Dolla Tech Update, 28th of March 2020
Dolla Community!
It is time for another one of our tech updates! Now, four weeks ago, in our first update that we’ve presented to you, we’ve spoken about two important properties of the Dolla cryptocurrency — namely, low latency, as well as high throughput. If you didn’t get the chance to read the article, I encourage you to do so before reading this one, as I will not be going over those terms here.
Here’s the link to it:
Dolla Tech Update — 1st of March, 2020
Thus, this article serves as a continuation of our reasoning behind why one should choose Dolla above other similar cryptocurrencies out there, such as Bitcoin, for instance.
Now, low latency and high throughput both assure the high performance of our system, as we’ve discussed before. We will now speak about what are known as decentralization and finality, which assure the *safety* and *security* of Dolla’s software system.
The concept of „centralization“ in the domain of currencies basically means having some form of central authority that calls the shots or has the final say with respect to what is transpiring within its system. The banking system is the perfect example for this — you should always remember that every time you are performing transactions through your bank, you are basically putting your trust in this specific authority. You are basically saying: „I trust my bank with being able to safely withhold and not tamper with my funds without a good reason to do so“.
Now, that may or may not be the case, depending on who your bank is, but the bottom line is the following: why base the safety of your entire life’s savings — the secondary blood that is maintaining your life, that is not your physical blood — your money — on trust, when you have the better option of a 100% guarantee that your funds are safe?
This is where Dolla’s quality of being *decentralized* comes into play. Decentralization means that there is *no* such central authority that has the ability to tamper with your funds at will. Instead, Dolla functions as a consortium-type blockchain system (for those of you that don’t yet know — a blockchain is basically a digital distributed ledger, a ledger being a physical book where all transactions from the past are being kept; a blockchain is thus central to most cryptocurrencies out there).
The consortium, which drives the secure advancement of the blockchain, is simply a group of people that have chosen to provide computational assistance to the building of the blockchain. Anyone is free to join the consortium, as long as the already-present members agree to that. The members of the consortium are selected such that there exists as much diversity as possible with respect to their geographical, political, religious, as well as cultural origins, in order to make consortium member collusion as unlikely and unfruitful as possible.
On top of that, these said consortium members’ identities are all public, which makes it very easy for them to be prosecuted accordingly should they decide to attempt disturbing the natural order of Dolla.
All of these aspects, and more, combined, make it extremely unlikely for any threat to the users to occur.
We now get to the second quality of Dolla’s system that ensures its safety — namely, finality.
Picture the following scenario: you want to buy a car, and you decide to use Bitcoin, or some similar cryptocurrency, in order to make the purchase. All is well and good for both you and the seller, until something unexpected happens…
Your seller calls you and claims that his/her Bitcoin, that you sent, is now gone! How could that have happened?!
The likely reason for that is that what is known as a „fork“ occurred on the Bitcoin blockchain. A fork is basically a copy of the blockchain, with a number of adjustments after a certain point. Forks are possible within the Bitcoin blockchain, as well as many others, that are based on the „Proof-of-Work“ consensus algorithm, which is the blueprint for how the blockchain itself should evolve in time.
In this case, we say that Bitcoin does *not* display finality.
This means that it is very possible, as in our previous hypothetical example with the purchase of our automobile, for certain transactions in the past to be undone — especially the ones that are the most recent. Not only is this a nuisance for any individual user, but also for the companies and traders out there that are seeking to make the use of cryptocurrencies within their business infrastructure.
Once again, this is where Dolla comes in for the rescue! Any transactions that occur within the Dolla blockchain are final and thus, set in stone. No transactions can be undone at any point in time, which makes it easy for any adopting trader to trust that the movement of his/her funds is secured, and it also makes it easy for you to sleep soundly at night, knowing that you won’t get a furious call from your car seller, claiming that you’ve stolen their money!
Phew! We’ve covered a *lot* of technical aspects in this article, but the bottom line is that Dolla provides both decentralization, and finality when it comes to its services. Both of these qualities allow for a much higher degree of security and protection against unwanted behavior and/or events with respect to each user’s particular usage scenario of the Dolla cryptocurrency.
We, the tech team of Dolla, are actively seeking to bring you the best experience when it comes to your usage of our platform!
That’s the end of this tech update — if you haven’t done so already, make sure to follow us on Facebook, Twitter and Telegram, to stay tuned for future updates! :)
