Advantages of using E3 Net (written by Dr VK Liew)

3 min readOct 30, 2019

When we first conceptualised the blockchain network for E3T, the digital currency that will power E3Hubs, the world’s first digital economy platform for global entrepreneurs, Libra was not born yet. As E3Hubs is a closed-loop ecosystem, my team and I have decided that the E3 blockchain network has to be a private permissioned blockchain which only allows members to transact and interact.

In order to build a blockchain network, we need to adopt a consensus protocol. After conducting extensive research and many hours of brainstorming, we found that the Ethereum Proof of Authority (PoA) is the most suitable consensus protocol for the E3 blockchain. Hence, we decided to build a POA network as the blockchain architecture of E3T, known as E3 Net.

Why build E3 Net instead of using the Ethereum Mainnet?

We decided to build the E3 Net for the following reasons:

High Performance

Proof of Authority (POA) is a reputation-based consensus algorithm that introduces a practical and efficient solution for blockchain networks. POA is a new consensus algorithm family that provides high performance and fault tolerance. In addition, POA guarantees high transaction rates. Blocks are generated in a sequence at an appointed time interval by authorised network nodes. This increases the speed at which transactions are validated.

2. Highly Scalable

The POA Network only needs a finite number of block validators to verify the transactions, which is what makes it a highly scalable system. Blocks and transactions are verified by pre-approved validators who act as moderators of the network. In contrast, the Ethereum mainnet implements Proof of Work (PoW) consensus protocol which is slow, difficult to scale and requires an enormous amount of electricity.

3. Lower Cost

High-performance hardware is not required to maintain the POA Network. Compared to PoW consensus, POA consensus does not require nodes to spend computational resources for solving a complex mathematical puzzle. Besides that, transactions on POA network only require a small gas fee. In contrast, the Ethereum mainnet is expensive, as users have to pay high gas fees in ETH for every transaction on the Ethereum blockchain.

4. More Secure

Compared to the Ethereum mainnet, the POA Network has more tolerance for compromised and malicious nodes, as long as 51% of the nodes are not compromised. E3 Net implements a ban mechanism for nodes as a means of revoking block generation rights.

References

https://medium.com/@jacqshardy/transaction-fees-ethereum-poa-tron-3b9df742aa16

https://dgaming.com/media/what-is-poa-and-how-is-it-unique/

https://medium.com/@timdaub/why-you-shouldnt-ship-to-a-poa-network-7e2b5aa83aa9