Topic: TRUSTCOIN - THE 3RD GENERATION OF BLOCKCHAIN - PROOF OF STAKE ALGORITHMS (Read 95 times)
July 31, 2019, 10:57:34 PM
1. ADVANTAGES OF TRUSTCOIN TRUSTINVESTMENT
Trustcoin was developed to overcome the weaknesses of Bitcoin and Ethereum thanks to outstanding features. The system is separated into 2 independent layers to ensure system’s security and speed. By adoption of PoS, the project’s electricity cost is reduced while the consensus process is quickly achieved. The upgrade mechanism does not affect the community as Bitcoin’s hardforks do. The development team consists of many experienced scientists and programmers all over the world. Trustcoin divides the protocol into two classes: The Trust Settlement Layer (CSL) and The Trust Control Layer (CCL). One class focuses on transactions and accounts, while the other focuses on smart contracts. This separation enhances the upgradability and flexibility of Trustcoin.
Proof-of-Stake: Trustcoin adopts a mining algorithm called Ouroboros, or proof-of-stake algorithm as defined by developers. Proof-of-Stake is completely different from Proof-of-Work. Trustcoin is generated by creating a block creator defined by their stake, or share, in the form of a currency. In particular, in this blockchain network, miners are selected to build blocks based on the stake they deposit depending on currency unit and age of stake in the Blockchain network. For simplification, you need to include some certain Trustcoins into a network address and will generate profits for a fixed period of half a year or a year.
2. TRUSTCOIN – THE 3RD BLOCKCHAIN GENERATION
Trustcoin is programmed in a simple and effective language known as Plutus language. Plutus adopts the mathematical verification method to eliminate human errors and verify the accuracy of the code. Trustcoin is considered as the 3rd blockchain generation. Bitcoin represents the first generation, and the second generation is led by Ethereum. Ethereum is very rudimentary as it is leading technology in blockchain generation 2.0. Currently, Ethereum’s upgradability and scalability must rely on the management system. With a blockchain 3.0 project like Trustcoin, developers can detect the drawbacks and difficulties of previous projects and develop more efficient networks.
An outstanding innovation of Trustcoin is that it is one of the first Blockchain coins to use proof-of-stake algorithm while Bitcoin and most other digital currencies are based on proof-of-work algorithm. Trustcoin can be expanded and designed in separate layers, so that software can be easily upgraded later.
The difference between Trustcoin and Bitcoin or other types of cryptocurrency lies in PoS consensus mechanism, while Bitcoin relys on PoW consensus mechanism. Trustcoin Network is developed on two layers: CSL is the first layer which is similar to Bitcoin but using PoS consensus. CLL is the second layer that supports decentralized applications (Dapps) and Smart Contracts but remains independent of CSL.
3. DIFFERENCES BETWEEN PROOF-OF-WORK (POW) AND PROOF-OF-STAKE (POS)?
Proof-of-work (PoW) is also called proof-of-work algorithm. This algorithm helps miners solve mathematical equations in the process of mining Bitcoin. There are many ways to solve mathematical equations, but the system only selects the best one. Blockchain systems cannot be fooled since it contains a list of the most appropriate answers.
The core issue of the proof-of-work algorithm is the computer resource and power energy. It is required to supply a large amount of energy to the computer system for selecting the optimal answer. Regarding ecological aspect, this is absolutely not helpful at all. Miners use too much energy and cause adverse effects on the environment. Bitcoin requires more computing power than that of a normal computer. This leads to clustering among miner community, forming monopoly of large miners and small miners will not be able to compete with the larger miners. Because large computing power enables large miners to find right answer faster than small miners. This goes against the concept of some decentralized and blockchain systems that will likely pave the way for a 51% attack.
51% attack?
51% attack occurs when a miner or a mining-pool controls 51% of computing power in the network. Then it can manipulate the whole transactions and perform fraudulent acts. They will create forged blocks and cancel the blocks that have been mined by the community.
That is why the proof-of-stake algorithm was born. When someone owns 51% of the share of any digital currency, it is obvious that he will not attack such type of currency. Moreover, no one dares to give up their assets to buy 51% of the supply of a coin due to extremely expensive cost. Theoretically, any attack on such currency will only undermine the value of the shares they hold.
What is Proof-of-Stake?
Proof-of-stake (PoS) algorithm occurs when a miner contributes a stake in a particular digital currency to verify the transaction block. The proof-of-stake algorithm is quite simple for computers because you only need to prove that you own a percentage of shares pertaining to such digital currency. For example, if you own 5% of existing Ethereum traffic, you have the right to mine entire 5% of Ethereum transactions.
Proof-of-stake is considered a fairer system than proof-of-work for everyone to become a miner. Regardless of whether the scale is large or small, mining will be linearly proportional to the number of shares owned. This encourages the community to engage in confirming transactions, thereby increasing decentralization and democracy.
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