EcoVerse™ is the first ever self-sustaining ecosystem based on a blockchain network developed for daily usability and universal applicability. It is capable of handling up to a million transactions per seconds (TPS)* with a less than two second transaction finality time (TFT). Our objective is to create a cryptocurrency environment in which individuals are offered:
• Equitable opportunities
• Contributions justly valued
• Rewards properly distributed
• All decisions made democratically
• Accumulation of wealth with integrity
Many cryptocurrency design teams have not attempted to solve the challenges of self-sustainability. To create an EcoVerse™ ecosystem which maintains long-term self-sustainability, our team focused specifically on incentive compatibility based on the theory of Mechanism Design.
Since Bitcoin’s inception by Satoshi Nakamoto, thousands of cryptocurrencies have been developed with over 1600 of them traded on exchanges today. Surprisingly, very few recent cryptocurrency token projects have been designed to be self-sustaining. Dr. Nicolas Courtois, a cryptographer at University College London, reports how some cryptocurrencies are self-destructive in nature:
“We observe that most cryptocurrencies have mandated abrupt and sudden transitions. These affect their hash rate and therefore their protection against double spending attacks which we do not limit to the notion of 51% attacks which is highly misleading. Moreover we show that smaller bitcoin competitors are substantially more vulnerable. In addition to lower hash rates, many bitcoin competitors mandate incredibly important adjustments in miner reward. We exhibit examples of `alt-coins’ which validate our theory and for which the process of programmed decline and rapid self-destruction has clearly already started.”1
In order to achieve mass adoption for cryptocurrency, self-sustainability remains fundamental. The EcoVerse™ team confronts this issue by introducing the notion of incentive compatibility. From a perspective of incentive compatibility, we analyze why many cryptocurrencies are lead to “rapid self-destruction” as postulated by Dr. Nicolas Courtois.
In many cases, the mechanism is built using only one monotonic economic incentive. However, the EcoVerse™ team believes that such methods prevent the mechanism from operating successfully long-term.
Dr. Youngwhan “Nick” Lee, Project Leader of EcoVerse™, further expounds upon the self-sustainable impossibilities within common cryptocurrency platforms:
“Suppose a cryptocurrency incentive mechanism provides only one monotonic type of incentive. When such a mechanism is denoted by C, and participant x, and time t, then we can define incentive compatibility as follows:
Contra-positive on x and t would be:
This formalization reveals that designing C to be incentive compatible for all time t is not only very difficult, but realistically impossible to achieve.”2
To avoid self-destruction and provide a self-sustaining platform, EcoVerse a socio-psychological approach to design an incentive model based on Spiral Dynamics and Integral Theory, called CONFIRM™ (Comprehensive ‘N Flexible Incentive Reward Model). The CONFIRM™ is a model that offers different incentives based on individual character.
CONFIRM™’s purpose is to give a variety of incentives to people other than the monotonic economic incentive that has been practiced by other cryptocurrencies and their platforms. Through obtaining various incentives that will provide satisfaction and fulfillment in many different desires given by the model, the ecosystem will become self-sustainable, to serve as a solution to the inequality of wealth problem.
Consensus Protocol & Governance (AI-DPOC)
The fatal drawback of most cryptocurrencies is the unequal allocation of incentives to the rich: the rich miners in the Proof of Work (PoW) or the rich stakeholders in the Proof of Stakes (PoS). The pattern of larger interests given more control in voting and receiving the most rewards also results in a network which leans toward an oligarchy inclined to collude rather than compete. This results in the minority with the largest interests becoming wealthier and having more power as delegates, earning more tokens as they earn more rewards. With an increasing supply of tokens, the minority gains a proportionally higher share of the vote to be elected, thus repeating a cycle which consolidates the power into the hands of the few powerful delegates. This results in impeding entry of new participants, therefore resulting in a lack of sustainability.
To provide the solution to the problem, the EcoVerse™ platform uses Artificial Intelligence Delegated Proof of Contribution (AI-DPoC) consensus.
AI-DPoC has a similar structure to Delegated Proof of Stake (DPoS). In DPoS, individuals or companies invest heavily to be a network node and become a delegate (BP). Although a BP is elected by participants, it is very difficult to replace one delegate with another. The network and community is heavily dependent on a few individuals, Delegates.
On the contrary, nodes in AI-DPOC will be built by the EcoVerse™ team and donated to the community. The community will form a committee to operate each node. The committee members will be democratically elected. As for the operation of nodes, most of the work will be automated and run by the EcoVerse™ foundation initially, but Artificial Intelligence when reaching alpha.
Speed & Scalability
Using AI-DPOC consensus, which adopts the Sharding and Raiden Network, EcoVerse™ will be able to handle a large number of transactions per second (TPS) as well as finalize each transaction in seconds.
With TPS, typically known as the scalability problem, a cryptocurrency network must be capable of handling a large number of transactions. The EcoVerse™ network will handle up to a million transactions per second in the lab, and over 100,000 transactions in the real world setup. One of the most common credit cards in daily use, VISA, has a maximum speed of 60,000 TPS — Bitcoin and Ethereum are quite slow by comparison.
The recently developed EOS blockchain is theoretically capable of up to 3,000 TPS, making it possible for everyday use. However, more important in analyzing performance measurement for day-to-day use is TFT (Transaction Finalization Time).
TFT is calculated:
TFT = Block_Creation_Time*confirm_Number
EOS’s TFT is the fastest TFT at 45 seconds, yet it is still too slow to be used in stores. TFT of each payment is shown in the table below:
Bitcoin’s TFT is more than one hour, because a block is created every 10 minutes or so, and it is encouraged to wait for 6 blocks for finalization. Among all other cryptocurrencies, EOS appears to show the shortest TFT at 45 seconds. The EcoVerse™ team aims to reduce this to 2 seconds using the ECX payment process.
ECX and ECR: A 2-Coin System
The EcoVerse™ platform is designed for two primary cryptocurrencies: ECX and ECR. Each with a different purpose —
· ECX: To be issued in prepaid tokens, to provide anonymity, and to minimize the volatility of its value, tethered with a fiat currency.
· ECR: To be issued to optimize value as a utility token, to adhere to KYC/ AML compliance regulations, and to maintain value by keeping the quantity of issuance determined by a mathematical model. ECR will be offered for EcoVerse’ Initial Coin Offering.
*up to a million TPS in a lab setting.
1 Courtois, Nicolas T. “On The Longest Chain Rule and Programmed Self-Destruction of Crypto Currencies” May, 2014.
2 Lee, Youngwhan “Making a Cryptocurrency Mechanism to be Incentive-Compatible” August, 2018. (https://medium.com/@youngwhannicklee/making-a-crytocurrency-mechanism-to-be-incentive-compatible-de668b1b1682)