockchain. In order to get this done, the miner has to be the first one to rightly point out the ‘nonce’, which is actually a number that is appended at the end of the string, forming a hash. Hash initiates with the number of 0s required. The best part of PoW is that, it has proven itself with performance over a good number of years, which is far more than any of the consensus algorithms that it competes with. However, PoW has its share of downsides as well and the major ones are its excessive.

Consensus Protocols of Blockchain – A Guide to Remember

What is a Consensus Algorithm?

The decentralized cryptocurrencies platforms of Blockchain model are powered by consensus algorithms, which is its most crucial aspect. It is true that the advent of Blockchain changed our life altogether and opened new horizons in the financial domain. But, this doesn’t mean that we limit ourselves just to what the initial model of Blockchain has offered us. Things evolve in any technological infrastructure with time and demand of the market. In Blockchain, the shared public ledger is all dependent upon efficiency and performance of its consensus algorithm.

A popular example of a consensus algorithm is Proof of Work (PoW) which is used both by the gigantic cryptocurrencies, Ethereum and Blockchain. There are multiple such algorithms introduced so far for different cryptocurrencies which were introduced to address a particular issue and to take the blockchain mechanism to an altogether newer level.
What does a Consensus Algorithm do?

A consensus algorithm in the blockchain model majorly performs two major things which are given as follows:

     Ensuring that the next block in line is every possible sense is the unique version of the transaction or truth.
     Countering the resourceful challengers from deteriorating or derailing the network/ system and ensuring successful forking of the chain.

Investors need to read in detail the white paper CyBit. This is the most important information in which the project is described in detail: the idea, functions, services, business processes, team and so on.

Particular attention should be paid to white paper. The document is intended to help the investor make a decision and become familiar with the project.

I agree with you. under the last attack aimed at the etherium network were people who went into their wallets using a private key

Hackers Usually attack the most inexperienced users who do not have elementary rules how to protect themselves

Human stupidity always led to a loss of money. This field of activity is no exception

I think it's about the security of the token, not the minimum savings. Although a little save is also nice

It depends on how to treat your product. It is possible to modernize protection not only after attacks but to do so always

It is clear that no one is 100% protected. Hackers are developing, but the platform is also monitoring security.

The main reasons for the loss of investment are stupidity, laziness, the desire to quickly and effortlessly earn a lot, and of course fraudulent projects that flooded the market of the crypto industry.

Scam projects are the very first reason for the loss of investment.

First, this is an example (the second time I'm writing this ).
Secondly, I remember these kittens(dec 2017), and I remember how the blockchain was overloaded at the time (250k 50gas was not pushed through the transaction).
Thirdly, how can there be special cases from the history of the ether blockchain to the activity of investors?

Within a 1-1.5 year, ethereum devs are planning to increase the capacity of the blockchain, which will reduce the cost of transactions during overloads.