Blockchain Hive: Fully decentralized, fast, feeless and minerless
Technology is growing fast, whose effect covers almost all aspects of life. A few years ago, we never thought it could reach the level of standardizing how we communicate, share information and even exchange values. The evolution of technology is made through trial and error process or “error correction”. In this article we will dicuss about this issue and where Blockchain Hive is in this “chain” of evolution.
Until now, almost every payment activity is still processed through centralized financial institutions, with their interference and confirmation. It has been considered one of the most secure and convenient ways to transfer fiat money from one person to another till the appearance of Bitcoin. Bitcoin has been created to disrupt the current financial system. In fact, it is not only a cryptocurrency which can be transferred between users without the participation of the third party as a medium of exchange but also its underlying technology- blockchain technology- can revolutionize our financial lives for the better.
Imagine, through your smartphone, you (in the USA) can send your friend (in Russia), for example, money at home and in just few minutes. There is no need for intermediaries like banks or other financial institutions, for a large amount of transaction fees and for nearly- one-day transaction time as in the past. Also, if in a centralized financial system, customers have to trust an intermediary to process their payments and spending, using blockchain technology, they can directly control and exchange money with each other and their information is completely anonymous, which means no interference from other parties.
However, Bitcoin- the Blockchain 1.0- somehow failed to fully fulfill its mission. Exchanging Bitcoin (BTC), users have to wait from 30 to 60 minutes for their transaction to be confirmed, with the fee up to one hundred dollars. To be more specific, if you are one among hundreds of people waiting for their transactions confirmed, you recommend to pay more fees for validators, then your transaction will be approved first. That is the reason why in some “jammed” pending pools, the fee can go up to one hundred dollars. Currently, most blockchains have the
same limitations as the blockchain of Bitcoin. The most representative limitations are as follows;
1. It is slow. (It takes enough time for the transaction to be confirmed)
2. Scalability is limited. (8 to 10 transactions per second)
3. Sustainable development is difficult. (We need a hardfork to update)
To overcome these limitations, we need a consensus engine that is out of bitcoin’s POW-based logic structure.
That same year, the world saw Ethereum blockchain, which fixed some of Bitcoin’s problems and also became popular as the Blockchain 2.0. Unfortunately, the scalability and transaction fees still remain unsolved due to the nature of consensus algorithm so called Proof of Work, along with the deterministic smart contract execution. However, it it also good to name the blockchain 2.0 to the blockchain which goes beyond the limits of the blockchain of the Bitcoin, rather than naming the blockchain 2.0 to the blockchain adding functionality in the blockchain. But Ethereum has already named the blockchain 2.0, the blockchains that overcome the limitations of the current blockchain should be named 3.0.
What do blockchains 3.0 do to change the situation? These blockchains are especially designed to address the issues that Bitcoin currently faces — of scalability, privacy and interoperability. In regards with interoperability, they aims to connect blockchain like the internet connected websites. It believes that while there are hundreds of blockchain networks today, they are not connected. These platforms deal with different areas and try to individually solve their issues. However, their operation and function would enhance immensely if they work together. This will also enable inter-blockchain communication. And to answer the question above, perhaps Wanchain, AION, EOS can give some clues.
In 2015 IOTA made a major change in decentralized technology, integrating the so-called graph — Directed Acycling Graph (DAG). In fact, it’s not a blockchain itself, but an improved system for replacing it. IOTA called it Tangle. Some called it version 3.0. However, this brand new title still remains controversal. Tangle technology and IOTA need more time to realize, just like they need to go through
practices to experiment, find out and strive to overcome the initial security vulnerabilities.
What is next?
It is nothing else but Paymon Blockchain. Paymon Blockhain or Blockchain Hive technology will be a perfect answer to not only this question but also each of every question mentioned earlier. This blockchain 4.0 ensures decentralization, scalability, governance, security, interoperability and the most important characteristics of being closer to mainstream adoption.
Paymon cryptocurrency PMNC (Paymon Coin) will be very decentralized, based on the DAG system. DAG is a directed graph that has topological ordering, a sequence of the vertices such that every edge is directed from earlier to later in the sequence.
DAG in this case is the replacement for blockchain. Transactions, based on DAG, will be confirmed by nodes. Each user of the network is a node, so the whole graph is full of them. Nodes send and also approve the transactions.
The main idea of Hive is to work in the following way: when a new transaction arrives, it must approve or try to approve two previous ones.
In order to speed up the process of confirmation the nodes form groups (so called “pools”) and each of them approves its transactions. That’s why all the users, making transactions, work for the network’s safety.
Hive also uses the system Proof-Of-ME (POM), based on Proof-Of-Work and a rating system. This protection principle assumes that the user who wants to join the system must first confirm himself.
No miners are needed in this process, everyone will be a validator, this is why there is nothing called centralization in terms of power.
Paymon is a fast and feeless system
DAG, in fact, makes the creation of cryptocurrency possible without staggering chain of blocks. Thanks to DAG there will be no mining in the sense that miners will not receive money just “out of the air” for confirmation of transactions. It gives three important advantages to the system.
First, DAG solves the scale problem. For example, the Bitcoin system allows to make only seven transactions per second. Ethereum blockchain — about 13–15. EOS, also based on blockchain, allows 100,000 transactions. But with DAG, it is possible to make unlimited amount of transactions. So, it’s possible only for Paymon Coin and IOTA.
Second, the speed of transactions will rise without miners. To compare, Bitcoin transaction confirmation takes about half an hour. Ethereum’s — from 15 seconds to a few minutes. EOS needs about 90 seconds for approval. Paymon Coin transactions, however, will work instantly.
Third, the Paymon system will allow you to avoid commissions for the transactions. In February 2017, when a lot of people started to use Bitcoin actively at the same time, the commission fee averaged $55. This problem is still relevant in the cryptocurrency industry. EOS and IOTA transactions are free now, and Paymon Coin ones will also be free.
Safer with Quantum — Resistant Algorithm
Here is one more reason why Paymon Coin is the future. Hive will use the algorithms that are impossible to uncrack by quantum computers. This option is not of great current interest, but it will be very important in 5–10 years.
IOTA is the first of the blocking companies that started using Quantum — Resistant Algorithms. However, here Paymon is one step ahead again. IOTA algorithms are not optimized and inconvenient for storage. For example, Paymon’s password will be 256 bits, while IOTA takes 7,000.
Paymon will use a modified algorithm, which is being tested now. The key sizes will be about the same as for Ethereum, but the algorithm is more innovative, so the keys will be no less safe.
Programming language Rust- More secure
The main program of Hive will be written in the programming language Rust. In comparison to other languages (Forth of Bitcoin, Solidity of Ethereum, Web Assembly of EOS, JavaScript / Python / C # / Java / Go of IOTA) Rust is the most advanced and secure. It is modified, more sophisticated, safer and faster than the languages of other blockchains.
Smart-contracts to enable smart economy
Smart contracts are not the invention of Paymon. Initially, they were integrated in the Ethereum system (Bitcoin blockchain doesn’t include smart-contracts). As it is known, smart-contracts allow for transactions to be made between users only with both sides agreeing in advance. If one side doesn’t want to confirm the transaction, it won’t be completed.
By comparison, IOTA doesn’t have smart-contracts. It is explained by the theory that there is no option to integrate smart-contacts into the DAG system. In Ethereum blockchain all transactions go in the right order, while in IOTA system it is impossible to determine the transactions order. This is because in DAG, if we can say so, they exist in different dimension and do not cross in the chain. However, Paymon programmers are working on this solution.
Business platform Profit- ready for mainstream adoption
And so, the final point about Paymon blockchain is actually the most interesting one. Profit is the business platform which finally will let cryptocurrency into everyday life and make it more popular among people. Why?
All the businesses will be able to join the platform and each owner will get payments for goods and services in cryptocurrency. There will be a special constructor integrated to the website, which will automatically generate the smart contracts after the user adds good or service.
For example, when the user will choose a good or service and decide to buy, he will get the choice: to see a QR-code or to pay for the goods immediately (also it will be possible to choose delivery). In the second case, the smart-contract will
wait until the company confirms the payment, checking if the user has enough money for the purchase. Only after that the exchange will be finished. The whole process will happen instantly.
There also will be an integrated rating system within the platform in order to avoid any kind of misunderstanding and conflicts between clients and companies. Each user will have an option to evaluate the company service from 1 to 5, and also to discuss any questions.
Moreover, as it was mentioned before, Paymon will provide transactions with high speed and without any commissions. So, thanks to integrated smart-contracts on Hive and Profit, users can conduct ICO and create online cash charges for any needs.
Also, Hive will include a domestic exchange, based on atomic swaps, that will allow users to make P2P exchanges within the platform. This is very convenient, because users will have the opportunity to concentrate within the same platform all the possibilities of exchanging different cryptocurrencies. Businessmen will be able to accept payment for their goods in PMNC and exchange it to any other cryptocurrency inside Paymon. In the future, the cryptocurrency will be exchangeable for fiat money. None of the exchanges will take any fees.
One more feature of the platform is the integrated cold wallets, which will provide the highest level of protection.
As a result, it is relevant to say that Paymon technologies have a lot in common with IOTA’s. Yes it is. But only in the name of a DAG project. As it was mentioned before, IOTA blockchain is more heavy and inconvenient to keep and also doesn’t have smart-contracts. Paymon is supposed to solve all of their existing issues.
Plus, Paymon, thanks to the platform Profit, will be used by a large number of people and will be more useful on the traditional market. The company took innovations and improved them, trying to make crypto-technologies closer to people and to everyday life. So after some time people will buy their coffee for ETH or BTC or already for PMNC.
Conclusion
Paymon is a distinctive and outstanding blockchain which can be called Blockchain 4.0. Believe it or not, Paymon will be a breakthrough in this Industry 4.0, which is bringing blockchain technology to everyone’s daily life. In the near future, Hive- Paymon’s blockchain will immerse into reality, take some of the most crucial payment responsibilities and act as a core element improve our lives as expected. Paymon is doing its ICO until June 13th, “join us and together we can change the world”
